Month: October 2020

Industrial relations are human relations in industry. The importance of the human factor in an industrial organisation is beyond question. Better management of industrial relations in an industry is a sine qua non for the success of the industrial concern. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate the lot of the masses.

Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. It does not require much prudence to realise that in industry the human factor is most important; everywhere in production, man is needed, no matter how sophisticated machinery have been installed.

Interacting between management and workers and between worker and worker are regular features in industry and these constitute industrial relations. So, the importance of industrial relations in industry is self-evident and does not need any elucidation.

Industrial peace must be maintained at any cost to ensure better performance in industry. Industrial relations should be so maintained that it would contribute to increased productivity. Industrial relations have their impact not only on the industrial unit but also on the society.

Industrial friction may inflict lasting injury on the workers. It may affect their careers. Families of workers are likely to suffer which must have repercussion on the society as a whole. Industrial unrests and conflicts foment class-hatred, embitter mutual relations, and put a hurdle in the development of the society and the nation.

As S. C. Kuchhal rightly put it, “the larger the range they cover and the more fundamental the commodities or services they are associated with, the more marked is their influence and damage”. So, there is the impact of industrial relations not only on the economy of a country but also on its society and culture.

In a conflict between the workers and the em­ployer, it is not the fact that only one of the par­ties suffer, usually the workers. A close watch will reveal that it becomes a vital concern for the com­munity also. It has been rightly emphasised that “in the heat of the daily conflict, workers and em­ployers are apt to forget that they are only two limbs of the body politic and that there is always a third partner, in fact, the most dominant part­ner, namely, the community at large, to be reck­oned with”.

So, to ensure social justice, industrial relations play a dominant role and thus the impor­tance of industrial relations has been gaining more and more importance. Industrial relations contrib­ute to world peace. Peace in industry is a powerful factor for good international relations.

Class strug­gles and class antagonisms have been responsible for bloody revolutions in the past, threatening world peace. When the entire world is striving for material well-being and when the nations of the world are moving in a planned way for industrial development; industrial relations are naturally drawing more and more attention. The recognition of the human factor in production as the supreme one puts a premium on the importance of industrial relations.

All the world over, the Government of different countries wedded to the policy of doing wel­fare to the people of the country are passing labour legislations with provisions for sufficient scope of ushering in industrial peace through vari­ous reconciliatory devices.

Importance of Industrial Relations with the Need for Industrial Peace

There has been a phenomenal growth in employment, wages, benefits, working conditions, status of the worker, educational facilities etc. with the growth and spread of industry. Moreover, career patterns have also changed widely by providing change for wide varieties of jobs to the working communities. This has been possible only through fast industrial development which, in its turn, depends on industrial peace.

There has been an acute necessity in India especially during the post-independence period, to industrialise her economy in order to tackle the multifarious socio-economic problems. In the words of Pandit Jawaharlal Nehru ‘The alternative (to industrialisation) is to remain in a backward, under-developed, poverty-stricken and a weak country. We can’t even retain our freedom without industrial growth.”

Hence, one of the main goals of the Five-Year Plans in India has been rapid industrialisation and more employment in secondary and tertiary industries. It is also viewed that one of the essential steps for building up an economically free and self-sustaining India is, large- scale industrialisation at a rapid and steady growth.

With the attainment of independence and with the launching of planning era, serious and earnest efforts have been made towards rapid economic development of India. India has been in the midst of an ambitious and critically important effort to raise the living standards of her people by an integrated… industrial and economic development plan. The size of industrial labour in India has increased remarkably due to rapid and planned industrial development.

The increase in industrial labour led to the formation and development of trade unions and various social groups. It has also been recognised that management without labour would be sterile and labour without management would be disorganised, ill-equipped and ineffective.

It is realised that the concrete co­operation between labour and management is highly essential to fulfill the individual, organisation and national goals. The First Five Year Plan has clearly demonstrated the fact that, an economy organised for planned production and distribution, aiming at the realisation of social justice and the welfare of masses can function effectively only in an atmosphere of industrial peace.

All these necessitate the maintenance of harmonious industrial relations so as to maintain higher productivity to fulfill the goals of the Five Year Plans in India. The investment in and the scope of industries in India have been growing plan after plan. Much of the success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious employee-employer relations. Frequent industrial conflicts not only affect the management and labour but also tend to impoverish the community as a whole.

They lead to wastage, class hatred, embitter mutual relations and inflict damages on the progress of the nation. They affect production and national income in an adverse manner. They also clog the progress the nation. They affect production and national income in an adverse manner. They also clog the progress and development of the nation. Further, it is not an exaggeration to say that if we are successful in industry the answer to class-antagonisms and world conflicts becomes easier.

Need for Industrial Peace:

The objectives of maintenance of industrial peace is not only to find out ways and means to solve conflicts or to settle differences but also to secure the unreserved co-operation of and goodwill among different groups in industry with a view to drive their energies and interest towards economically viable, commercially feasible, financially profitable and socially desirable channels.

It also aims at the development of a sense of mutual confidence, dependence and respect and at the same time encouraging them to come to closer to each other for removing misunderstandings, redressing grievances, if any, in a peaceful atmosphere and with open mind and fostering industrial pursuits for mutual benefits and social progress. But the maintenance of congenial industrial relations, particularly in a democratic society like ours is not only a significant task but also a complicated one.

The healthy industrial relations are key to the progress and success.

Their significance may be discussed as under:

1. Reduction in Industrial Disputes:

Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting cooperation and increasing production.

2. Uninterrupted Production:

The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilised, resulting in the maximum possible production. There is uninterrupted flow of income for all.

Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

3. High Morale:

Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e., to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realise that the gains of industry are not for him along but they should be shared equally and generously with his workers.

In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty cooperative efforts alone can produce great results.

4. Mental Revolution:

The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy.

Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognised. On the other hand, workers must recognise employer’s authority. It will naturally have impact on production because they recognise the interest of each other.

5. Reduced Wastage:

Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work.

An economy organised for planned production and distribution, aiming at the realisation of social justice and welfare of the masses can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labour.

Workers’ participation in management may take the form of ascending or descending participation. In ascending participation an opportunity is given to the workers to participate in the decision-making process at a higher level.

Forms of Workers’ Employees’ Participation in Management are:

(I) Works, Committee;

(II) Joint Management Councils;

(III) Joint Councils;

(IV) Shop Councils; and

(V) Unit Councils.

(I) Works’ Committees:

The Industrial Disputes Act, 1949 provides for the setting up of works, committees as a scheme of workers participation in management which consist of representatives of employers and employees. The Act provides for these bodies in every undertaking employing 100 or more workmen.

The aim of setting up of these bodies is to promote measures for maintaining harmonious relations in the work place and to sort out differences of opinion in respect of matters of common interest to employers and employees. The Bombay Industrial Relations Act, 1946 also provides for these bodies, but under the provisions of this Act they can be set up only in units which have a recognised union and they are called joint committees. The workers directly elect their representatives where there is no union.

Functions:

These works committees/joint committees are consultative bodies. Their functions include discussion of conditions of work like lighting, ventilation, temperature, sanitation etc., and amenities like water supply for drinking purposes, provision of canteens, medical services, safe working conditions, administration of welfare funds, educational and recreational activities, and encouragement of thrift and savings.

It shall be the duty of the works committee to promote measures for securing and preserving amity and good relations between the employers and workmen and to comment upon matters of their common interest or concern and endeavour to reconcile any material difference of opinion in respect of such matters.

Structure:

The works committees have, as office bearers, a President, a Vice-President, a Secretary and a Joint Secretary. The President is a nominee of the employer and the Vice- President is the Workers’ representative. The tenure of these bodies is two years. The total strength of these bodies should not exceed 20. The employees’ representatives have to be chosen by the employees.

These committees functioned actively in some organisations like Tata Iron and Steel Company, Indian Aluminium Works at Belur, and Hindustan Lever. In all these, the managements have evolved joint committees independently of the statutory requirements.

(II) Joint Management Councils (JMCs):

The Second Five Year Plan recommended the setting up of joint councils of management consisting of representatives of workers and management. The Government of India deputed a study group (1957) to study the schemes of workers’ participation in management in countries like U.K., France, Belgium and Yugoslavia.

The report of the study group was considered by the Indian Labour Conference (ILC) in its 15th session in 1957 and it made certain recommendations:

(1) That workers’ participation in management schemes should be set up in selected undertakings on a voluntary basis.

