Tag: Modern Marketing Bangalore University BBA Notes

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers’ compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.

Levels

At the National Level:

At the national level the bargaining is mutual and agreements usually take the form of ‘bipartite agreements’ entered into between labour union and managements in the presence of the government representatives. The agreement entered into between Indian Tea Association, Indian Tea Planters Association and Hind Mazdoor Sabha (HMS) and INTUC is an example of collective bargaining at the national level.

At the Industry Level:

Here all unions of an industry enter into an agreement with the employers in general. In India, collective bargaining of this type is very popular in textile industry where agreements are reached between labour unions and the various management bodies.

At Plant Level:

Such a bargaining is limited to a particular unit or undertaking enterprise only.

Collective bargaining is a joint decision-making process by employers and employees. Therefore, its effectiveness depends on their attitudes and the relevant environment in which collective bargaining takes place. If these factors are conducive, collecting bargaining may be a good mechanism for preventing the emergence of industrial disputes.

The parties must attain a sufficient degree of organisation. If the workers’ organisation is weak, employers can say that it does not represent the workers and will refuse to negotiate with it. Unless the workers are able to form strong and stable unions, collective bargaining will not be successful.

Stability of Trade Unions:

In any democratic country, employees have fundamental rights to organize trade unions or other associations for protecting their interest. The right to organize is a positive feature for collective bargaining as employees may negotiate with management on equal footing. However, mere right to organize does not ensure stability of employees’ associations in the form of trade unions.

The indiscriminate use of the right for organizing leads to multiplicity of trade unions with conflicting approaches, and sometimes even objectives, making the total industrial relations system including collective bargaining unworkable. In India, multiplicity of unions and inter-union rivalry have wrecked the system of collective bargaining. Where it has succeeded, it is due to single union which has been recognized by the management.

• Trade unions must encourage internal union democracy and have period consultations with the rank and file members.
• Both parties should try to solve the problems through negotiations sincerely and honestly.
• Both parties (employer and employees) should realise the need of collective bargaining.
• A single plant bargaining is considered better than a multiple plant bargaining. In single plant bargaining, there is a bargain between a single employer and single union.
• The management should pay reasonable wages and any unfair labour practice should be avoided.
• Both parties should present facts and figures on the discussion table. Their approach should be constructive in order to resolve the problems.
• Both parties should ensure that agreement reached is respected and implemented and industrial peace is established.
• If any agreement is reached, it must be a written document.
• There should be a provision for arbitration if there is any dispute regarding interpretation of agreement and its implementation.

Trade unionism, as a movement, has made considerable progress in our country, yet they have not grown up on sound lines. Unlike the Western countries, the Indian trade unions have not made the expected progress. They are beset with a number of obstacles that have considerably hampered the proper growth of unionism. Certain conditions must be met to have proper growth of trade unions and in Indian industries, all these conditions are not fully met.

In spite of the fact that our trade unionism is no longer in a state of infancy, the movement of unionism is not as strong as it should be. Multiplicity of trade unions, disunity in the rank of workers, lack of education among the working force, lack of resources, political rivalries etc., are many of the diverse causes responsible for the slow growth of trade unionism in our country.

The various problems of trade unionism can be broadly put under two headings:

1. Internal Problems
2. External Problems

1. Internal Problems:

Internal problems are related to labour. Indian labour has certain peculiar traits. Some of these traits have proved to be obstacles in the proper growth of unionism.

The internal factors responsible for the slow growth of Indian trade unions are:

• Migratory Character:

Healthy trade unionism requires the existence of a stable industrial population, which is largely absent in India. The migratory nature and the consequent lack of proper commitment of industrial workers have acted as a great hindrance to the development of sound and stable trade unions in India.

The workers who are frequently changing an industrial centre and are frequently changing their employer are less inclined to maintain a keen and constant interest in any organisation. An ultimate escape from the industry by many workers to go back to their villages tend to diminish their enthusiasm for collective efforts to their working conditions.

• Heterogeneous Character:

In every big industrial centre, one can find workers coming from almost all regions of India. These workers differ inter se in regard to language, religion, race, caste, habits of food and dress etc. Thus the workers of Indian industry are very heterogeneous in character. This weakness among the workers has often been exploited by the employers by following the policy of divide and rule. Thus heterogeneous character of the workers has proved to be a great hindrance in building up labour solidarity.

