What is Industrial Relation management

what is industrial relations management explain its objectives and parties and what is industrial relation and personnel management pdf free download
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Dr.TomHunt,United States,Teacher
Published Date:22-07-2017
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Unit - I Introduction of Industrial Relation Management Introduction Objectives Object of this lesson is to initiate in to industrial Relations Management In this we a) define what is industry b) What is dispute c) And discuss certain key definitions Structure 1.1 Introduction 1.2 Causes of Industrial Dispute 1.3 Suggestion for Improvements 1.4 Industrial Relation Meanings, Discord, Conflict 1.5 Definition of Related terms in 1.R 1.6 Related Questions 1.7 Summary 1.8 Key Answers / Suggestions. 1.1 Introduction In simple terms Industrial Relations deals with the worker employee relation in any industry Government has attempted to make Industrial Relations more health the by enacting Industrial Disputes Act 1947. to solve the dispute and to reduce the retency of dispute. This in turn improves the relations. What is Industry? Where we want to have better relations. ―Industry means any systematic activity carried on by co operation between an employer and his employee whether such workmen are employed by such employer directly or by or through any agency including a contractor for the production supply or distribution of goods or sources with a overview to satisfy human want or wishes (not being wants or wishes which are merely spritual or religious in nature) whether or not (i) any capital has been invested for the purpose of carrying on such activity or (ii) such activity is carried on with a motive to make any gain or profit and includes any activity relating to the promotion of sales or business or both carried on by an establishment but does not include. i) Normal Agriculture operations ii) Hospital, Dispensaries. iii) Educational, Scientific Research Training Institution, iv) Charitable Philanthropic Service v) Khadi Village Industries vi) Domestic Services etc. It is an activity systematuatly or habitually undertaken a) for the production or distribution of goods, or for rendering material service to community at large, or part of such community with the help of employees in an undertaking 2. Such activity generally includes the co-operation of employer and employees 3. The object is the satisfaction of material human needs 4. It must he arranged or organized in a manner in which trade or business is generally arranged or organised It must not be casual nor must it be for ourself not for pleasure. Thus the very industry revolves around good industrial relations. Industrial Relations It is seen as a co operation between employer and employee, it is done with discipline (ii) done in organized manner and not casual and it gives satisfaction ‗of needs‘. Industrial Dispute : As per section 2 (K) of industrial dispute or difference between employers and employees employers and employers or employees and employees which is connected with the employment or non employment or the terms of employment or with the condition of labour of any person. 1) There must be a dispute or difference the dispute or difference must be between employers and employees employee and employees, employers and employers. 2) The dispute must be connected with employment or non employment or terms of employment or with the conditions of labour of any person. The dispute which has resulted in strained relations is a controversy in which the workman is directly or substantially interested. It must also be a grievance felt by the workman which the employer is in a position to remedy. The existence of a grievance is necessary and it must be communicated to the employer. The term industrial dispute connotes a real and substancial difference having some elements of persistency and continuity, till resolved and likely, if not, adjusted to endanger the industrial peace of the undertaking or the community. When the parties are at variance and the dispute or difference is connected with the employment or non employment or terms of employment or with the condition of labour. There comes in to existence an industrial dispute 1.3 General causes of industrial disputes strains which results in bad industrial relations are. 1. Close mindedness of employers and employees one thinking to extract maximum work with minimum remuneration, other thinking to avoid work and get more enhancement in pay and wages. 2. Irrational wage, wage system and structure not mutually acceptable 3. Poor working environment, low presence of safety, hygiene conditions vitiated atmosphere for smooth working 4. Poor human relations, and lack of dexterity on the part of management personnel 5. Lack of control over the situations erosion of discipline, which rebounds. 6. Introduction of new technology or automation mechanization, Computerization etc. without proper consultations, preparations and discussion with workers and creating climate. 7. Nepotism, unequal work loads, disproportionate wage, and responsibilities. 