(2) A sub-committee consisting of representatives of employers, workers and government should be set up for considering the details of workers’ participation in management schemes. This Committee should select the undertakings where workers’ participation in management schemes would be introduced in the first stage on an experimental basis.

Objectives:

The objectives of Joint Management Councils are as follows:

(i) To increase the association of employers and employee thereby promoting cordial industrial relations;

(ii) To improve the operational efficiency of the workers;

(iii) To provide welfare facilities to them;

(iv) To educate workers so that they are well equipped to participate in these schemes; and

(v) To satisfy the psychological needs of workers.

A tripartite sub-committee was set up as per the recommendations of Indian Labour Conference which laid down certain criteria for selection of enterprises where the JMCs could be introduced.

They are:

(i) The unit must have 500 or more employees;

(ii) It should have a fair record of industrial relations;

(iii) It should have a well organised trade union;

(iv) The management and the workers should agree to establish JMCs.

(v) Employers (in case of private sector) should be members of the leading employers’ organisation; and

(vi) Trade unions should be affiliated to one of the Central federations.

It was observed by the sub-committee that if the workers and employers mutually agree they can set up JMCs even if these conditions are not met.

The sub-committee also made recommendations regarding their composition, procedure for nominating workers’ representatives, the membership of JMCs etc. The details of these aspects have to be worked out by the parties themselves. A draft model was drawn up regarding the establishment of JMCs. The sub-committee was later reconstituted as the “Committee on Labour- Management Co-operation” to advice on all matters pertaining to the Scheme.

Criteria for Selecting of Units for Setting up of JMCS:

The sub-committee of the Fifteenth Indian Labour Conference which selected 48 units for introduction of the scheme of joint management council had laid down the following criteria for selecting the units-

In private sector, the industries selected were cotton and jute textiles, engineering, chemicals, tobacco, paper, cement, mines and plantations.

In public sector, industries included railway workshops and yards, posts and telegraphs, ports, shipyards, transport workshops, mines, printing and electrical undertaking.

(i) The undertaking should have a well-established, strong trade union functioning.

(ii) There should be a readiness in the parties between employers’ and workers’ union to try out experiment in a spirit of willing co-operation.

(iii) The size of the undertaking should be at least 500 workers.

(iv) The employer in a private undertaking should be member of one of the leading employers’ organisation; and similarly the trade union be related to one of the central federations.

(v) The company should have a fair record of industrial relations.

Functions:

The following are the important functions of JMCs:

(i) To be consulted on matters like standing orders, retrenchment, rationalisation, closure, reduction of operations etc.

(ii) To receive information, to discuss and offer suggestions.

(iii) To shoulder administrative responsibilities like maintaining welfare measures, safety measure, training schemes, working hours, payment of rewards.

Employees’ Participation in Management Scheme of 1975:

Government of India on 30th October, 1975, announced a scheme of workers’ participation in management which consisted of establishment of Joint Councils and Shop Council as part of its 20 point economic programme. The scheme envisages for the establishment of joint councils and shop councils in manufacturing and mining industries employing 500 or more employees in public, private and cooperative sectors.

The scheme contemplated participation of workers in the decision-making process in the matters relating to production, productivity, absenteeism, safety measures, general discipline, working conditions and welfare, and over-all efficiency of the shop/department.

Important features of this new scheme are:

(1) All decisions of a Shop Council as well as of the Joint Council shall be on the edifice of the “Consensus and not by process of voting.”

(2) It is non-statutory like JMCs and there is a clear-cut function of these councils.

(3) “Consensus and time-bound implementation” are the tools for arriving at decisions. Thus, the scheme tries to eliminate the chances of direct interference by outside elements. The decisions are required to be implemented within one month.

(4) The scheme provides for participation of workers at the shop floor level; otherwise the framework is not materially different from that of WCs. and JMCs.

(5) It provides for a two-way communication and an exchange of information between the management and the workmen.

(6) The very change in the nomenclature of the scheme from participation of workers in management’ to that of participation of workers in industry’ makes it more acceptable to employees as the latter are likely to offset some of their misgivings and apprehensions caused by the former.

(7) The scheme hits at three principal objectives to which the reform of industrial democracy is directed, viz., recovery of individual human rights at the work place; consolidation of social and political freedom (to join a particular union of his own choice without any coercion); and the framing of new industrial system functionally suitable to the country’s economy.

(III) Joint Councils:

The joint councils are for the whole unit and its membership remains confined to those who are actually engaged in the organisation. The tenure of the joint councils is for two years. The Chief Executive of the unit becomes its Chairman. Workers’ members of the council nominate the Vice Chairman. The joint council appoints the Secretary. The Secretary is responsible for discharging the functions of the council.

The joint councils will meet once in four months, but the periodicity of the meeting varies from unit to unit, it may be once in a month, quarter etc. The decisions taken at the joint council meetings are by the process of consensus and the management shall implement the decisions within one month. The scheme was implemented by the major units of the central and State governments. The government enlarged the functions of the councils in 1976.

In every industrial unit employing 500 or more workers, there shall be a Joint Council for the whole unit.

The main features of the scheme of Joint Council may be as follows:

(i) Only such persons who are actually engaged in the unit shall be members of the joint council.

(ii) The council shall function for a period of two years.

(iii) The Chief Executive of the unit shall be the Chairman of the joint council and there shall be a Vice-Chairman who will be nominated by worker-members of the council.

(iv) The joint council shall appoint one of the members of the council as its Secretary. Necessary facilities for the efficient discharge of function by the Secretary shall be provided with the premises of the undertaking/establishment.

(v) The term of council once formed shall be for a period of two years; if, however, a member is nominated in the mid-term of the council to fill a casual vacancy, the member nominated to such a vacancy shall continue in office for the remaining period of the term of the council.

(vi) The joint council shall meet, at least, once in a quarter.

(vii) Every decision of the joint council shall be on the basis of consensus and not by a process of voting and shall be binding on employers and workmen and shall be implemented within one month unless otherwise stated in the decision itself.

Functions of Joint Council:

The joint council should deal with matters relating to:

(i) Optimum production, efficiency and fixation of productivity norms of man and machine for the unit as a whole.

(ii) Functions of a shop council which have a bearing on another shop or the unit as a whole.

(iii) Matters emanating from shop councils which remain unresolved.

(iv) Matters concerning the unit or the plant as a whole, the respect of production targets; more specifically, task assigned to a shop council at the shop/department levels but relevant to the unit as a whole will be taken up by the joint council.

(v) The development of skills of workmen and adequate facilities for training.

(vi) Awarding of rewards for valuable and creative suggestions received from the workers.

(vii) The preparation of schedules of working laws and of holidays.

(viii) Optimum use of raw materials and quality of finished products.

(ix) General health, welfare and safety measures for the unit of the plant.

(IV) Shop Councils:

The shop council represents each department or a shop in a unit. Each shop council will consist of an equal number of representatives of employers and workers. The employers’ representatives will be nominated by the management and must consist of persons from within the unit concerned.

The workers representative will be from among the workers of the department or shop concerned. The number of members of each council may be determined by the employers in consultation with the recognised union. The total number of members, however, may not generally exceed twelve.

The decisions of the shop council are to be taken on the basis of consensus but not by voting. Management has to implement the decisions within one month. The tenure of the shop council is for a period of two years. Members of the shop councils meet at least once in a month. Management nominates the Chairman at least once in a month. Management nominates the Chairman of the shop council whereas workers’ members of the council elect the Vice- chairman of the council.

The number of shop councils to be established in an organisation is determined by the employer in consultation with the recognised trade unions/workers of the organisation. The decisions of a shop council which have a bearing on another shop will be referred to joint council for consideration and approval.

Main Features:

The main features of the scheme of Participative Management through Shop Councils are as follows:

(i) In every industrial unit employing 500 or more workmen, the employer shall constitute a Shop Council for each department or shop or one council for more than one department or shop, considering the number of workmen employed in different departments or shops.

(ii) (a) Each council shall consist of an equal number of representatives of employers and workers.

(b) The employer’s representatives shall be nominated by the management and must consist of persons from the unit concerned.

(c) All the representatives of workmen shall be from amongst the workers actually engaged in the department of the shop concerned.

(iii) The employer shall decide in consultation with the recognised union or the various registered trade unions or with workers, as the case may be, in the manner best suited to local conditions, the number of shop councils and departments to be attached to each council of the undertaking or establishment.

(iv) The number of members of each council may be determined by the employer in consultation with the recognised union, registered unions or workers in the manner best suited to local conditions obtaining in the unit; the total number of members may not generally exceed

(v) All decisions of a shop council shall be on the basis of consensus and not by process of voting, provided that either party may refer the unsettled matters to the joint council for consideration.

