Month: July 2021

University of Mumbai BMS Notes

Recognition of Trade Unions

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Although no specific right is granted to any trade union with respect to the right to be recognized, it has become crucial in India to develop a mechanism wherein a trade union is recognized formally by the employer. Recognition is the process through which the employer accepts a particular trade union as having a representative character and hence, will be willing to engage in discussions with the union with respect to the interests of the workers. This process is important so as to ensure smooth collective bargaining and stability of industrial relations. On the other hand, registration of a trade union carries certain inherent benefits with it.

A registered trade union is deemed to be a body corporate, giving it the status of a legal entity that may, inter alia, acquire and hold property, enter into contracts, and sue others. A registered trade union is also immune from certain contractual, criminal and civil proceedings. However, registration is optional and not mandatory. Generally, registration of trade unions under the TU Act does not automatically imply that a particular trade union has gained recognition status granted by the employer. Unless different Indian states have specific legal provisions pertaining to recognition of trade unions, it is generally a matter of agreement between the employer and trade union. Ideally, a trade union must obtain legitimacy through registration under the TU Act and then seek recognition as a sole bargaining agent either under the appropriate law or an employer-employee agreement.

These trade union rights may be divided into categories like:

  • Rights of freedom of speech and expression which includes rights of picketing and demonstration.
  • Rights regarding the formation and the registration of the trade union.
  • Rights regarding the recognition of the trade union by the employers.
  • Rights regarding collective bargaining and collective actions.
  • Rights regarding conduct and functioning of the trade union.
  • Miscellaneous rights.

Recognition of trade union is the backbone of collective bargaining. Management recognizes only recognized trade unions for negotiation and collective bargaining.

In the absence of any central legislation on this subject, management at times refuse to recognize the unions due to following reasons:

  • Most of the office bearers being outsiders.
  • Multiple unions being in existence.
  • Unions having smaller number of employees.
  • Trade unions not being registered under Trade Union Act, 1926.

However, International Labour Organization (ILO) has been advising managements to recognize trade unions. Some States Governments have evolved a code of discipline and legislation in this regard.

They accord recognition provided it fulfills the following conditions:

  • It has complied with all provisions of the Trade Unions Act, 1926.
  • Unions duly observe the code of conduct.
  • Unions should have functioned at least for a year after its registration.
  • Meeting of the executive should be held at least once in every 6 months.
  • All its members are employed in the same industry.
  • A trade union once recognized should not make any change in its position for a period of two years. On satisfaction of the above conditions a trade union gets recognition from its employer.
University of Mumbai BMS Notes

Rights and Privileges of Registered Trade Unions

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The areas of an individual’s rights and responsibilities depend on his relation with those around him. One belongs to a family. His first and strongest relation, in the normal circumstance, is therefore with members of his family. Then comes his work place, the society around him, the state, his professional and religious group, etc.

In his relation with his family, he has certain rights and responsibilities. Maybe he is a husband and a father. He fulfills his responsibilities and in turn exercises his rights. Similar is the case with other groups as well. The differences are in the manner in which they are established and exercised and also the degree.

Trade unions, unlike a yogi, do not live in isolation. Like family people, they interact with others around. They interact with their members as individuals do with their family members and other social groups. They interact with definite motives, in establishment of a relationship. And such a relationship in turn establishes rights and responsibilities.

The primary objective of trade unions is the welfare of their members. This is achieved by protection and promotion of workers’ interest. In this objective fulfillment, the unions interact with employers, Government, apex bodies, sister organizations, rivals, etc. In this interaction, the unions develop certain relationships, both positive and negative. The State at times interferes and regulates the relationship. The union rights and responsibilities flow from such relationships and State regulations.

The major areas of the union rights and responsibilities can be classified as:

  1. In relation to members
  2. In relation to employers
  3. In relation to Government

Rights and Responsibilities in Relation to their Members:

  1. To prescribe membership qualification, admission fee and membership fee. This is normally taken care of in the constitution of the unions.
  2. To admit or refuse to admit workers who have applied for membership. The union is not bound to accept any or all those who apply for membership. It reserves the right to exercise its discretion in admission of members.
  3. To make working rules and procedure for day-to-day work.
  4. To take functional and administrative decisions in day-to-day work of the union.
  5. To collect and administer the union fund.
  6. To demand loyalty and support from members. The strength of any union depends on its membership, which supports the union in its work.
  7. To discipline the members in their relations with the unions and personal life. The unions can take disciplinary action against those members who violate the union rules.
  8. To act as legal representative of their members in matters of unions’ own affairs and those related to labour-management relations.

Responsibilities towards Members:

  • To conduct election of office bearers and organizational meetings as provided in the constitution of the union.
  • To function democratically. This means to function according to the majority’s wishes and as per the constitution of the union.
  • To collect union revenues, and meet expenditure as per sanctioned budget.
  • To refrain from compelling any members to contribute towards the political fund, if kept.
  • To exercise no discrimination between those who subscribe to the political fund and those who do not in their trade union rights.
  • To account to the members of the union fund.
  • To keep open the records of the union for the benefit of the members if they choose to see them.
  • To strive for objective fulfillment of the union. This may be to protect the workers from victimization, low wage payment, irregular wage payment, etc., to promote working and service conditions, i.e. gradually improve the physical environment of the working place, shorter hours of work, longer leave, more wages and fringe benefits, bonus, etc. This in short is collective bargaining.
  • To take up individual and collective grievances of members with the management for removal of the same within the agreed working and service conditions. While individual aggrieved workers can singly take up such cases with the management at the initial stage of grievance procedure, the union has a responsibility to involve itself at higher stages, if the grievances are not solved to the satisfaction of the aggrieved workmen.
  • To act as the legal representative of the workmen and to enter into agreement with others in defence or promotion of members’ interest. Keep the members intimated of union activities by circular, meetings, etc.

Responsibilities towards the Employer:

  • To intimate to the employer the union’s address, names of office bearers and affiliation, if any, and membership strength.
  • To supply to the employer a copy of the constitution.
  • To intimate to the employer the amendments in the constitution of the union and changes in office bearers, affiliation, etc.
  • To intimate to the employer the name of protected workmen.
  • To make commitment on behalf of workers and enter into agreement with the employer.
  • To try all means for peaceful settlement of disputes before resorting to direct action.
  • To take ballot or otherwise know the mind of the members before resorting to strike.
  • To give notice of strike before going on strike. This is a legal requirement in public utility service.
  • To advise the essential services like firefighting squad, watch and ward, etc. to be on duty even when a general strike is held.
  • To honour the agreements, awards, conventions and established practices.
  • To represent the grievances of workers to the proper authority designated and in time.
  • To co-operate with the employer in the formation and working of:

(i) Works Committee

(ii) Production Committee

(iii) Grievance Committee

(iv) Joint Management Council

(v) Canteen Committee

(vi) Welfare Committee

  • To co-operate with management in maintaining discipline in plant life.
  • To co-operate with management to increase productivity.

