INDUSTRIAL RELATION
1 Concepts
2 Importance
3 Industrial relations problems in the public
sector
4 Growth of Trade unions
5 Codes of conduct
1 Concepts of Industrial Relations.
Industrial Relations
The Term
―Industrial Relations‖ commonly denotes ―employee – employee relations‖, in
both organized and unorganized sectors of the economy. Industrial Relations
(also known as labour – management relations or labour relations) will be
treated here as the study of employee – employer relationship and the outcome
of such relationship.
Definition
According
to Kapoor defined as the ―Industrial Relations is a developing and dynamic
concept and such no more limits itself merely to the complex relations between the
unions and management but also refers to the general web of relationships
normally obtaining between employees – a web much more complex than the single
concept of labour capital conflict‖.
Features of Industrial Relations
Ø Industrial Relation do not emerge in vacuum they are born of
employment relationship in an industrial setting. Without the existence of the
two parties, i.e., labour and management, this relationship cannot exist.
Ø It provides the environment for industrial relations.
Ø Industrial Relation are characterized by both conflict and
co-operations.
Ø The focus of Industrial Relations in on the study of the
attitudes, relationships, practices and procedure developed by the contending
parties to resolve or at least minimize conflicts.
The main objectives of industrial relations system
are
Ø To
safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry
which participate in the process of production.
Ø To avoid
industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of
a country.
Ø To raise
productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
To
establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the
industry and of the country as well.
Ø To
eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
Ø To
improve the economic conditions of workers in the existing state of industrial
managements and political government.
Ø Socialization
of industries by making the state itself a major employer
Ø Vesting
of a proprietary interest of the workers in the industries in which they are
employed.
Scope of industrial relations
Ø Protecting
the interest of the employees
Ø Providing
reasonable wages to employees
Ø Providing
safe and hygienic working conditions
Ø Providing
social security measures
Ø Maintaining
strong Trade Unions
Ø Collective
bargaining
Industrial peace and democracy could be developed
and maintained by:
Ø Settlement
of industrial disputes through mutual understanding and agreements
Ø By
evolving various statutory measures
Ø By
formation of various machineries such as works committee, boards of
conciliation labour courts etc.
Ø Workers
participation in management
Ø Recognizing
human rights
The main aspects of Industrial
Relations are:-
Ø Labor Relations, i.e. relations between union and management
Ø Employer-employees relations, i.e. relations between management
and employees
Ø Group relations, i.e. relations between various groups of
workmen
Ø Community or Public relations, i.e. relations between industry
and society.
Ø Promotions and development of healthy labor-managements
relations.
Ø Maintenance of industrial peace and avoidance of industrial
strife
Ø Development of true industrial Democracy
2 Importance of industrial relation
Ø Uninterrupted
production
Ø Reduction
in Industrial Dispute
Ø High
morale - Industrial relation improves the morale of employees
Ø Mental
revolution
Ø Economic
growth and Development
Ø Discourages
unfair practices
Ø Enactment
of statutory provisions
Uninterrupted Production
Ø To ensure
continuity of production.
Ø continuous
employment for all from manager to workers
Ø The
resources are fully utilized, resulting in the maximum possible production.
There is uninterrupted flow of income for all.
Reduction in Industrial Disputes
Good
industrial relation reduces the industrial disputes.Disputes are reflections of
the failure of basic human urges or motivations to secure adequate satisfaction
or expression which are fully cured by good industrial relations.
High morale
Good industrial
relations improve the morale of the employees. Employees work with great zeal
with the feeling in mind that the interest of employer and employees is one and
the same, i.e. to increase production.
Mental Revolution
The main
object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the
part of both. It is the business of leadership in the ranks of workers,
employees and Government to work out a new relationship in consonance with a
spirit of true democracy.
New Programmes
New
programmes for workers development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It increases the
efficiency of workers resulting in higher and better production at lower costs.