(vi) Every decision of a shop council shall be implemented by the parties concerned within a period of one month unless otherwise stated in the decision itself and compliance report shall be submitted to the council.

(vii) Such decision of a shop council which have bearing on another shop, or the undertaking of establishment as a whole will be referred to the joint council for consideration and decision.

(viii) A shop council once formed shall function for a period of two years. Any member nominated or elected to the council in the mid-term to fill a casual vacancy shall continue to be a member of the council for the unexpired portion of the term of the council.

(ix) The council shall meet as frequently as in necessary and that at least once in a month.

(x) The chairman of the shop council shall be a nominee of the management; the worker members of the council shall elect a Vice-Chairman from amongst themselves.

Functions of the Shop Councils:

The shop councils should in the interest of increasing production, productivity and overall efficiency of the shop department attend to the following matters:

(i) Assist management in achieving monthly/yearly production targets.

(ii) Improvement of production, productivity and efficiency including elimination of wastage and optimum utilisation of machine capacity and manpower.

(iii) Specially identify areas of low productivity and take necessary corrective steps at shop level to eliminate relevant contributing factors.

(iv) To study absenteeism in the shop/departments and recommend steps to reduce them.

(v) Safety measures.

(vi) Assist in maintaining general discipline in the shop/department.

(vii) Physical conditions of working, such as lighting, ventilation, noise, dust, etc., and reduction on fatigue.

(viii) Welfare measures to be adopted for efficient running of the shop/department.

(ix) Ensure proper flow of adequate two-way communication between the management and the workers, particularly on matters relating to production schedules and progress in achieving the targets.

(V) Unit Councils:

Encouraged by the success of the scheme in manufacturing and mining units, a new scheme of workers’ participation in management in commercial and service organisation in the public sector, having large-scale public dealings, was announced on 5th January, 1977. The Scheme envisaged setting of Unit Councils in units employing at least 100 persons.

The organisations include hotels, restaurants, hospitals, air, sea, railway and road transport services, ports and docks, ration shops, schools research institutions, provident fund and pension organisations, municipal and milk distribution services, trust organisations, all financial institutions, banks, insurance companies, post and telegraph offices, Food Corporation, State Electricity Boards, Central Warehousing, State Warehousing Corporations, State Trading Corporation, Mines and Minerals Trading Corporation, irrigation systems, tourist organisations, establishment for public amusement and training organisations of the Central and State Governments.

The scheme provides for unit level councils. These councils are to eliminate factors which hamper operations and improve methods of operation.

The main functions of the councils include creation of conditions for achieving optimum efficiency, better customer service in areas where there is direct and immediate contact between the workers at the operational level and the consumer, higher productivity, the elimination of pilferage and all forms of corruption, and the institutions of rewards to be given to those with proven ability in these areas.

Main Features of the New Scheme:

The main features of the scheme of workers’ participation through unit level councils would be as follows:

(i) A unit level council consisting of the workers and management of the organisation/ service may be formed generally in each unit, employing 100 or more workers to discuss day-to-day problems and find solutions; but wherever necessary a composite council may be formed to serve more than one unit or a council may be formed department-wise to suit the particular needs of an organisation/service.

(ii) Every unit council shall consist of an equal number of representatives of the management and workers. The actual number of members should be determined by the management in consultation with the recognised union, registered unions or the workers in the manner best suited to the local conditions obtaining in a unit or an organisation, but their total number may not exceed.

It would be necessary to nominate suitable and experienced workers from various departments irrespective of their cadre, affiliation or status, and not trade union functionaries who may not be actually working in the unit.

(iii) The management’s representatives should be nominated by the management and should consist of persons from the unit concerned.

(iv) The management shall decide in consultation with the recognised union or the registered unions or the workers as the case may be in the manner best suited to local conditions.

The number of unit councils and the departments to be attached to each council of the organisation/service.

(v) All decisions of a unit council shall be on the basis of consensus and not by a process of voting, provided that either party may refer the unsettled matters to the joint council for consideration.

(vi) Every decisions of a unit council shall be implemented by the parties concerned within a month, unless otherwise stated in the decision itself.

(vii) The management shall make suitable arrangement for the recording and maintenance of minutes of the meetings and designate one of its representatives as a secretary for this purpose who shall also report the action taken on the decisions at subsequent meetings of the council.

(viii) Such decisions of a unit council, which have a bearing on another unit of the organisation/ service as a whole shall be referred to the joint council for consideration and decisions.

(ix) A unit council once formed shall function for a period of two years. Any member nominated or elected to the council in the mid-term to fill a casual vacancy shall continue to be a member of the council for the unexpired portion of the term of the council.

(x) The council shall meet as frequently as is necessary but at least once in a month.

(xi) The Chairman of the council shall be a nominee of the management. The worker members of the council shall elect a Vice-Chairman from amongst themselves.

Main Functions:

The main functions of the Unit Councils may be:

(i) To create conditions for achieving optimum efficiency, better customer service in areas where there is direct and immediate contact between workers at the operational level and the consumer, higher productivity and output including elimination of wastage and idle time and optimum utilization of manpower by joint involvement in improving the work system.

(ii) To identify areas of chronically bad, inadequate or inferior service and to take necessary corrective steps to eliminate the contributing factors to evolve improved methods of operation.

(iii) To study absenteeism and recommend steps to reduce it.

(iv) To eliminate pilferage and all forms of corruption and to institute a system of rewards for this purpose.

(v) The suggest improvements in physical conditions of working such as lighting, ventilation, dust, noise, cleanliness, internal layout, setting up of customers’ service points, etc.

(vi) To ensure proper flow of adequate two-way communication between the management and workers, particularly about matters relating to the service to be rendered, fixation by targets of output and progress in achieving these targets.

(vii) To recommend and improve safety, health and welfare measures for an efficient running of the unit.

(viii) To discuss any other matters which may have a bearing on the improvement of performance of the unit for ensuring better customer service.

Board Level Participation:

Various organisations provide for the employee participation at the board of directors level. Employees elect their representative to participate in the Boards. Government of India introduced a scheme for induction of employees’ representatives as a director of the Board.

Consequently, a number of public sector undertakings nominated employees’ representatives as a member of their boards. Employees welcomed this step while managements raised their doubts about the success of this scheme.

A number of multinational companies also introduced the concept of employees’ participation at the board level. This scheme would be achieve its purpose when the employees’ representatives are trained in management skills and the functions of boards.

Reasons for Slow Growth:

Various reasons have been assigned for the slow progress and unsatisfactory working of the scheme.

These include:

(i) The apathy and even hostility of the employers and the workers; the former looked upon the bipartite bodies (Works Committees and JMCs) as substitute of trade unions, while the latter considered them to be their rivals

(ii) Lack of a proper understanding between employers and employees of the concept, purposes and benefits of the scheme

(iii) Progressive employers, who have a long tradition of having a healthy system of communication and consultation with their employees, find the bodies to be superfluous

(iv) Workers indirectly participate in management through their representatives. Their latent abilities and qualities have, therefore, been largely unutilised;

(v) The existence of a number of joint bodies: Works committees, joint management councils, production committees, suggestion committees, canteen committees, safety committees, etc., has caused confusion and a duplication of effort as well as a waste of time and energy;

(vi) The absence of a strong trade union or the existence of more than one trade union and inter-union rivalry has made the working of the scheme somewhat difficult;

(vii) The absence of a proper education and training in the principles of human relations, co­operation and participation on the part of the workers’ representatives on these bodies;

(viii) Although the representatives of the central organisations supported the scheme of national conference and committee meetings, they have shown inadequate interest in making their affiliates enthusiastic about it. In undertaking in which employee-employer relations are not cordial and in which arrangements for works committees, grievance redressal procedure and a procedure for the recognition of a trade union are absent, the joint management councils cannot be expected to function satisfactorily;

(ix) Delay in implementing the suggestions and recommendations of these bodies often leads to the waning of the workers’ interest in such bodies;

(x) The joint management councils were created without the creation of a congenial and constructive climate for them, which would ensure that each party would trust the other and would respect its rights.

Level

(1) Informative Participation:

At the initial stage, participation generally takes the stage of informative and associative participation where members have the right to receive information and give opinion on matters of general economic importance.

(2) Consultative Participation:

The next level is the consultative participation where members share their views on matters affecting their welfare with the management. It involves a higher degree of sharing of views. But the management has the discretion to accept or not to accept the views and suggestions of the employees.