• Poor Economic Conditions:

The general poverty and low level of wages have been the other obstacle in the stable trade unions in India. The earnings of the workers have been low. They can barely meet the expenses of their family. They are usually under debt also. Under such conditions, it becomes difficult for the workers to contribute even a smaller subscription to the union funds. Further, they are unable to bear the strain of strikes and lockouts due to their poor economic conditions. Thus low economic standards and poverty of the workers come in the way of the growth and development of trade unions.

• illiterate Labour:

The Indian labourers are illiterate and ignorant and there is absence of democratic spirit among them. Illiterate workers are not fully conscious of their duties. They fall easy prey to the tactics of opposite groups. Without any proper reason, they may go on strikes and indulge in subversion.

They do not understand the true role and functions of trade unions. For generations, they have become accustomed to be ruled and have developed slavish mentality and inferiority complex. As such, many workers are incapable of thinking in terms of any organised effort on their part.

• Ineffective Leadership:

Indian workers lack the ability, capacity and courage for leadership. Generally, social reformers, lawyers or politicians hold the leadership posts of trade unions. These persons may be rude, selfish and self-seeking. They do not have first-hand knowledge about the labour problems. They may be indifferent to the true interests of labour.

They do not understand the real difficulties and grievances of the workers. Sometimes they attempt too much and thereby diminish their own effectiveness. Many of the leaders have been opportunists and have their own axe to grind. Now-a-days, most of the leaders belong to some political party and have made the trade unions a platform for the furtherance of their own political ends.

• Lack of Unity:

The trade union movement in our country has received a serious set-back owing to the lack of unity among the various leading organisations of labour. There are numerous trade unions functioning independently in our country. Each one is under the influence of one or the other political party.

The political parties misuse trade unions to further their own political ends. The mutual strife among trade unions weaken the strength of unionism. Due to mutual dissension among trade unions, each agitation is supported by some and opposed by others. This results in half-hearted action or utter failure.

• Low Membership:

Most of the trade unions have low membership and as such lack proper finances, organisation and leadership. The low membership of a union has been mostly due to the larger number of unions and workers are not united, even in the same industry.

Further the trade union activity is generally concentrated in metropolitan centres where large scale industries are located. Here again, it is the manual workers who are covered by trade union activity. The total membership of trade unions is only a small part of the total number of wage-earners.

• Low Standards of Life:

Low standard of living and long hours of work leave the workers with less energy and time to pursue any trade union activity. In the depressed conditions, the workers have failed to promote healthy unionism in our country.

2. External Problems:

No trade union movement can make much progress without the active co-operation among various factors. The role of intermediaries, the jobbers, the industrialists, the labour laws etc., could impede and thwart the growth of trade unionism.

These external obstacles are discussed below:

• Non-Co-Operation of Intermediaries and Jobbers:

The jobbers and intermediaries have been deeply hostile to Indian trade unionism. The trade unions take away the powers of the jobbers, who therefore, try all fair and unfair means to create disunity among the workers and defeat the aims of the trade unions.

The intermediaries, who are mostly the agents of the industrialists, conspire against workers, in workers’ conferences and pass on all the information to the industrialists. Thus the opposition and non- co-operation of intermediaries and jobbers create an obstacle in the growth of trade union activity.

• Opposition by Industrialists:

The majority of the Indian industrialists treat workers organisation nothing but a challenge to their power and authority. They think that the growth of trade unions is not in consonance with their interests. Big industrialists try to undermine and sabotage all efforts to strengthen the trade unions.

Cases have come to light when the employers have victimized trade union workers. They even employ spies, goondas and strike breakers to disrupt the union activities. At times, the industrialists try to win over union leaders by giving them huge bribes. Many times they even refuse to recognise the unions in which they do not find the workers of their liking.

• Political Pressures:

The political parties have been responsible for creating unhealthy rivalries among the trade unionists. Each political party, with the aim to promote its interest, tries to win over the workers. In this process, they create bitter feelings and differences among the working class. Thus rivalry among trade unions and political pressures pose a serious threat to the growth of healthy trade unionism in our country.

• Less Legal Support:

There are no adequate provisions in the government laws and machinery to safeguard the interest of the workers. Law does not give much support to the workers going on strikes etc. The industrialists are better placed to take advantage of law. So lack of proper legal support impedes the growth of trade unionism in India.