Reduced Wastage
Good
industrial relations are maintained on the basis of cooperation and recognition
of each
other. It will help increase production. Wastages of man, material and machines
are reduced to the minimum and thus national interest is protected.
Functional Requirements Of A
Successful Industrial Relations Programme
Top Management Support:
Since industrial relations is a functional staff service, it
must necessarily derive its authority from the line organization. This is
ensured by providing that the industrial relations director should report to a
top line authority to the president, chairman or vice president of an
organization.
Sound Personnel
Policies:
These constitute the business philosophy of an organization and
guide it in arriving at its human relations decisions. The purpose of such
policies is to decide, before any emergency arises, what shall be done about
the large number of problems which crop up every day during the working of an
organization. Policies can be successful only when they are followed at all the
level of an enterprise, from top to bottom.
Adequate Practices
should be developed by professionals:
In the field to assist in the implementation of the policies of
an organization, a system of procedures is essential if intention is to be
properly translated into action. The procedures and practices of an industrial
relations department are the ―tool of management‖ which enables a supervisor to
keep ahead of his job that of the time-keeper, rate adjuster, grievance
reporter and merit rater.
Detailed
Supervisory Training:
To ensure the organizational policies and practices are properly
implemented and carried into effect by the industrial relations staff, job
supervisors should be trained thoroughly, so that they may convey to the
employees the significance of those policies and practices. They should,
moreover, be trained in leadership and in communications.
Follow-up of
Results:
A constant review of an industrial relations programme is
essential, so that existing practices may be properly evaluated and a check may
be exercised on certain undesirable tendencies, should they manifest
themselves. A follow up of turnover, absenteeism, departmental morale, employee
grievances and suggestion; wage administration, etc. should be supplemented by
continuous research to ensure that the policies that have been pursued are best
fitted to company needs and employee satisfaction. Hints of problem areas may
be found in exit interviews, in trade union demands and in management meetings,
as well as in formal social sciences research.
Difference between industrial
relations and human relations:
The term ―Industrial Relations‖ is
different from ―Human Relations‖. Industrial relations refer to the relations
between the employees and the employer in an industry. Human relations refer to
a personnel-management policy to be adopted in industrial organizations to
develop a sense of belongingness in the workers improves their efficiency and
treat them as human beings and make a partner in industry.
Industrial relations cover the
matters regulated by law or by collective agreement between employees and
employers. On the other hand, problems of human relations are personal in
character and are related to the behavior of worker where morale and social
elements predominated. Human relations approach is personnel philosophy which
can be applied by the management of an undertaking. The problem of industrial
relations is usually dealt with a three levels – the level of undertaking, the
industry and at the national level. To sum up the term ―Industrial Relations‖
is more wide and comprehensive and the term ―Human Relations‖ is a part of it.
Suggestions to Improve Industrial
Relation
Both management and unions should develop constructive attitudes
towards each other
All basic policies and procedures relating to Industrial
Relation should be clear to everybody in the organization and to the union
leader. The personnel manager must make certain that line people will
understand and agree with these policies.
The personnel manager should remove any distrust by convincing
the union of the company‘s integrity and his own sincerity and honesty.
Suspicious, rumors and doubts should all be put to rest.
The personnel manager should not vie with the union to gain
workers‘ loyal to both the organization. Several research studies also confirm
the idea of dual allegiance. There is strong evidence to discard the belief that
one can owe allegiance to one group only.
Management should encourage right kind of union leadership.
While it is not for the management to interfere with union activities, or
choose the union leadership, its action and attitude will go a long way towards
developing the right kind of union leadership. ―Management gets the union it
deserves‖ is not just an empty phrase.
3 Industrial relations problems in the public
sector
Public Enterprise
Company
whose shares are available and traded on the stock market or other
over-the-counter market. Subject to more regulation than a privately owned
company, a public enterprise has greater access to financing. Shareholders own
a percentage of the company based on the amount of stock they own.
Wage differentials
It is an
area where comparison between the public and private sectors is becoming
common.The policy of settlement of wage structure,equal pay for equal work,wage
differentials due to levels of responsibilities etc are all the issues that
concern the labour in public enterprises.
