Industrial Relations

Unit 1: Industrial Relation Perspective, Industrial Relations and the Emerging Socio-
Economics Scenario.

Unit 2: Industrial Relation and the State, Legal Framework of Ind. Relation.

Unit 3: Role and Future of Trade Union, Trade Union and the Employees.

Unit 4: Trade Union and the Management.

Unit 5: Discipline and Grievance Management.

Unit 6: Negotiation and Collective Settlement.

Unit 7: Participative Management and the Ownership.

Unit 8: Productive Bargaining and Gain Sharing.

Unit 9: Employee Empowerment and Quality Management.

Unit 10: Industrial Relations and Technologies Change.

Labour Laws:

Unit 1: Emergence & Objectives of Labor Laws and their Socio Economic Environment.

Unit 2: Industrial Disputes Act 1947.

Unit 3: Laws Relating to discharge Misconduct, Domestic enquiry, Disciplinary Action.

Unit 4: Social Security laws- Laws Relating to workmen Compensation, employee State
insurance, Provident Fund & Maturity Benefit Act.

Unit 5: Law of Minimum wage.

Unit 6: Payment of Bonus Act.

Unit 7: Factories Act 1948.

Unit 8: Shop & Establishments Act.

Unit 9: Contract Labors Laws.

Questions Industrial Relations

a) Discuss the legal framework of Industrial Relations.

INTRODUCTION

The Constitution of India has guaranteed some fundamental rights to the

citizens and has also laid down certain directive principles of state policy for the
achievement of a social order based on justice, liberty, equality and fraternity.
The Constitution amply provides for the upliftment of labour by guaranteeing
certain fundamental rights to all.

Article 14 lays down that the State shall not deny to any person equality before
the law or the equal protection of laws.

Traffic in human beings and forced labour, and the employment of children in
factories or mines or other hazardous work is prohibited. The directive
principles, though not enforceable by any court, are nevertheless fundamental in
the governance of the country, and it shall be the duty of the State to apply those
principles in making laws from time to time.

The Government of India, therefore, enacted a series of legislations to protect the

working class from exploitation and to bring about improvement in their working
and living conditions. The goals set in our country by the Constitution have a
bearing on industrial legislation and adjudication.

CONSTITUTIONAL FRAMEWORK

Labour is in the concurrent list of the Constitution on which both the Centre as
well as the States have the power to make laws

Articles 39, 41, 42 and 43 have a special relevance in the field of industrial
legislation and adjudication. In fact, they are the substratum of industrial
jurisprudence.

Article 39 accentuates the basic philosophy of idealistic socialism, which is

enshrined in the Preamble of the Constitution. It provides a motivation force to
the directive principles by laying down that the State shall direct its policy
towards equal pay for both men and women.

Article 41 lays down that the State shall, within the limits of its economic
capacity and development, make effective provision for securing the right to
work, to education and to public assistance in cases of unemployment, old age,
sickness and disablement, and in other cases of undeserved want.

Article 42 enjoins the state government to make provision for securing just and
humane conditions of work and for maternity relief.
Article 43 makes it obligatory for the State to secure by suitable legislation or
economic organisation or in any other manner to all workers, agricultural,
industrial, or otherwise, work, a living wage, conditions of work ensuring a
decent standard of life and full enjoyment of leisure and social and cultural
opportunities.

Article 43-A makes it obligatory on the State to take steps by suitable legislation
or otherwise to secure the participation of workers in the management of
undertakings and industrial establishments.

Social security is guaranteed in our Constitution under Articles 39, 41 and 43.

The Employees‘ State Insurance Act, 1948 is a pioneering piece of legislation in

the field of social insurance. The Employees‘ State Insurance Scheme provides
for benefits in cash except the medical benefit, which is in kind.

The Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952 and the
Maternity Benefit Act, 1961 are also social security measures to help fulfill the
objectives of directive principles of our Constitution. The Provident Fund Scheme
aimed at providing substantial security and timely monetary assistance to
industrial employees and their families. The Maternity Benefit Scheme is
primarily designed to provide maternity leave with full wages and security of
employment.

The object of the Payment of Gratuity Act, 1972 is to provide a scheme for the
payment of gratuity to employees employed in factories, mines, oil
fields, plantations, ports, railways, shops and establishments.

Besides social security benefits, efforts have also been made to provide ample
opportunities for employment and for workers‘ education.

The Apprentices Act, 1961 was enacted to supplement the programme of

institutional training by on-the-job training and to regulate the training
arrangements in industry.

Employment exchanges play an important role for the job seekers. The
Employment Exchanges (Compulsory Notification of Vacancies) Act, 1969 has
made it obligatory on the employers to notify vacancies occurring in their
establishments to the prescribed employment exchanges before they are filled.
The voluntary workers education scheme was launched in our country in 1958
to educate the workers in trade union philosophy and methods, and to promote
physical awareness of problems, privileges and obligations as workers and
citizens.
The Factories Act, 1948 provides for health, safety, welfare, employment of young
persons and women, hours of work for adults and children, holidays and leave
with
wages. Labour welfare funds have been set-up to provide welfare facilities to the
workers employed in different mines such as coal, mica, iron ore and limestone.
The

Contract Labour (Regulation and Abolition) Act of 1970, a piece of social

legislation, provides for the abolition of contract labour wherever possible and to
regulate the conditions of contract labour in establishments or employments
where the abolition of contract labour system is not considered feasible for the
time being.

Article 43 of the Constitution provides for a living wage. To provide social justice
to the unorganised labour and to prevent exploitation, the Minimum Wages Act,
1948
was enacted. It provides for the fixation of minimum rates of wages by the
central or state governments within a specified period for workers employed in
certain scheduled employments. The minimum wage in any event must be paid
irrespective of the capacity of the industry to pay.

ROLE OF LAW IN INDUSTRIAL RELATIONS

All systems of industrial relations have a legal framework if they operate within a
legal system. The legal framework may take the form of recognising the
development
of certain institutions and remove any impediments to their existence.

In India there has been a large degree of agreement on the need for reforms.

The legal framework within which the industrial relations operates is in a

constant state of flux. State and central legislation affecting industrial relations
is a neverending phenomenon. The three central enactments which have a
bearing on industrial relations in our country are:

(a) the Trade Unions Act, 1926;

(b) the Industrial Employment (Standing Orders) Act, 1946; and
(c) the Industrial Disputes Act, 1947.

I. THE TRADE UNIONS ACT 1926

The Central Government, after consulting Provincial Governments, drew up a Bill

providing for the registration of trade unions, and introduced it in the Assembly
on 31st August 1925. It was passed on 25th March 1926, and Indian Trade
Unions Act, 1926 was brought into force on 1st June 1927.
It is divided into 33 Sections and contains 5 chapters.

EXCEPTIONS
Certain acts do not apply to registered trade unions, namely:
i) The Societies Registration Act, 1860;
ii) The Co-operative Societies Act, 1912; and
iii) The Companies Act, 1956.