• Changing Industrial Scenario:

Our industrial scenario is changing fast due to privatisation, liberalisation and globalisation. Jobs are moving from the organised sector to the informal sector. Many industries are closing down. There are voluntary retirement schemes coming out. There is more computerisation in the industries. All these are reducing the workforce in the organized sector. This is likely to undermine the strength of trade union movement, particularly that of central trade unions.

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.

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.

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.

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.

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.

2. 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”.

Interactive and Consultative in Nature:

Industrial relations in­cludes individual relations and joint consultation between labour, management, unions, the state etc. It pinpoints the importance of compromise and accommodation in place of conflict and contro­versy in resolving disputes between labour and management.

Government’s Role:

The government influences and shapes indus­trial relations with the help of laws, rules, agreements, awards of courts and emphasis on usages, customs, traditions, as well as the implementation of its policies and interference through executive and judicial machinery.

Employer-Employee Interactions:

Industrial relations arise out of em­ployer-employee interactions. These relations cannot exist without the basic building blocks, i.e., the employer on one side and the employees on the other side.

Dynamic and Changing:

Industrial relations change with the times, generally keeping pace with the expectations of employees, trade unions, employers’ associations, and other economic and social institutions in a society. Apart from the legal framework, these societal forces generally influence the direction of industrial re­lations within a country.

Economic Factors:

These factors include economic organisations, like capitalist, communist, mixed, etc., the structure of labour force, demand for and supply of labour force, etc.

Institutional Factors:

These factors include government policy, la­bour legislation, voluntary courts, collective agreements, employee courts, employers’ federations, social institutions like community, caste, joint family, creed, system of beliefs, attitudes of workers, system of power, status, etc.

Web of Rules:

Industrial relations are a ‘web of rules’ formed by the interaction of the government, the industry and the labour. They include the relations between employer and employees and between employers’ associations, trade unions as well as the State.

Technological Factors:

These factors include mechanisation, automation, rationalisation, computerisation etc.

Spirit of Compromise and Accommodation:

The industrial relations system is characterized by forces of conflict and compromise on either side. In the larger interests of society, both the employer and the employees must put out fires amicably and get along with each other in a spirit of compromise and accommodation. The individual differences and disagreements must be dissolved through persuasion and even pressure. The factors responsible for conflictful situations need to be resolved through constructive mechanism.

Wide Coverage:

The scope of industrial relations is wide enough to cover a vast territory comprising of grievances, disciplinary measures, ethics, standing orders, collective bargaining, partici­patory schemes, dispute settlement mechanisms etc.

Industrial relations climate/situation is greatly influenced by the issues-economic, non-economic governed by service contract/terms and conditions of employment. Besides, the issues not covered under service rules viz., behavioural, and attitudinal issues influence IRs pattern.

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.

Maintaining Industrial Peace:

Industrial peace is essential to increase production and ensure healthy relations between the workers and employers.

The following measures help attain industrial peace:

1. Industrial disputes can be settled with the help of legislative enactment such as The Trade Unions Act, The Industrial Disputes Act and Work Committees and by Joint Management Councils.
2. The Government should be empowered to refer disputes to adjudication, specially when the situation gets out of hand. Government intervention is required during frequent stoppage of production due to long strikes or lockouts.
3. Forums based on the code of discipline in industry, the code of conduct, the code of efficiency, etc. can be set up to settle disputes.

Conflict Management:

Conflicts at the workplace affect the physical and mental health of the people. This has a bearing on organisational performance. Therefore, it is important to recognise, understand, and resolve conflicts in labour relations.

Trust and Co-Operation:

Trust and co-operation are essential in labour relations. They help build a partnership between workers and employers and both groups to work together. Lack of trust and co-operation between the two groups can result in conflicts, disputes and strikes. That slows down the productivity of the organisation.

Challenges

• International labour standards, their importance and implications.
• Globalisation has brought about internationalisation of employees; transnational, multi-location employees with cross cultural characteristics.
• WTO, IMF, WB and their influence
• Consumer forums, environment activists, citizens forum at time clash with TUs.
• Manpower diversities: Multi-racial, Multinational, multicultural, multi-lingual and multi-ethnic manpower requires different system/mind set to deal with.
• New management practices like Casualism, contracting, off-locating, out-sourcing part time/home based work/flextime, Team working/Quality Circles/Total Quality Management.
• Highly educated, careerist, ambitious manpower.
• IT revolution has changed the complexion of workplaces; Lesser manpower, Multi-skilled and Committed to profession.
• Individual/decentralised bargaining is replacing collective bargaining.
• Performance linked packages are the order of the day.