Industrial relations
―Industrial
Relations is a developing and dynamic concept and such no more limits itself
merely to the complex relations between the unions and management but also
refers to the general web of relationships normally obtaining between employees
– a web much more complex than the single concept of labour capital conflict‖.
Surplus labour
This
problem is the outcome of indiscriminate recruitment on account of political
pressures,reduction of activities,structural changes and improvement in
technology.
Over centralization
Management
decisions taken at local shop level are turned down by the higher
authorities.This type of over centralization the local management lose the
prestige and confidence.
Multipricing of unions
The
existence of multiple union has brought the evils of inter union rivalaries.
Political and bureaucratic
influence
Public
enterprises are highly prone to be influenced by political and bureaucratic set
up.Generally political people influenced decision making process
4 Growth of Trade Union
Trade Union
In the
words of Indian Trade Union Act, 1926, ―A trade union is any combination,
whether temporary or permanent, formed primarily for the purpose of regulating
the relations between workmen and employers, or between workmen and workmen, between
employers and employers, or for imposing restrictive conditions on the conduct
of any trade or business, and includes any federation of two or more trade
unions‖.
Define Trade Union.
According
to Dale Yoder defined as ―A trade union is a continuous association of wage
– earners
for the purpose of maintaining or improving the conditions of their working
lives‖.
The
growth and development of the labour movement, and for that part of the trade
unions, in India, can be divided into following periods, each of them revealing
different tendencies that mark it from others.
Functions of Trade Unions
Ø To secure
fair wages for workers.
Ø To
safeguard the security or tenure and improve conditions of service.
Ø To
enlarge opportunities for promotion and training.
Ø To
improve working and living conditions.
Ø To
provide for educational, cultural and recreational facilities.
Ø To
cooperate and facilitate technological advancement by broadening the
understanding of workers in the issues involved in their jobs.
Ø To promote
identity of interests of the workers with their industry.
Ø To offer
responsive cooperation in improving levels of production and productivity,
discipline and high standards of quality.
Ø To
promote individual and collective welfare.
Features
The main
characteristics of the trade unionism are:
Small
size of membership,
Lack of
adequate finance,
Non
fulfillment of welfare schemes,
Control
of political parties,
Outside
interference in the activities of labor unions
Social Welfare period, from 1875 to 1918
The development of industries led to large scale
production on the one hand and social evils like employment and exploitation of
women and child labour and the deplorable working conditions, the government‘s
attitude of complete indifference in respect of protection of labour from such
evils, on the other
Early Trade Union period, from 1918 to 1924
The year
1918 was an important one for the Indian trade union movement. ―It market the
start of a new era, an era of growth and one in which the leadership of the
trade unions was to pass from the hands of the social workers into the hands of
the politicians
Left-wing Trade Unionism period, from 1924 to 1934
In 1924,
a violent and long-draw-out strike by unions led to the arrest, prosecution, conviction
and imprisonment of many communist leaders. The AITUC emerged as the
representative of the Indian working class. By 1927 it united 57 unions with a
membership of 150,555. the rapid growth of the trade unionism was facilitated
by the growth anti-imperialist national movement;
Ø The
brutal violence and repressive measures let loose by the British government,
particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrest
and imprisonment of national leaders and Satyagrahis;
Ø The phenomenal
profits earned by the capitalist in the face of falling real ages during the
post-war period.
Trade Unions’ Unity period from 1935 to 1938
In
mid-thirties of the 20th century the state of divided labour movement was
natural thought undesirable and soon after the first split, attempts at trade
union unity began to be made through the efforts of the Roy Group on the basis
of ‗a platform of unity‘. The imitative taken by All-India Railwaymen‘s
Federation (s neutral body) had shown fruitful results.
