Class 19. industrial relation v7.0

Jon Boyes
Employability and Graduate Development
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Industrial Relation
Post Graduation Diploma in Human Resource Management
Industrial Relation

Industrial Relation
Industrial Relation
What is Industry

Industrial Relation
Any systematic activity carried on by
cooperation between employer & his
workmen (whether workmen are
employed directly or through an agency)
for the production, supply or distribution
of goods or services. or services with a
view to satisfy human wants or wishes
(not being wants or wishes which are
merely spiritual or religious in nature),
whether or not

Industrial Relation
But it does not include:
 Any agricultural operation
 Hospitals or dispensaries
 Educational, scientific, research or
training institutions
 Khadi or village industry
 Any domestic service
 Any profession practiced by an individual
if the number of persons employed by the
individual is less than ten
 Cooperative society employing less than
10 persons

Industrial Relation
Industrial Relation
What is IR

Industrial Relation
 The term ‘Industrial Relations’ comprises of two
terms: ‘Industry’ and ‘Relations’
 “Industry” refers to “any productive activity in
which an individual (or a group of individuals) is
(are) engaged”
 By “relations” we mean “the relationships that
exist within the industry between the employer
and his workmen”
 The term industrial relations explains the
relationship between employees and
management which directly or indirectly from
union-employer relationship

Industrial Relation
Players in IR
 Management/Employers
 Labours/Workers/Employees
 Labour Union
 Government/Regulator
A labor union also called a trade union,
is an organization that represents
the collective interests of workers
Disputes and Strikes
 Loss of pay for employees
 Loss of profits for employers
 Unhappy workers looking for new jobs

Industrial Relation
Industrial Relation
Importance of IR

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 Sound labour legislation
 Morale of the work force
 Eliminate unfair practices
 Industrial democracy
 Economic growth and development

Industrial Relation
Industrial Relation
The Industrial Disputes

Industrial Relation
DISPUTE/CONFLICT
Dispute/Conflict is inherent in
industrial relations today. Interest
of labour and management
usually opposes. Dispute can be
between employers & employers,
employers & workmen, workmen
& workmen
RESULT
The prevailing unrest, work
stoppages resulting strikes or
lock-outs, slowing down of
production etc.

Industrial Relation
Industrial Relation
Steps of Dispute Resolution

Industrial Relation
Collective Bargaining
Conciliation
Adjudication
Arbitration

Industrial Relation
Industrial Relation
Collective Bargaining

Collective Bargaining is a process in which
the representatives of a labor organization &
the representatives of business organization
meet and attempt to negotiate a contract or
agreement, which specifies the nature of
employee-employer union relationship.
Industrial Relation

Conjunctive/Distributive Bargaining
In this form of collective bargaining, both
the parties, the employee and the employer
try to maximize their respective gains. It is
based on the principle, “my gain is your
loss, and your gain is my loss” i.e. one party
wins over the other.
win – lose
Industrial Relation

Co-operative/Integrative Bargaining:
A cooperative approach aligns with the
process of interest-based or integrative
bargaining, which leads parties to be more
open to coming down from their high
expectation.
win – win
Industrial Relation

Industrial Relation
Industrial Relation
Conciliation

A third party e.g. Labor Relations
Commission, brings both parties together.
Industrial Relation

Industrial Relation
 Appropriate Govt. may appoint CO
 CO may be Labour officer (less than 20
workmen), Labour Commissioner or Deputy
Labour Commissioner (more than 20
workmen)
 CO helps both the parties to come to fair
and amicable settlement of dispute
 Send a report (proceedings- successful or
failed) to Govt. within 14 days of start of
proceedings
 After considering the Govt. may refer the
dispute to Labor court, Tribunal or national
tribunal
Conciliation Officer

Industrial Relation
Labour Commission
Conciliation Service- parties are
brought together, and are encouraged
to come up with a settlement
themselves
Advisory Service- LRC offers advice to
employers and employees on
Industrial relations matters
It appoints Rights Commissioners.
Investigates disputes concerning
individual workers or small group of
workers
It appoints equality officers.
Investigates disputes on issues of
equality and discrimination in the
workplace

Industrial Relation
Industrial Relation
Arbitration

A third party such as the Labor Court is
asked to make a decision, which the
disputing parties must agree to.
Industrial Relation

Industrial Relation
 The court is the last resort for
Arbitration
 Investigates disputes that cannot
be settled by Collective Bargaining
and Conciliation
Labour Court

Industrial Relation
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Adjudication

Government forces will come into picture.
Adjudication is the legal process by which
judge reviews evidence and argumentation,
including legal reasoning set forth by
opposing parties to come to a decision which
determines rights and obligations between
the parties involved.
Industrial Relation

Industrial Relation
Industrial Relation
Trade Union

Industrial Relation
 An organisation formed by workers
to protect the interests of their
members
 Negotiate wages and salaries
 Negotiate work conditions
 Greater job security if union is
powerful
 Increased bargaining power, one
voice for all worker
 Protection against discrimination or
unfair dismissal

