MBA 3rd em IRLW 1st unit

1. 1

2. UNIT I
Concepts - Importance – Industrial Relations
problems in the public sector - Growth of
Trade Unions – Codes of Conduct.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 2

3. Meaning /Concept
Industrial relations cover all such relationships that a
business enterprise maintains with various sections of
the society such as workers, state, customers and public
who come into its contact.
In the narrow sense, it refers to all types of
relationships between
1. Employer and Employees,
2. Trade union and Management,
3. Works and Union, and
4. Workers andWorkers.
It also includes all sorts of relationships at both formal and
informal levels in the organization.
Trade union :“A continuous association of wage-earners for the purpose
of maintaining or improving the condition of their working lives”.
3

4. Definition
J.T. Dunlop defines industrial relations as
“The complex interrelations among
managers, workers and agencies of the
governments”.
Dale Yoder “Industrial relations is the
process of management dealing with one or
more unions with a view to negotiate and
subsequently administer collective
bargaining agreement or labour contract”.
4

5. Importance
 It establishes industrial democracy
 It contributes to economic growth and development
 It improves morale of the work force
 It ensures optimum use of scare resources
 It discourages unfair practices on the part of both
management and unions
 It prompts enactment of sound labour legislation
 It facilitates change
5

6.  It establishes industrial democracy: It helps in establishing industrial
democracy in the organization which motivates them to contribute their
best to the growth and prosperity of the organization.
 It contributes to economic growth and development: Good industrial
relations lead to increased efficiency and hence higher productivity and
income. This will result in economic development of the economy.
 It improves morale of the work force: Good industrial relations, built-in
mutual cooperation and common agreed approach motivate one to
contribute one’s best, result in higher productivity and hence income,
give more job satisfaction and help improve the morale of the workers.
 It ensures optimum use of scare resources: Good and harmonious
industrial relations create a sense of belongingness and group-cohesiveness
among workers, and also a congenial environment
resulting in less industrial unrest, grievances and disputes. This will
ensure optimum use of resources, both human and materials,
eliminating all types of wastage.
6

7.  It discourages unfair practices on the part of both
management and unions: Industrial relations involve
setting up a machinery to solve problems confronted by
management and employees through mutual agreement to
which both these parties are bound. This results in banning
of the unfair practices being used by employers or trade
unions.
 It prompts enactment of sound labour legislation:
Industrial relations necessitate passing of certain labour
laws to protect and promote the welfare of labour and
safeguard interests of all the parties against unfair means or
practices.
 It facilitates change: Good industrial relations help in
improvement of cooperation, team work, performance and
productivity and hence in taking full advantages of modern
inventions, innovations and other scientific and
technological advances. It helps the work force to adjust
themselves to change easily and quickly.
7

8. Objectives
 To bring better understanding and cooperation between employers and
workers.
 To establish a proper channel of communication between workers and
management.
 To ensure constructive contribution of trade unions.
 To avoid industrial conflicts and to maintain harmonious relations.
 To safeguard the interest of workers and the management.
 To work in the direction of establishing and maintaining industrial
democracy.
 To ensure workers’ participation in decision-making.
 To increase the morale and discipline of workers.
 To ensure better working conditions, living conditions and reasonable
wages.
 To develop employees to adapt themselves for technological, social and
economic changes.
 To make positive contributions for the economic development of the
country. 8

9. Approaches of Industrial
Relations
Psychological
approach
Sociological
approach
Human relations
approach
9

10. Approaches of Industrial
Relations
 Psychological approach -The reasons of
strained industrial relations between the
employers and the employees can be
understood by studying differences in the
perception of issues, situations and persons
between the management groups and labour
groups.
10

11. Approaches of Industrial
Relations
 Sociological approach
The culture of the institutions, customs, structural
changes, status-symbols, rationality, acceptance or
resistance to change, tolerance etc.
 Human relations approach
The workers are likely to attain greater job
satisfaction, develop greater involvement in their
work and achieve a measure of identification of their
objectives with the objectives of the organization;
the manager, on their part, would develop greater
insight and effectiveness in their work
11

12. Industrial Relations problems in the public
sector
 Mental inertia on the part of management and labour;
 An intolerant attitude of contempt of contempt towards the
workers on the part of management.
 Inadequate fixation of wage or wage structure;
 Unhealthy working conditions;
 Indiscipline;
 Lack of human relations skill on the part of supervisors and
other managers;
 Desire on the part of the workers for higher bonus or DA and
the corresponding desire of the employers to give as little as
possible;
12