OBJECTIVE
The main object of the Act is to provide for the registration of trade unions and to
give registered trade unions a legal and corporate status, and immunity to their
officers and members from civil and criminal liability for legitimate trade union
activities.

DEFINITION EXPLAINED Trade Union: It means a combination, whether

temporary or permanent, formed:
i) primarily for the purpose of regulating the relations between workmen and
employers; or between workmen and workmen; or between employers and
employers; or
ii) for imposing restrictive conditions on the conduct of any trade or business,
and includes any federation of two or more trade unions.

In common parlance, a trade union means an association of workers in a

particular craft or industry. However, the expression ―trade union‖ under the Act
includes both
employers‘ and workers‘ organisations. Employers‘ organisations can also be
registered as trade unions. The intention behind this is to place both on a par in
matters of rights and responsibilities. It is primarily the object of an association
or combination which determines whether it is a trade union or not.

REGISTRATION TRADE UNION

The Act provides that the appropriate government shall appoint a person as
Registrar of Trade Unions for each state. Any seven or more members of a trade
union may, by subscribing their names to the rules of the trade union and by
otherwise complying with the provisions of this Act relating to registration, apply
for its registration.

Provided that no trade union of workmen shall be registered unless at least ten
percent or one hundred of the workmen, whichever is less engaged or employed
in the establishment or industry with which it is connected are the members of
such trade union on the date of making of application for registration.

Every application for the registration of a trade union shall be made to the
Registrar, and shall be accompanied by a copy of the rules of the trade union
and a statement of the following particulars, namely:
i) The names, occupations and addresses of the members making the
application.
ii) The names, occupations and addresses of the place of work of the members of
the trade unions making the application.
iii) The name of the trade union and the address of its head office; and
iv) The titles, names, ages, addresses and occupations of the office-bearers of the
trade union.

IMMUNITY FROM CIVIL SUIT

A suit or other legal proceeding shall not be maintainable in any civil court
against any registered trade union or any office-bearer or member thereof for any
act done in contemplation or furtherance of a trade dispute to which a member
of the trade union is a party. This protection is available only on the ground that
such act induces some other person to break contract of employment, or that it
is in interference with the trade, business or employment of some other person
or with the right of some other person to dispose of his capital or of his labour as
he wills.

A registered trade union shall not be liable in any suit or other legal proceeding
in any civil court for any tortuous act done in contemplation or furtherance of a
trade dispute by an agent of the trade union.

II. THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

The matter pertaining to terms and conditions of industrial employment was first
brought before the fifth Indian Labour Conference in 1943 and was subsequently
deliberated in its sessions in 1944 and 1945. In order to fill the long-standing
lacuna in Indian labour legislation, the legislature passed the Act on 23rd April
1946. The Act came into force on 1st April 1947.

OBJECTIVE
The object of the Act is ―to require employers in industrial establishments to
define with sufficient precision the conditions of employment under them and to
make the said conditions known to workmen employed by them‖. The Act was
enacted:

a) to bring about uniformity in terms and conditions of employment;

b) to minimise industrial conflicts;
c) to foster harmonious relations between employers and employees; and
d) to provide statutory sanctity and importance to the standing orders;
e) to provide for payment of subsistence allowance by the employer during
suspension pending enquiry at the rate of 50 percent of the wages for the first 90
days of suspension and 75 percent for the remaining period if the delay in the
completion of disciplinary proceedings is not directly attributable to the conduct
of the workman concerned.
CERTIFICATION
It is obligatory on the part of an employer or a group of employers to furnish five
copies of the draft standing orders to the certifying officer within six months from
the date on which the Act becomes applicable to his or their establishments. The
draft shall be accompanied by a statement giving prescribed particulars of the
workmen employed in the industrial establishment, including the name of the
trade union, if any, to which they belong.

The draft standing orders have to provide for all matters set out in the Schedule
to the Act and should conform, as far as practicable, to the model standing order
prescribed by the government. The Schedule to the Act provides for the following
matters:
i) Classification of workmen, e.g., whether permanent, temporary, apprentices,
probationers, or badlis;
ii) Manner of intimating to workmen periods and hours of work, holidays, pay-
days and wage rates;
iii) Shift working;
iv) Attendance and late-coming;
v) Conditions of, procedure in applying for, and the authority which may grant
leave and holidays;
vi) Requirements to enter premises by certain gates, and liability to search;
vii) Closing and reopening of sections of the industrial establishment;
viii) Termination of employment, and the notice thereof to be given by employer
and workmen;
ix) Suspension or dismissal for misconduct and acts or omissions which
constitute misconduct;
x) Means of redress for workmen against unfair treatment or wrongful exactions
by the employer or his agents or servants;
xi) Any other matter which may be prescribed.

On receipt of the draft standing orders, the certifying officer shall forward a copy
thereof to the trade union of the workmen functioning in the establishment, and
if no such union exists, to three representatives of the workmen in the
establishment elected at a meeting called for the purpose.

After giving to the parties an opportunity of being heard, the certifying officer
shall decide whether or not any modification of the draft is necessary, and
make an order in writing accordingly. In doing so, the certifying officer can
adjudicate upon the fairness and reasonableness of the provisions in the draft.
The certifying officer shall thereupon certify the standing orders with or without
modification, and forward the authenticated copies thereof to the employer and
to the trade union or other prescribed representatives of the workmen within
seven days from the date of his orders.

MODIFICATIONS
The standing orders finally certified under this Act shall not, except on
agreement between the employer and the workmen, be liable to modification
until the expiry of
six months from the date on which the standing orders or the last modifications
thereof came into operation. A modification even before six months is permissible
by an
agreement between the parties.