(3) Administrative Participation:

At the next higher level, it is administrative participation, which provides a greater degree of share in the authority and responsibility in the management functions.

(4) Decision Participation:

It is the highest level of participation where workers are given opportunity to take part in decision making power activities. As the name suggests, the decision-making power at this level is complete and the delegation of authority is maximum.

It is important to note that participation in management is generally taken to mean only a general consultation on matters concerning the safety, welfare etc., of the workers and nothing more. The ultimate responsibility is vested in the management.

All other matters like wages, bonus etc., are subjects of collective bargaining and are excluded from the preview of the workers participation schemes the world Individual grievances are also excluded from its scope.

An employee stock option (ESO) is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of financial options.

Employee stock options are commonly viewed as a complex call option on the common stock of a company, granted by the company to an employee as part of the employee’s remuneration package. Regulators and economists have since specified that ESOs are compensation contracts.

These nonstandard contracts exist between employee and employer, whereby the employer has the liability of delivering a certain number of shares of the employer stock, when and if the employee stock options are exercised by the employee. The contract length varies, and often carries terms that may change depending on the employer and the current employment status of the employee. In the United States, the terms are detailed within an employer’s “Stock Option Agreement for Incentive Equity Plan”. Essentially, this is an agreement which grants the employee eligibility to purchase a limited amount of stock at a predetermined price. The resulting shares that are granted are typically restricted stock. There is no obligation for the employee to exercise the option, in which case the option will lapse.

ESOPs were given to remunerate senior employees and to acknowledge their proven contribution to the company. However, in modern times, ESOPs are used as compensation and motivational tool as startups can’t afford to spend high salaries in the beginning stage. Employee Stock Options in India has gained immense popularity in the recent times with the emergence of a vibrant startup ecosystem in the country.

Stories of how Infosys, one of the earliest companies to offer ESOPs, created millionaires of employees such as drivers, are very well known.

Employee Stock Option Plans are the plans in which employees get the right to purchase a number of shares (decided by the employer) in lieu of Salary in the company at a discounted price (less than the market price). The option provided under this scheme confers a right but not an obligation on the employee.

Employees have to wait for a certain time period – known as vesting period – before they can exercise the right to purchase those specified number of shares. Upon vesting of options, employees can exercise the options to get shares by paying the pre-determined exercise price.

ESOPs are generally awarded for performance or tenure of the employee with the company. Thus, it serves a two-fold purpose for both the company and the employees.

1. It acts as a tool of motivation for the employees that once they own a stock they feel responsible for performance of the company, as it determines the value of the stocks of the company.
2. It helps the employer to retain the company and assure a good level of performance in the work.

Advantages of esop

• ESOPs can be treated as a retainership instrument for small businesses as there is a lock in period for exercising the right to purchase the shares. Thus, a business can retain its employees. If an employee opts for this option then he has to serve the lock in period to become eligible to exercise it.
• Getting shares of the company in which they are working gives employees an ownership feeling. They start feeling that they are not employees of the organisation but owners. Also, they get to share the profits of the company in the form of dividends and are motivated to work for the best of the company.
• Businesses that needs funds and are not in a position to spend hefty amounts can offer this option to their employees in lieu of salary and motivate them to work for the betterment of the company.
• It is a non-cash compensation tool to compete for the best human resources.
• It gives an opportunity to corporate to pay without a reduction in book profits.
• Boosted Morale of Employees.

Disadvantages of esop

• When the ESOPs are exercised the founders share holding gets diluted.
• Since, Company is unlisted Company, there are no marketability or liquidity of shares of private company. Hence, there are chances of disputes between employers and employees when employee leaves the organization.
• There are also chances of disputes while transfer of shares and the value at which shares should be transferred.

Industrial Relations being collectivist and pluralist in its outlook is fully responsible for maintaining a healthy relationship between individual workers, employees and plays a critical role in settlement of various disputes within an organization. An IR manager plays the role of directive leaders and ensures that all the rules and regulations of the employer are strictly followed.

According to Lester, “Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom; between authority and industrial democracy; between bargaining and co-operation and between conflicting interests of the individual, the group and the community.”

Majority of responsibility of an industrial relations manager involves maintaining good relationships between the employees and management. There are two other words usually used in conjunction with industrial relations which are employee relations and labour relations. Even though the terms usually refer to the relationship with employees all the people connected with the organizations like employees’ customers union members governing agencies and stakeholders are directly or indirectly involved. So, we can classified industrial relation Management as three category. That are Employee Relation Management, Labour Relation Management and Customer Relation Management.

Employee Relation Management

When the number of employees is less it is often easy to manage the relationships but larger companies can have a dedicated human resource manager who can handle the industrial relations easily. Managers having expertise in handling industrial relations usually study and resolve problems which can affect productivity and poor performance related to misconduct by employees. Managers handling industrial relations usually communicate effectively and manage employees through motivation. Industrial relationship managers also adopt employee recognition programs after discussion with top level managers. Safety measures concerning the employees are monitored by industrial relation managers for improved productivity.

Labor Relation Management

Labor relations concern with the mutual collaboration between the top management level and union members among workers. Some countries give the right to employees to form the union for taking part in collective bargaining through negotiation tasks. Small business organizations usually do not have labor unions while large organizations find it easy to have the policies spread among employees through communicating with representatives.

Customer Relation Management

Small business organizations will have better communication with clients due to the lower number of a workforce which eventually leads to good relationships. Industrial relations manager sometimes study and recognize te need of buyers and suggest ways of improving customer relations. Surveys through questionnaires are often employed for gathering information which is then set as a framework which is conveyed to the workers for the better understanding of customer demands. When staff members are given training for improving product quality it also helps in building good relationships. e for goods and services.

How to face these challenges

1. To deal with Trade Unions, Contractors, labours, IR managers should minimize the use of jargons and they should try to communicate in simple language and if possible try to communicate in local language to avoid any confusion.
2. Review different labour laws, civil laws and consult with the company’s legal representative to assure if the company is in compliance with all of these regulations.
3. Always try to listen closely to the employee’s concern. It is not always necessary

to give judgement or suggestions and to enforce certain policies, which are not in law.

4. Sometimes to settle down dispute, An IR manager can take the decision on the basis of their intuition.
5. Job rotation policy or transfer of the workers are another way to settle down the dispute among the workers or employees.
6. They should not try to check the workmen to form unions or groups, which may lead to aggression among them.

A healthy employee relationship is essential for the employees to find their work interesting and perform their level best. It is important for everyone to understand that one goes to his organization to work and conflicts must be avoided as it is nothing but a mere waste of time. Employees must be comfortable with each other and work in unison towards a common goal. An individual cannot remain tightlipped and work for infinite hours, he needs people around to talk to and discuss his ideas.

One must have friends at the workplace whom he can trust well and share his secrets without the fear of them getting leaked. This way the employees feel motivated and enjoy going to office daily. They do not take frequent leaves and strive hard to live up to the expectations of the management. For an organization to perform well, it is important that the employees are friendly with each other and avoid criticism, backstabbing at work, a strong reason to spoil the relationship among the employees.

The team leader or the manager plays an important role in promoting healthy relation at workplace:

It is essential that the supervisor assigns challenging tasks to his team member as per his specialization and interest. The individual should have interest in the work; otherwise he would treat it as a burden and unnecessarily crib about things. It is important that the team leader understands his team members well. Try to find out their interests and what all they expect from the organization. While developing their KRAs it is always better if the team leader calls everyone and invites suggestions from them. Let them decide what best they can perform. This way the employees would never blame each other or their superior later as they themselves have decided on the roles and responsibilities. Encourage them to willingly accept the challenge. They would strive hard for a better output without fighting and finding faults in each other.

A team leader should be a role model to his team members. He should treat each and every individual as one and avoid partialities at work. Do not give anyone a special treatment just because he drops your son to school every day or says a yes to whatever you say. Appreciate if someone has done exceptionally well but do make sure to correct him if he is wrong somewhere. The team leader should not be rude or harsh to anyone. There is a correct way for everything and one should not insult any team member. It is strictly unethical. Sit with him and make him realize his mistakes. He would definitely look up to you in future.

The superior must not act pricy and should always be accessible to his employees. The individuals must have the liberty to walk up to their immediate bosses in case of a doubt and clear things. The hierarchy should not be too complicated as it leads to confusions and disputes among employees.

