INDIAN INSTITUTE OF MODERN MANAGEMENT (IIMM)

Registration No. :- IIMM/DH/1/2007/5516

Name :- Shekhar Sharma

ASSIGNMENT :-PERSONNAL MANAGEMENT (PM), TRADE UNION MOVEMENT

(TUM), & INDUSTRIAL RELATIONS (IR)

PART –A (PM)

Answer 1. (a) In discussing the objectives of Personnel Administration, one must emphasize that
successful personnel work in this part of the world can no longer pursue the objectives of only
one side of the work situation that is to say, the objectives of management alone. In the Middle
East of today, personnel administration that attempts, to further only the objectives of
Management is rejected by the working public as an anachronism stemming from an outmoded
mentality. On the other hand, personnel administration that attempts, to further only the objectives
of Management is rejected by the working public as an anachronism stemming from an outmoded
mentality. On the other hand, personnel administration that attempts to present the image of an
altruistic. “Big-Brother to Labour, interested solely in employee social service, is just as promptly
rejected by the no longer native working public as hypocritical and untrustworthy.

With this dual obligation towards management and towards employees in mind, we list
below three main objects of personnel administration.

1. Conserving the Company’s Human Assets :

Modern Personnel administration should keep management informed in a continuous

basis, of all personnel tangible and intangible that indicates either positive accomplishments or
warning signals in the company’s personnel practices. Tangible indicators are figures on
absenteeism, manpower turnover, and company productivity. Intangible indicators are employees
attitudes a morale. The tangible indicators with skilled analysis predict the future. The prevention
of labour unrest and the consequent conservation of the company’s human assets will depend to
great extent upon the personnel administrator’s ability to observe, analysis and convey to
management such tangible and intangible indications of the state of the company’s personnel
body. It is also the responsibility of the personnel administrator to guide company policies in
accordance with his analysis of personnel trends.

2. Making certain that the line supervisors recognized and carries out his personal
responsibilities :

The efficient utilization of a company’s human assets must be the objectives of the entire
line supervision throughout the company. Personnel administration supplies tools such as policy
control, advice and record keeping, but the basic personnel responsibility lies with the
supervisors.

The personnel administrator’s objective in this connection is to ensure that the line
supervisor is aware of the personnel responsibilities and carries them out. He must demonstrate to
supervisors that solutions to technical problems will not be effectively unless they are arrived at
with due consideration for the human problems involved. However, he must also make sure that
supervisors do not fall into the error of making employees happy at the expense of the company’s
objectives. Supervisors should be made fully aware of the fact that loose supervisory practices
will jeopardize the continued existence, of the company on which both they and their
subordinates depend for a livelihood. In accomplishing his objective, therefore, the personnel
administrator must aim at maintaining a balance between employee satisfaction and employee
efficiency.

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3. Offering Specialized Personnel Services :

The personnel administrator counsel assists the line supervisions in its personnel
responsibilities but he does not administer any company policies directly outside his own
department. Although the personnel department may maintain attendance records and countersign
termination actions, this does not mean that it is controlling absenteeism by terminating offending
employees.

The personnel department may be requested by the supervisor to investigate the causes
behind a divison’s absenteeism, or perform research into proposed personnel procedures, or
handle negotiations with a government agency. Such specialized services, however, must all have
as their objective the provision of counsel and assistance to the line supervisor without relieving
him of his direct personnel responsibility.

Duties of Personnel Staff

Personnel problems are the responsibility of every employee who supervises another. The
function of auxiliary personnel tasks and routine personnel administration may be located in a
staff department, but the fundamental responsibility for employees rests with the line supervision.

Under such an arrangements the duties of the personnel staff will be as follows.

1. Advice :

The personnel department counsels and advises supervisors on employee problems on

which the supervisors have requested assistance, but the supervisors actually handle the
problems.

2. Policy :

Although it initiates proposals and defines principles, the personnel department does not
determine personal department does not determine personal policy. It does the necessary research
and prepares new versions of policy measure for executive management approval.

3. Services :

Employment and placement programmes, employee compensation programmes training

programmes, labour relation and employee record maintenance are examples of service
concentrated in Personnel Administration.

4. Control :

This is not direction or supervision. The control function of personnel administration is

akin to the auditing function of the accounting department determines whether personnel policies
and procedures are being administered uniformly by supervisors through the company, but if
consistency are found to the personnel department does not take action beyond bringing them to
the attention of those supervisors concerned. The most drastic recourse available to the personnel
administrator is to notify top management of the delinquency. Less than two industrial
generations in the Middle East have brought about enormous changes in the type of men who
form the personnel administration group.