ACTS OF MISCONDUCT

The following acts or omissions on the part of a workman shall amount to

misconduct:
i) wilful insubordination or disobedience, whether or not in combination with
another, of any lawful and reasonable order of a superior;
ii) going on an illegal strike or abetting, inciting, instigating or acting in
furtherance thereof;
iii) wilful slowing downing in performance of work, or abatement or instigation
thereof;
iv) theft, fraud or dishonesty in connection with the employer‘s business or
property or the theft of property of another workman within the premises of the
establishment;
v) taking or giving bribes or any illegal gratification;
vi) habitual absence without leave, or absence without leave for more than ten
consecutive days or overstaying the sanctioned leave without sufficient grounds
or proper or satisfactory explanation;
vii) late attendance on less than four occasions within a month;
viii) habitual breach of any standing order or any law applicable to the
establishment or any rules made there under;
ix) collection without the permission of the manager of any money within the
premises of the establishment except as sanctioned by any law for the time being
in force;
x) engaging in trade within the premises of the establishment;
xi) drunkenness, riotous, disorderly or indecent behaviour on the premises of the
establishment;
xii) commission of any act subversive of discipline or good behaviour on the
premises of the establishment;
xiii) habitual neglect of work, or gross or habitual negligence;
xiv) habitual breach of any rules or instructions for the maintenance and
running of any department, or the maintenance of the cleanliness of any portion
of the
establishment;
xv) habitual commission of any act or omission for which a fine may be imposed
under the Payment of Wages Act, 1936;
xvi) canvassing for union membership, or collection of union dues within the
premises of the establishment, except in accordance with any law or with the
permission of the manager;
xvii) wilful damage to work in process or to any property of the establishment;
xviii) holding meeting inside the premises of the establishment without the
previous permission of the manager or except in accordance with the provisions
of any law for the time being in force;
xix) disclosing to any unauthorised person any information in regard to the
processes of the establishment which may come into the possession of the
workman in the course of his works;
xx) gambling within the premises of the establishment;
xxi) smoking and spitting on the premises of the establishment where it is
prohibited by the employer;
xxii) failure to observe safety instructions notified by the employer or interference
with any safety device or equipment installed within the establishment;
xxiii) distribution or exhibiting within the premises of the establishment hand-
bills, pamphlets, posters, and such other things or causing to be displayed by
means
of signs or writing or other visible representation on any matter without previous
sanction of the manager;
xxiv) refusal to accept a chargesheet, order or other communication served in
accordance with the standing orders;
xxv) unauthorised possession of any lethal weapon in the establishment.

PENALTIES
The Act provides for penalties and procedures in case where:
(i) an employer fails to submit draft standing orders;
(ii) who does any act in contravention of the standing orders finally certified
under this Act for his industrial establishment.

No prosecution for an offence shall be instituted except with the previous

sanction of the appropriate government. No court inferior to that of a
metropolitan magistrate or a judicial magistrate of the second class shall try any
offence under the Act.

OBLIGATIONS-EMPLOYERS
i) Submit draft standing orders with the required information to the Certifying
Officer for certification within the time limit mentioned in the Act.
ii) Act in conformity with the certified standing orders in the day-to-day dealings
with the workmen.
iii) Modify certified standing orders only with the approval of the Certifying
Officer.
iv) Post prominently the text of the certified standing orders near the entrance
and also in all departments where workmen are employed.
v) Pay subsistence allowance to the charge-sheeted employee during suspension
pending enquiry as per the Act and the Rules.

OBLIGATIONS OF WORKMEN
1) Work in conformity with the certified standing orders or model standing orders
as the case may be.
2) Comply with the provisions of the Act in regard to modification and
interpretation of standing orders.

III. THE INDUSTRIAL DISPUTES ACT 1947

The Industrial Disputes Bill was introduced in the Central Legislative Assembly
on 8th October 1946. The Bill was passed by the Assembly in March 1947 and
became
law with effect from 1st April 1947. The Act contains 40 sections, which have
been grouped in 9 chapters.

OBJECTIVES
The Preamble to the Act reads: ―An Act to make provision for the investigation
and settlement of industrial disputes and for certain other purposes.‖

a) To ensure social justice to both employers and employees and advance the
progress of industry by bringing about harmony and a cordial relationship
between the parties.
b) To settle disputes arising between capital and labour by peaceful methods and
through the machinery of conciliation, arbitration and, if necessary, by
approaching the tribunals constituted under the Act. If disputes are not settled,
there would be strikes or lockouts which would entail dislocation of work,
essential to the life of the community.
c) To promote measures for securing and preserving amity and good relations
between the employer and workmen.
d) To prevent illegal strikes and lockouts.
e) To provide compensation to workmen in cases of lay-off, retrenchment and
closure.
f) To protect workmen against victimisation by the employer and to ensure
termination of industrial disputes in a peaceful manner.
g) To promote collective bargaining.

INDUSTRY: It means any business, trade, undertaking, manufacture or calling

of employers and includes any calling, service, employment, handicraft or
industrial
occupation or avocation of workmen.
The definition is both exhaustive and inclusive and is very comprehensive in
scope. It is in two parts. One part of it defines industry from the standpoint of
the employer; the other from the standpoint of the employee.

PUBLIC UTILITY SERVICES: The phrase public utility service means:

i) Any railway service or any transport service for the carriage of passengers or
goods by road, water or air;
ii) Any section of an industrial establishment on the working of which the safety
of the establishment or the workmen employed therein depends;
iii) Any postal, telegraph or telephone service;
iv) Any industry which supplies power, light or water to the public;
v) Any system of public conservancy or sanitation;
vi) Any industry specified in the First Schedule which the appropriate
government may, if satisfied that public emergency or public interest so requires,
by otification in the Official Gazette, declare to be a public utility service for a
specified period not exceeding six months in the first instance. The appropriate
government, if necessary, may extend it from time to time

INDUSTRIAL DISPUTE: Industrial dispute means any dispute or difference

between employers and employers or between employers and workmen, or
between workmen
and workmen, which is connected with the employment or non-employment or
the terms of employment or with the conditions of labour, of any person.
The definition is in three parts. The first part refers to the factum of a real and
substantial dispute, the second part to the parties to the dispute, and the third
to the subject matter of the dispute

WORKMAN: ―Workman‖ means any person, including an apprentice employed in

any industry, to do any skilled or unskilled manual, supervisory, operational,
technical or clerical work for hire or reward, whether the terms of employment be
expressed or implied, and for the purposes of any proceeding under this Act in
relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of,
that dispute or whose dismissal, discharge, or retrenchment has led to that
dispute, but does not include any person:

i) Who is subject to the Army Act, 1950 (46 of 1950), or the Air Force Act, 1950
(45 of 1950), or the Navy (Discipline) Act, 1934 (34 of 1934); or
ii) Who is employed in the police service or as an officer or other employee of
prison; or
iii) Who is employed mainly in a managerial or administrative capacity; or
iv) Who being employed in a supervisory capacity, draws wages exceeding rupees
1,600 per mensem or exercises, either by the nature of the duties attached to the
office or by reason of the powers vested in him, functions mainly of a managerial
nature.

AUTHORITIES UNDER THE ACT

WORKS COMMITTEE: The Act empowers the appropriate government to require
an employer of any industrial establishment where 100 or more workmen are
employed or have been employed on any day in the preceding twelve months to
constitute a works committee.

This committee consists of representatives of the employer and of the workmen

engaged in the establishment, provided that the number of representatives of the
workmen is not less than the number of representatives of the employer. The
representatives of workmen shall be chosen from among the workmen engaged
in the establishment and in consultation with their trade union, if any,
registered under the Trade Unions Act, 1926.

The duty of the works committee is tO promote measures with a view to securing
and preserving amity end, to comment upon matters of their common interest or
concern and endeavour to compose any material difference of opinion in respect
of such matters.

CONCILIATION OFFICERS: The appropriate government may appoint

conciliation officers charged with the duty of mediating in, and promoting the
settlement of, industrial
disputes. A conciliation officer may be appointed for a specified area or for a
specified industry in a specified area, and his appointment may be permanent or
temporary.