The manager must ensure that all important communication takes place on an open forum for everyone to get a common picture. Problems arise when communication is done on a one to one basis. Call everyone together so that all the members are clear as to what is expected out of them and what their colleagues are up to. Communication should be transparent for an effective employee relation. Any employee should not feel neglected or left out. If the team leader wants to pass on any information to his team members, he must send a mail keeping all the related members in the loop.

As a team leader it is one’s prime responsibility to encourage healthy competition at work. Competition is mandatory for an individual’s growth but it should not turn friends to foes. Motivate them constantly to perform better than the other but make sure there are no useless gossips in your team. If you find any of your team members criticizing or making fun of anyone, stop him immediately. Do not provoke any individual to fight, instead intervene and try to resolve the conflict as soon as possible.

Make sure all your team members take their lunch together and you are also a part of it. Don’t discuss work that time. Let them enjoy. Encourage everyone to talk to each other and participate in discussions. Do take the initiative to ask about their families or personal lives as well. They would feel attached to you. If you find any two of your team members not getting along well with each other, make sure both of them work together on the same assignment. They would not be left with any choice than to talk to each other and discuss things. Make them sit together on adjacent workstations so that the comfort level increases.

The team leader should be neutral to his team members and make sure they enjoy a healthy relationship with him as well as their fellow team members for a better output. A team leader should try his level best to bring his team members closer and bind them together.

The importance of industrial relation is as follows:

1. Increased Production:

Healthy cordial relationship between the work force and the employer and management and amongst the workers within the workplace improves the workers’ productivity and efficiency. It motivates the workers to contribute their best towards attainment of organisational objectives. This leads to increase in production in the organisation.

2. Reduction in Industrial Disputes:

Good industrial relation helps in reducing the industrial disputes. Good Industrial relationship removes dissatisfaction among the workers. Adequate financial and non-financial benefits, provision of employee participation in sharing of profits and of management and decision making, improved bargaining capacity through mutual negotiations and consultation with the management provides satisfaction to the workers.

Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. Thus, industrial unrest can be avoided.

3. Uninterrupted Production:

The most important benefit of industrial relations is that it ensures uninterrupted production. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. This ensures smooth running of the organization and continuous production.

4. Improves Morale:

Good industrial relation boosts the morale of the employees. Employees feel that they are part of the organization and their contribution will improve productivity of the organization. Good industrial relation brings about realization among the employees that gain to the organization will not only benefit the employer but will benefit them as well. This makes the workers work with zeal, energy and efficiency.

5. Effective Utilization of Resources:

Good industrial relation helps in effective utilization of man, money and material. Improved employee morale, industrial peace, recognition of employee’s interest and reconciliation of employer’s and employee objectives and interest increased production with minimum wastage of resources.

WPM means different things to different people depending upon their objectives and expectations. Thus, WPM is an elastic concept. For example, for management it is a joint consultation prior to decision making, for workers it means co-determination, for trade unions It is the harbinger of a new order of social relationship and a new set of power equation within organisations, while for government it is an association of labour with management without the final authority or responsibility in decision making.

According to the ILO:

“Workers’ participation may, broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, con­sultations, decisions and negotiations to more institutionalized forms such as the presence of work­ers’ members on management or supervisory boards or even management by workers themselves as practised in Yugoslavia”.

In Yugoslavia, WPM is governed by the Law on Workers’ Management of State Economic Enterprises and Higher Economic Association. The Act consists of a three-tier participation struc­ture: collective bargaining, workers’ council, and hoard of management.

In fact, the basic reason for differences in perception of WPM is mainly due to the differential pattern of practices adopted by various countries while implementing workers’ participation in man­agement.

For example, in Great Britain and Sweden, WPM is in the form of Joint Consultation through Joint Consultative Committees, Works Committees in France, Co-determination Committees in West Ger­many, Joint Work Council in Belgium, Workers’ Council and Management Board in Yugoslavia and Union Management Co-operation in USA.

In India, WPM is in the form of, what we call Labour Management Cooperation and Workers’ Participation in Management. It is implemented through the agencies like Works Committees, Joint Management Councils (JMCs) Shop Councils, Unit Councils and Joint Councils. Notwithstanding, these different forms of WPM differ only in degree, not in nature.

Be the perceptual differences as these may, WPM is a system of communication and consulta­tion, either formal or informal, by which the workers of an organisation are kept informed, as and when required, about the affairs of the undertaking and through which they express their opinion and contribute to decision-making process of management.

Characteristics:

The following are the main characteristics of WPM:

1. Participation implies practices which increase the scope for employees’ share of influence in decision-making process with the assumption of responsibility.
2. Participation presupposes willing acceptance of responsibility by workers.
3. Workers participate in management not as individuals but as a group through their representatives.
4. Worker’s participation in management differs from collective bargaining in the sense that while the former is based on mutual trust, information sharing and mutual problem solving; the latter is essentially based on power play, pressure tactics, and negotiations.
5. The basic rationale tor worker’s participation in management is that workers invest their Iabour and their fates to their place of work. Thus, they contribute to the outcomes of organization. Hence, they have a legitimate right to share in decision-making activities of organisation.

Objectives:

The objectives of WPM are closely netted to the ration-able for WPM. Accordingly, the objectives of WPM vary from country to country depending on their levels of socio-economic development political philosophies, industrial relations scenes, and attitude of the working class.

To quote, the objective of WPM is to co-determine at the various levels of enterprises in Germany, assign the final to workers over all matters relating to an undertaking in Yugoslavia, promote good communication and understanding between labour and management on the issues of business administration and production in Japan, and enable work-force to influence the working of industries in China, for example.

In India the objective of the government in advocating for workers’ participation in management, as stated in the Industrial Policy Resolution 1956, is a part of its overall endeavour to create a socialist society, wherein the sharing of a part of the managerial powers by workers is considered necessary.

The objective of WPM, as envisaged in the Second Five Year Plan of India is to ensure:

1. Increase in productivity for the benefit of all concerned to an enterprise, i.e., the employer, the employees and the community at large.
2. Satisfaction of worker’s urge for self-expression in the matters of enterprise management.
3. Making employees better understood of their roles in the organisation.

In ultimate sense, the objective of WPM in India is to achieve organizational effectiveness and the satisfaction of the employees.

Accordingly, the objectives of WPM in India are to:

1. Promote mutual understanding between management and workers, i.e., industrial harmony.
2. Establish and encourage good communication system at all levels.
3. Create and promote a sense of belongingness among workers.
4. Help handle resistance to change.
5. Induce a sense among workers to contribute their best for the cause of organisation.
6. Create a sense of commitment to decisions to which they were a party.

Levels of Participation:

Having known the objectives of WPM, the question then is to what extent workers can participate in decision-making process. In other words, it is important to know the extents/levels of co-determination in an organisation.

Viewed from this angle, Mehtras has suggested five levels of workers’ participation ranging from the minimum to the maximum. Since these levels of workers’ influence the process and quality of decision making in an organisation. We are therefore highlighting here these levels briefly ranking them from the minimum to the maximum level of participation.

Informative Participation:

This refers to management’s information sharing with workers on such items those are concerned with workers. Balance Sheet, production, economic conditions of the plant etc., are the examples of such items. It is important to note that here workers have no right of close scrutiny of the information provided and management has its prerogative to make decisions on issues concerned with workers.

Consultative Participation:

In this type of participation, workers are consulted in those matters which relate to them. Here, the role of workers is restricted to give their views only. However the acceptance and non-acceptance of these views depends on management. Nonetheless, it provides an opportunity to the workers to express their views on matters involving their interest.

Associative Participation:

Here, the role of the workers’ council is not just advisory unlike consultative participation. In a way, this is an advanced and improved form of consultative participa­tion. Now, the management is under a moral obligation to acknowledge, accept and implement the unanimous decision of the council.

Administrative Participation:

In the administrative participation, decisions already taken are implemented by the workers. Compared to the former three levels of participation, the degree of sharing authority and responsibility by the workers is definitely more in this participation.

Decisive Participation:

Here, the decisions are taken jointly by the management and the workers of an organisation. In fact, this is the ultimate level of workers’ participation in management.

The success of workers portion in management depends upon the following conditions:

(1) The attitude and outlook of the parties should be enlightened and impartial so that a free and frank exchange of thoughts and opinions could be possible. Where a right kind of attitude exists and proper atmosphere prevails the process of participation is greatly stimulated.

(2) Both parties should have a genuine faith in the system and in each other and be willing to work together.

(3) The experiment of labour participation in management must be given a wide publicity in order that the idea of participation is ingrained in the minds of those who are to implement the scheme.