Rights and Responsibilities in Relation to Government:

Labour is a Concurrent subject. This means that both the Central and State Governments have jurisdiction in the subject. However, in certain industries the Central Government enjoys the exclusive right. Oil and oilfields, civil aviation, railways, port and docks, banks, mines and quarries are some examples.

Certain other industries fall under the State Government jurisdiction. But here again certain areas are carved out for the Central Government. Provident Funds, Employees State Insurance Scheme, Wage Boards are examples.

They are so for administrative convenience as well as for uniformity. The rights and responsibilities of trade unions in relation to Government therefore are meant both for Central and State Governments. The rights are conferred and the responsibilities imposed more by legislations and by administrative orders.

The Rights are:

  • To register trade unions. By registration a union becomes a corporate body.
  • To sue and to be sued in the registered name. A union acquires this right only on registration.
  • Immunity from criminal conspiracy. The trade union on registration becomes immune from any charges of criminal conspiracy as well as civil suit.
  • To acquire movable and immovable property.
  • To have outsiders also as office bearers of unions.
  • To receive a copy of draft standing orders submitted by the employer to the certifying authority.
  • To suggest modifications to draft standing orders.
  • To appeal against the provisions of certified standing orders.
  • To suggest amendment to standing orders on expiry of six months from its certification.
  • To represent the workmen before Labour Courts, Industrial Tribunal and appellate judicial authorities.
  • To represent the union by an officer of a federation of unions.
  • To declare protected workmen.
  • To represent for recognition of union.
  • For enforceability of agreements and awards, Wage Board recommendations and tripartite conclusions.
  • Interference of Government industrial relations machinery in case of public utility services.
  • To request the Government for adjudication of industrial disputes.
  • To cross-examine the employer’s witnesses in industrial adjudication.
University of Mumbai BMS Notes

Structure of Trade Unions in India

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  1. Conventions/sessions
  2. General council (President, VP, Secretary-General, etc.)
  3. Provincial bodies (at state level chairman, secretariats)
  4. Local bodies (affiliated unions)

National convention/conferences are hold at periodic intervals, say annually or bi-annually. This is the highest policy­making body. This is presided over by the president of the union attended by the delegates such as chairmen of state units, representatives of specialized services, legal experts and delegates from international bodies and special invitees. Office bearers are also elected by this conference.

General council consists of president, vice-president, secretary and other office bearers. It carries out policy decisions taken by convention. Various standing committees are set up on rendering study, analysis and recommendations on various aspects like legislative measure, Research and publications, international services etc.

State units are headed by chairman of state/regional areas. State units also liaise with National Headquarters; keep a close watch of faithful implementation of labour legislation and practices. It assists/influence state government to pass labour friendly legislation and executive/administration actions.

It is also responsible for membership of various unions representing workers in industrial undertakings (units) and/or representing trade and industrial units affiliated to the central trade union. These state units get themselves attached to State/Provincial/HQ/Regional unions/Units.

Headquarters (HQ) unions are responsible for welfare of its members and membership drive. As bargaining agents they are involved in collective bargaining with Central Government/ and or State government and assist passing legislative measures.

Objectives:

(i) The organisation of a trade union on the basis of the craft or industry in which its members are employed, such as general unions and professional employee’s organisations.

(ii) Collective bargaining, which is the essence of industrial relations, for it is through collective bargaining that the terms and conditions of employment are determined and under which work is performed’ satisfactorily.

(iii) Grievance processing and handling procedures, under which grievances are redressed or dealt with by a correction of situation or by channelling up of these “up the line”.

(iv) Arbitration, by which unsettled or unresolved disputes can be settled by an outside agency.

(v) Political pressure exercised through legislators who are capable of bringing about changes in labour laws; and

(vi) Mutual insurance through common contributions to meet the financial needs of workers when there are stoppages of work.

Characteristics of Trade Union:

  • A union normally represents members in many companies throughout the industry or occupation.
  • A union is fundamentally an employer regulating device. It sharpens management efficiency and performance while protecting the interests of the members.
  • A union is a part of the working class movement.
  • A union is a pressure organisation originating in the desire on the part of a group with relatively little power to influence the action of a group with relatively more power.
  • A union is a political institution in its internal structure and procedures.
Management Notes

Trade Unions, Features, Objectives, Role, Types, Problems

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Trade Unions are organizations formed by workers to collectively represent their interests and negotiate with employers on issues such as wages, working conditions, and benefits. They serve as a voice for employees, advocating for their rights and concerns in the workplace. Trade unions typically operate on a democratic basis, with members electing leaders to represent them in negotiations with management. By bargaining collectively, trade unions seek to achieve better terms and conditions of employment for their members, as well as promote job security and fair treatment. They also play a role in providing support and solidarity to workers facing workplace challenges or disputes, aiming to balance the power dynamics between labor and management for the benefit of workers.

Features of Trade Unions:

  • Collective Representation:

Trade unions serve as collective representatives of workers, advocating for their interests and negotiating with employers on matters such as wages, benefits, and working conditions. They act as a unified voice for their members, presenting their concerns and demands to management through collective bargaining.

  • Membership-Based:

Trade unions are composed of workers who voluntarily join the organization to benefit from collective representation and support. Membership is typically open to employees across various industries and occupations, with individuals choosing to join based on shared interests and objectives.

  • Democratic Structure:

Trade unions operate on a democratic basis, with members electing leaders and representatives to govern the organization and negotiate on their behalf. Decision-making processes within trade unions are often transparent and participatory, allowing members to have a say in the direction and priorities of the union.

  • Collective Bargaining:

One of the primary functions of trade unions is to engage in collective bargaining with employers to negotiate employment terms and conditions. Through collective bargaining, trade unions seek to secure favorable agreements on wages, benefits, working hours, and other matters, aiming to improve the economic and social status of their members.

  • Solidarity and Support:

Trade unions provide solidarity and support to workers facing workplace challenges, such as unfair treatment, discrimination, or unsafe working conditions. They offer legal assistance, advocacy, and representation to members in disputes with employers, helping to protect their rights and interests.

  • Strikes and Industrial Action:

Trade unions have the power to organize strikes and other forms of industrial action as a means of exerting pressure on employers to meet their demands. Strikes can range from work stoppages and protests to boycotts and picketing, and they serve as a tool for trade unions to demonstrate the collective strength and resolve of their members.

  • Education and Training:

Trade unions often provide education and training programs to empower their members with the knowledge and skills needed to navigate the labor market effectively. These programs may include workshops, seminars, and resources on topics such as workplace rights, health and safety, and professional development.