This
Federation in its conference at Bombay, formed a Trade Union Unity committee in
1932. The Committee adopted the following ―platform of unity‖. ―A trade union
is an orange of class-struggle; its basis task is to organize the workers for
advancing and defending their rights and interests. Negotiation,
representations and other methods of collective bargaining must remain an
integral part of the trade union activates.‖
Second World War period from 1939 to 1945
The
Second World War, which broke out in September 1939, created new strains in the
united trade union movement. These strains arose because of the different
political factions in the AITUC related in different ways to the role of India
as a protagonist in the war.
Post – independence period from 1947
to date.
As
pointed out earlier, when attempts to restructure the AITUC failed, those
believing in the aims and ideals other than those of the AITUC separated from
the organization and established the Indian National Trade Union Congress
(INTUC) in May, 1947
5 CODE OF CONDUCT.
A code of conduct is a set of rules outlining the social norms
and rules and responsibilities of, or proper practices for, an individual,
party or organization. Related concepts include ethical, honor, moral codes and
religious laws
Objectives of Code of Conduct
Ø To
ensures that the employers and employees recognize each other‘s rights and
obligations.
Ø To avoid
work stoppage.
Ø To
facilitate the free growth of trade unions.
Ø To
maintain discipline in industry.
Principles of code of conduct.
Ø Every
employee in industry or unit shall have the freedom and right to join a union
of his choice. No coercion shall be exercised in this matter.
Ø There
shall be no dual membership of unions.
Ø There
shall be regular and democratic elections of executive bodies.
Ø Casteism,
communalism and provincialism shall be eschewed by all unions.
Ø There
shall be no violence, cocercion, intimidation, or personal vilification in
inter – union dealings.
Ø All
Central unions shall combat the formation or continuance of company unions.
What a Code Can Help to
Accomplish
Ø A quality
code of conduct can go a long way in improving a company‘s success. Companies
that view a code merely as a way to communicate legal rules miss much of the
value that a code can provide. A well-developed code can help a company to:
Ø Prevent
legal and regulatory violations. This is the first objective that most
companies attach to a code of conduct. When violations do occur, a code can
help to detect them and mitigate their effects.
Ø Foster
greater employee loyalty and retention. When employees feel included and
engaged in the company‘s culture and success, they feel more committed.
Ø Encourage
greater customer loyalty and retention. When customers learn about and then
experience in practice a company‘s high standards of conduct, customers are
more likely to show their appreciation.
Ø Build
stronger relationships with suppliers and other business partners. As with
employees, the more that they understand what the company expects of them – and
what they can expect from the company – the stronger the alliance.
Ø Strengthen
trust and respect of other stakeholders, such as local communities, regulators,
NGOs, even from competitors. As codes become publicly available publications,
more outside stakeholders are reviewing them and setting their expectations of
the company partly based on its code. The more that a company
lives up
to the expectations that it has established, the greater goodwill it engenders.
Ø Build a
stronger reputation for integrity by helping the company to do what it says it
will do.
How a Code Works
Ø A quality
code of conduct helps a company‘s leadership to accomplish its strident
objectives because of how the code functions. As part of an overall code of
conduct program, a code works because it:
Ø Articulates leadership’s expectations. Simply
establishing these expectations regarding
what leadership expects is worthwhile. It provides clarity and transparency so
that staff does not have to guess at leadership‘s expectations.
Ø Establishes leadership’s commitment. Much as
been addressed regarding the importance
of ―tone at the top‖; regarding expectations of responsible conduct, this tone
rises in importance.
Ø Provides staff with a roadmap and tools for their
daily work. With clarity
regarding leadership‘s expectations that an employee can easily and
regularly reference, staff can act with consistency. Further, employees can
turn to the code for guidance on questions or concerns. It is especially
important to help employees to make good decisions when they face ambiguous
situations or other issues that the code does not directly address.
Ø Provides staff with comfort and confidence. As ethics
consultant Frank Navran puts it, a
code can provide staff with comfort that the company will support them when
they act according to the code and confidence that the decisions they make when
they are in line with the code.
Ø Encourages staff to serve the company’s
aspirations. A good code can
encourage employees to strive to achieve the company‘s mission, vision and
values in a constructive way.