(4) Participation should be real. The issues related to increase in production and productivity, evaluation of costs, development of personnel, and expansion of markets should also be brought under the jurisdiction of the participating bodies. These bodies should meet frequently and their decisions should be timely implemented and strictly adhered to.

(5) Objectives to be achieved should not be unrealistically high, vague or ambiguous but practicable of achievement and clear to all.

(6) Form, coverage, extent and level of participation should grow in response to specific environment, capacity and interest of the parties concerned.

(7) Participation must work as complementary body to help collective bargaining, which creates conditions of work and also creates legal relations.

(8) Institutional participation should be discouraged but such participation should be encouraged through changes in leadership styles, communication process, and inter-personal and inter-group relations.

(9) There should be a strong trade union, which has learnt the virtues of unit and self- reliance so that they may effectively take part in collective bargaining or participation.

(10) Multiple unions in one enterprise should be restricted by legislative measures. Similarly, there should be no multiplicity and duplicacy of bipartite consultative machinery at the plant level.

(11) A peaceful atmosphere should be there wherein there are no strikes and lock-outs, for their presence ruins the employees, harms the interest of the society, and puts the employees to financial losses.

(12) Authority should be centralised through democratic management process. The participation should be at the two or at the most three levels.

(13) Programmes for training and education should be developed comprehensively.

(14) Progressive personnel policies should ensure growth of individual workers within industry and proper policies should exist for selection, promotion, compensation, rewards and discipline.

(15) Management should be prepared to give all information connected with the working of the industry and labour should handle that information with full confidence and responsibility.

(16) The workers should become aware of their responsibilities. The leaders should initiate this in them. Similarly, the top management should make the lower echelons to show a new attitude in the light of the new relationship.

(17) The follow-up action on the decisions of the participating forums should be ensured. The government may also set up machinery to act as a watch-dog for implementing the scheme.

(18) Effective two-way communication is a must for the success of the programme. The shorter is the time for communication, the greater is the probability of correct Interpretation.

Workers’ Participation in Management (WPM) Prerequisites

The following are the prerequisites for the successful functioning of the schemes of workers’ participation in management Managements, trade unions and the workers should be concerned with these prerequisites-

(1) There should be mutual trust, faith among all the parties concerned.

(2) There should be progressive management in the enterprise and should recognise its obligations and responsibilities towards workers and trade unions.

(3) There should be strong, democratic and representative union which should represent the cause of workers without neglecting the management’s interest.

(4) There should be closely and mutually formulated, objectives for participation by trade unions and management.

(5) All parties concerned with participative management should feel that they should participate at all levels.

(6) There should be effective communication between workers and management and effective consultation of the workers by the management.

(7) Both the parties should develop a favourable attitude towards the schemes of participative management.

(8) Management and Government should provide training to all the parties concerned to prepare them for participative management.

(9) Both the parties of anticipative management should be conscious of the benefits of the schemes.

Labour welfare schemas have the following benefits:

(i) Workers’ efficiency is considerably enhanced.

(ii) Workers begin to feel interested in their work when they find that they are being well looked after by their employers. Thus, their morale is raised and industrial relations improve.

(iii) Labour turnover and absenteeism rates decline when the workers find the work-place congenial and the employer sympathetic towards them.

(iv) On humanitarian ground too, labour welfare is commendable, because it shows faith in the basic human values of life.

(v) From the social stand-point, labour welfare ensures healthier and more enlightened citizens.

Labour Welfare activities are now not exclu­sively within the jurisdiction of the employers, governments and trade unions. Strictly not with a view to rendering welfare services to workers as defined in the industrial dictionary, a number of service organisations, national and international in character, have come forwarded to uplift the conditions of the toiling masses. To educate them, to house them properly, to help them in medical facilities and health matters, the humanitarian institutions have been rendering no less service to­day in India.

In spite of all the efforts so far taken for the welfare of workers, it can be frankly admitted that there is yet enough scope and necessity for the welfare measures of the workers. Workers themselves have to press for their welfare on their unions as well as on the governments.

In India, Labour Welfare is a vast area of activ­ities. Welfare in its comprehensive sense is very difficult for a country like ours to achieve. Prob­lems are many to the acquisition of welfare facili­ties. Problems and obstacles, however difficult they are, must have to be solved and overcome, to establish industrial democracy and industrial peace.

As to the problems, housing poses a serious one. To this can be added the problem of accidents which must cover any programme of welfare to workers. Statutory measures for safety of workers have been undertaken and training in safety is also being imparted. Industrial legislations should be made more comprehensive in providing measures for safety and training in safety.

As to industrial housing problems, a national housing programme has been chalked out. Plantation La­bour Housing Scheme, Slum Clearance Scheme, Land Acquisition and Development Schemes, Mid­dle Income Group Housing Scheme, Rental Housing Schemes for State Government Employees, Social Housing Schemes all are on the list of govern­ment activities.

Subsidised Industrial Housing Scheme, Low Income Group Housing Schemes are additions to the Housing Schemes already under­taken by the governments, both Central and State.

The Code of Efficiency for the welfare of work­ers, with various suggestions for improvement of industrial relations and higher productivity and imposition of obligations on the part of the mana­gement for securing better standards of living of the workers did not receive equal attention and re­spect from all the labour wings of the political parties.

Labour Welfare in India: Necessity

The necessity of labour welfare work in India can easily be realized if we look into the working conditions of the labour class in Indian industries. India, an industrially backward country, is in its developing stage. The place of labour in industries in India is not recognised. The principles of personnel management and industrial relations have not been developed in India except in few big industrial units. Commodity concept of labour still prevails in the country.

Thus the scope of labour management relations has not been much widened in India, while in Western countries, the labour is regarded as the Partner in the affairs of the industry. The attitude of employers is sympathetic to workers in western countries and they provide various welfare facilities as a measure to improve industrial relations and better working conditions.

The working conditions in Indian industries are not satisfactory. The workers have to work for long hours under unhealthy surrounding, and have no means to remove the drudgery of their lives. They become easy victims of drink, gambling and other vices, in the uncongenial environment of urban industrial life. A contented, stable and efficient labour force cannot be built up without an improvement in the conditions of their life and work in industrial centres.

The workers in India are poorer than the workers in other western countries and as such they cannot be expected to spend anything for their own welfare. Our labourers, being illiterate and generally blamed for being irresponsible and lazy, require a lot of inducements and better working conditions. It is axiomatic that in all pursuits a high standard of efficiency can be expected only from persons who are physically fit and free from all worries and that is from persons who are properly housed, fed and clothed.

Industrial harmony can only be maintained when the workers feel that they are adequately remunerated for the work and are treated fairly by the employer. Much of the irritation and frictions which embitter industrial relations is due to the feeling that they are not being received by the employer properly. If the labourers are properly behaved and certain amenities are supplied, they feel satisfied and find no scope for resentment against employers.

The money spent on labour welfare work by the employer is bound to react directly or indirectly to their own benefits and to the direct benefit of the employees. If work conditions are improved it will certainly improve the health and efficiency of the workers and which, in turn, increase the production and the productivity of workers. The employer may contribute something towards the amenities of the workers to which the employees spend nothing in India because of their poor financial conditions.

Labour welfare force, lower absenteeism and labour turnover. These results may not have been achieved if the benefits are extended in the form of cash wages, because it may be spent on drinking, gambling and extravaganza. It seeks to promote a better understanding between the employer and the employees.

The inefficiency and bad habits of Indian workers are not so much due to his own character but it is the result of the environment which must be improved to make them good citizens. It can, thus, be said that if suitable welfare activities are undertaken in this country, there is no doubt that Indian labourers cannot remain inefficient than the average worker in the west.

1. Central Government:

Ours is a welfare state wedded to the policy of doing welfare to the people of the country. For the economic rejuve­nation of the country, the toiling masses must be taken care of, their lots must be improved. In this regard, the Government has an active role to play.

The Government has to come forward to bring about intellectual, physical, moral and economic betterment of the workers, so that their whole-hearted and willing co-operation may be readily avail­able for the economic upliftment of the county in our Plan objectives, workers have been accepted as an essential part of the Apparatus of industrial and economic administration of the country.

The Central Government has paid attention to improve the condi­tions of workers. Various enactments have been promulgated to safe­guard the interests of workers, to extend to them economic benefits and social security.

The Factories Act, for example, is a bold attempt to extend various facilities to factory workers their housing facilities, economic benefits, social security’s and physical safety etc. The Mines Act is another piece of legislation that aims at providing welfare to mine workers.