8. Adoption of unfair labour practices either by employer or employees and unions. 9. Unjustifiable profit sharing, and not considering workers as a co- shares of the gains of the industry. 10. Frequent union rivalries over membership foisting up of fake unions. 11. Strikes lock out, lay off, and resulting retrenchment due to high handedness on the part of the concerned. 12. Throwing away the agreements and arrived settlements 13. Militancy of the unions 14. Attitude of government and political parties who may indirectly control some the unions for their own gains or to get a hold on the industry. 1.4 Few suggestions for the improvement of industrial relations and reduce disputes 1. Trade unions should be strengthened democratically so that they can understand and toe with the main stream of the national industrial activities. They can drop the some how survive attitude by promising impossibles and consequent perpetual strain. 2. Employers should have more transparency in their dealings with workers to build confidence and have progressive out look. 3. They should have open minded flexible collective Bargaining. 4. Workers should be allowed to participate in the management through forums, committees and councils, 5. Sound labour policy, planning 6. Proper leadership and communication 7. Enforcement of discipline 8. Try to have union with in workers fold. 9. Equity in distribution of wealth by acknowledging workers as team members 1.5 This has always remained as a disputable topic whether industrial relations is same as personal relation, human relation or labour management employer employee or union and management relations. A discussion on industrial relation considers all these as almost same. Definition of Industrial Relations As per Dale Yoder Industrial Relations refers to the relationship between management and employees, or employees and their organization, that arise out of employment. Teed and Metcalfe observed Industrial Relations are the composite approach of the attitudes and approaches of the employers and employees towards each other with regard to planning, Supervision, direction and unification of the activities of a set up with less friction and more co-operation with mutual effort for others well-being. The essences of good industrial relation lies in the bringing up of good labour relations which gives a forum to understand each other (employer, employee) properly. Creates co-operative thinking and working to achieve the goal of the organization. A good Industrial Relations increases the morale of employers and goods them to give their maximum, each think of their mutual interest which paves way for introduction of new methods, developments and leading to adoption of modern technology. This progressive ways when designed with their mutual interest and consent develops many incentive propositions, effective participators forum is created in management. Profit are shared, workers get their dues in the organization leading to job satisfaction-which is needed for good relations. Good industrial relation increase production, improves quality of work and products efficiency of workers increased. Cost of production lowered. Bad Industrial Relations leads to industrial unrest industrial dispute and a downward trend to industries workers and the nation. Of course the first hit will be on the employers, who has invested. Industrial worker and the employers normally don‘t think, feel or act in precisely the same way and because each starts from a different point conflict of some fort can mover be eliminated completely. The main reasons for industrial discard, can be due to 1. Misunderstanding or differences in perception 2. Lack of co operation real or imagined 3. Problems with authority 4. Future to comply with policies or stick to plans. 5. His Agreements over ways to achieve agreed goals. Conflict can have some positive aspects also, they may give positive results like 1. Reveal new aspect of an existing issue 2. Improve long term communication between the individuals concerned 3. Always previously stifled emotions to be released 1.6 Definition of some important terms used in Industrial Relations Arbitrator – Neutral person to decide on common issue, includes an umpire Average pay – average wages payable to a workman (a) In case of monthly paid workman in the three complete calendar months, in the case of weekly paid, in the four complete weeks, in the case of daily paid workman in the 12 full working days preceding Award: An interim or a final determination of any industrial distribute or of any question relating there to by any labour (court), industrial Tribunal or national Tribunal and includes an arbitration award Conciliation officer: Means conciliation officer appointed under (1) Act to make conciliatory effort between employer and employees to bring amity. Labour Court – Means a labour court constituted under (1.D) Act to adjudiciate over industrial dispute cases etc. Public utility Service – (I) Any Railway service or any transport service for carriage of passenger or goods by air (2) any service in major port to clock. Postal & Telegraph Industrial