13. Industrial Relations problems in the public
sector
 Inappropriate introduction of automation without providing the
right climate;
 Unduly heavy workloads;
 Inadequate welfare facilities;
 Dispute on sharing the gains of productivity;
 Unfair labour practices, like victimization and undue dismissal;
 Retrenchment, dismissals and lock-outs on the part of
management and strikes on the part of the workers;
 Inter-union rivalries; and
 General economic and political environment, such as rising
prices, strikes by others, and general indiscipline having their
effect on the employees’ attitudes.
13

14. Principle of Good Industrial Relations
 The willingness and ability of management and trade unions to deal with
the problems freely, independently and with responsibility.
 Recognition of collective bargaining.
 Desirability of associations of workers and managements with the
Government while formulating and implementing policies relating to
general economic and social measures affecting industrial relations.
 Fair redressal of employee grievances by the management
 Providing satisfactory working conditions and payment of fair wage.
 Introducing a suitable system of employees education and training.
 Developing proper communication system between management and
employees.
 To ensure better working conditions, living conditions and reasonable
wages.
 To develop employees to adapt themselves for technological, social and
economic changes.
 To make positive contributions for the economic development of the
country. 14

15. TRADE UNION
Definition:
According to them a trade union is “a continuous
association of wage-earners for the purpose of
maintaining or improving the condition of their
working lives”.
Redefined as “a continuous association of wage-earners
or salaried employees for maintaining the
conditions of their working lives and ensuring them
a better and healthier status in industry as well as in
the society”.
15

16. Difference between Labour Movement and Trade Union
Movement
Sl.No Labour Movement Trade Union Movement
1 “For the worker” “By the workers”
2 Efforts were made
mainly by the social
reformers to improve
the working and living
conditions of labour.
Not that of the trade
union movement
3 A higher degree of
consciousness amongst
workers
Than conveyed by
mere trade union
movement.
16

17. The Trade Union Movement in
India
All-India Trade Union
Congress (AITUC) -1920
Mr. Nehru
Indian National Trade
Union Congress (INTUC)
-1937 Mr. M.N. Roy
Hind Mazdoor Sangha
(HMS) - `1948
Hind Mazdoor
Panchayat
United Trade Union
Congress (UTUC) -1949
17

18. Functions of Trade Unions
 Functions relating to members
 Functions relating to organization
 Functions relating to the union; and
 Functions relating to the society.
18

19. Functions relating to trade union
members
 To safeguard workers against all sorts of exploitation by the employers, by union leaders and
by political parties.
 To protect workers from the atrocities and unfair practices of the management.
 To ensure healthy, safe and conducive working conditions, and adequate conditions of work.
 To exert pressure for enhancement of rewards associated with the work only after making a
realistic assessment of its practical implications.
 To ensure a desirable standard to living by providing various types of social service – health,
housing, educational, recreational, cooperative, etc. and by widening and consolidating the
social security measures.
 To guarantee a fair and square deal and social security measures.
 To remove the dissatisfaction and redress the grievances and complaints of workers.
 To encourage worker’s participation in the management of industrial organization and trade
union, and to foster labour-management cooperation.
 To make the workers conscious of their rights and duties.
 To impress upon works the need to exercise restraint in the use of rights and to enforce them
after realistically ascertaining their practical implications.
 To stress the significance of settling disputes through negotiation, joint consultation and
voluntary arbitration.
 The raise the status of trade union members in the industrial organization and in the society
at large. 19

20. Functions relating to industrial
organization  To highlight industrial organization as a joint enterprise between workers and
management and to promote identity of interests.
 To increase production quantitatively and qualitatively, by laying down the
norms or production and ensuring their adequate observance.
 To help in the maintenance of discipline.
 To create opportunities for worker’s participation in management and to
strengthen labour-management cooperation.
 To help in the removal of dissatisfaction and redressal of grievances and
complaints.
 To promote cordial and amicable relations between the workers and
management by settling disputes through negotiation, joint consultation and
voluntary arbitration, and by avoiding litigation.
 To create favourable opinion of the management towards trade unions and
improve their status in industrial organization.
 To exert pressure on the employer to enforce legislative provision beneficial to
the workers, to share the profits equitably, and to keep away from various types
of unfair labour practices.
 To facilitate communication with the management.
 To impress upon the management the need to adopt reformative and not
punitive, approach towards workers’ faults.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 20