BOARD OF CONCILIATION: In a similar manner, a board of conciliation may

also be constituted to promote the settlement of industrial disputes. A board
shall consist of a chairman and two or four other members, as the appropriate
government thinks fit. The chairman shall be an independent person and the
other members shall be persons
appointed in equal numbers to represent the parties to the dispute on the
recommendation of the parties concerned. If any party fails to make a
recommendation
within the prescribed time, the appropriate government shall appoint such
persons as it thinks fit to represent that party.

COURTS OF INQUIRY: The appropriate government may constitute a court of

inquiry consisting of one or more independent persons to enquire into any
matter connected
with or relevant to an industrial dispute. Where a court consists of two or more
members, one of them shall be appointed as chairman.

LABOUR COURTS: The appropriate government may constitute one or more

labour courts to adjudicate industrial disputes relating to any of the following
matters
(Second Schedule):
i) The propriety or legality of an order passed by an employer under the standing
orders;
ii) The application and interpretation of standing orders;
iii) Discharge or dismissal of workmen, including retirement of, or grant of relief
to, workmen wrongfully dismissed;
iv) Withdrawal of any customary concession or privilege;
v) Illegality or otherwise of a strike or lockout; and
vi) All matters other than those specified in the Third Schedule.

A labour court shall consist of one person only with necessary judicial
qualifications, and will be appointed by the appropriate government.
 Industrial Tribunals: The appropriate government may, by a notification in the
Official Gazette, constitute one or more industrial tribunals to adjudicate
industrial disputes relating to any matter, whether specified in the Second
Schedule or in the Third Schedule.

The Third Schedule provides for the adjudication of the following matters:
i) Wages, including the period and mode of payment;
ii) Compensation and other allowances;
iii) Hours of work and rest intervals;
iv) Leave with wages and holidays;
v) Bonus, profit-sharing, provident fund and gratuity;
vi) Shift working otherwise than in accordance with standing orders;
vii) Classification by grades;
viii) Rules of discipline;
ix) Rationalisation;
x) Retrenchment of workmen and closure of establishment; and
xi) Any other matter that may be prescribed.

NATIONAL TRIBUNALS: The Central Government may, by a notification in the

Official Gazette, constitute one or more national industrial tribunals for the
adjudication of industrial disputes which, in the opinion of the Central
Government, involve questions of national importance or are of such nature that
industrial establishments situated in more than one State are likely to be
interested in, or affected by, such disputes. A national tribunal shall consist of
one person only to be appointed by the Central Government.

b) Examine the growth of trade unions in the recent past. Also briefly make a
note on its evolution
Answer:

Definition of Trade Union:

Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as
“Any combination, whether temporary or permanent, formed primarily for
the purpose of regulating the relations between workmen and employers,
or between workmen and workmen, or 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.”

Importance Of Trade Unions

Trade unions help in accelerated pace of economic development in many ways as
follows:
 by helping in the recruitment and selection of workers.
 by inculcating discipline among the workforce
 by enabling settlement of industrial disputes in a rational manner
 by helping social adjustments. Workers have to adjust themselves to the
new working conditions, the new rules and policies. Workers coming from
different backgrounds may become disorganized, unsatisfied and
frustrated. Unions help them in such adjustment.

Advantages of Trades Unions.

 Increase wages for its members.Industries with trade unions tend to have
higher wages than non-unionised industries.
 Counterbalance Monopsonies. In the face of Monopsony employers, Trades
Unions can increase wages and increase employment. Monopsony
employers are those who have market power in setting wages and
employing workers. Traditionally, monopsonies occur when there is only 1
firm in a town, or type of employment. However, in modern economies,
many employers have a degree of market power (monopsony).
 Represent Workers. Trades Unions can also protect workers from
exploitation, and help to uphold health and safety legislation. Trades
unions can give representation to workers facing legal action.
 Productivity deals. Trades Unions can help to negotiate productivity deals.
This means they help the firm to increase output; this enables the firm to
be able to afford higher wages. Trades unions can be important for
implementing new working practices which improve productivity.
 Important for Service Sector. Modern economies have seen a fall in trade
union power. This is because of a decline in manufacturing and rise in
service sector employment. Service sector jobs tend to more likely to be
part time and temporary; unions are needed to protect workers in these
kind of jobs.

Dis-advantages of Trades Unions.

 Create Unemployment‘s labour markets are competitive, higher wages will

cause unemployment. Trades unions can cause wages to go above
equilibrium through the threat of strikes e.t.c. However when the wage is
above the equilibrium it will cause a fall in employment.
 Ignore non Members. Trades unions only consider the needs of its
members, they often ignore the plight of those excluded from the labour
markets, e.g. the unemployed.
 Lost Productivity. If unions go on strike and work unproductively (work to
rule) it can lead to lost sales and output. Therefore their company may go
out of business and be unable to employ workers at all.
 Wage Inflation. If unions become too powerful they can bargain for higher
wages, above the rate of inflation. If this occurs it may contribute to
general inflation. Powerful trades unions were a significant cause of the
UK's inflation rate of 27% in 1979.

Trade Unions
It seeks to develop among workers a spirit of combination, class-consciousness
and solidarity of interest and arouses a consciousness, for self-respect, rights
and duties. It creates organisation for their self-protection, safeguarding of their
common interest and betterment of their social and economic position.

In India, the labour movement started in 1875 when a number of measures to

improve the lot of workers were taken by the Government, social reformers and
enlightened employers, whereas, the Trade union movement was started in 1918,
when the workers formed their association to improve their conditions.

Like other countries, development of trade union movement in India is co-

extensive with large scale industries. Development of large industrial units
brought about many changes in working and living environment of workers and
created a number of complex problems. Introduction of machinery, new lines of
production, concentration of industries in certain big cities gave birth to a new
class of wage earners and divided the industrial society into capitalist and
labourers or haves and have nots.

Early Period
Efforts towards organising the workers for their welfare were made, during the
early period of industrial development by social workers, philanthropists and
other religious leaders mostly on humanitarian grounds.

The first Factories Act, 1881, was passed on the basis of the recommendations of
the Bombay Factory Commission, 1875. Due to the limitations of the Act, the
workers in Bombay Textile Industry under the leadership of N M Lokhande
demanded reduced of hours of work, weekly rest days, mid-day recess and
compensation for injuries.

Bombay Mill owners‘ Association conceded the demand for weekly holiday.
Consequently, Lokhande established the first Workers‘ Union in India in 1890 in
the name of Bombay Mill hands Association. A labour journal called
―Dinabandu‖ was also published.

Modest Beginning
The beginning of the Labour movement in the modest sense started after the
outbreak of World War I in the country. Economic, political and social conditions
of the day influenced the growth of trade union movement in India.

Establishment of International Labour Organisation in 1919 helped the

formation of trade unions in the country.