  • Political Advocacy:

Trade unions engage in political advocacy and lobbying to influence government policies and legislation that impact workers’ rights and interests. They may campaign for labor-friendly laws, social welfare programs, and regulatory reforms to improve working conditions and promote social justice.

Objectives of Trade Unions:

  • Wage Bargaining:

Trade unions negotiate with employers to secure fair wages, benefits, and working conditions for their members. Through collective bargaining, unions strive to achieve better pay, job security, and improved benefits such as healthcare, pensions, and leave entitlements.

  • Worker Protection:

Trade unions work to protect the rights and interests of workers by advocating for safe and healthy working conditions, fair treatment, and job security. They monitor compliance with labor laws and regulations, address workplace grievances, and provide legal assistance and representation to members facing employment-related issues.

  • Job Security:

Trade unions seek to safeguard job security for their members by advocating for measures to prevent layoffs, downsizing, and outsourcing. They negotiate employment contracts and collective agreements that include provisions for job protection, layoff procedures, and retraining or redeployment opportunities in case of job losses.

  • Professional Development:

Trade unions promote the professional development and advancement of their members by offering training programs, educational resources, and career counseling services. They support lifelong learning initiatives and advocate for opportunities for skills development, career progression, and upward mobility within the workplace.

  • Social Welfare:

Trade unions advocate for social welfare policies and programs that benefit workers and their families, such as healthcare, housing, education, and social security. They campaign for improved access to affordable healthcare, affordable housing, quality education, and adequate social safety nets to support workers in times of need.

  • Collective Action:

Trade unions organize collective action, such as strikes, protests, and demonstrations, to press for their demands and assert the collective power of their members. They mobilize workers to participate in solidarity actions, boycotts, and other forms of industrial action to address grievances, protest unfair labor practices, and advance their objectives.

Role of Trade Unions:

  • Collective Bargaining:

Trade unions negotiate with employers on behalf of their members to secure favorable terms and conditions of employment through collective bargaining. This includes negotiations on wages, benefits, working hours, job security, and other aspects of the employment relationship. By bargaining collectively, trade unions aim to improve the economic and social well-being of workers.

  • Representation:

Trade unions serve as representatives of workers in interactions with employers, government authorities, and other stakeholders. They advocate for the rights and interests of their members, provide legal assistance and representation in employment-related matters, and ensure that workers’ voices are heard in decision-making processes that affect their livelihoods.

  • Advocacy and Lobbying:

Trade unions engage in advocacy and lobbying efforts to influence government policies, legislation, and regulations that impact workers’ rights and interests. They campaign for labor-friendly laws, social welfare programs, and regulatory reforms to improve working conditions, promote job security, and advance social and economic justice.

  • Education and Training:

Trade unions provide education and training programs to empower their members with the knowledge, skills, and resources needed to navigate the labor market effectively. These programs cover topics such as workplace rights, health and safety, professional development, and collective action, enabling workers to assert their rights and advocate for their interests.

  • Solidarity and Support:

Trade unions offer solidarity and support to workers facing workplace challenges, such as unfair treatment, discrimination, or unsafe working conditions. They provide a platform for workers to come together, share experiences, and support each other in addressing common concerns. Trade unions also offer financial assistance, legal advice, and representation to members in disputes with employers, ensuring that workers have access to resources and support when needed.

Types of Trade Unions:

  • Craft Unions:

These unions represent workers with similar skills or trades, such as carpenters, electricians, or plumbers. Craft unions focus on protecting the interests of workers in specific crafts or occupations, often emphasizing skill development, training, and maintaining standards within the trade.

  • Industrial Unions:

Industrial unions represent workers across multiple occupations or industries within a single sector, such as manufacturing, transportation, or healthcare. Unlike craft unions, which focus on specific skills, industrial unions organize workers based on their common employer or industry, advocating for broader issues such as wages, working conditions, and job security.

  • General Unions:

General unions, also known as all-inclusive or industrial unions, represent workers across various industries and occupations, regardless of their specific skills or trades. These unions aim to organize workers across different sectors to address common concerns and promote solidarity among diverse groups of workers.

  • White-Collar Unions:

White-collar unions represent professionals, administrative staff, and other non-manual workers in sectors such as finance, education, and healthcare. These unions focus on issues relevant to white-collar workers, such as professional development, job classification, and work-life balance.

  • Blue-Collar Unions:

Blue-collar unions represent workers engaged in manual or industrial occupations, such as factory workers, construction workers, and laborers. These unions address issues related to wages, working conditions, health and safety, and job security for blue-collar workers.

  • Public Sector Unions:

Public sector unions represent employees working in government agencies, public services, and state-owned enterprises. These unions advocate for the interests of public sector workers, including civil servants, teachers, healthcare workers, and firefighters, addressing issues such as wages, benefits, and working conditions in the public sector.

  • Trade Federations:

Trade federations, also known as national or industrial federations, are umbrella organizations that bring together multiple trade unions representing workers in related industries or sectors. These federations coordinate collective bargaining, advocacy, and solidarity efforts among affiliated unions, providing a platform for collaboration and coordination on common issues.

  • International Unions:

International unions, also known as global or transnational unions, represent workers across different countries and regions. These unions organize workers in multinational corporations, global supply chains, and industries with international operations, advocating for global labor rights, fair wages, and decent working conditions on a global scale.

Problems of Trade Unions:

Trade unions play a crucial role in protecting the rights of workers and ensuring fair wages, better working conditions, and job security. However, they face several challenges that limit their effectiveness. 

  • Lack of Unity and Multiple Unions

Trade unions often suffer from internal conflicts and fragmentation due to the presence of multiple unions representing workers within the same industry or organization. Rivalries among unions weaken collective bargaining power and create divisions among workers, leading to ineffective negotiations with employers. This division often results in poor representation and reduced benefits for workers.

  • Political Influence and Interference

Many trade unions are affiliated with political parties, leading to external interference in their activities. Instead of focusing solely on workers’ welfare, unions often become instruments of political agendas. Political rivalry between unions can cause conflicts, disrupt industrial peace, and divert attention from actual labor issues, weakening their ability to negotiate effectively.

  • Financial Weakness

Trade unions often face funding shortages due to low membership fees, poor financial management, and lack of proper investment strategies. Without adequate funds, unions struggle to organize strikes, provide legal support, or conduct welfare programs for members. This financial weakness affects their bargaining power and ability to fight for better wages and working conditions.

  • Poor Leadership and Corruption

Leadership in many trade unions lacks proper education, experience, and negotiation skills, leading to ineffective decision-making and weak representation. In some cases, union leaders misuse funds or accept bribes from employers, betraying workers’ trust. Corruption within unions weakens their credibility and hampers their ability to advocate for genuine labor rights.