21. Functions relating to trade unions
organization  To formulate policies and plans consistent with those of the industrial organization and
society at large.
 To improve financial position by fixing higher subscription, by realizing the union dues
and by organizing special fund-raising campaigns.
 To preserve and strengthen trade union democracy.
 To train members to assume leadership position.
 To improve the network of communication between trade union and its members.
 To curb inter-union rivalry and thereby help in the creating of unified trade union
movement.
 To resolve the problem of factionalism and promote unity and solidarity within the union.
 To eradicate casteism, regionalism and linguism within the trade union movement.
 To keep away from unfair labour practices.
 To save the union organization from the exploitation by vested interests –personal and
political.
 To continuously review the relevance of union objectives in the context of social change,
and to change them accordingly.
 To prepare and maintain the necessary records.
 To manage the trade union organization on scientific lines.
 To publicise the trade union objectives and functions, to know people’s reaction towards
them, and to make necessary modifications.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 21

22. Functions relating to society
 To render all sorts of constructive cooperation in the formulation and
implementation of plans and policies relating to national development.
 To actively participate in the development of programmes of national
development, e.g., family planning, afforestation, national integration,
etc.
 To launch special campaigns against the social evils of corporation,
nepotism, communalism, casteism, regionalism, linguism, price rise,
hoarding, black marketing, smuggling, sex, inequality, dowry,
untouchability, illiteracy, dirt and disease.
 To create public opinion favourable to government’s policies and plans,
and to mobilize people’s participation for their effective implementation.
 To create public opinion favourable to trade unions and thereby to raise
their status.
 To exert pressure, after realistically ascertaining its practical
implications, on the government to enact legislation conducive to the
development of trade unions and their members.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 22

23. Problems of Trade Union
 The following are some of the most
important problems of the trade unions in
India:
 Multiplicity of Trade Unions and Inter-union
Rivalry
 Small Size of Unions
 Financial Weakness
 Leadership Issues
 Politicalisation of the Unions
 Problems of Recognition of Trade Unions
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 23

24. Growth of Trade Unions
 To secure for workers fair wages;
 to safeguard security of tenure and improved conditions of service;
 to enlarge opportunities for promotion and training;
 to improve working and living conditions;
 to provide for educational, cultural and recreational facilities;
 to cooperate in and facilitate technological advance by broadening the
understanding of workers on its underlying issues;
 to promote identity of interests of the workers with their industry;
 to offer responsible cooperation in improving levels of production and
productivity, discipline, and high standard of quality; and generally
 to promote individual and collective welfare”.
 In addition, “unions should also undertake social responsibilities such as
 promotion of national integration,
 influencing the socio-economic policies of the community through active
participation in the formulations of these policies, and
 instilling in their members a sense of responsibility towards industry and
community” P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 24

25. International Trade Union
Organisation
 World Federation of Trade Unions
(WFTU)
 World Confederation of Labour (WCL)
 International Confederation of Free
Trade Unions (ICFTU)
 International Labour Organisation (ILO)
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 25

26. 1. World Federation of Trade Unions (WFTU) -
founded in 1945 on a worldwide basis,
representing trade union organisations in more
than 50 Communist and Non-Communist
countries
1. Membership became uncertain;
2. Unions broke their links with the Communist
parties
3. Most were later accepted into the ICFTU.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 26

27. 2. World Confederation of Labour (WCL) -
Founded in 1920 as the International Federation
of Christian Trade Unions,
A much smaller international organisation, the
International Federation of Christian Trade
Unions (IFCTU), now called the WCL (World
Confederation of Labour), is made up largely of
Catholic labour unions in France, Italy and Latin
America.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 27

28. 3. International Confederation of Free Trade
Unions (ICFTU)- London in December 1949
1. To promote the interests of the working people
and
2. To secure recognition of worker’s organisation
as free bargaining agents;
3. To reduce the gap between rich and poor; and
4. To defend fundamental human and trade union
rights.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 28

29. 4. International Labour Organisation (ILO) -was set up in
1919 by the Versailles Peace Conference as an autonomous
body associated with the League of Nations, first
specialized agency of the United Nations in 1946 in
accordance with an agreement entered into between the two
organizations
1. Regulation of hours of work,
2. Prevention of unemployment,
3. Provision of an adequate living wage,
4. Protection of workers against sickness,
5. Disease, and injury arising out of employment,
6. Protection of children, young persons and women,
7. Protection of the interests of migrant workers,
8. Recognition of the principle of freedom of association,
and
9. Organisation of vocational and technical education
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 29