Elements of an Effective Code
Ø A code of
conduct publication does not work in a vacuum. Important factors for a
successful code include:
Ø Foundations
that support a successful code program.
Ø Components
of a successful code program.
Ø Dimensions
for an effective code publication.
Foundations for a Program
Ø These
foundations serve as important considerations for a successful code of conduct
program. While not all of the foundations are mandatory – and in fact they will
exist in each company in varying forms – the more firmly that they are
established, the more likely that the code (and the larger ethics and
compliance initiative) will lead to success.
Ø Leadership commitment to the program – Without
senior leadership‘s commitment, any
code initiative is unlikely to truly engage employees and demonstrate to them
the ―tone at the top‖ that is so critical to any business initiative –
especially one focused on ‗doing the right thing.‘
Ø Ethics and compliance processes –
Leadership‘s commitment means so much more
when the organization can point to procedures and processes that support a code
standards and expectations. Otherwise, employees are right to wonder about how
leadership expects to achieve adherence to the company‘s standards and address
concerns.
Ø Company culture – A company culture focused around an enduring mission or vision and supported by lasting values
sets the best foundation for a proper focus on long-term value and success.
These core foundations help a code rise about a narrow focus only on the law to
other commitments, promises and aspirations that the company seeks to achieve.
Ø Understanding of risk – A
company‘s awareness of the ethics and compliance risks that it faces is central to a code of conduct. With the
hundreds of issues that a code could possibly address, a more targeted risk
identification and assessment effort helps to focus the code‘s contents to
those issues that are most important to the company‘s operations and that will
provide it with a higher chance of success.
Ø Coordination with policies – A
company‘s policies often provide the detail
underlying its expectations. Policies also can provide the initial
framework for a new code of conduct and serve as additional resources to
support a code‘s standards. Where policies exist, they provide important
context for a code development or revision effort.
Four Parts
Part 1:
Contains the duties and responsibilities of employers, workers, and the
government in maintaining discipline in industry
Part 2:
Enlists the common obligations of Management and unions Part 3 : Deals with
obligations of management only
Part 4:
Relates to those unions only
Part1: To
maintain Discipline in Industry ( Both in
public and Private sector)
Ø Recognition
of employers and workers must be defined by laws and agreements.
Ø Proper
and willing discharge by either party of its obligation consequent on such
recognition.
Part2: To
Ensure Better discipline in Industry , Management and Union(s) Agree
Ø No Unilateral
action should be taken
Ø Existing
machinery for settlement of dispute.
Ø No strike
or lockout without notice
Ø Must
follow the democracy principles by mutual negotiation, conciliation and
voluntary arbitration
Ø Must
promote constructive cooperation
Ø In
Grievance based speedy and full investigation must be followed.
Ø Educate
the Management and workers regarding obligations
Part3:
Management Agrees
Ø Not to
increase workloads
Ø Not to
support or encourage any unfair labor practice as interference, discrimination,
victimization
Ø To take
prompt actions as settlement of grievance Implementation of settlements,
awards, decisions and orders
Ø To take
appropriate disciplinary action against officers and members in which they are
responsible for indiscipline among employees.
Ø Warning,
reprimand, suspension will appeal through normal grievance procedure.
Ø Must
follow the rules of Indian Labor conference held in May 1958. Part4:Union(s)
Agree
Ø Not to
encourage any form f physical duress
Ø Not to
Permit demonstrations
Ø Unless
law, agreement or practice the employee must not engage in any union activity
during working hours
Ø Discourage
unfair labour practices as damage to property, careless operation
Ø To take
prompt action to implement awards , agreements and decisions.
Ø To
display the rules in local languages at important places in union offices.
Ø Moral
sections of code of conduct
Ø To ask
the unit to explain the infringement of the code
Ø To give
notice to the unit within specific period
Ø Not to
give countenance to non members who did not observe the code
Ø A dispute
must not be referred for strikes and lockouts
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