  • Low Membership and Apathy Among Workers

Many workers hesitate to join unions due to fear of employer retaliation, lack of awareness, or belief that unions are ineffective. This results in low membership, reducing the union’s strength and bargaining power. Additionally, workers may be reluctant to participate in union activities, limiting the union’s ability to organize strikes or negotiate better terms.

  • Weak Collective Bargaining Power

Due to poor leadership, financial issues, and lack of unity, trade unions often have weak bargaining power against employers. Many unions fail to negotiate effectively, leading to unsatisfactory wage settlements and poor working conditions. Employers take advantage of this weakness by ignoring union demands or implementing anti-union policies.

  • Legal Restrictions and Anti-Union Policies

Many governments impose strict labor laws and restrictions on trade unions, limiting their ability to strike, protest, or bargain collectively. Employers also adopt anti-union policies, such as discouraging union membership or penalizing workers who participate in union activities. These restrictions reduce the effectiveness of trade unions in protecting worker rights.

  • Technological and Economic Challenges

The rise of automation, outsourcing, and contract-based employment has reduced permanent jobs, weakening the influence of trade unions. Many companies prefer hiring temporary workers who are not unionized. Additionally, economic downturns and globalization force unions to accept lower wage settlements to keep jobs secure, reducing their ability to demand better conditions.

Management Notes

Employee Discipline: Meaning, Determinants, Causes of Indiscipline, Code of Discipline and its Enforcement

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The word discipline comes from two very nice words “discipulus” meaning pupil and “discare” to learn. Discipline then is the devotion of a disciple towards his learning. In self-discipline obviously the emphasis is to know where one is going and to focus one’s attention on one’s purpose. Discipline in this sense refers to the development of the individual.

In “positive” discipline, there is willingness to comply that comes from the desire to cooperate in achieving the common goal of the organization The emphasis here is on cooperative efforts to secure compliance to organizational norms.

According to Dr. W. R. Spriegel, “discipline is the force that prompts an individual or a group to observe the rules, regulations or procedure which are seemed to be necessary to the attainment of an objective. It is force or fear which restrains an individual or a group from doing certain things which are deemed to be distractive for group objectives. It is also the exercise of restraint or the enforcement of penalties for the violation of group regulations.”

Klebster’s Dictionary gives three meanings of the word discipline:

(i) It is the training that corrects, moulds, strengthens or perfects

(ii) It is control gained by enforcing obedience.

(iii) Punishment, chastisement.

In the work situation there is usually an attempt to modify the offending employee’s behaviour so that it more closely accords with the management’s requirements. Whist the possibility of sanctions is ever present, the focus is on problem solving. Thus, “Discipline” means orderliness, obedience and maintenance of proper subordinating among employees and a check or restraint on the liberty of individual.

It is at once a training that corrects, moulds and strengthens the individual behaviour. It is also a force which prompts an individual or group to observe certain rules, regulations and procedures that are considered to be necessary for the attainment of an objective.

Discipline is essentially an attitude of the mind, a product of culture and environment. The approach to discipline will depend on the supervisor and the general ethos of the organization, but most people now recognize that many of the old sanctions, relatively easy to apply, are no longer appropriate Inculcating self-discipline is the right approach and the superior’s own example, consistency and integrity will do much to achieve acceptable behaviour. Where the superior is respected, he can expect tacit support.

Discipline is at its best when it has been developed from within and not imposed from outside; and at the same time it has to be reformative and not punitive. It should be founded on leadership, loyalty, and love.

For effective discipline the following principles need to be considered:

  • Discipline should be constructive, and emphasis on work efficiency rather than adaptation of rules and regulations.
  • Disciplinary action should not be initiated unless there is imperative need for it
  • Discipline is not to be administered unthinkingly. Each case should be treated keeping the specifics in view.
  • All facts regarding a case should be collected to gain proper appreciation of the case.
  • Employee should be given a fair chance to explain his side of the story.
  • Attempt should be made to know the worker’s perception. It helps better appreciation of the situation. Also, admission of mistake on the part of the offending party should be encouraged.
  • Employee should not be disciplined in the presence of his colleagues or subordinates.
  • Right timing of action is important. Action should be taken as soon as possible after the occurrence of questionable behaviour.
  • Corrective measure should be adequately served in order to be effective.
  • Consistency in disciplinary action is important.
  • Once disciplinary action is taken normal attitude should be resumed towards the offending employee.
  • Occasions of ‘disciplining’ should be reduced to the minimum by showing constant and sincere interest in each worker’s welfare on and off the job.
  • Admission of mistake should be encouraged On the part of the offending party.
  • Every action taken requires auditing in due course to judge its efficacy, specifically in terms of:

(a) The extent to which the situation was corrected.

(b) Extent to which the employee realized his mistake.

(c) Impact on organisational climate.

Causes of Indiscipline

Environmental Factors:

Since an organization is also one of the members of the society, discipline observed by the society manifests in organizations. Indiscipline prevailing in family, educational institutions, political system, religious institutions, break down, of social control mechanism, etc., casts its ugly shadow on the organizational climate.

Individual Factors:

Individual differences caused by education, experience, values, attitudes, beliefs, intelligence, personality, etc., cause employees to behave differently in an organization. Therefore, some individuals conform to rules and standards of behaviour in much wider context than others.

Individual features that lead to indiscipline behaviour are as follows:

  • Individuals with non-conformist values tend to engage in indisciplined behaviour.
  • Individuals differ in work ethics. Those with high ethical values tend to be committed and involved in the jobs while those with low ethical values show alienation to their jobs and exhibit negative behaviour.
  • Every individual perceives reward and punishment differently and react to it accordingly. When the reward is not commensurate with his expectation, he may feel frustrated and indulge in indiscipline.

Organizational Factors:

  • Lack of code of conduct for employees has potential to disorient them thereby sowing seeds of indiscipline.
  • Where the organization, while hiring the employees, fail to assess the traits of individuals like attitude, obedience, tolerance and inquisitiveness, it may end up hiring employees who challenge any decision made by the management. This may breed indiscipline.
  • Where an employee hired for a job for which he has neither aptitude nor attitude, he is sure to develop ill-feelings. He may find the job uninteresting and do everything to evade responsibility.
  • Indiscriminate use of penal provisions triggers reactionary group indiscipline.
  • Ineffective leadership characterised by authoritarianism and incompetency, and distrustful relations with employees fuel indiscipline among the employees.
  • Favouritism and nepotism practiced by supervisors vitiate discipline.
  • Biased performance evaluation on considerations of caste, creed, colour, gender, religion and region promotes ill-feeling and a sense of injustice among employees which culminate in indiscipline.
  • Divisive policies pursued by management and instituting unofficial spy network spoils the work atmosphere thereby engendering indiscipline.
  • Absence of grievance redressal mechanism frustrates employees thereby breeding indiscipline among them.