Madras Labour Union was formed on systematic lines in 1919. A number of

trade unions were established between 1919 and 1923. Category wise unions,
like Spinners‘ Union and Weavers‘ Union, came into existence in Ahmedabad
under the inspiration of Mahatma Gandhi.
All India Trade Union Congress
The most important year in the history of Indian Trade Union movement is 1920
when the All India Trade Union Congress (AITUC) was formed consequent upon
the necessity of electing delegates for the International Labour Organisation
(ILO). This is the first all India trade union in the country. The first meeting of
the AlTUC was held in October, 1920 at Bombay (now Mumbai) under the
president ship of Lala Lajpat Rai.

Period of splits and mergers: The splinter group of AITUC formed All India Trade
Union Federation (AlTUF) in 1929. Another split by the communists in 1931 led
to the formation of All India Red Trade Union Congress. Thus, splits were more
common during the period. However, efforts were made by the Railway
Federation to bring unity within the AITUC unity. These efforts did bear fruit and
All India Red Trade Union Congress was dissolved. Added to this, All India Trade
Union Federation also merged with AITUC. The unified AITUC‘s convention was
held in 1940 in Nagpur. But the unity did not last long.

The World Was II brought splits in the AITUC. There were two groups in the
AITUC, one supporting the war while the other opposing it. the supporting group
established its own central organisation called the Indian Federation of Labour.
A further split took place in 1947, when the top leaders of the Indian National
Congress formed another central organisation.

Indian National Trade Union Congress: The efforts of Indian National Congress
resulted in the establishment of Indian National Trade Union Congress (INTUC)
by bringing the split in the AITUC, INTUC started gaining membership right from
the beginning.

Other Central Unions: Socialists separated from AITUC had formed Hind
Mazdoor Sabha (HMS) in 1948. The Indian Federation of Labour merged with the
HMS, Radicals formed another union under the name of United Trade Union
Congress in 1949. Thus, the trade union movement in the country was split into
four distinct central unions during the short span of 1946 to 1949. Some other
central unions were also formed. They were Bharatiya Mazdoor Sangh (BMS) in
1955, the Hind Mazdoor Panchayat (HMP) in 1965 and the Centre of Indian
Trade Unions (CITU) in 1970. Thus, splinter group of INTUC formed Union

Present Position
There are over 9,000 trade unions in the country, including unregistered unions
and more than 70 federations and confederations registered under the Trade
Unions Act, 1926. The degree of unionism is fairly high in organised industrial
sector. It is negligible in the agricultural and unorganised sectors.

Though the number of unions has greatly increased in the last four decades, the
union membership per union has not kept pace. The National commission on
labour has stated that only 131 unions had a membership of over 5,000. More
than 70% of the unions had a membership of below 500. Over the years the
average membership figures per union have fallen steadily from about 1387 in
1943 to 632 in 1992-93.

There is a high degree of unionisation (varying from 30% to over 70%) in coal,
cotton, textiles, iron and steel, railways, cement, banking, insurance, ports and
docks and tobacco sector. White-collar unions have also increased significantly
covering officers, senior executives, managers, civil servants, self employed
professions like doctors, lawyers, traders, etc. for safeguarding their interest.

At present there are twelve Central Trade Union Organizations in India:

All India Trade Union Congress (AITUC)
 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Kisan Panchayat (HMKP)
 Hind Mazdoor Sabha (HMS)
 Indian Federation of Free Trade Unions (IFFTU)
 Indian National Trade Union Congress (INTUC)
 National Front of Indian Trade Unions (NFITU)
 National Labor Organization (NLO)
 Trade Unions Co-ordination Centre (TUCC)
 United Trade Union Congress (UTUC) and
 United Trade Union Congress - Lenin Sarani (UTUC - LS)

Trade Union Strength

 BMS - 331 Lakhs
 INTUC - 271 Lakhs
 AITUC - 18 Lakhs
 HMS - 15 Lakhs
 CITU - 3.4 Lakhs

Trade Unions In India

The Indian workforce consists of 430 million workers, growing 2% annually. The
Indian labor markets consist of three sectors:
 The rural workers, who constitute about 60 per cent of the workforce.
 Organized sector, which employs 8 per cent of workforce, and
 The urban informal sector (which includes the growing software industry
and other services, not included in the formal sector) which constitutes the
rest 32 per cent of the workforce.

Summary

(I) Period up to First World War (from 1875 to 1918):

Due to the development of large scale industries, many social evils like
employment and exploitation of woman and child labour erupted in India who
work in the deplorable conditions, more likely worse than the conditions of
labour in England. Workers were not organised at that time and were very often
at the mercy of the employers.

The first concerted action was taken in 1875 under the leadership of Sorabji
Shaparji who along with some social workers started the agitation to draw the
attention of the Government to the deplorable conditions of woman and child
labour in Indian industries.

(II) Between the Two Great Wars (1918-1938):

After the First World War trade union movement got intensified and the
leadership of trade unions passed from the hands of social workers into the
hands of politicians. That was the year of labour unrest all over the country.

(i) The industrial unrest grew up as a result grave economic difficulties created
by the war. The rising cost of living prompted the workers to take collective
action for the increase in their wages.

(ii) The Swaraj Movement also intensified the movement, widened the gulf
between employers and employees and brought about mass awakening among
the workers demanding racial equality with their British employers.

(iii) The success of Russian Revolution 1917 also created a revolutionary wave of
ideas, class consciousness and self-respect among workers.

(iv) The establishment of the International Labour Organisation in 1919 gave

dignity to the workers all over the world and inspired the Labour movement.

(v) The non-cooperation movement of Mahatma Gandhi during 1920-21 and his
support to the demands of working class also greatly influenced the labour
movement.

(III) During and After the Second World War (1939-1947):

The Second World war which broke out in September 1939, created new status
in the united trade union movement. The leaders of the various factions in the
AITUC again divided on the question of whether the AITUC should support the
Government on war. Again a rift took place in 1941 and the Radicals left the
AITUC and formed a new central labour federation known as the Indian
Federation of Labour (IFL).

The shifts in the national political situation, continued to affect the Indian labour
movement. The political situation compelled the communists of India to support
the Government on war issue and leadership of AITUC which was in the hands of
Indian National Congress, fell into the hands of communists.

(IV) Post Independence Period (1947 to date):

By 1949, there were four central organisations led by different political parties
i.e., the INTUC led by Congress, the AITUC dominated by the communists, the
HMS, affiliated to the Socialist party and the UTUC, led by the Revolutionary
 Socialist party. It was an indication that the political involvement in trade union
movement.

(IV)Present Scenario of the Trade Union Movement:

The Indian Trade unions have now got a legal status and now they are not as ad-
hoc bodies or strike committees. They have now become a permanent feature of
the industrial society. They have succeeded in organising Central Union
Federations which help in the determination of principles, philosophy, ideology
and purposes of the unions and give some sense of direction to the otherwise
scattered and isolated unions.