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Answer 1. (b) As a final point in our discussions of the organizations of the personnel function, we
should mention the availability of assistance outside the organization. There are many instances
where a personnel department has established a division to perform a function which is necessary
only periodically for example; the need arises occasionally to perfom, research into problems of
Manpower Management. In most companies of moderate size or smaller, such needs arise only
periodically occasionally nevertheless; when the need does arise it is essential that it may be met
by Competent Personnel. When constructing a pattern of organization the personnel administrator
should evaluate the frequency of such needs and if the frequency is slow he should decide that
when the need arises, he will seek assistance from outside sources. It is uneconomical under any
circumstances to maintain a permanent organization composed of competent employees who are
called upon to use their competence only infrequently.

Simply as an illustration, we set forth a pattern of organization reflecting a personnel

department including those major functions assigned to his group. We hasten to emphasize that
this is simply one approach to a structure of organization and is presented to provide framework
for subsequent discussions of those specific functions included within such an organization. In
the final analysis, the structure of the personnel department should be designed to meet the
unique needs of the organization, which it serves. This is every instance must be the over riding
consideration in the creation of such a structure. Any attempt to impose a classical personnel
organization, which fails to recognize the basic objectives of the company will in all likelihood,
be ineffectual.

Irrespective of the manner in which the personnel administration organization is

constructed, its activities extend throughout all parts of the enterprise and affect every member of
the work force. This principle is best illustrated by brief descriptions of the typical functions
performed by the personnel administrator. Among the more prominent of these functions are the
following:

1) The preparation and recommendations of written policies relating to manpower management

which embody sound principles of employee relations designed to achieve the overall
objectives of the organization.

2) The constant evaluation and follow up of personnel policies and practices to assure that such
practices conform to the basic intent of the policy. Included within these evaluations would be
an assessment of the level of job satisfaction existing within the work force as well as other
elements closely associate with effective employee relations, such as the volume of
grievances and labour turnover.

3) The development and maintenance of programmes of training and employee development

which are designed to provide facilities for each individual to achieve the maximum level of
self-development.

4) The development of communication techniques which will assure the effective flow of
information between management and the work force as well as within management.

5) The development of devices by which each employee may be appraised and an instrument by
which management may assess the degree to which all well of its human resource are being
utilized.

6) The provision of counsel to management which will further the establishment and
maintenance of sound relationships within the organization as well as with public and other
groups whose activities affect the organization.

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Answer 2. (a) Career Planning: Career planning is the process of synthesizing and harmonizing the needs of
the organization with innate aspiration of the employees, so that while the employees realize self
fulfillment, the organizational effectiveness is improved.

In other words career planning means helping the employees to plan their career
in terms of their capacities within the context of organizational needs.

Career planning is not same as Manpower planning or Succession planning. The

basic difference is shown in following table:

Manpower Planning Career Planning Succession Planning

1. It is the inventory & 1. Who on the basis of 1. It is the identification of

potentials locating available in performance, experience, could vacancies and locating the probable
the organization higher be placed at where, when and successes.
echelons. how is the career planning.

2. It provides data on human 2. It provides picture of 2. It provides succession chart in

resource a available manpower succession plan for employees respect of a particular position.
need. as per organizational needs.

Needs of Career Plan:

1) It is always wise to have planned programmes for internal HRD, then outside recruitment,
when need seems to arise suddenly due to any reason or retirement.

2) For effective man-management, organizational growth and optimum productivity, employees

growing work expectation and aspirations are essentially required to meet by a proper
planning.

3) To attract competent persons in the organization.

4) For reducing employees turnover for lack of promotional avenues.

5) For maintaining and improving motivation and morale of employees.

Purposes and Objectives of Career Planning:

1) Attraction and retention of right persons in the organization.

2) Mapping of careers of employees in the organization suitable to their ability and skill, and
their willingness to be trained and developed for higher positions.

3) Better use of human resources, more satisfied and productive employees, and more fulfilling
careers.

4) Reducing employee’s turnover and absenteeism, and thus having a more stable and satisfied
workforce.

5) Increasing utilization of managerial reserves available at all levels within the organization.

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 6) Improvement of morale and motivation of employees.

Advantages of Career Planning to the Management:

1) A person comes to know in advance the level to which he can rise if he has the ability and
aptitude for it.