Industrial Unions
Members work in the
same industry e.g. Indian
Banks' Association,
Trained Nurses'
Association of India
Industrial Relation
General Unions
Members come from a
variety of occupations e.g.
SIPTU (Services, Industrial,
Professional and Technical
Union)
White Collar Unions
Members are usually
professional e.g. teachers
unions ASTI, TUI, INTO

Industrial Relation
Industrial Relation
Designation of
Workers by Collar Color

Industrial Relation
White administration and management, managerial position
Blue working class who performs manual work
Pink working class who performs in the service industry
Gold highly skilled professionals- chartered accountants, surgeons, lawyers
Red government workers of all types
Grey skilled technicians, information technology workers
Green workers in a wide range of professions in environment and renewable energy
Orange prison labourers
Black manual laborers in mining or oil-drilling

Industrial Relation
Industrial Relation
Strike and Lock Out

STRIKE
A concerted and temporary
cession of work by workers with a
view to furthering or protecting
their interests and rights an
securing a fulfilment of their
specific demands
Industrial Relation

LOCKOUT
Temporary closing of place of
employment or the suspension of
work or refusal by an employer to
continue to employ any number of
persons employed by him or her
Industrial Relation

Authorized Strike
Only when union has given consent
Industrial Relation

Unauthorized Strike or Wild Cat Strike
Without the approval of the union. Strike
by a section of workmen on the spur of
moment without any formal preparation,
any formal notice to the employer or
consent of relevant unions.
Industrial Relation

General Strike
Wide coverage. Depending on
strike confined to city, or industries
Industrial Relation

Particular Strike
Limited in scope, confined to single
plant or few plants and to a single
trade or occupation in a particular
town or city.
Industrial Relation

Sympathetic Strike
Conducted out of sympathy for the
cause of another group whether
on strike or not.
Industrial Relation

Gherao
Involves confinement of authorities in
their offices by workers to exert
pressure on management to accept
their demands
Industrial Relation

Slow Down Strike
workers do not stop working,
rather they slow down the pace of
work
Industrial Relation

Quickie Strike
Workers remain in their place of
work, but they stop work for a
brief period for few minutes or
hours.
Industrial Relation

Sit Down strike
Workers remain in their place of
work but they do not work.
Duration is long as compared to
quickie.
Industrial Relation

Industrial Relation
Industrial Relation
Industrial Dispute Act 1947

Industrial Relation
 The Act extends to the whole of India and regulates Indian labour law so far as that
concerns trade unions as well as Individual workman employed in any Industry within the
territory of Indian mainland.

Industrial Relation
 The objective of the Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by
conciliation, arbitration and adjudication machinery which is provided under the statute.

Industrial Relation
 The main and ultimate objective of this act is "Maintenance of Peaceful work culture in
the Industry in India" which is clearly provided under the Statement of Objects & Reasons
of the statute.

Industrial Relation
 The laws apply only to the organised sector. Chapter V talks about the most important
and often in news topic of 'Strikes and Lockouts'.

Industrial Relation
 It talks about the Regulation of strikes and lockouts and the proper procedure which is to
be followed to make it a Legal instrument of 'Economic Coercion' either by the Employer
or by the Workmen.

Industrial Relation
 Chapter V-B, introduced by an amendment in 1976, requires firms employing 300 or
more workers to obtain government permission for layoffs, retrenchments and closures.
A further amendment in 1982 (which took effect in 1984) expanded its ambit by reducing
the threshold to 100 workers.

Industrial Relation
The Act also lays down:
 The provision for payment of compensation to the workman on account of closure or lay
off or retrenchment.
 The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
 Unfair labour practices on part of an employer or a trade union or workers.

Industrial Relation
 The Act extends to whole of India and applies to every Industry and its various industrial
establishment carrying on any business, trade, manufacture or distribution of goods and
services irrespective of the number of workmen employed therein.
 Every person employed in an establishment for hire or reward including contract
labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled,
technical, operational or supervisory work, is covered by the Act.

Industrial Relation
 This Act though does not apply to persons mainly in managerial or administrative
capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m. or
executing managerial functions and persons subject to Army Act, Air Force and Navy Act
or those in police service or officer or employee of a prison.

Industrial Relation
Industrial Relation
Minimum Wages Act 1948

Industrial Relation
 The Minimum Wages Act was formulated to
provide for fixing minimum rates of wages in
certain employments.
 The Act also governs certain service
conditions such as working hours, weekly
rest days and payment of overtime for
employees covered under the act.

Industrial Relation
 The Minimum Wages Act extends to whole
of India and applies to all establishments
employing one or more persons and
engaged in any of scheduled employments.
 It covers every employee who is engaged in
any scheduled employment, including an out
worker to whom materials are given out for
manufacturing or processing at his own
premises.