So far as mines are concerned, Coal Mines Labour Welfare Fund has been instituted to boost the morale of coal mine workers under the Coal Mines Labour Welfare Fund Act. Similarly, Mica Mines Labour Welfare Fund and Iron Ore Mines Labour Wel­fare Fund have been created by specific Acts of the Central Govern­ment. Again, we find Plantation Labour Act for the welfare of planta­tion workers.

Besides the various Acts passed for the welfare of labour in mines, plantations and factories, the Central Government has kept its Labour Ministry alive to the conditions of workers. Measures have now been adopted to provide medical aid, legal and financial aid to workers un­der various schemes.

To ensure industrial safety, various precaution­ary measures have also been enforced. Prevention of the possibility of accidents has been one of the objectives of the Government’s welfare measures and actually the incidence of accidents has come down.

The Government of India has introduced an industrial housing scheme for the accommodation of industrial workers. Social Security legislations such as The Workmen’s Compensation Act, Maternity Benefit Act and The Employees’ State Insurance Act have been in force.

2. State Government:

The State Governments in India were more or less indifferent to labour welfare, prior to independence. But now vari­ous State Governments are very alive to the conditions of labour and are up and doing for the upliftment of the lots of the workers.

There are popular governments in some states where workers are adequately taken care of Labour fronts of different political parties are now suf­ficiently strong to press the demands of workers to the Government and the link between the State Governments and the labour wings of political parties is so close that various facilities are now being made available to the workers through the State Government’s machinery.

3. Employers:

Employers in India today have started realizing that they should identify their interest with those of the employees. No pru­dent management can now ignore the interests of their workers and expect to reap the benefits of higher labour productivity.

So, for their own interest, employers are being compelled to adopt welfare measures for the workers. There are only a few employers in India who have been sympathetic to labour welfare but others are extending various benefits to workers only under compulsion.

Several industries such as cotton, jute, textile, engineering, sugar, cement, glass, chemical etc. have been brought under legislative measures to give facilities provided by different industries either under legal compulsion or under union pressure.

We can say that employers in India with their professional training background are becoming more and more conscious about the workers whom they now consider the most essential tool to gear up their organisational activities.

Employers who are still maintaining a negative attitude or an indifferent attitude towards workers are surely to pay for their foolishness. Days have changed. All over the world is the slogan for workers to unite. Moreover, employers who fail to un­derstand the potentialities of the labour force, the fullest utilisation of which can bring miraculous results for the organisation, are sure to suffer.

4. Trade Union:

Last but not the least important agent for the welfare of workers is the “Workers’ union.” Conflicts between labour and capital existed since industrialisation, they still exist and will con­tinue to exist. The complete harmony and amity between the two op­posite-interest groups cannot be achieved.

Not only in India, but nowhere in the world has industrial peace been ensured? Here is the role for the Trade Union to play in the matter of bargaining. Various facilities of different nature economic, social, cultural are made available to workers by Trade Unions.

The Indian Trade Unions have not yet been able to do much to ameliorate the lot of their members. Their participation in this sphere has been mainly through their association with the Labour Welfare Advisory Committees constituted by the Governments.

It is worthwhile to mention that trade unions in the textile industry (Textile Labour Association) and the Mazdoor Sabha have made provisions for vari­ous welfare facilities to the workers.

Educational and cultural upliftments through trade unions have been made possible. With the change in the attitude of the employers (many of whom are govern­ments themselves), the nature of trade unions in India from mili­tancy to conciliatory is now noticeable.

Various welfare services are now made available to the workers through Trade Unions after the trade union leaders’ direct discussions and deliberations with the em­ployers across the table.

However, trade unions should take some mea­sures for the welfare of workers. They should come forward to assist the employers and the Government in formulation and administration of welfare schemes. To find out the needs of the workers and to bring them to the notice of the employers should also come under the pur­view of trade union activities.

A modern Trade Union has to educate its members, organize for them various inexpensive programmes and to act as a watch-dog of workers’ interests. Trade Unions have, as a matter of fact, a great role to play for the welfare of the workers.

Labour Welfare in India 8 Important Labour Welfare theories in India

1. Functional Theory:

This theory assumes that employee welfare is a part of the personnel/HR function of the organization. In this regard, organizations depute a labour welfare officer or manager to manage the welfare activities in the organization.

2. Social Theory:

This theory assumes that organizations take benefits, resources and raw materials from the society for producing their products and services and by providing labour welfare activities in their organization and outside the organization (Extra Mural Activities) they are showing their concern for the development and wellbeing of the society.

3. Policing Theory:

This theory assumes that organizations provide ample opportunities for owners and managers of capital to exploit workers in unfair ways like by compelling employees with long working hours, by paying low wages, by not improving the quality of life at the workplace. The statutory norms and legislations provided by the state with respect to welfare activities acts as a stringent measure to prevent these unfair activities towards the workforce.

4. Religion Theory:

From the investment perspective, the religion theory implies that by committing towards welfare activities the management could reap the benefits of employee loyalty and trust in the near future. On the other hand, from the atonement perspective the religion theory implicates that it is the moral responsibility of the management to be concerned for the wellbeing of the employees.

5. Philanthropic Theory:

This concept mainly proposes that labour welfare should provide good working conditions, rest rooms, drinking water facilities, common rooms, canteens etc. that would contribute to improve the standard of living and wellbeing of the employees in the organization.

6. Paternalistic Theory:

According to this theory, the social responsibility and the responsibility of an employer of an organization with respect to the employee welfare is conceived as a “paternalistic duty or responsibility” towards the society and the employees who are being employed in the organization.

7. Placating Theory:

Placating theory considers that labour welfare initiatives taken by an organization are like appeasement and its works for the management particularly when the workers are organized and violent in terms of charting their demands from the management.

8. Public Relations Theory:

This concept assumes that labour welfare can create a good corporate image and enhance the employability brand of the organization.

In conventional usage, boredom is an emotional and occasionally psychological state experienced when an individual is left without anything in particular to do, is not interested in their surroundings, or feels that a day or period is dull or tedious. It is also understood by scholars as a modern phenomenon which has a cultural dimension. “There is no universally accepted definition of boredom. But whatever it is, researchers argue, it is not simply another name for depression or apathy. It seems to be a specific mental state that people find unpleasant a lack of stimulation that leaves them craving relief, with a host of behavioural, medical and social consequences.” According to BBC News, boredom “can be a dangerous and disruptive state of mind that damages your health”; yet research ” suggests that without boredom we couldn’t achieve our creative feats.”

In Experience Without Qualities: Boredom and Modernity, Elizabeth Goodstein traces the modern discourse on boredom through literary, philosophical, and sociological texts to find that as “a discursively articulated phenomenon, boredom is at once objective and subjective, emotion and intellectualization not just a response to the modern world but also a historically constituted strategy for coping with its discontents.” In both conceptions, boredom has to do fundamentally with an experience of time and problems of meaning.

In the workplace

Boreout is a management theory that posits that lack of work, boredom, and consequent lack of satisfaction are a common malaise affecting individuals working in modern organizations, especially in office-based white collar jobs. This theory was first expounded in 2007 in Diagnose Boreout, a book by Peter Werder and Philippe Rothlin, two Swiss business consultants. They claim the absence of meaningful tasks, rather than the presence of stress, is many workers’ chief problem.

A “banishment room” (also known as a “chasing-out-room” and a “boredom room”) is a modern employee exit management strategy whereby employees are transferred to a department where they are assigned meaningless work until they become disheartened enough to quit. Since the resignation is voluntary, the employee would not be eligible for certain benefits. The legality and ethics of the practice is questionable and may be construed as constructive dismissal by the courts in some regions.

Boredom syndrome is a psychological disorder that causes physical illness, mainly caused by mental underload at the workplace due to lack of either adequate quantitative or qualitative workload. One reason for bore-out could be that the initial job description does not match the actual work.

This theory was first expounded in 2007 in Diagnose Boreout, a book by Peter Werder and Philippe Rothlin, two Swiss business consultants.

Consequences for Employee

Consequences of boreout for employees include dissatisfaction, fatigue as well as ennui and low self-esteem. The paradox of boreout is that despite hating the situation, employees feel unable to ask for more challenging tasks, to raise the situation with superiors or even look for a new job. The authors do however propose a solution: first, one must analyse one’s personal job situation, then look for a solution within the company and finally if that does not help, look for a new job. If all else fails, turning to friends, family, or other co-workers for support can be extremely beneficial until any of the previously listed options become viable.

