This document discusses the paradigm shift occurring in industrial relations in India. It outlines the complex system of employer-employee relations and the various internal and external influences. It identifies the major stakeholders in industrial relations like employers, employees, government and unions. It describes the ideal characteristics of employees and employers. It also discusses the changing profiles of employers and employees and new roles for trade unions. Finally, it notes some of the issues with existing labor laws and the need for reforms and solutions to modernize the industrial relations system in India.

1. PARADIGM SHIFT IN
INDIAN INDUSTRIAL
RELATIONS SCENARIO

2. Employer – Employee Relations
•
o
1. Highly complex system.
• 2. An unique social phenomena characterized by
formal, informal, inter personal, group,
institutional, legal & Social Relationship.
3. The roles. Relationship, Institutions, processes and
activities which comprise the system of Employers
Employees relationship has a pattern of internal and
external influences.
a

3. Employer – Employee Relations Contd..
4. INTERNAL - Type of employers, organization history,and culture,
Sub –groups, type of employees, union etc.,
5. EXTERNAL - Social cultural, political, Economic, Technological,
Legal.
6. TIME - Relationship has also a time dimension Past – Present –
Future.
7. OTHERS - Government, Public, Police, Media, Politicians.

4. INDUSTRIAL RELATIONS – MAJOR
STAKEHOLDERS
1. Employers/Management
2. Unions/Employees
3. State – Legislature/ Executive
4. Judicial – Legal Provisions/Judgment
5. Public/ Community

5. IDEAL EMPLOYEE
 COMMITMENT
 OWNERSHIP / EMPOWERMENT
 EFFICIENT /PRODUCTIVE
 HAS BUSINESS OUTLOOK
 CONCERN FOR CUSTOMER SATISFACTION
 CONCERN FOR WASTE/ SCRAP
 HIGHLY DISCIPLINED

6.  TIME CONSCIOUS
 COST CONSCIOUS
 QUALITY CONSCIOUS
 HAS MULTI SKILLS
 FLEXIBLE AND MOBILE
 MODEL PERFORMER
 WIN WIN
IDEAL EMPLOYEE Contd…

7. IDEAL EMPLOYER
 FAIR
 PRO – ACTIVE & RESPONSIVE
 TRANSPARENT
 PROVIDES GOOD & CONDUCIVE WORKING
CONDITIONS
 COMMUNICATIVE / SHARES INFORMATION
 ENSURES EMPLOYEES’INVOLVEMENT &
PARTICIPATION

8. HIGHEST CONCER FOR
 WELFARE
 SAFETY
 HEALTH
 ENVIRONMENT
 PAYS IN DOLLAR
 ASSURES REASONABLE JOB SECURITY
 RESTRAINS FROM INDISCRETE HIRE
AND & FIRE POLICY
 WIN WIN
IDEAL EMPLOYER Contd..

9. EMPLOYER’S PERCEPTION OF
EMPLOYEES
DEMAND MORE PAY
DEMAND MORE PERKS
DEMAND MORE INCENTIVES / BENEFITS
DEMAND MORE HOLIDAYS/ LEAVE
DEMAND MORE BREAKS / RET / INTERVALS
DEMAND LESS WORK
NO RESPONSIBILITY/ ACCOUNTABILITY
JOB SECURITY

10. EMPLOYEE’S PERCEPTION
EMPLOYER’S
DEMANDS MORE OUTPUT
DEMANDS MORE PRODUCTIVITY
EFFECT PAY HIKE RELUCTANTLY AND ONLY WHAT IS
LEGALLY DUE
HAS TEMPORARY STFF ON A PERMANENT BASIS
INSISTS ON ABSOLUTE DISCIPLINE
HIRES & FIRES AT WILL
NOT PRO ACTIVE
LITTLE CONCER FOR SAFETY / HEALTH / ENVIRONMENT

11. Changing Profile of Employers
 Joint Venture (JVC)
 Global corporations
 Foreign CEOs
 New Generation Indian Entrepreneur
/ CEO’s
 Lady Entrepreneur/ CEO
 Professional CEO’s