Code of Discipline and its Enforcement

  1. Motivate an employee to comply with the company’s performance standards:

Employee receives discipline after failing to meet some obligation of job. The failure could be either directly related to the tasks performed by the employee or ignoring rules and regulations that define proper conduct at work.

  1. Maintain respect and trust between the supervisor and employee:

Discipline if not properly administered can create problems like low morale, resentment, and ill-will between the employees. In such case, improvement in employee’s behaviour, if any, will be relatively short-lived and the supervisor will need to discipline the employee again and again. On the contrary, properly administered discipline will not only improve employee behaviour but will also minimize future disciplinary problems through good relationship between the supervisor and the employee.

  1. Improve the performance of the employee:

Discipline for poor task performance should not be applied while employees are on training or learning the job. Nor should employees be disciplined for problems beyond their control, for example, failure to meet output standards due to the lack of raw materials. Yes, discipline should be exercised when employees are found responsible for unsatisfactory performance.

  1. Increase the morale and working efficiency of the employees.
  2. Foster industrial peace which is the very foundation of industrial democracy.

The 15th session of the Indian Labour Conference held in July 1957, discussed the problem of discipline in industry and formulated certain principles for removing employee grievances and settling indus­trial disputes by mutual negotiation, conciliation and voluntary arbi­tration.

The Code of Discipline has come into force from June 1958. The Code of Discipline can be described as a truce between organised labour and management.

The following principles were discussed:

  • No unilateral action should be taken.
  • There should be no lockout or strike without notice.
  • No recourse to go-slow tactics.
  • No acts of violence, intimidation, coercion or instigation.
  • No deliberate damage to plant or property.
  • Existing machinery for settlement of disputes should be utilized.
  • No agreement violating cordial industrial relations should be en­tered into.
  • Awards and agreements should be speedily implemented.

The above principles were accepted and incorporated in the Code of Discipline, in toto. Certain modifications were made to codify them which became a “Code of Discipline”.

This was ratified by the four central national labour organisations (INTUC UTUC, AITUC, and HMS) on behalf of the workers and by the Employers’ Federation of India, the All India Organisation of Industrial Employers and the All India Manufacturers’ Organisation on behalf of the employers.

The Code of Discipline however, could not prevent the major strikes in the steel plant at Jamshedpur, in dockyards at important ports, in the plantation industry in Kerala, at Calcutta Tramways, Hindustan Shipyard and Heavy Electricals at Bhopal.

A seminar on the working of the Code of Discipline was held in 1965. Again, in 1967, the working of the Code of Discipline was reviewed at the meet­ing of the Central Implementation and Evaluation Committee and the proposal to set up a National Arbitration Promotion Board for encour­aging voluntary arbitration was finalized.

Types:

Positive Discipline

According to Spiegel, “Positive discipline does not replace reason but applies reason to the achievement of a common objective. Positive Discipline does not restrict the individual freedom but enables him to have a greater degree of self-expression in striving to achieve the group objective, which he identifies as his own.”

It means that positive Discipline is not that ideal that it can’t be achieved. It also does not imply that an individual’s freedom is restricted. Rather it provides better chances to an individual for expressing himself. The individual in this process, is able to bridge the gap between his and the group goals.

It is also to be noted that positive discipline promotes cooperating and coordination with a minimum of formal organization. It reduces the need for strict supervision required to maintain standards and observe rules and regulations. Everyone is answerable to oneself and therefore one is not answerable to anyone else.

  1. It is the creation of a conducive climate in an organization so that employees willingly conform to the established rules.
  2. There is no conflict between individual & organization goals.
  3. Employees exercise self control to meet organization objectives.

Negative Discipline

Under negative discipline, penalties are used to force the workers to obey rules and regulations. In other words, workers try to adhere to rules and regulations out of fear of warnings, penalties and other forms of punishment. This approach to discipline is called negative or punitive approach.

This is an unfavorable state that subjects the employees to frustration, and consequently results in low morale. Let me ask you a question, how will you react if you are punished for a wrong act of yours? Will you welcome it? I am sure it would be much better that an environment is created where one does not commit any wrongful act. If at all there is some indiscipline, it has to be handled in a calm and matured way.

There is another drawback related to negative discipline. An employee goes astray in his behaviour whenever there is a slightest possibility of escaping the punishment or when he believes that his action will go unnoticed.

Progressive and development oriented managers adopt a positive approach to discipline rather than negative approach. In the positive approach, attempts are made to educate the workers the values of discipline. The workers should be taught self-discipline. Disciplinary action should be taken only in exceptional circumstances where no other alternative is left. Disciplinary action should always incorporate consideration of just cause and due process.

  1. It is adherence to established norms & regulations, out of fear of punishment.
  2. Employees do not perceive the corporate goals as their own.
  3. Requires intense supervisory control to prevent employees from going off the track.
Management Notes

Industrial Dispute, Causes, Types, Consequences/Effects, Resolutions

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Industrial Disputes refer to conflicts or disagreements between employers and employees or among groups of workers that arise primarily from issues related to employment conditions, wages, benefits, working hours, or other terms of employment. These disputes may manifest in various forms, including strikes, lockouts, work stoppages, protests, or slowdowns, and can disrupt normal business operations, leading to economic losses for both employers and workers. Resolving industrial disputes typically involves negotiation, mediation, arbitration, or other forms of dispute resolution mechanisms aimed at reaching a mutually acceptable resolution. Effective management of industrial disputes is essential for maintaining labor peace, fostering productive labor relations, and promoting stability and prosperity in the workplace.

Causes of Industrial Disputes

  • Wage Disputes:

Conflicts over wages, including demands for wage increases, adjustments to pay scales, or disparities in compensation between different categories of workers, can lead to industrial disputes. Workers may feel that their wages are inadequate given the cost of living or compared to industry standards, leading to demands for better remuneration.

  • Working Conditions:

Disputes may arise over working conditions such as safety standards, workload, working hours, rest breaks, and job-related stress. Employees may protest against unsafe working conditions, excessive workloads, or unreasonable demands from management, seeking improvements to their working environment and quality of life.

  • Job Security:

Concerns about job security, including layoffs, retrenchments, outsourcing, or automation, can provoke industrial disputes. Workers may resist job cuts or downsizing initiatives, fearing unemployment or loss of income, and may demand assurances of job stability and protection from arbitrary dismissals.

  • Disciplinary Actions:

Disputes may occur due to disciplinary actions taken by management against employees, such as suspensions, terminations, or disciplinary warnings. Employees may perceive disciplinary measures as unfair or unjustified, leading to grievances and conflicts that escalate into industrial disputes.