Consequences for Business

According to Prammer, boreout can also have a variety of effects on businesses:

• Whereabouts of dissatisfied employees, who do not work because they have internally terminated, cost the company money.
• If employees actively quit internally, they can damage the operation by demonstrating their ability to mentally restore the employment contract.
• The qualification of the employee is not recognized (the company can not use its potential).
• The qualified employee changes jobs (and takes his experience), which can endanger entire business locations.
• As long as a recession continues, the affected employee remains in the company and leaves the company at the appropriate opportunity. In-house, a problem of distribution of work orders arises.
• Tabooing causes real problems to go undetected.
• Whole generations of employees are lost (because they have no opportunity to fully realize their potential).

Fatigue is a feeling of tiredness. It may be sudden or gradual in onset. It is a normal phenomenon if it follows prolonged physical or mental activity, and resolves completely with rest. However, it may be a symptom of a medical condition if it is prolonged, severe, progressive, or occurs without provocation.

Physical fatigue is the transient inability of muscles to maintain optimal physical performance, and is made more severe by intense physical exercise. Mental fatigue is a transient decrease in maximal cognitive performance resulting from prolonged periods of cognitive activity. Mental fatigue can manifest as somnolence, lethargy, or directed attention fatigue.

Fatigue and ‘feelings of fatigue’ are sometimes confused. Unlike weakness, fatigue usually can be alleviated by periods of rest.

Fatigue is often described as a lack of energy and motivation both physical and emotional. It is different than sleepiness or drowsiness, which describe the need for sleep. Fatigue is also a response to physical and mental activities. Normally, fatigue can be resolved with rest or reducing activity. Fatigue is a common complaint related to health issues. Notably, it is a symptom and not a specific disease or health condition. Many illnesses cause fatigue, and the symptoms can be physical, psychological, or a combination of both.

Physical fatigue

Physical fatigue, or muscle fatigue, is the temporary physical inability of muscles to perform optimally. The onset of muscle fatigue during physical activity is gradual, and depends upon an individual’s level of physical fitness other factors include sleep deprivation and overall health. Fatigue can be reversed by rest. Physical fatigue can be caused by a lack of energy in the muscle, by a decrease of the efficiency of the neuromuscular junction or by a reduction of the drive originating from the central nervous system. The central component of fatigue is triggered by an increase of the level of serotonin in the central nervous system. During motor activity, serotonin released in synapses that contact motoneurons promotes muscle contraction. During high level of motor activity, the amount of serotonin released increases and a spillover occurs. Serotonin binds to extrasynaptic receptors located on the axon initial segment of motoneurons with the result that nerve impulse initiation and thereby muscle contraction are inhibited.

Muscle strength testing can be used to determine the presence of a neuromuscular disease, but cannot determine its cause. Additional testing, such as electromyography, can provide diagnostic information, but information gained from muscle strength testing alone is not enough to diagnose most neuromuscular disorders.

People with multiple sclerosis experience a form of overwhelming lassitude or tiredness that can occur at any time of the day, for any duration, and that does not necessarily recur in a recognizable pattern for any given patient, referred to as “neurological fatigue”.

Mental fatigue

Mental fatigue is a temporary inability to maintain optimal cognitive performance. The onset of mental fatigue during any cognitive activity is gradual, and depends upon an individual’s cognitive ability, and also upon other factors, such as sleep deprivation and overall health. Mental fatigue has also been shown to decrease physical performance. It can manifest as somnolence, lethargy, or directed attention fatigue. Decreased attention may also be described as a more or less decreased level of consciousness. In any case, this can be dangerous when performing tasks that require constant concentration, such as operating large vehicles. For instance, a person who is sufficiently somnolent may experience microsleep. However, objective cognitive testing can be used to differentiate the neurocognitive deficits of brain disease from those attributable to tiredness.

The perception of mental fatigue is believed to be modulated by the brain’s reticular activating system (RAS).

Fatigue impacts a driver’s reaction time, awareness of hazards around them and their attention. Drowsy drivers are three times more likely to be involved in a car crash and if they are awake over 20 hours, is the equivalent of driving with a blood-alcohol concentration level of 0.08%.

Symptoms

According to a 2019 report in the journal Biological Research for Nursing, fatigue can be defined as an “overwhelming, debilitating, and sustained” exhaustion that makes it harder to carry out activities and function. Family practice physicians report that at least 20% of their patients report fatigue and up to 35% of adolescents report fatigue that occurs at least four days a week.

Men and women will describe fatigue differently. For example, men may say they are feeling tired, whereas women may report their fatigue as a feeling of anxiety or depression. People may also describe fatigue using a variety of terms, including feeling exhausted, weary, listless, or rundown.

People with fatigue experience one or more of three primary complaints. These vary person-to-person. They are:

• Lack of motivation or the ability to start activities
• Getting tired easily
• Experiencing mental fatigue or problems with concentration or memory

Often, fatigue is a symptom with a gradual onset, meaning it comes on slowly and gets worse with time. Most people who experience fatigue may not be aware early on how much energy they are losing. They can only determine this when they try to compare their ability to perform tasks from one-time frame to another.

Further, they may think fatigue is a common symptom due to aging, being busy or overworked, not getting enough sleep, or a combination of all of these and ignore the symptom.

Causes

Normal

Fatigue is a normal result of working, mental stress, overstimulation and under stimulation, jet lag, active recreation, boredom, and lack of sleep.

Acute

Causes of acute fatigue include depression; chemical causes, such as dehydration, poisoning, low blood sugar, or mineral or vitamin deficiencies. Fatigue is different from drowsiness, where a patient feels that sleep is required.

Temporary fatigue is likely to be a minor illness like the common cold as one part of the sickness behavior response that happens when the immune system fights an infection.

Prolonged

Prolonged fatigue is a self-reported, persistent (constant) fatigue lasting at least one month.

Chronic

Chronic fatigue is a self-reported fatigue lasting at least six consecutive months. Chronic fatigue may be either persistent or relapsing. Chronic fatigue is a symptom of many diseases and conditions.

Safety audits are essential for any industry because they are procedures designed to keep people safe, improve operational efficiency and reduce maintenance costs and the findings are used to improve safety, help with equipment scheduling, set budgets, among other things.

A safety audit is a structured assessment and evaluation of how workplace activities can affect health and safety. It helps organizations to evaluate and optimize their health and safety programs and improve safety management.

Safety audits are not synonymous of safety inspections because while the first examine and evaluate whether safety programs and practices are meeting the organization’s goals, the last are periodical inspections that look for hazards, risks, and other issues that might prevent a company from operating safely.

The purposes of carrying out safety audits are establishing whether the company is in compliance with safety legislation and identifying weaknesses and deficiencies in their safety programs and processes. A safety audit identifies different levels of risk in all the particular areas of an organization. Safety audits can help the workplace to become safer and improve the organization’s health and safety procedures.

How to conduct a safety audit

Every organization should conduct periodic workplace safety audits. It is very important to have this sort of assessments to ensure that the work environment is protected and prepared to handle any hazardous occurrence that may happen.

The following steps are vital to carry out effective workplace safety audits.

Determine the scope and objectives of the audit

Checking standards and codes that apply to the audited processes can help the audit team members set goals and add to their skill sets. The results of previous audits can be another source of useful information especially if an objective is to analyse if the recommendations of previous audits have been implemented and are working.

Create a report with recommended actions

After the audit, the person or team in charge of the assigment should compile all notes into a report that summarizes findings. The report should include a list of recommended actions based on the findings.

Set priority actions

Audits can reveal the need for major corrective actions and minor actions that the company should consider to implement in the short or long term. The audit team should work with managers and supervisors to set priorities based on the finding. Issues that possess biggest risks should receive priority over items with lower risks.

Propose actions to optimize health and safety

After finishing the assignment, the team in charge should make some recommendations based on the data obtained and assign a completion and review date to all corrective actions to be implemented.

Publish safety audit results

Posting audit results also helps everyone within an organization understand any changes that may be necessary and how those changes will increase their personal safety. It also acknowledges the audit team, as well as the contributions of managers and employees who were part of the process.

Final Words

Conducting safety audits require time and effort, however, they provide worthwhile results that can take a company to the next level in matters related to health and safety. Audits can also trigger proactive safety changes that can help prevent employee injuries, illness and death.

Workplace safety audits attempt to identify whether safety management systems are operating effectively and efficiently. In general, workplace injuries and accidents are the result of minor issues that could have been identified by conducting workplace safety audits earlier. Therefore, these assessments protect both employees and the organizations by reducing injuries and operating costs and, as a result of this, increasing productivity.