The unions now have gained a remarkable status in the labour movement. Now,
the Government and the employers consult them on all matters concerning
labour. Unions also participate in formulating policies and ideologies at State
and National levels.

c) Discuss the various types of strikes and methods of preventions to avoid

Industrial Disputes.

Answer:
Disputes mainly relate to the strife between employers and their employees.
According to the Industrial Dispute Act,1947 sec(2(k)),Industrial disputes mean
any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected
with the employment or non-employment or terms of employment or with the
conditions of labour of any person.

Causes of industrial Disputes: Causes of Industrial disputes may be grouped

into four categories :
(A) Industrial Factors
(B) Managements Attitude towards workers
(C) Government Machinery ; and
(D) Other Causes

(A)Industrial Factors : Under this category, some of the causes of dispute may
be : (i) An industrial matter relating to employment, work, wages, hours of work,
privileges, the rights and obligations of employees and employers, terms and
conditions of employment including matters pertaining to :
(a) Dismissal or non-employment of any person
(b) Registered agreement , settlement or award : and
(c) Demarcation (establishing limits) of the functions of an employee

(iii) An industrial matter in which both the parties are directly and substantially
interested.
(iii) disputes arising out of unemployment, inflation, change in the attitude of

(II) Management Attitude Towards Labour :

(i) Managements unwillingness to talk over any dispute with their employees.
(ii) Managements unwillingness to recognize a particular trade union ,
delegating enough authority to the representatives ,etc.
(iii) Unwillingness to negotiation and settlement of disputes.
(iv) Managements insistence to take care of recruitments, promotion etc
without consulting the concerned employees
(v) Managements unwillingness to provide services and benefits to its
employees

(III) Government Machinery :

(a)Though there are number of enactments for promotion of harmonious
relations, it is ineffective and unsatisfactory due to various reasons like their
irrelevancy in the context of the challenges of present industrial climate/culture,
incapability of understanding and answering imperatives of development,
improper and inadequate implementation by many employers.
(b) The governments conciliation machinery has settled a very negligible number
of disputes .

(IV) Other Causes :

(i) Affiliation of the trade unions with a political party, where the latter may
instigate the trade unions to conduct strikes, lockouts , gheraos etc.
(ii) Political instability, centre- state relations, sometimes result into industrial
conflict.(iii) Other potential factors like corruption in industry and public
life, easy money, etc can also result into industrial disputes.

Industrial disputes are basically of two types ,i.e.

(i) Strikes and
(ii) Lockouts.

Strikes :Strikes are a result of more fundamental maladjustments, injustices

and Economic disturbances. Strike is a temporary cessation of work by a group
of employees in order to express grievances or to enforce a demand concerning
changes in work conditions. Strikes are divided into three types .They are
Primary strikes, secondary strikes and other strikes.

Primary strikes are generally against the employer with whom the dispute
exists. They are :
(i) Stay Away Strikes: In this strike workmen stay away from the work place.
They organize rallies, demonstrations, etc.
(ii) Stay-in or sit Down Strikes : In this strike, workmen come to the place ,
they stay at the work place but they don‗t work.
(iii) Tools Down, Pen Down Strike : Here the strikers lay down their tools in
case of factory workers , office workers lay down their pens,
(iv) Token or Protest Strikes : It is of very short duration and is in nature of
signal for the danger ahead. In this strike workers do not work for an hour
or a 0ay.
(v) Lightening or Wild cat strike : In this strike, the strike is done without any
prior notice or with a shortest notice.
(vi) Go–Slow : In this strike, the workers intentionally reduce the speed of
work.
(vii) Work to rule : In this strike, the strikers undertake the work according to
rules or job description.
(viii) Picketing : It is an act of protesting by the workmen in front of the
premises of the employer.
(ix) Boycott: It aims at disrupting the normal functioning of the enterprise.
(x) Gherao : It is a physical blockade of a target either by encirclement,
intended to block from and to a particular office, workshop etc.
(xi) Hunger Strike : This type of strike is resorted to either by the leaders of the
union or by some workers all at a time for a limited period or up to the
period of settlement of disputes.

Secondary Strike : Secondary strikes are against a third party. These strikes are
sympathetic strikes.

Other Strikes : These strikes are in the form of general, particular, political and
bandhs.

Lockouts: Lockout means the closing of a place of business of employment or

the suspension of work, or the refusal by the employer to continue to employ
any number of persons employed by him. However, termination of employment
or retrenchment, and prohibiting an employee are not lockouts.
d) Grievance Management

"Grievance is any discontent or dissatisfaction whether expressed or not,

whether valid or not, arising out of anything connected with the company which
an employee thinks, believes or even feels to be unfair, unjust or inequitable"
Michael Jucious

1. Dissatisfaction is anything that disturbs an employee, whether or not the

unrest is expressed in words.
2. Complaint is a spoken or written dissatisfaction brought to the attention of
the supervisor or the shop steward.
3. Grievance is a complaint that has been formally presented to a management
representative or to a union official.

Features of Grievance:
1. A grievance refers to any form of discontent or dissatisfaction with any aspect
of the organization.
2. The dissatisfaction must arise out of employment and not due to personal or
family problems.
3. The discontent can arise out of real or imaginary reasons. When employees
feel that injustice has been done to them, they have a grievance. The reason for
such a feeling may be valid or invalid, legitimate or irrational, justifiable or
ridiculous.
4. The discontent may be voiced or unvoiced, but it must find expression in some
form. However, discontent per se is not a grievance. Initially, the employee may
complain orally or in writing. If this is not looked into promptly, the employee
feels a sense of lack of justice. Now, the discontent grows and takes the shape of
a grievance.
5. Broadly speaking, thus, a grievance is traceable to be perceived as non-
fulfilment of one‘s expec­tations from the organization.
The effects are the following:

1. On the production:

a. Low quality of production

b. Low productivity
c. Increase in the wastage of material, spoilage/leakage of machinery
d. Increase in the cost of production per unit

2. On the employees:

a. Increase in the rate of absenteeism and turnover

b. Reduction in the level of commitment, sincerity and punctuality
c. Increase in the incidence of accidents
d. Reduction in the level of employee morale.

3. On the managers:

a. Strained superior-subordinate relations.

b. Increase in the degree of supervision and control.
c. Increase in indiscipline cases
d. Increase in unrest and thereby machinery to maintain industrial peace

The managers should adopt the following approach to manage grievance

effectively-

Quick action- As soon as the grievance arises, it should be identified and

resolved. Training must be given to the managers to effectively and timely
manage a grievance. This will lower the detrimental effects of grievance on the
employees and their performance.

Acknowledging grievance- The manager must acknowledge the grievance put

forward by the employee as manifestation of true and real feelings of the
employees. Acknowledgement by the manager implies that the manager is eager
to look into the complaint impartially and without any bias. This will create a
conducive work environment with instances of grievance reduced.