  • Collective Bargaining Issues:

Failure to reach agreements through collective bargaining negotiations can result in industrial disputes. Disputes may arise over issues such as the interpretation of collective agreements, the implementation of wage increases, changes to working conditions, or the refusal of management to recognize or negotiate with trade unions.

  • Unfair Labor Practices:

Industrial disputes may stem from unfair labor practices by employers, including discrimination, harassment, intimidation, or retaliation against union members or activists. Employees may protest against unfair treatment or violations of their rights, seeking redress and accountability from management.

  • Management Policies and Decisions:

Disputes may arise from management policies, decisions, or actions perceived as arbitrary, discriminatory, or detrimental to employees’ interests. Examples include restructuring initiatives, mergers or acquisitions, changes to employee benefits or entitlements, or decisions affecting career progression and opportunities for advancement.

  • Economic Factors:

Economic factors such as inflation, cost-of-living increases, recession, or economic downturns can contribute to industrial disputes. Workers may demand wage adjustments or other concessions to offset the impact of rising prices or declining purchasing power, while employers may seek cost-cutting measures that workers perceive as unfair or detrimental to their interests.

Types of Industrial Disputes

  1. Strikes:

Strikes involve a temporary cessation of work by employees as a form of protest against their employer. Strikes can be classified into several categories based on their duration, participants, and objectives:

  • General Strikes: Involves the participation of workers from multiple industries or sectors, often organized by trade unions or social movements to protest against government policies or broader socio-economic issues.
  • Work Stoppage Strikes: Temporary stoppages of work by employees to press for specific demands or grievances, such as wage increases, better working conditions, or improved benefits.
  • Sympathy Strikes: Occur when workers in one industry or workplace strike in support of workers in another industry or workplace facing similar issues or disputes.
  • Wildcat Strikes: Unauthorized or unofficial strikes initiated by workers without the approval or endorsement of their trade union or official leadership.
  1. Lockouts:

Lockouts are initiated by employers as a countermeasure against striking workers, involving the temporary closure or suspension of operations to pressure employees to accept the employer’s terms or demands. Lockouts can have significant economic and social consequences for both employers and workers and are often used as a tactic during labor disputes.

  1. Go-Slows:

Go-slows, also known as work slowdowns or work-to-rule actions, involve employees deliberately reducing their productivity or adhering strictly to work rules and procedures as a form of protest or demonstration of dissatisfaction. While less disruptive than strikes or lockouts, go-slows can still impact production and operations, leading to delays, inefficiencies, and financial losses for employers.

  1. Occupational Actions:

Occupational actions involve workers occupying or barricading their workplace as a form of protest or resistance against their employer. Occupations may be organized in response to threats of layoffs, plant closures, or other actions perceived as detrimental to workers’ interests, aiming to disrupt operations and draw attention to their demands.

  1. Grievance Arbitration:

Grievance arbitration involves the resolution of individual or collective disputes between employers and employees through a formal arbitration process. Grievances may arise from alleged violations of collective agreements, employment contracts, or labor laws, and are typically resolved by a neutral arbitrator or panel of arbitrators based on evidence presented by both parties.

Consequences/Effects of Industrial Disputes:

  • Economic Losses:

Industrial disputes can lead to significant economic losses for both employers and workers due to disruptions in production, supply chains, and business operations. Strikes, lockouts, and other forms of industrial action can result in lost revenue, decreased productivity, and increased costs for businesses, as well as lost wages and income for workers.

  • Reduced Competitiveness:

Industrial disputes can undermine the competitiveness of businesses and industries by disrupting operations, damaging reputation, and eroding customer trust. Delays in delivery, product shortages, and quality issues resulting from industrial disputes can lead to loss of market share, decreased profitability, and long-term damage to brand value and competitiveness.

  • Strained Labor Relations:

Industrial disputes can strain labor-management relations and create tensions and distrust between employers and employees. Prolonged conflicts and breakdowns in communication can damage morale, cohesion, and trust within the workforce, making it difficult to rebuild relationships and collaborate effectively in the future.

  • Negative Public Perception:

Industrial disputes can generate negative publicity and public perception, damaging the reputation of both employers and trade unions involved. Media coverage of strikes, lockouts, and other labor conflicts can portray businesses as insensitive to workers’ concerns or unions as disruptive and unreasonable, leading to public backlash and loss of goodwill.

  • Legal and Regulatory Challenges:

Industrial disputes may result in legal and regulatory challenges for employers and trade unions, including litigation, fines, and sanctions for violations of labor laws or collective agreements. Employers may face legal action for unfair labor practices, while trade unions may be subject to legal restrictions on strike actions or other forms of industrial action.

  • Social and Community Impact:

Industrial disputes can have broader social and community impacts, affecting not only workers and employers but also families, communities, and society at large. Disruptions in employment, income, and services resulting from industrial disputes can contribute to social unrest, economic hardship, and community division, impacting the well-being and stability of communities and society as a whole.

Resolutions of Industrial Disputes:

  • Negotiation:

Negotiation involves direct discussions between labor and management representatives to identify areas of agreement, clarify differences, and reach mutually acceptable solutions. Negotiation allows parties to explore various options, trade-offs, and compromises in a flexible and informal setting, seeking to find common ground and resolve issues through dialogue and consensus-building.

  • Mediation:

Mediation involves the intervention of a neutral third party, known as a mediator, who facilitates communication, assists in identifying interests and concerns, and helps parties explore options for resolution. Mediators do not impose solutions but instead encourage parties to reach agreements voluntarily, often by reframing issues, fostering empathy, and promoting creative problem-solving.

  • Conciliation:

Conciliation is similar to mediation but typically involves a more active role by the conciliator in proposing solutions and bridging gaps between parties. Conciliators may provide expert advice, make recommendations, or facilitate compromises to help parties overcome impasses and reach settlement agreements. Conciliation aims to preserve relationships, promote goodwill, and prevent escalation of conflicts.

  • Arbitration:

Arbitration involves the submission of a dispute to a neutral third party, known as an arbitrator, who renders a binding decision based on evidence and arguments presented by both parties. Arbitration provides a formal and structured process for resolving disputes, offering a quicker and less costly alternative to litigation while ensuring a fair and impartial outcome. Arbitration decisions are final and legally enforceable, providing closure to parties and certainty in dispute resolution.

  • Collective Agreements:

Collective agreements negotiated between labor and management can serve as mechanisms for preventing and resolving industrial disputes by establishing clear rights, obligations, and procedures for addressing grievances and disputes. Collective agreements typically include provisions for dispute resolution, such as grievance procedures, mediation, or arbitration, to facilitate prompt and fair resolution of conflicts.