establishments on the working of which the safety of the establishments, or the workmen employed there in depends. Industries which supply power light, water to public Public conservancy or sanitation. Few others indicated in Schedules. Settlement :- means a settlement arranged or in the course of conciliation proceedings and include a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties there to in such manner as may be prescribed and a copy there of has been sent to an officer authorized in this behalf by the appropriate government and the conciliation officer It means an adjustment arrived at in the course of conciliation proceeding before a conciliation officer or before Board of conciliation. It also includes a written agreement between the employer and the workmen otherwise than in the conciliation proceedings. In such a case the agreement must be signed by the parties in the prescribed manner and a copy of which must be sent to an officer authorized in this behalf by the appropriate government and the conciliation officer. Thus the settlement indicates the agreement arrived at either in the conciliation proceedings or otherwise between employer and the workmen. Unfair labour practice. Generally to interfere with, restrain from, join or assist a trade union or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection to establish employer sponsored trade union of workmen, to discharge or dismiss workmen by way of victimisation, to recruit workmen during a strike which is not an illegal strike etc. Details of above are appended. Wages All remuneration capable of being expressed in terms of money which would if the terms of employment expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment – includes 1. Allowances 2. House revert allowance 3. Traveling concession 4. Commission for sale or business does not include bonus, gratuity provident fund etc. Workman Any person employed in an industry to do any manual and unskilled, skilled, technical, operational Clerical or supervisory work for hire or reward whether the terms of employment be express or implied, and for the purpose of any proceeding under 1.D Act in relation to q 1.D includes any such person who has been dismissed discharged or retrenchment in connection with or as a consequence of that dispute or whose dismissal discharge or retrenchment has led that dispute, but does not include – Navy, police, managerial, administrative position holders or working with wages exceeding one thousand six hundred rupees per month Questions 1. Define industrial relations? 2. Explain industrial dispute? 3. What is unfair labour practice? 4. Give suggestion for improvement of Industrial Relations. 5. What is Industrial Relations personal relations? 1.9 Summary In this chapter we see, what is dispute in industrial atmosphere? We come across different definitions connected with Industrial Relations, 1.D etc We study the reason for industrial conflict and try to find a solution 1.9 Suggestion In this we have to go through different definitions given and relate it at various levels. 1.R and 1.D is explained fully and we have to go through these several points given to understand rest of the chapter. Concept and determinants of Industrial relations and its position in India 2.1 Objectives In this we try to find the concept of Industrial Relations and its determinants We discuss the parties for better Industrial Relations. Some of the major causes for industrial unrest and discuss the sequel to unrest and its manifestations. 2.2 Introduction 2.3.1 Concept of Industrial Relations 2.3.2 Determinants of Industrial Relations 2.3.3 Parties to Industrial Relations, IR in India 2.3.4 Causes of industrial unrest, consequences of Stike Lockout lay-off retrenchment. 2.4 Self Assessment Questions 2.5 Summary 2.6 Key Answers. Concept and determinates of Industrial Relations 2.2 Introduction Industrial Relations Definition It is concerned with the relationships between management and workers and the role of regulatory machanism in resolving any industrial dispute. The relation between workers and management have undergone Himalayan changes in our country there had been a system of king and his subjects, all should work to improve the coffers of the king. Later Zamindars came and workers were at their mercy – some time bonded also, later with the formation of East India company and British Rule a heart less Hire and fire system was established Industrial workers were no man‘s child neither the employers nor government cared for them, there were no union also. Gradually enlightened leaders came in like, Gokale, MK Gandhi Roy, Tilak etc felt the need for worker‘s union. Their relentless efforts forced both governments and the employers to think of workers lot small unions were formed, government enacted rules like ‗Trade union Act 1926. Industrial disputes Act etc. The workers began to realise their status and they were awakened. A sort of uprighting workers and reluctant management has started functioning. Soon workers motivated by different Industrial Acts enacted by parliament supporting them, and looking after their health, welfare, safety, social