initial slides of intro

1. Industrial Relations
Chapter One
Introduction

2. Industrial Relations : Introduction
• Labour management relation, employee
employer relations, union management relations,
personal relations, human relations and so on.
• IR is the relationship between employees and
management in the day - to - day working of
industry .
• IR describe relationships between management
and employees or among employees and their
organisations that characterise or grow out of
employment.
2

3. Three main participants in IR
• Workers and their organisation: trade union
• Employers and their organisation: Associations
• Government: plays an increasing role in IR by protecting
the interest of employees and employers.
3

4. Pakistani Constitution and IR
Constitutional rights : adequate means of livelihood,
equal pay for equal work, similar working conditions,
living wages, etc.
• Article 11 of the constitution prohibits all forms of
slavery, forced labour & child labour;
• Article 17 provides for a fundamental right to
exercise the freedom of associated form unions;
• Article 18 proscribes the right of its citizens to enter
upon any lawful profession or occupation and to
conduct any lawful trade or business;
• Article 25 lays down the right to equality before the
law and prohibition of discrimination on the grounds
of sex alone;
4

5. Contd…
5
Article 37(e) makes provision for securing just and humane conditions of
work ensuring that children and women are not employed in vocations
unsuited to their age or sex & for maternity benefits for women in
employment

6. The Modern IR Concept
Old
Classical
Modern
Ownership Focus Means Result /
End
Factory
owners
Govt & Big
Business
Houses
Govt/
Private/
Trust/ MNC
Production
and HR
Developme
nt
Policy to
retain
employees
Labour Unions
Owners
hold top
Positions
Production
&
Employment
Production
Only two
layers
Hire and Fire
Feeling of
belongingness
6

7. Objectives of IR
• Develop and retain employee-employer relationship.
• To enhance the economic status of the worker by
improving wages, benefits and by helping the worker
in evolving sound budget.
• To regulate the production by minimizing industrial
conflicts through state control.
• To socialize industries by making the government as
an employer.
7

8. Objectives of IR cont…….
• To provide an opportunity to the workers to have
a say in the management and decision-making.
(workers participation in decision making)
• To improve workers as strength with a view to
solve their problems through mutual negotiations
and consultation with the management.
• To avoid industrial conflict and their
consequences
• To extend and maintain industrial democracy.
8

9. Factors of industrial relations
• The employer
• Workmen, union
• Government, and
• The consumer
© Dr. Parikshit Joshi 9

10. Conditions for Good IR
• Past record of IR
• Satisfaction of economic needs of workers
• Social and psychological needs of workers
• Off-the-job conditions of workers
• Strong and enlightened labor unions
• Negotiations skills & attitudes of workers and
management
• Public policy & legislation
10

11. Contd…
• Education, training and development
• Inter-personal relations
11

12. Causes of poor IR
• Nature of work
• Political nature of labor unions
• Level of wages
• Occupational instability
• Unhealthy behavioral climate
• Unfair practices
• Outdated and outmoded laws
© Dr. Parikshit Joshi 12

13. Effects of poor IR
• Multiplier effect
• Resistance to change
• Declines in normal working
• Frustration and social cost
© Dr. Parikshit Joshi 13

14. Factors affecting Industrial Relations
• Institutional Factors – State policy, labour
laws, collective bargaining agreement, labour
unions.
• Economic Factors – type of business
organization sole proprietorship, partnership,
MNC, Govt Economic Policies, labour supply in
market.
• Social Factors – Cast, colour, social values,
norms, social status
14

15. • Technological Factors – introduction of new
and improved technology
• Psychological Factors – owners attitude,
perception of workforce, motivation, morale.
• Political Factors – political system, system of
government political philosophy, attitude of
government towards trade unions.
• Global Factors – international relations, global
conflicts, international labour agreements.
15

16. • The state has direct interest in preserving
industrial peace in the country.
• To promote healthy growth of trade unions and
set up a well organised industrial relations to
achieve industrial peace and prosperity.
• Industrialized developed and underdeveloped
economies steps have been taken by the state
to promote a healthy growth of trade union.
• The state intervention has been deemed
necessary because there are numerous labour
organizations which are relatively weak and all
employers cannot be trusted.
Role of State in IR
16© Dr. Parikshit Joshi

17. • Changing role of state Govt.
– Laissez Faire: During 19th century govt played a
laissez faire role in industrial relations . Under this
the workers and employees were left alone to
manage their affairs.
– Paternalism: By the end of 19th century laissez
faire was replaced by paternalism. Thinkers like
Robert, Rusin and others attract the attention of
Govt and public towards inhuman working
conditions of factories & mine workers. Govt has
also set up a royal commission on labour.
17© Dr. Parikshit Joshi