30. Codes of Conduct
A code of conduct is a set
of rules outlining the
responsibilities of or proper
practices for an individual,
party or organization.
Related concepts include
ethical codes and honor
codes.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 30

31. Codes of Conduct
 CHAPTER I.- Preliminary
 CHAPTER II.- The Inspecting Staff
 CHAPTER III.- Health
 CHAPTER IV.- Safety
 CHAPTER IVA.- Provisions relating to Hazardous
processes
 CHAPTER V.- Welfare
 CHAPTER VI.- Working hours of adults
 CHAPTER VII.- Employment of young persons
 CHAPTER VIII.- Annual leave with wages
 CHAPTER IX.- Special provisions
 CHAPTER X.- Penalties and procedure
 CHAPTER XI.- Supplemental
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 31

32. CHAPTER I.- Preliminary
 Section 1. Short title, extent and
commencement.
 Section 2. Interpretation.
 Section 3. Reference to time of day.
 Section 4. Power to declare different
departments to be separate factories or two or
more factories to be a single factory.
 Section 5. Power to exempt during public
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 32
emergency.
 Section 6. Approval, licensing and registration
of factories.
 Section 7. Notice by occupier.

33. CHAPTER II.- The Inspecting Staff
 Section 7A. General duties of
the occupier.
 Section 7B. General duties of
manufacturers, etc., as regards
articles and sub-stances for use
in factories.
 Section 8. Inspectors.
 Section 9. Powers of Inspectors.
 Section 10. Certifying Surgeons.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 33

34. CHAPTER III.- Health
 Section 11. Cleanliness.-
 Section 12. Disposal of wastes and
effluents.-
 Section 13. Ventilation and temperature.-
 Section 14. Dust and fume.-
 Section 15. Artificial humidification.-
 Section 16. Overcrowding.-
 Section 17. Lighting.-
 Section 18. Drinking water.-
 Section 19. Latrines and urinals.-
 Section 20. Spittoons.-
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 34

35. CHAPTER IV.- Safety
 Section 21. Fencing of machinery.-
 Section 22. Work on or near machinery in motion.-
 Section 23. Employment of young persons on dangerous machines.-
 Section 24. Striking gear and devices for cutting off power.-
 Section 25. Self-acting machines
 Section 26. Casing of new machinery.-
 Section 27. Prohibition of employment of women and children near cotton-openers
 Section 28. Hoist and lifts
 Section 29. Lifting machines, chains, ropes and lifting tackles.
 Section 30. Revolving machinery.
 Section 31. Pressure plant.
 Section 32. Floors, stairs and means of access.
 Section 33. Pits, sumps, openings in floors, etc.
 Section 34. Excessive weights.
 Section 35. Protection of eyes.
 Section 36. Precautions against dangerous fumes, gases, etc
 Section 36A. Precautions regarding the use of portable electric light.-
 Section 37. Explosive or inflammable dust, gas, etc.
 Section 38. Precautions in case of fire.
 Section 39. Power to require specifications of defective parts or tests of stability.
 Section 40. Safety of buildings and machinery
 Section 40A. Maintenance of buildings.
 Section 40B. Safety Officers.
 Section 41. Power to make rules Pto.S UsDuHpAp.,Alessmt peronf.,tD tOhMisS. ,CS.hA aEnpgtge Cr.o llege 35

36. CHAPTER IVA.- Provisions
relating to Hazardous
 Section 41A. Constitution of Site Appraisal
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 36
Committees.
 Section 41B. Compulsory disclosure of
information by the occupier
 Section 41C. Specific responsibility of the
occupier in relation to hazardous
processes.-
 Section 41D. Power of Central Government
to appoint Inquiry Committee.-
 Section 41E. Emergency standards.-
 Section 41F. Permissible limits of exposure
of chemical and toxic substances.-
 Section 41G. Workers' participation in
safety management.-
 Section 41H. Right of workers to warn
about imminent danger
Processes

37. CHAPTER V.- Welfare
 Section 42. Washing facilities
 Section 43. Facilities for storing and
drying clothing.-
 Section 44. Facilities for sitting.-
 Section 45. First-aid-appliances.-
 Section 46. Canteens.-
 Section 47. Shelters, rest-rooms and
lunch-rooms.-
 Section 48. Creches -
 Section 49. Welfare Officers. -
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 37