security etc. Got emboldened to raise their voice. At the same time management also has started improving, more and more industries were nationalised, public sector came in to existence at number of places, textile insurance, banks transport etc. With increasing number of public sectors, workers life style changed, assured job arrogated unions, appeasing management, administration with less account ability – workers had their field day. Public sectors started doing more of social service than business and profit doling out public exchequer. Slowly this trend is changing with the government‘s reversal policy, decentralization Privatisation etc. Compelled by universal need to compete in business, activated by world. Trade organisation global economy etc government turned towards foreign investments and industrial set ups by foreign investors. Stringency of some of the laws are disappearing monopolies Restrictive Trade Practice, F.E.R.A etc consequently issues like productivity linking productivity with emoluments are also coming into fore front. With new companies coming in, formation of merry unions have come to a stand still, no union worth the name is there in 1.T sector in our Tradial Park, Chip‘s World etc. Job security is diminishing, legislations, are not coming as before because we have to live in a competitive world, of industries where down sizing out sourcing productivity, etc has become the ‗watch word‘. 2.3.1 Concepts determinates of Industrial Relations From the words of TISCO management. ―The welfare of the labouring classes must be one of the first cares of every employer, Any betterment of their conditions must proceed more from the employers downwards rather than be forced up by demands from below since labour, contented, well housed, well fed and generally well looked after, is not only an asset and advantages to the employer but serves to raise the standard of industry and labour in the country‖ It is sheer injustice on the part of any management to take advantage of the poor, helpless conditions of workers and exploit them with more work extractions and less insufficient payment. Workers illiteracy and lack and training made them to work in unhealthy conditions for very low compensation. At this Juncture industrial relations need was felt to protect workers rights, wages etc. At the same time industrial relations cannot remain producing the rights of one side only in the industry they have to protect the rights of employers also. As such 1R has declared through act, what are illegal strikes and various standing orders to protect the dignity of supervisors, managers and of course employers. The main concept of industrial relations are 1. preservation and promotion of economic interest of workers along with social interest 2. Peace and productivity goes hand in hand hence. attempt to reduce industrial dispute and promote peace is a necessity. 3. Employer employee relation should be made healthy and growing 4. Running of the industry, day to day work should be made more democratic with increasing workers participation 5. Producing products at a very competitive price so that country can promote export and our economy can improve. 6. Bringing mental revolution in management. 2.3.2 The determinants of good industrial relation can be promoted 1. Measures for securing and preserving unity and better relations between workers and employers 2. Arrange to probe and settle industrial dispute between employer employee or employer and employer or employee and employee, give proper representation to workers union and industrial federations of employers. 3. Both the ultimate weapons of employers and employee – strike and lock out should be prevented at any cost. Proper relief to workers after a ‗lock out‘ or ‗lay off‘ through government agencies 4. Workers participation at all levels and encourage give and take principle in collective Bargaining. Industrial relation requires a study regarding I) conditions of work (ii) compensation paid for the sweat the worker makes iii) permanency of the job assured continuance of work or otherwise. The parties to Industrial Relations are 1) Workers and their unions, the intelligence level knowledge of workers, back-ground of worker leaders, real or boghus their linkage with political unions, are to be considered for the effective relations. 2) Nature of employment and employers, whether benevolent, interested in workers or aiming to get as much profit as possible squeezing workers their attitude plays vital role in maintaining better relations. Whether they want to have team, and growth of their team as a whole or just hire and fire system. 3) Position of government, political will whether opportunitie favouring employers or interested in workers, are to be seen. Their interest in workers can be seen through their actions in creating Laws for labour welfare and implementing them effectively. 