2) The new entrant understands that he entered into career with an organization that cares him,
his talents and his aspirations.

Advantages of Career Planning to the Management:

1) Increased loyalty of the employee toward organization.

2) Improved morale of employees.

3) Stable workforce and low employee turnover.

4) A more homogenous workforce.

5) Improved market image of company and effective achievement of company objectives.

Limitations of Career Planning:

1) Career planning is not an effective management technique for a large number of men (mainly
who work on shop floor) for which labour supply is abundant.

2) Career planning becomes ineffective if it is attempted for a period exceeding a decade

because of many factors affecting the growth of industrial enterprises in a developing country.

3) Political intervention, favoritism and nepotism in promotion and reservation of seats for back
work classes and scheduled caste may make it difficult to have systematic career planning.

4) There exists a practical problem of maintaining a balance between the promotes and recruits.

Points to Minimize the Limitations in Career Planning:

1) Business enterprise should be expanding.

2) Organization must have clear corporate goals for long-term.

3) Employees of the organization should be interested, goal-directed, motivated and hard

working.

4) Selection of right man for the right job is an essential prerequisite for career planning.

5) Maintenance of proper age balance in career is necessary to avoid rapid promotion blocks
caused by an age structure, which is over balanced either on the side of age or that of the
youth.

6) There should be a fair promotion policy supported by systematic training for those who are
trainable, and willing and eager to learn a higher skill.

Answer 2. (b) Training for Different Employees:

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Employees at different levels require different types of training:

I. Unskilled Workers:

They require training in improved methods of handling machines and materials to reduce
the cost of production and waste and to do the job in the most economical way. Such employees
are given training on the job itself, and their immediate superior officers, sardars or foreman
imparts the training. The training period ranges from 3 weeks to 6 weeks.

II. Semi-Skilled Workers:

They require training to cope with the requirements of an industry arising out of the
adoption of mechanization, rationalization and technical process. These employees are given
training either in their own sections of department, or in segregated training shops where
machines and other facilities are usually available. The more proficient workers, bosses or
inspectors and lasts usually impose the training for a few hours or a week, depending upon the
number of operations and the speed and accuracy required on a job. Training methods include
instruction in several semi-skilled operations because training in one operation only creates
difficulties in adjustment to new conditions, lends the colour of specialization to a job and makes
work somewhat monotonous for an individual.

III. Skilled Workers:

They are given training through a system of apprentice shop, which varies in duration
from a year to 3-5 years. Such training is also called ‘tradesman’ or ‘craftsman’ training and is
useful for highly specialized skills. Though mass production in industry has considerably reduced
the number of skilled employer yet the level of skill required has been raised highly. An
apprentice programme usually takes into consideration individual difference in abilities and
capacities.

IV. Other Employees:

These include the typists, stenographers, account clerks, computer personnel who are
usually given training outside the industry.

“Sales Personnel” are given training to let them understand the nature and quality of
products and routine involved in putting through a deal. They are trained in the art of
salesmanship and in customer handling.

“Supervisory Staff” need training the most as they form an important link in the chain of
administration. These training programmes are tailor-made to put the needs of the undertaking.
These programmes aim at:

1. Helping present supervisors improve their performance.

2. Helping them to prepare for greater responsibilities of higher management.

3. Building up their security and status.

4. Ensuring their technical competence.

This level is usually given training in the following aspects:

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a) Organization and control of production in maintenance and material handling.

b) Planning, association and control of work.

c) Impact of methods study, time study, job evaluation and supervisors responsibilities.

d) Company policies and practices.

e) Personal Procedure, policies and programmes.

f) Training of subordinates, grievance handling, disciplinary procedure.

g) Communication, effective instruction, report writing.

h) Appraisal of employers and rating.

i) Evaluating effects of industrial legislation and welfare regulations.

j) Leadership qualities.

k) Principles of administration, safety, health and welfare regulations.

In India such training is provided by the National Productivity Council, New Delhi and the
Central Labour Institute at Delhi and Mumbai.

PART – B (TUM)

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Answer 4. (a) A Trade Union is an association of workers in any trade or allied traders for the
protection and enhancing their interests in regard to wages, hours and conditions of labour and/or
the provision, from their common funds, of assistance to members during strikes, sickness,
unemployment, old age etc.

Trade Unions are “Voluntary organizations of workers formed to promote and protect
their interests by collective action.”

Thus the conclusion drawn from these different definitions is that:

1) Trade Union is economically oriented i.e. associated with wage-earners.