Gathering facts- The managers should gather appropriate and sufficient facts
explaining the grievance‘s nature. A record of such facts must be maintained so
that these can be used in later stage of grievance redressal.

Examining the causes of grievance- The actual cause of grievance should be

identified. Accordingly remedial actions should be taken to prevent repetition of
the grievance.

Decisioning- After identifying the causes of grievance, alternative course of

actions should be thought of to manage the grievance. The effect of each course
of action on the existing and future management policies and procedure should
be analyzed and accordingly decision should be taken by the manager.

Execution and review- The manager should execute the decision quickly,
ignoring the fact, that it may or may not hurt the employees concerned. After
implementing the decision, a follow-up must be there to ensure that the
grievance has been resolved completely and adequately.
e) Elucidate the role of government in solving Industrial Disputes.
f) Employee Empowerment
Employee Empowerment

Gone are the 1950s ways of working when the boss wielded all the decision-
making power and the staff were merely subservient to the whims of
management.

That hierarchical style may have worked for many businesses, and, whilst many
still rely on that business model, thinking has moved on.

Employee empowerment is giving employees a certain degree of autonomy and

responsibility for decision-making regarding their specific organizational tasks.

Empowered employees are more likely to:

 Go the extra mile
 Follow best practices
 Be more productive
 Have good communication
 Embrace change
 Have a ―can do‖ attitude
 Provide better customer service
There are a few employee empowerment strategies that transcend industry,
product and the like:

Authority — The first thing you must evaluate to ensure customer satisfaction
is that your employees truly have the ability and the autonomy to provide the
best service possible.

At Nordstrom, for example, the service is fantastic largely because employees

have the power to serve the customer as best they can. Their official return
policy is ―We don‘t actually have a return policy,‖ meaning the employee has the
latitude to make a determination and provide the customer with the best service
possible.

Training — You won‘t provide the best possible experience for your customers if
you haven‘t provided excellent training to your employees. A well-trained
employee will feel comfortable, confident, and empowered during customer
interactions.

They won‘t hesitate to answer questions, fix issues, and troubleshoot with you
because they will feel secure in the training they‘ve received from the
organization.

Jiffy Lube took the top spot on Training Magazine‘s list of 125 best companies for
training after securing a staggering 148,000 certifications for its employees in
one year. With that much training, you can be sure their staff feels comfortable
assisting customers and providing a positive experience.

Vision Statement — If your employees have a strong sense of what the company
stands for, what its goals are, and why it exists, they will feel more connected to
the business. That connection will promote confidence and keep them invested
in organizational objectives.

Employees who work in a vacuum, without a true understanding of how one‘s

actions impact the entire company, are unlikely to feel empowered to help take
the organization to the next level. The San Diego Zoo is world renowned for their
facilities and the way their animals are treated.

They have a clear vision statement: To become a world leader at connecting

people to wildlife and conservation. A statement like that makes it easy for
employees to understand how their positive actions with visitors and the animals
they care for fit into the overall organization‘s vision, and it empowers them to
take part in bringing that vision to fruition.

Alignment — Employees with a comprehensive understanding of why customer

policies and strategies are in place, and who are in agreement with these
policies, are empowered to be the best brand advocates and deliver exceptional
customer service.

However, successful alignment on the purpose behind a company‘s customer

service initiatives with customer-facing employees requires training on a deeper
level than simply explaining processes and how following a pre-determined
blueprint will achieve positive results. If the organization can convey the larger
goal and vision for the brand‘s customer service, then customer-facing employee
will feel empowered to back the company when dealing with customer service
concerns, complaints and requests.
g) Write short notes on
 Industrial Peace
 Collective Bargaining
 Conciliation
 Adjudication
h) Elaborate the pre- requisites for good industrial relations.
i) Layoff

 The failure, refusal or inability of an employer to give employment due to

following reasons, to a workman whose name appears on the muster-rolls
of his industrial establishment and who has not been retrenched:
1. shortage of coal, power or raw materials, or accumulation of stocks,
or
2. break-down of machinery, or natural calamity, or
3. for any other connected reason.
 Every workman whose name is borne on the muster rolls of the industrial
establishment and who presents himself for work at the establishment at
the time appointed for the purpose during normal working hours on any
day and is not given employment by the employer within two hours of his
so presenting himself shall be deemed to have been laid-off for that day
within the meaning of this clause.
 If the workman, instead of being given employment at the commencement
of any shift for any day is asked to present himself for the purpose during
this second half of the shift for the day and is given employment, then, he
shall be deemed to have been laid-off only for one-half of that day.
 If he is not given any such employment even after so presenting himself,
he shall not be deemed to have been laid-off for the second half of the shift
for the day and shall be entitled to full basic wages and dearness
allowance for that part of the day.
  Lay-off is a temporary stoppage and within a reasonable period of time, the
employer expects that his business would continue and his employees who
have been laid-off, the contract of employment is not broken but is
suspended for the time being.
 There cannot be lay-off in an industrial undertaking which has been closed
down. Lay-off and closure cannot stand together.
j) Strikes & Lockouts

Strike [Section 2(q)]

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.

 Strike is a weapon of collective bargaining in the armour of workers.

 Strike can take place only when there is a cessation of work or refusal to
work by the workmen acting in combination or in a concerted manner.
Time factor or duration of the strike is immaterial. The purpose behind the
cessation of work is irrelevant in determining whether there is a strike or
not. It is enough if the cessation of work is in defiance of the employer‘s
authority.
 Proof of formal consultations is not required. However, mere presence in
the striking crowd would not amount to strike unless it can be shown that
there was cessation of work.
 A concerted refusal or a refusal under a common understanding of any
number of persons to continue to work or to accept employment will
amount to a strike. A general strike is one when there is a concert of
combination of workers stopping or refusing to resume work. Going on
mass casual leave under a common understanding amounts to a strike.

Types of Strike

(a) Stay-in, sit-down, pen-down or tool-down strike

In all such cases, the workmen after taking their seats, refuse to do work.
Even when asked to leave the premises, they refuse to do so. All such acts on
the part of the workmen acting in combination, amount to a strike. Since
such strikes are directed against the employer, they are also called primary
strikes.

(b) Go-slow

Go-slow does not amount to strike, but it is a serious case of misconduct.

(c) Sympathetic strike

 Cessation of work in the support of the demands of workmen belonging to
other employer is called a sympathetic strike. This is an unjustifiable invasion
of the right of employer who is not at all involved in the dispute. The
management can take disciplinary action for the absence of workmen.

(d) Hunger strike

Some workers may resort to fast on or near the place of work or residence of
the employer

(e) Work-to-rule

Since there is no cessation of work, it does not constitute a strike.

Lock-out [Section 2(l)]

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 persons
employed by him.

 Lock out is an antithesis to strike.