  • Legislative Intervention:

Legislative or regulatory intervention by government authorities can sometimes be necessary to address industrial disputes, particularly in cases involving public interest or essential services. Governments may enact laws, regulations, or emergency measures to regulate labor relations, mandate arbitration, or impose cooling-off periods to facilitate negotiations and prevent disruptions to critical services or industries.

  • Collaborative Problem-Solving:

Collaborative problem-solving approaches involve bringing together labor and management representatives, along with other stakeholders such as government agencies, community organizations, or industry associations, to collectively identify and address underlying issues contributing to industrial disputes. Collaborative processes such as joint committees, task forces, or forums enable stakeholders to work together proactively to prevent conflicts, improve communication, and promote mutual understanding and cooperation.

Management Notes

Methods of Settling Industrial Disputes (Arbitration, Joint Consultations, Works Committee, Conciliation, Adjudication etc)

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If industrial peace is the backbone of a nation, strikes and lockouts are cancer for the same as they effect production and peace in the factories.

In the socioeconomic development of any country cordial and harmonious industrial relations have a very important and significant role to play. Industry belongs to the society and therefore good industrial relations are important from societys point of view.

Nowadays, industrial relations are not bipartite affair between the management and the work force or employees. Government is playing an active role in promoting industrial relations. The concept of industrial relations has therefore, become a tripartite affair between the employees, employers and the government concerned.

It is possible to settle the industrial disputes if timely steps are taken by the management. Such disputes can be prevented and settled amicably if there is equitable arrangement and adjustment between the management and the workers.

The following is the machinery for prevention and settlement of industrial disputes:

(i) Works Committees:

This committee represents of workers and employers. Under the Industrial Disputes Act 1947, works committees exist in industrial establishments in which one hundred or more workmen are employed during the previous year.

It is the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employers and workers. It also deals with certain matters viz. condition of work, amenities, safety and accident prevention, educational and recreational facilities.

(ii) Conciliation Officers:

Conciliation Officers are appointed by the government under the Industrial Disputes Act 1947.

The duties of conciliation officer are given below:

(i) He has to evolve a fair and amicable settlement of the dispute. In case of public utility service, he must hold conciliation proceedings in the prescribed manner.

(ii) He shall send a report to the government if a dispute is settled in the course of conciliation proceedings along with the charter of the settlement signed by the parties.

(iii) Where no settlement is reached, conciliation officer sends a report to the government indicating the steps taken by him for ascertaining the facts, circumstances relating to dispute and the reasons on account of which settlement within 14 days of the commencement of the conciliation proceedings.

Boards of Conciliation:

The government can also appoint a Board of Conciliation for promoting settlement of Industrial Disputes. The chairman of the board is an independent person and other members (may be two or four) are to be equally represented by the parties to the disputes.

The duties of the board include:

(a) To investigate the dispute and all matters affecting the merits and do everything fit for the purpose of inducing the parties to reach a fair and amicable settlement.

(b) A report has to be sent to the government by the board if a dispute has been settled or not within two months of the date on which the dispute was referred to it.

(iii) Court of Enquiry:

The government may appoint a court of enquiry for enquiring into any industrial dispute. A court may consist of one person or more than one person in and in that case one of the persons will be the chairman. The court shall be required to enquire into the matter and submit its report to the government within a period of six months.

(iv) Labour Courts:

As per the Second Schedule of the Industrial Dispute Act 1947.

The Government sets up Labour Courts to deal with matters such as:

(i) The propriety or legality of an order passed by an employer under the standing orders.

(ii) The application and interpretation of standing orders passed.

(iii) Discharge or dismissal of workmen including reinstatement, grant of relief to workers who are wrongfully dismissed.

(iv) Withdrawal of any customary concession of privilege.

(v) Illegality or otherwise of a strike or lockout, and all other matters not specified in the Third Schedule.

(v) Industrial Tribunals:

A Tribunal is appointed by the government for the adjudication of Industrial Disputes.

(vi) National Tribunal:

A National Tribunal is constituted by the Central Government for Industrial Disputes involving questions of national importance.

(vii) Arbitration:

The employer and employees may agree to settle the dispute by appointing an independent and impartial person called Arbitrator. Arbitration provides justice at minimum cost.

University of Mumbai BMS Notes

Essentials of good Industrial Relations

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Good industrial relations depend on the co-operative and constructive attitude from both part as management & union. Still there exist some certain conditions/principles/essentials that helps to maintain harmonious industrial relations:

Mutual and Voluntary Negotiations:

The relationship between an employee and the employer will be congenial only, where the difference between them are settled through mutual negotiations and consultations. Collective beginning is a process, through which employee issues are settled, through mutual discussions and negotiations, through a give and take approach.

Efficient management:

To reduce disputes & other conflicts, efficient management helps to maintain good IR.

Existence of Organised Employers Unions:

These associations are helpful for the promotion and maintenance of uniform personnel policies, among various organisations and to protect the interest of weak-employers.

Proper democratic environment:

Proper democratic environment in any enterprise is essential in order to maintain a sound IR.

Existence of Democratic Employee is Unions:

Industrial, relations are sound only when the bargaining power of the employees’ unions, is equal to that of management

Existence of strong, organized trade unions:

Sound IR requires equality of bargaining power of the workers’ union & management. A strong trade union can protect the workers’ interests relating to wage, job security etc.

Existence of sound, organized employers’ unions

All organizations within industry must follow identical policy, rules and regulation in order to maintain a sound IR.

Spirit of collective bargaining:

Collective bargaining means, negotiation between an employer and a labor union usually on wages, hours, and working conditions. Here it means both parties must consider each other for removing conflict.

Management Notes

Changing Dimensions of Industrial Relations in India

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The world of work is changing. Increasing globalization is constantly reshaping the contours of knowledge-driven economies and also belying the importance of Industrial Relations (IR). The changes have also brought along with it a number of strategic opportunities to improve prospects of both enterprises and employees. However, to seize the opportunities and for a beneficial relationship, organizations require a strategy directed to improving employee relations, seeking changes in attitudes and behaviour in the workplace and addressing the key issues of skills development, compensation and benefits, workplace structures and flexibility, and diverse workforce management.

Conducive industrial relations motivate the workers to give increased output. Problems are solved through mutual discussions, workers’ participation, suggestion schemes, joint meeting, etc. Good industrial relations, increase labour efficiency and productivity.

The labours today are more educated and they are aware of their responsibilities and rights. Management has to deal with them not merely as factors of production, but as individuals having human dignity and self-respect. The objective is to change the traditional views of management and labour towards each other and develop mutual understanding and co-operation and work towards achievement of common goal. Good industrial relations lead to industrial peace and increase in production.

With increased productivity, the management is in a position to offer financial and non-financial incentives to workers.