2.3.3 Industrial relations development can be based 1) On a spirit of team development team building workers are to be seen as partners in the industry for national development thro industrial development, most of the laws and government‘s directives wants to enforce workers participation joint councils, collective improvements work etc. 2) In the above method it is Bipartite, partite there is yet another arrangement of tripartite nature; introduction acceptance and bringing up of unions. In the first case the welfare / personal man is the link between employers and employee. In this type of 1.R approach the unions are encouraged as a unifying force and to make workers understand the policies – from a different position. The work becomes easier if unions are working with spirit of development and understanding. In this type of industrial Relation approach unions are having upper hand. Some times they make workers as pawn. only workers interest is put on the front, for getting the status of employers. Pressure tactics are adopted, some time leading to strike to extract maximum from employer, this attitudes which may push towards terror tactics may not yield desired results. Quite likely entrepreneurs may start shrinking, existence of such industries may be jeoparadised. an unwanted situation. Similarly the employers roaming with a ‗lock‘ in his hand also will not contribute for better relations. It is the mutual understanding and appreciation only will give better results. 2.3.4 Industrial Relations in India 1.R has undergone a wide change in Indian scererio, during the end of british period in India an awakening in working class was seen. The world wars forced the employers to become more friendly with the workers, to see un interrupted production is ensured during war time. Out of their self interest they have to become benevolent, At the same time leaders also came up, Mr. Roy Tilak Mahatma Gandhi and others were instrumental to organise workers union, and also force government to frame labour laws, to improve the lot of workers. In 1929 Industrial dispute Act was enacted later in 1947 it became industrial dispute, act where in machineries to solve industrial dispute were indicated. (1) The Directive principles of state policy, as enshrined in our constitution stipulate that the state should endevour to improve the workers conditions, working conditions, and also productivity of industries which will improve wealth of nations. (2) Several acts are enacted by parliament both before and after independence which were focusing on workers interests, welfare health etc. The ‗Tric Act‘ Factory, Act. Industrial Dispute Act; Trade union Act gives major direction to achieve the constitutional directives. (3) Besides this, wages Act 1948, Bonus Act 1965, Grativity Act 1972, Equal remuneration Act 1975, are some of the acts in the above direction. (4) In 1972 National commission on labour, recommended setting up a permanent industrial Relations commission this was not well received by government. (5) National conference in 1982 made several recommendations b) Emphasis on formation of permanent industrial Relations commission c) Stringent action on contravention of a mutually agreed code of conduct d) A check off system was prescribed where in by ballot election, how many are real members of a union how many, dual, boghus etc could come to light. This did not find well with unions but some unions have arranged for deduction of their subscription through employers pay counter to some extent the check of system is working. Causes of industrial unrest in India can be classified mainly under four heads they are 1) Financial Aspects a) Demand for increase of wages, salaries and other perks. workers demand goes on increasing with the increase in cost of living b) Demand for more perks, and fringe benefits. Issue of bonus also has become a contentious one, even though Bonus Act has come fixing minimum rate payable as 81/3% of their total salary inspite of profit or loss incurred by the industry. c) Incentives festivals allowances, concessions etc requires a hike every now and then, workers compare these benefits with other industries and demand them – without comparing the capacity of the industry where they are working. 2) Non financial aspects a) Working hours, rest hours, Traveling hours are source of disputes. If houses are provided some section of workers want to include travel time also as working hours. b) Introduction of machines, computers modernisation, automation – In effect any act of management which may result in economy in man power is resisted c) More facilities like free meals free group travel etc are sought every now and then 3) Administrators Causes a) Non implementation of agreements awards and other local settlements – with full sprit b) stifling with recognition of labour unions though registered, c) Attempt to weaken existing trade unions and trying to foist fake unions d) Un healthy working conditions e) Lack of skill on the part of leaders supervisors f) Disproportionate works loads, favoritism g) Victimisation, nepotism attitude of management in recruitment, promotion, transfer etc h) Instead of re deployment or skill improvement easier way of retrenchment forced voluntary retirement schemes (C.R.S) are adopted. 