12. Changing Profile of Employers Contd..
 Emergence of service sector –
Call Centers
BPO Outfits
Franchisee
Channel Partner
Back Office
M.T.
Consultancy services

13. NEW WORKMEN PROFILE
 Educated
 Well Informed
 Independent
 Individualistic
 Materialistic
 Small Family
 Less Inclined to Trade Unions
 Does not approve GATE meeting
 Only 8% Sincerely support “STRIKE”

14. TRADE UNIONS
 Only Unions, No Trade
 Collective Bargaining
a. Management Bargains
b. Union Collects
 Unions means – Strike
 Union Leader Enjoy IMMUNITY,
Popularity & Power
 Only rights no obligations

15. DILEMMAS of the Unions
1. To favour or not to favour SSI
2. To Supportive or Not to Support Downsizing
(Rightsizing)
3. The pace of change is Rapid,
Eg. 2000 Jobs 30%, 600 Vs 1400
4. Ideologically MNCs are discouraged but
MNCs do pay relatively high emolument
“DAMNED IF THEY CHANGE – DAMMED IF THEY DON’T

16. NEW ROLE OF T.U
• Revamp their Attitude, Activities, Nexus, Ideology
• Offer new services to member – Legal, Financial
Training etc.,
• New Alliances Eg. W group
• Secure more public Support/improve the image
• Accept Downsizing as “inevitable”
• Participate in competitiveness, productivity &
Quality
• Flexibility and Re-adjustment
• Accept “VRS” as a Humane Method of Separation.
• Become Partner in the growth and “NOT HURDLES”

17. JJudicial – Labour Laws
(Social legislation / Welfare Legislation)
1.1.Plethora – 38 Legislations
2. Outdated – Age – 82, 75, 70, 60, 57, 42, 35
3. Heavily loaded in favour of workmen
4. Lack of uniformity – E.g. Workman & Industry
5. I.D Act Amended in 1982
But is yet to be gazetted
6. Lawayers making merry

18. 7. SECOND National Labour commission
Set up in 1999, Report in 2001/ 2002
Nothing happened ?
8. Only Rights conferred on the workmen no matching
accountability or responsibility
9. Procedure oriented /Form filled
10. No time framework set for disposal of the cases
Judicial – Labour Laws
(Social legislation / Welfare Legislation) Contd…

19. Judicial – Pronouncements
1. Sympathetic to workmen ( pro– workmen)
2. Social Legislation – Liberal Interpretation – balance in favour
of workmen.
3. Multiplicity of High Courts
4. Diverse views on the same issue/ Contradictory Judgments
5. Conservative Vs Liberal judgments
6. No Mechanism to pool the cases and deliver a common apex
court judgment.

20. Sample of Judicial pronouncements
1. Workmen – under ID Act 1947
2. Industry – Under ID Act 1947
3. Accident under W.C. Act. E.g. Heart attack
4. State under article 12
5. Sec 33(2) (b) of ID Act.1947
6. Strike- Rangarajan Vs State of Tamilnadu

21. State
a. Legislature
b. Executive / Administration
c. Political outfit
Legislate
• Experience / Expertise
• Wisdom / intelligence
• Knowledge
• Political will to take an unbiased / objective
view
• Public debate
• Modification / amend /delete

22. Issue Licenses
Grant / Refuse permission
Refer Disputes for Adjudication
Prohibit strike / lockout
Direct interim payment
Guard against unfair labor practices
-By the management
-By the workmen / union
Hold conciliation meetings/Intervene and resolve
disputes
Conduct workshops /Training ?
Raid / Inspect, issue notices – active
State is A hurdle to a smooth IR
Because it is Politically influenced
-

23. REMEDIES / SOLUTIONS
(Both Macro & Micro)
1. Industrial Relations Constitution
2. a. NLC to the meet every 3/5 years to review
b. The Govt. to seriously consider the
recommendations & implement.
3. Industrial Disputes Adalat
4. Time Frame to Dispose Off Cases
5. A State Level IR Council
A National level IR Council
(The Constitution should provide for this)