Business Cycles:

Industrial relations are good when there is boom and prosperity all round. Levels of employment go up, wages rise and workers are more happy in prosperity period. But during recession, there is decline in wages and fall in employment level. Such recessionary conditions mars the good industrial relations. Thus business cycles also influence the existence of healthy industrial relations.

Better Education:

Industrial workers in Indian are generally illiterate. They can be easily misled by the trade union leaders who have their self-interest. Workers must be properly educated to understand the prevailing industrial environment. They must have a problem solving approach and a capability to analyse the things in the right perspective. They must be aware of their responsibility towards the organisation and the community at large.

Public Policy and Legislation:

The regulation of employer-employee relationship by the government is another important factor for the smooth industrial relations. Government intervenes the relationships by enacting and enforcing labour laws. Government intervention checks and balances upon the arbitrary management action.

It also provides a formal measure to the workers and employers to give emotional release to their dissatisfaction. Timely intervention by the government can catch and solve problems before they become amounting serious.

Social Factors:

Social factors such as; Social values, Social groups and social status also influence the industrial relations. The employment relationship is not just an economic contract. It is a joint venture involving a climate of human and social relationships wherein each party (workers and management) fulfills his needs and contributes to the needs of others. The supportive climate is essentially built around social factors. The influence of social factors gets changed with the progress of industrialisation.

Off the Job Conditions:

Living conditions of workers are also important. The industry appoints the ‘whole person’. His personal and home life is inseparable from his work life. His personal optional conditions do affect on his efficiency and productivity. So off-the-job conditions of workers must be taken care of and improved to develop good industrial relations at the work place.

Strong Trade Unions:

Strong and enlightened trade unions help to promote the status of labour without jeopardising the interest of management. Trade unions maintain good relations with management and avoid militancy and strikes situation. Enlightened trade unions induce the workers to produce more and persuade the management to pay more.

They mobilize public opinion on vital labour issues and help the government in enacting progressive labour laws. They develop right kind of leadership, avoid multiplicity of unionism and union rivalry. Hence, a strong, responsible and enlightened trade union promote healthy industrial relations.

University of Mumbai BMS Notes

Evolution of Industrial Relations in India

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IR is dynamic in nature. The nature of IR can be seen as an outcome of complex set of transactions among the major players such as the employers, the employees, the trade union, and the state in a given socio-economic context. In a sense, change in the nature of IR has become sine quo non with change in the socio-economic context of a country.

During this period the industry (both employees and employers) faced severe problems like:

  • Poor working condition
  • Poor wages
  • Absence of job security
  • Absence of welfare activities
  • Employee’s strike
  • Low productivity
  • Long working hours
  • Absence of skilled labour

Keeping this fact in view, IR in India is presented under the following two sections:

  1. IR during Pre- Independence
  2. IR during Post-Independence

  1. IR During Pre-Independence:

The structure of the colonial economy, the labour policies of colonial government, the ideological composition of the political leadership, the dynamics of political struggle for independence, all these shaped the colonial model of industrial relations in pre-independent India”. Then even union movement was an important part of the independence movement.

However, the colonial dynamics of the union movement along with the aggressiveness of alien capital, the ambivalence of the native capital and the experience of the outside political leadership frustrated the process of building up of industrial relations institutions. Other factors like the ideology of Gandhian class harmony, late entry of leftists and the bourgeois character of congress also weakened the class approach to the Indian society and industrial conflict”.

Till the Second World War, the attitude of the colonial government toward industrial relations was a passive regulator only Because, it could provide, that too only after due pressure, the —um of protective and regulative legal framework for industrial relations Trade Union Act 1926 (TL A) Trade Disputes Act 1929 (TDA). It was the economic emergence of the Second World War that altered the colonial government’s attitude on industrial relations.

The state intervention began in the form of introduction of several war time measures, viz. the Defense of India Rules (Rule 81- A), National Service (Technical Personnel) Ordinance, and the Essential Service (Maintenance) Ordinance As such in a marked contrast to its earlier stance, the colonial government imposed extensive and pervasive controls on industrial relations by the closing years of its era-. Statutory regulation of industrial relations was on plank of its labour policy. The joint consultative institutions were established primarily to arrive at uniform and agreeable labour policy.

The salient features of the colonial model of IR can be summarized as close association between political and trade union movement, dominance of ‘outsiders’ in the union movement, state intervention and federal and tripartite consultations.

The eve of Independence witnessed several instances that served as threshold plank for IR during post Independence era. The prominent instances to mention are passing of Indian Trade Unions (Amendment) Act, 1947, Industrial Employment (Standing Orders) Act 1946, Bombay Industrial Relations Act, 1946, and Industrial Disputes Act, 1947 and split in AITUC and formation of INTUC.

  1. IR During Post-Independence:

Though Independent India got an opportunity to restructure the industrial relations system the colonial model of IR remained in practice for sometimes due to various reasons like the social, political and economic implications of partition, social tension, continuing industrial unrest, communist insurgency, conflict, and competition in the trade union movement. In the process of consultation and confrontation, gradually the structure of the industrial relations system (IRS) evolved.

State intervention in the IRS was a part of the interventionist approach to the management of industrial economy. Several considerations like unequal distribution of power in the labour market, neutrality of the state, incompatibility of free collective bargaining institution with economic planning etc. provided moral justification for retaining state intervention in the IRS. State intervention in the IRS is logical also when the state holds large stakes in the industrial sector of the economy.

However state intervention does not mean suppression of trade unions and collective bargaining institution. In fact, state intervention and collective bargaining were considered as complementary to each other. Gradually, various tripartite and bipartite institutions were introduced to supplement the state intervention in the IRS.

The tripartite process was considered as an important instrument of involving participation of pressure groups in the state managed system. Non formal ways were evolved to do what the formal system did not legistate, for one reason or other.

The political and economic forces in the mid 1960s aggravated industrial conflict and rendered non-formal system ineffective. In the process of reviewing the system, National Commission on Labour (NCL) was appointed in 1966.

Now the focus of restructuring shifted from political to intellectual. However, yet another opportunity was lost when there was an impasse on the NCL recommendations in 1972. The Janta Government in 1978 made, of course, a half-hearted attempt to reform industrial relations. Unfortunately, the attempt met with strong opposition from all unions. The BMS, for example, termed it as “a piece of anti-labour, authoritarian and dangerous legislation””.

Several committees were appointed to suggest measures for reforming die IRS. In the process, tripartism was revived in 1980s. Government passed the Trade unions and the Industrial Disputes (Amendment) Bill, 1988. But, it also proved yet another legislative disaster. The bill was severely criticised by the left parties. It was even viewed by some as a deliberate attempt to destroy “autonomous; organised or militant trade union movement”.

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