 In lock out, the employer refuses to continue to employ the workman
employed by him even though there is no intention to close down the unit.
 The essence of lock out is the refusal of the employer to continue to employ
workman.
 Even if suspension of work is ordered, it would constitute lock out.
 But mere suspension of work, unless it is accompanied by an intention on
the part of employer as a retaliation, will not amount to lock out.
 Locking out workmen does not contemplate severance of the relationship
of employer and the workmen.

k) What is meant by employee empowerment? Discuss its significance.

l) Discuss the changing socio economic changes that affect the Industrial
Relations.
m) Industrial Disputes Act, 1947
Industrial Disputes Act, 1947

Prior to the year 1947, industrial disputes were being settled under the
provisions of the Trade Disputes Act, 1929. Experience of the working of the
1929 Act revealed various defects which needed to be overcome by a fresh
legislation. Accordingly the Industrial Disputes Bill was introduced in the
Legislature. The Bill was referred to the select committee. On the
recommendations of the Select Committee amendments were made in the
original Bill.
Experience of the working of the Trade Disputes Act, 1929, has revealed that its
main defect is that while restraints have been imposed on the rights of strike and
lock-out in public utility services no provision has been made to render the
proceedings institutable under the Act for the settlement of an industrial
dispute.

Industrial Dispute [Section 2(k)]

Means
Any dispute or difference
 between employers and employers,
 or between employers and workmen,
 or between workmen and workmen,
Which is connected with
 the employment or
 non-employment or
 the terms of employment or
 with the conditions of labour,
Only those persons who are engaged in the following types of work are covered
by the definition of ―workman‖:
 Skilled or
 unskilled manual work;
 Supervisory work;
 Technical work;
 Clerical work.

I. Works Committee -

In the case of any industrial establishment in which one hundred or more

workmen are employed or have been employed on any day in the preceding
twelve months, the appropriate Government may by general or special order
require the employer to constitute in the prescribed manner a Works Committee
consisting of representatives of employers and workmen engaged in the
establishment

It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workmen
and, to that end, to comment upon matters of their common interest or concern

II.Conciliation officers -

The appropriate Government may, by notification in the Official Gazette, appoint

such number of persons as it thinks fit, to be conciliation officers, charged with
the duty of mediating in and promoting the settlement of industrial disputes.
A conciliation officer may be appointed for a specified area or for specified
industries in a specified area or for one or more specified industries and either
permanently or for a limited period.

III. Boards of Conciliation -

A Board shall consist of a chairman and two or four other members, as the
appropriate Government thinks fit.

IV. Courts of Inquiry -

The appropriate Government may as occasion arises by notification for inquiring
into any matter appearing to be connected with or relevant to an industrial
dispute. A court may consist of one independent person or of such number of
independent persons as the appropriate Government may think fit and where a
court consists of two or more members, one of them shall be appointed as the
chairman.

V.Labour Courts -

The appropriate Government may, by notification in the Official Gazette,

constitute one or more Labour Courts for the adjudication of industrial disputes
relating to any matter specified in the Second Schedule and for performing such
other functions as may be assigned to them under this Act.

VI. Tribunals –
The appropriate Government may, by notification in the Official Gazette,
constitute one or more Industrial Tribunals for the adjudication of industrial
disputes relating to any matter, whether specified in the Second Schedule or the
Third Schedule and for performing such other functions as may be assigned to
them under this Act.

VII. National Tribunals -

The Central Government may, by notification in the Official Gazette, constitute
one or more National Industrial Tribunals for the adjudication of industrial
disputes which, in the opinion of the Central Government, involve questions of
national importance or are of such a nature that industrial establishments
situated in more than one State are likely to be interested in, or affected by, such
disputes.

Prohibition of strikes and lock-outs -

(1)No person employed in a public utility service shall go on strike, in breach of

contract

o without giving to the employer notice of strike, as hereinafter

provided, within six weeks before striking; or
o within fourteen days of giving such notice ; or
 o before the expiry of the date of strike specified in any such
notice as aforesaid; or
o during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.
(2) No employer carrying on any public utility service shall lock-out any of his
workman

o without giving them notice of lock-out as hereinafter provided,

within six weeks before locking-out; or
o within fourteen days of giving such notice; or
o before the expiry of the date of lock-out specified in any such notice
as aforesaid; or
o during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings.

(3) The notice of lock-out or strike under this section shall not be necessary
where there is already in existence a strike or, as the case may be, lock-out in
the public utility service, but the employer shall send intimation of such lock-out
or strike on the day on which it is declared, to such authority as may be
specified by the appropriate Government either generally or for a particular area
or for a particular class of public utility services.

(4) The notice of strike referred to in sub-section (1) shall be given by such
number of persons to such person or persons and in such manner as may be
prescribed.

(5) The notice of lock-out referred to in sub-section (2) shall be given in such
manner as may be prescribed.

(6) If on any day an employer receives from any person employed by him any
such notices as are referred to in sub-section (1) or gives to any persons
employed by him any such notices as are referred to in sub-section (2), he shall
within five days, thereof report to the appropriate Government or to such
authority as that Government may prescribe the number of such notices received
or given on that day.
Dunlop’s System Model of Industrial Relations
One of the significant theories of industrial labor relations was put forth by John
Dunlop in the 1950s. According to Dunlop‘s System Model of Industrial
Relations consists of three agents – management organizations, workers and
formal/informal ways they are organized and government agencies.

These actors and their organizations are located within an environment – defined
in terms of technology, labor and product markets, and the distribution of power
in wider society as it impacts upon individuals and workplace. Within this
environment, actors interact with each other, negotiate and use
economic/political power in process of determining rules that constitute the
output of the industrial relations system. He proposed that three parties-
employers, labor unions, and government– are the key actors in a modern
industrial relations system.

He also argued that none of these institutions could act in an autonomous or

independent fashion. Instead they were shaped, at least to some extent, by their
market, technological and political contexts.

Thus it can be said that industrial relations industrial relations is a social sub
system subject to three environmental constraints- the markets, distribution of
power in society and technology.
Dunlop‘s model identifies three key factors to be considered in conducting an
analysis of the management-labor relationship:

 Environmental or external economic, technological, political, legal and

social forces that impact employment relationships.
 Characteristics and interaction of the key actors in the employment
relationship: labor, management, and government.
 Rules that are derived from these interactions that govern the employment
relationship.
 Dunlop emphasizes the core idea of systems by saying that the
arrangements in the field of industrial relations may be regarded as a
system in the sense that each of them more or less intimately affects each
of the others so that they constitute a group of arrangements for dealing
with certain matters and are collectively responsible for certain results‖..
 In effect – Industrial relations is the system which produces the rules of
the workplace. Such rules are the product of interaction between three key
―actors‖ – workers/unions, employers and associated organizations and
government

The Dunlop‘s model gives great significance to external or environmental forces.

In other words, management, labor, and the government possess a shared
ideology that defines their roles within the relationship and provides stability to
the system.

Legal Laws Pertaining To Women