2) It is a voluntary association and a permanent body, and instrument of defense against

exploitation.

3) It is a collective bargaining agent, an outcome of industrialization.

Principle of Trade Unionism:

There are mainly three basic principles on the basis of which Trade Unions function. These are:

1) Unity is strength.

2) Equal pay for equal work for the same job.

3) Security of service.

It is generally observed that the workers join or become members of trade union because
of the constrained circumstances, which raises doubts in their minds about certain aspects like:

1) Economic security i.e. steady employment with an adequate income.

2) Whether they can restrain the management from taking actions which are irrational,
discriminant or prejudicial to the interest of labour.

3) Communicating their views, ideas, feelings and other aims to the management i.e. possible or
not.

4) For securing protection from economic hazards which are beyond their control, for example,
illness, accidents, old age, unemployment etc.

5) To get along with their fellow workers in a better way and to gain respect.

6) To get a good job.

Role of Trade Union:

The Trade Unions are organized by the workers to solve the labour problems created by
or due to industrialization. Various agencies in the field of labour are working to tackle these
problems. They use the methods of labour legislation and labour administration.

The employers try to solve/deal with labour problems through the personnel management
and labour welfare methods.

Public organizations try to solve the economic and social problems of workers and their
families through voluntary social work activities.

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 Even though all these organizations try to solve the labour problems Trade Unions deal or
handle these problems more effectively and efficiently. It tries to facilate the welfare of workers;
eliminate exploitation through organized action like collective bargaining, welfare work, strikes
etc.

Thus, it is concluded that the primary role of a Trade Union is to protect the workers and
to channelize their efforts into more rational directions.

Functions of Trade Unions:

The functions of Trade Unions are wide and comprehensive. These functions have been
termed as:

(i) Militant or protective functions, and

(ii) Fraternal, ministrant or positive functions.

The former functions aim at securing better conditions of work and employment for
members through militant activities such as strikes, gheraos etc., if there is a failure of collective
bargaining. The latter functions provide benefits to their members and support them during
strikes/lockouts or during periods of temporary unemployment by giving them financial support
out of the funds raised with their contributions.

Answer 4. (b) Organizational Structure of Trade Unions In India:

The Organizational Structure in India consists of three levels:

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1) Plant / Shop or Local

2) State

3) Central

Every National or Central Federation of labour in India has state branches from its
organization works down to the local level.

These are two types of organizations to which the trade union in India are affiliated:

1) National Federation

2) The Federation of Unions

National Federations:

The National Federation have all the trade unions in a given industry as their affiliated
members. Every trade unions, irrespective of the industry to which it belongs, can join a general
national federation.

The National / Central Federation are empowered to decide the question of jurisdiction of
the various local and national unions, e.g. INTUC consists of:

Central organization, the affiliated unions, the industrial federation, regional branches and
councils, the assembly of delegates the general council and the working committees.

Federation of Unions:

These have as the objection the establishment of new unions, uniting and strengthening
the existing ones, creating harmonious relations between capital and labour and improving the
status of trade unions and workers.

Unions Security:

Sometimes the individual employees may refuse to follow contract provisions. These
people can create dissatisfaction among union members who may also likewise refuse to continue
their support to union activities. For these reasons, the union propose a system of union security,
of which all employees are required to be or to become and to remain union members.

Union Security Covers:

(a) Sole or Exclusive Bargaining Agent: Under this type of security, the union is accepted
as a bargaining agent for all employees in the Unit.

(b) Preferential Union Shop: In this, additional recognition is granted to a Union by

agreement that management hall give first chance to union members in recruitment.

(c) Maintenance of Membership: Under this all employees who are or who become
members of the union must remain members in good standing for the duration of the
contract as a condition of employment.

(d) Agency Shop: In this, an employee in a bargaining unit is obliged to pay dues to the
Union in return for the collective bargaining service which it is rendering him,
although he does not join the unions.

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 (e) Union Shop: Under this all employees in the bargaining unit must become members
of the union after a specified date. The Union shop is preliminary to the acceptance of
collective bargaining.

(f) Check-off: It is a practice which the employer deducts union dues from the pay of the
workers and hands over the deductions to the union. It lays down the procedure
whereby the employer collects for a trade union its subscription from members by
withholding the necessary amount from the wages of the Union members.