4) Government and political pressures a) Industrial unions affiliating with political unions which are in power, resulting in frequent shift of loyalty and resultant unrest b) Politician influencing workers group closes examples is the Nalco – taken over by Sterlite, the state government supported (propped up) strike at chattisgrah state against Nalco, for months together resulting in total stoppage of the industry for some time. c) Some time unions, workers strike against mergers, acquisition, taken over, disinvestments policies, of government and private sectors. 5.Other causes of strained relations. a. Refusal to have workers participation in the running of the industry. b. Non adherence to laid out ‗standing orders‘ grievances procedures c. Refusal to have free frank, and transparent collective bargaining. d) Sympathetic strike – a show of readership to workers of neighboring industries, and conducting a token strike when they are in full strike. This may cause internal bitterness. Consequences of strained Industrial relations 1. May result in go slow tactics, Strike, lock out etc. 2. Industrial production and productivity may be affected, growth of industries will be stunted 3. May result in recited atmosphere, law and order situation will deteriorate 4. Employer, Management, labour relations will be affected mutual faith and team spirit will vanish. 5. Absence of mutual co operation affects, participation forums and Bargaining Plot forms. 6. Government also will loose revenue, and may need to spend more to keep law and order around the industry 7. National income, per capital income will go order 8. Will result in loss in earnings of workers with added suffering. 9. The industries also will suffer loss, and it is a loss to common consumers also. The manifestation of industrial strife, disputes come in the form of strike lockout, layoff and retrenchment. To maintain good Industrial Relations we should know what are these weapons in the hands of employers and workers and to diffuse it. Our law markers in India have enacted about these manifestation of disputes Strike: Section 2 (q) Means a cessation of work by a body of persons employed in any industry acting in combination or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. The ingredients can be summed up as 1. A cessation of work 2. This abstinence of work must be by a body of persons employed in an industry 3. The strikers must have been acting in combination. 4. They must be persons working in an industry as per this 1.D Act 1947. 5. There must be concerted refusal or refusal in a common understanding, they must stop work for some demands relating to this employment or its terms, or conditions of labour. The strike may be manifested in different forums like, hunger, sit down, solve down, pend own, lighting etc. Lock out : As per section 2 (1) of 1.D Act It means the temporary closing of a place of employment or the suspension of work, or the refusal by an employer to continue to employ any number of person employed by him There is temporary closing of employment. The elements of demand for which the industry is locked out must be present. The intention to reopen or take the workers back if they accept the demands, must exist lock out is not closure it is a tactics in bargaining it is intended for the purpose of compelling the employee to accept any terms or conditions affecting employment. It is a weapons in the hands of employers, A lock out declared in consequence of an illegal strike or a strict declared in consequence of a illegal lock out shall not be deemed to be illegal. Lay off : As per section 2 (kkk) of 10 Act means, failure, refusal or inability of an employer on account of shortage of fuel power or raw materials, or the accumulation of stock or the breakdown of machinery to give employment to a workman whose name is on the master rells of his industrial establishment and who has not been retrenched. It is a short term removal of workers. The essentials of a lay off are failure refusal in ability of the employers to give work The employees must be permanent in nature at the time of lay off The failure to give work should be due to reason beyond his powers like a) a major break down of machinery b) Shortage of raw material, power, coal etc. c) Marketing problem of stocks resulting in accumulation d) Any other act of god beyond employer‘s control. The workman must not have been retrenched Retrenchment section 2 (oo) of 1.D Act means termination of the services of a workman by employer for any reason whatsoever otherwise them as a punishment inflicted by way of disciplinary action, but does not include, a) Voluntary retirement of the workmen, or b) retirement of the workman or reaching the age of supermuation c) 10 Termination (natural) at the end of a contract d) Termination due to continuous ill health. Essentials of retrenchment 1. Termination of services of a workman not amounting to dismissal 2. Termination on the ground of surplus labour or staff 3. Service terminated must be a continuous one perpetual in nature. 4. Termination not to victimize or due to unfair labour practice. 5. The above 4 weapons may create industrial relations strain, cause dispute etc.

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