38. CHAPTER VI.- Working Hours
of Adults
 Section 51. Weekly hours.
 Section 52. Weekly holidays
 Section 53. Compensatory holidays.
 Section 54. Daily hours.
 Section 55. Intervals for rest
 Section 56. Spreadover.
 Section 57. Night shifts
 Section 58. Prohibition of overlapping shifts
 Section 59. Extra wages for overtime.
 Section 60. Restriction on double employment
 Section 61. Notice of periods of work for adults.
 Section 62. Register of adult workers.
 Section 63. Hours of work to correspond with notice under section
61 and register under section 62.
 Section 64. Power to make exempting rule.
 Section 65. Power to make exempting orders.
 Section 66. Further restriction on employment of women.
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 38

39. CHAPTER VII.- Employment
of Young Persons
 Section 67. Prohibition of employment of young
children.
 Section 68. Non-adult workers to carry tokens.
 Section 69. Certificate of fitness
 Section 70. Effect of certificate of fitness granted to
adolescent.
 Section 71. Working hours for children.
 Section 72. Notice of period of work for children.
 Section 73. Register of child workers.
 Section 74. Hours of work to correspond with notice
under section 72 and register under section 73.
 Section 75. Power to require medical examination
 Section 76. Power to make rules.
 Section 77. Certain other provisions of law not
barred
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 39

40. CHAPTER VIII.- Annual Leave
with Wages
 Section 78. Application of Chapter.-
 Section 79. Annual leave with wages.-
 Section 80. Wages during leave
periods.-
 Section 81. Payment in advance in
certain cases.
 Section 82. Mode of recovery of unpaid
wages.-
 Section 83. Power to make rules.-
 Section 84. Power to exempt factories.-
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 40

41. CHAPTER IX.- Special
Provisions
 Section 85. Power to apply the Act to certain
premises.
 Section 86. Power to exempt public institution.-
 Section 87. Dangerous operations.-
 Section 87A. Power to prohibit employment on
account of serious hazard.-
 Section 88. Notice of certain accident.-
 Section 88A. Notice of certain dangerous
occurrences.-
 Section 89. Notice of certain diseases. -
 Section 90. Power to direct inquiry into cases of
accident or disease.-
 Section 91. Power to take samples.-
 Section 9lA. Safety and occupational health surveys.-
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 41

42. CHAPTER X.- Penalties and
 Section 93. Liability of oPwnreroocf eprdemiusesrein certain
circumstances. -
 Section 94. Enhanced penalty after previous conviction.-
 Section 95. Penalty for obstructing inspector.-
 Section 96. Penalty for wrongfully disclosing results of analysis
under section 91.-
 Section 96A. Penalty for contravention of the provisions of
sections 41B, 41C and 41H.-
 Section 97. Offences by workers.-
 Section 98. Penalty for using false certificate of fitness.-
 Section 99. Penalty for permitting double employment of child.-
 Section 100.- Omitted by Act 20 of 1987
 Section 101. Exemption of occupier or manager from liability in
certain cases.-
 Section 102. Power of court to make orders.-
 Section 103. Presumption as to employment.-
 Section 104. Onus as to age.-
 Section 104A. Onus of proving limits of what is practicable, etc. –
 Section 105. Cognizance of offences.-
 Section 106. Limitation of prosecution.-
 Section 106A. Jurisdiction of a court for entertaining proceedings,
etc., for offence.-
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 42

43. CHAPTER XI.- Supplemental
 Section 107. Appeals.-
 Section 108. Display of notices.-
 Section 109. Service of notices.-
 Section 110. Returns.-
 Section 111. Obligations of workers.-
 Section 111A. Right of workers, etc.-
 Section 112. General power to make rules.-
 Section 113. Powers of Centre to give directions.-
 Section 114. No charge for facilities and conveniences.-
 Section 115. Publication of rules. -
 Section 116. Application of Act to Government factories.-
 Section 117. Protection of the persons acting under this Act.-
 Section 118. Restriction on disclosure of information.-
 Section 118A. Restriction on disclosure of information.-
 Section 119. Act to have effect notwithstanding anything
contained in Act 37 of 1970.-
 Section 120. Repeal and savings.-
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 43

44. THANK YOU
P.SUDHA.,Asst prof.,DOMS.,S.A Engg College 44