18. • Tripartism: Consultancy.
• Encouragement of Voluntarism: govt given code
of discipline, code of conduct and code of
efficiency and welfare.
• Interventions: Government also plays an
interventions role, in the form of conciliation and
adjudication.
• Employer: Government also plays the role of
employer.
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19. Some current IR issues
• Minimum wages
• Flexible performance pay
• Cross-cultural management
• Dispute prevention
• IR/HRM training
• Balancing efficiency with equity and labour
market flexibility
• Freedom of association, labour rightsand
changing patterns of work
© Dr. Parikshit Joshi 19

20. Contd…
• Women
• Migration
• Human Resource Management
• Transition economies
© Dr. Parikshit Joshi 20

21. • Thank You
© Dr. Parikshit Joshi 21

22. Evolution of IR in India
• Employee – employer relationship
• Employers are the people who own the
instrument and material of production and
employ the workers.
• Relationship between employee-employer was
informal, personal and intimate since the
business and industrial establishments were
small.
• The growth of the giant sized joint stock
companies and business corporations, which
employed thousands of workers changed the
relationships.
22

23. • In India occupations were carried on by small
manufacturers in their cottages, mostly on
hereditary basis.
• Slavery was common.
• Master-slave relations later on converted to
master-servant.
• The Indian craft and arts were badly damaged
during the invasions of foreign invaders, which
lasted about 700 years
• After invasion of East India Company in 1883, the
British Industrialist developed some industries
(cotton, jute, railways plantation, coal mines, etc.)
23

24. • Industrial relations is a by product of industrial
revolution , it originates from excessive
exploitation of workers by the owners of
industries.
• Trade unions were resisted and crushed by
employers.
• The first world war is the first milestone
enroute to industrial relations in India.
• After war prices of consumer good goes up
and workers were unable to afford it.
24

25. • Other events which accelerated the pace of
industrial relations:
– Success of Russian Revolution in 1917
– Formulation of ILO
– AITUC was established in 1920
– In 1924 labour party Government formed in U.K.
– The Indian Trade Union Act 1926
– Royal commission on Labour (1929-31) was
formed.
25

26. • By the end of 19th century and start of 20th
century govt. started paying attention towards
inhuman working conditions of mine & factory
workers.
• British Government set up a Royal Commission
on labour (1929-1931) to conduct a study on the
working conditions of Indian Labour.
• As a result of the same conciliation and
adjudication were formulated.
26

27. • After Independence Industrial Dispute Act, 1947
• Which laid down a comprehensive dispute
settlement machinery to be applicable to all
states and passed three important Central Labour
Laws:
– The Minimum Wages Act 1948,
– The Employees State Insurance Act 1948
– The Employees Provident Funds Act 1952
• Five year plans of India
• In 1969 first National Commission on Labour was
formed and many banks, sick textile mills, sick
steel plants were nationalized.
• New Economic Policies in 1991
27

28. TRADE UNIONS
• "Trade Union" means 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
• Trade unions are formed to protect and promote the
interests of their members. Their primary function is
to protect the interests of workers against
discrimination and unfair labor practices.
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29. Objectives
• Representation
• Negotiation
• Voice in decisions affecting workers
• Member services
(a) Education and training
(b) Legal assistance
(c) Financial discounts
(d) Welfare benefits
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30. Functions of Trade unions
(i) Militant functions
a) To achieve higher wages and better working
conditions
b) To raise the status of workers as a part of
industry
c) To protect labors against victimization and
injustice
30

31. (ii) Fraternal functions
• To take up welfare measures for improving the
morale of workers
• To generate self confidence among workers
• To encourage sincerity and discipline among workers
• To provide opportunities for promotion and growth
• To protect women workers against discrimination
31

32. 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.
32

33. Contd….
Social responsibilities of trade unions include:
• promoting and maintaining national
integration by reducing the number of
industrial disputes
• incorporating a sense of corporate social
responsibility in workers
• achieving industrial peace
33

34. Trade Unionism In India
Indian trade union movement can be divided
into three phases.
* The first phase (1850 to1900)
* The second phase (1900 to 1946)
* The third phase (in 1947).
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35. Trade Union Act 25 March 1926
• The trade Unions Act, 1926 provides for registration
of trade unions with a view to render lawful
organisation of labour to enable collective
bargaining. It also confers on a registered trade union
certain protection and privileges.
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36. 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)
36© Dr. Parikshit Joshi

37. Employer’s Organisation
• Employers' Organizations are institutions set
up to organize and advance the collective
interests of employers.
• They are crucial for shaping an environment
conducive to competitive and sustainable
enterprises that can contribute to economic
and social development, and by providing
services that improve and guide individual
performance of enterprises.
37© Dr. Parikshit Joshi