Industrial Relation
 In India, minimum wages are declared by the
Central Government for industries where the
Central Government is the appropriate
authority, and by each State for other
industries.
 Any employee covered who works for more
than the prescribed number of hours in any
day is entitled to wages at double the
ordinary rate of wages.

Industrial Relation
Industrial Relation
Factories Act 1948

Industrial Relation
 The Factories Act,1948, as amended by
the Factories (Amendment) Act, 1987,
serves to assist in formulating national
policies in India with respect
to occupational safety and health in
factories and docks in India.
 It deals with various problems concerning
safety, health, efficiency and well-being of
the persons at work places.

Industrial Relation
 The Act is administered by the Ministry of
Labour and Employment in India through its
Directorate General Factory Advice Service &
Labour Institutes (DGFASLI) and by the State
Governments through their factory
inspectorates.
 DGFASLI advices the Central and State
Governments on administration of the
Factories Act and coordinating the factory
inspection services in the States.

Industrial Relation
The Act is applicable to any factory
whereon ten or more workers are
working, or were working on any day of
the preceding twelve months, and in any
part of which a manufacturing process is
being carried on with the aid of power,
or is ordinarily so carried on, or whereon
twenty or more workers are working, or
were working on any day of the
preceding twelve months, and in any
part of which a manufacturing process is
being carried on without the aid of
power, or is ordinarily so carried on; but
this does not include a mine, or a mobile
unit belonging to the armed forces of the
union, a railway running shed or a hotel,
restaurant or eating place.

Industrial Relation
Various provisions are described in the acts
 The Inspecting Staff, Health, Safety, Provisions relating to Hazardous processes
 Welfare & Grievance, Working hours of adults, Employment of young persons
 Annual leave with wages, Special provisions, Penalties and procedure

Industrial Relation
Industrial Relation
Contract Labour Act 1970

Industrial Relation
 The Object of the Contract Labour Regulation and Abolition) Act, 1970 is to prevent
exploitation of contract labour and also to introduce better conditions of work.
 A workman is deemed to be employed as Contract Labour when he is hired in connection
with the work of an establishment by or through a Contractor.
 Contract workmen are indirect employees.

Industrial Relation
 Contract Labour differs from Direct Labour in terms of employment relationship with the
establishment and method of wage payment.
 Contract Labour, by and large is not borne on pay roll nor is paid directly.
 The Contract Workmen are hired, supervised and remunerated by the Contractor, who in
turn, is remunerated by the Establishment hiring the services of the Contractor.

Industrial Relation
 The Act enjoins Joint and Several
responsibility on the Principal Employer
and the Contractor. The Principal
Employer should ensure that the
Contractor does the following:
 Pays the wages as determined by the
Government, if any, or;
 Pays the wages as may be fixed by the
Commissioner of Labour.
 In their absence pays fair wages to
contract labourer.
 Maintains various registers and records,
displays notices, abstracts of the Acts,
Rules etc.
 Issues employment card to his workmen,
etc.

Industrial Relation
 Provides the following facilities:
 Canteen (if employing 100 or more
workmen in one place) and if the work is
likely to last for 6 months or more.
 Rest rooms where the workmen are
required to halt at night and the work is
likely to last for 3 months or more.
 Requisite number of latrines and urinals -
separate for men and women.
 Drinking water.
 Washing.
 First Aid.
 Crèche

Industrial Relation
Checklist For Principal Employer
 Registration of the Establishment.
 Display of the following notices rate of wages,
hours of work, wage period, date of payment of
wages, date of payment of unpaid wages and
name and address of the inspector having
jurisdiction.
 Maintenance and Preservation of Register of
Contractor.
 Filing of Return of Commencement and
Completion of the Contract
 Filing of Annual Return.
 Supervising the responsibilities of Contractor to
avoid enjoining of the liabilities.
 Ensure provision that facilities of Canteen,
Drinking Water, Washing, Rest Room, Latrines
and Urinals, First Aid, Crèche are provided by the
Contractor.

Industrial Relation
Checklist For Contractor
 Licensing.
 Renewal of the License.
 Maintenance and Preservation of Register of
Persons employed, Muster Roll, Register of
wages, Register of Fines, Register of Deductions
for damages or loss, Register of advances,
Register of overtime.
 Display of Notice rate of wages, hours of work,
wage period, date of payment of wages, date of
payment of unpaid wages and name and
address of the inspector having jurisdiction.
 Provide facilities of Canteen, Drinking Water,
Washing, Rest Room, Latrines and Urinals, First
Aid, Crèche.
 Employment card.
 Service Certificates.
 Half yearly return.

Industrial Relation
Industrial Relation
Class Activity

Industrial Relation
Industrial Dispute Handling Process
All students will be asked to design step by step dispute handling process for a
garment manufacturing industry.
Group Activity: 30 min

Class 19. industrial relation v7.0

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Class 19. industrial relation v7.0