38. • Employers’ organizations are a critical component
of any social dialogue process, which can help to
ensure that national social and economic
objectives are properly and effectively formulated
and enjoy wide support among the business
community which they represent.
• As one of the three constituents of the ILO,
employers' organizations have a special
relationship with the Organization. The ILO's
Bureau for Employers' Organizations - a
specialized unit within the ILO Secretariat - is
responsible for the nurturing and development of
that relationship
38© Dr. Parikshit Joshi

39. • Its task is to maintain close and direct
relations with employers' organizations in
member States, to make the ILO's resources
available to them and to keep the ILO
constantly aware of their views, concerns and
priorities.
39© Dr. Parikshit Joshi

40. Problems of Trade Union
• Multiplicity of Trade Unions and Inter-union
rivalry
• Small Size of Unions
• Financial Weakness
• Leadership Issues
• Politics involved in Trade Unions
• Problems of Recognition of Trade Unions.
40© Dr. Parikshit Joshi

41. International Labour Organisation(ILO)
• Established in April 11, 1919 by the Versailles
Peace Conference as an autonomous body
associated with the League of Nations.
• Its first assembly took place in Washington on
April 29,1919
• There were 45 members of the ILO in 1919.
• India has been a member of the ILO since its
inception.
41© Dr. Parikshit Joshi

42. Objectives of ILO
• Full employment and the raising of standards
of living.
• Workers must be given that employment in
which they can have the satisfaction of giving
the fullest measure of their skill and make
their contribution to the common well being.
• Facilities for training and the transfer of labour
including migration for employment and
settlement.
42© Dr. Parikshit Joshi

43. • Policies in regards to wages and earnings bonus
and minimum wages.
• Right of collective bargaining.
• Social security measures and medical care
• Adequate protection by the life and health of
workers in all occupations.
• Provision for child welfare and maternity
protection
• Provision of adequate nutrition, housing and
facilities for recreation and culture
• The assurance of educational and vocational
opportunity.
43© Dr. Parikshit Joshi

44. • Since 1945 ILO has expanded its working in
three major directions:
1) The establishment of Tripartite International
Committees to deal with problems of some of
the major industries
2) The holding of regional conferences and
meetings of experts to study special regional
problems particularly those of underdeveloped
region.
3) The development of operational activities
44© Dr. Parikshit Joshi

45. ILO Membership
• Today the ILO comprises 183 Member States.
• In addition to the States which were Members of
the International Labour Organization on 1
November 1945, any original member of the
United Nations and any State admitted to
membership of the United Nations by a decision
of the General Assembly may become a Member
of the ILO.
• Communicating to the Director-General its
formal acceptance of the obligations of the
Constitution of the Organization.
45© Dr. Parikshit Joshi

46. Organisational Structure
• ILO is a tripartite organisation consisting of
representatives of the governments,
employers and workers of member countries
in the ratio of 2:1:1.
• Three main organs of ILO:
i. The International Labour Conference
ii. The Governing Body
iii. The International Labour Office
46© Dr. Parikshit Joshi

47. International Labour Conference
• The ILC sessions held once a year and is the
policy making organ of ILO
• Each member country is represented by four
member delegates – two representing the
Government, one representing the employers
and on one representing the workers.
• Principal function is to formulate international
social standards in the form of International
Labour Conventions and Recommendations.
47© Dr. Parikshit Joshi

48. The Governing Body
• Governing body is the chief executive body of
the organisation and meets several times a
year to formulate policy for effective
programming of work and setting of agenda
for the annual conference.
• Membership of 40.
• 20 Government representatives, 10 employers
representatives and 10 representatives of
employees
48© Dr. Parikshit Joshi

49. The International Labour Office
• The International Labour office functions as
the secretariat of the ILO.
• Its main functions are preparation of the
documents on varied items of the agents of
the meeting of the conference collection and
distribution of information on all subjects.
49© Dr. Parikshit Joshi

50. Major Activities of ILO
• Creation of International standards of Labour
• Employment Creation
• Collection and Distribution of Information and
Publication
• Research & Studies
• Training
• Improvement of Working conditions and
working environment
50© Dr. Parikshit Joshi

51. THANK YOU………
© Dr. Parikshit Joshi 51
Warm Regards:
Dr. Parikshit Joshi
Assistant Professor
Department of Management Science
Sri Ram Murti Smarak College of Engg. & Technology
Bareilly (U.P.), India
E-mail: mannu.pj@gmail.com
Blog: www.joshimannu.blogspot.com