Answer 5. (a) The Trade Unions Act was passed in 1926 under the title of the Indian Trade Union Act
and was brought into effect from 1st June 1927 by a notification in the Official Gazette by the
Central Government. The Act was amended in 1947, 1960 and 1962. Subsequently, the word
“India” was deleted from the amended Act of 1964, which came into force from 1st April 1965. A
comprehensive Trade Unions (Amendment) Act was passed in 1982.

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Object of the Act:

The Act was enacted with the object of providing for the registration of trade unions and
verification of the membership of trade unions to registered so that they might acquire a legal and
corporate status. As soon as a trade union is registered, it is treated as an artificial person in the
eyes of the law, capable for enjoying rights and discharging liabilities like a natural person. In
certain respects, the Act attempts administration and penalties, makes provision for:

(a) Conditions governing the registration of trade unions;

(b) The obligation of a registered trade union, and

(c) The rights and liabilities for registered trade unions.

The amendments in the Act in 1982 have been made with the following objectives:

(i) To reduce multiplicity of unions, the existing provision of enabling any seven workers
membership of 10% of the workers (subject to minimum of ten) employed in the industry
or establishment where the trade union is proposed to function, or 100 workers,
whichever is less, for the registration of trade unions.

(ii) There is at present no machinery for the resolution of trade union disputes arising from
inter-union and intra-union rivalries. Therefore, the term “trade union dispute” has been
defined afresh to make provision for resolving such disputes through voluntary
arbitration, or by empowering the appropriate government and the parties to the disputes
to refer it to the Registrar of Trade Unions for adjudication.

(iii) The Act of 1926 did not set any time limit for the registration of trade unions. Now a
provision has been made for a period of 60 days for the registration of trade unions by the
Registrar after all the formalities have been completed by the trade unions. Provision has
also been made that a trade union, whose certificate of registration has been cancelled,
would be eligible for re-registration only after the expiry of a period of 6 months from the
date of cancellation of registration, subject to certain conditions being fulfilled by the
trade union.

(iv) Under the existing provisions of the Act, 50% of the office bearers in the executive of
registered trade union shall be persons actually engaged or employed in an industry with
which the trade union is connected. This limit has been enhanced to 75% so as to promote
the development of internal leadership.

(v) Registrar of Trade Unions has been empowered to verify the membership of registered
trade unions and connected matters and report the matter to the state and the Central
Government.

Provisions of the Act:

The main provision of the Act relates to

1) Definition

2) Registration of trade unions.

3) Duties and liabilities of registered trade unions.

4) Rights and privileges of registered trade unions.

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 5) Amalgamation and dissolution of trade unions.

6) Submission of returns.

7) Penalties and fines.

8) Power to make regulations.

Answer 5. (b) Addition of New Sections under 1982 Amendments:

(a) Registrar’s Power to Verify Trade Union Membership: Section 28A:

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(i) The Registrar shall have the power to verify the membership of registered trade unions and
matters connected herewith in such manner as may be prescribed and shall send a report about
such membership to the State Governments and The Central Government.

(ii) To exercise such powers, the Registrar shall follow such procedure as may be prescribed and
shall have the same powers as are yested in a Civil Court documents or other connected
materials.

(b) Voluntary Reference of Trade Union Dispute to Arbitration: Section 28 B:

(i) Where any trade union dispute exists or is apprehended and the parties to the dispute agree to
refer the dispute to arbitration, they may, by a written agreement(i.e. arbitration agreement), refer
the dispute to arbitration, and the reference shall be to such arbitrator or arbitrators as may be
specified in the arbitration agreement.

(ii) Where an arbitration agreement provides for the reference of the dispute to an even number of
arbitrators, the agreement shall provide for the appointment of another person as umpire who will
make and award on the reference. Arbitrators should be equally divided in their opinion, and the
award of the umpire shall prevail and shall be deemed to be the award of the arbitrators for the
purposes of this section.

(iii) The arbitration agreement shall be in such form and shall be signed by the parties thereto in
such manner as may be prescribed.

(iv) A copy of the arbitration agreement shall be forwarded to the appropriate government and the
government shall, within one month from the date of the receipt of the copy, publish the same in
the official Gazette.

(c) Reference of trade Union Disputes to Registrar : Section 28 C:

(i) Where the appropriate government is of the opinion that any trade union dispute exists or is
apprehended, it may, at any time, by an order in writing, refer the dispute to the Registrar for
adjudication.

(ii) Subject to any regulations that may be made in this behalf, the Registrar shall, in adjudging
the dispute referred to him, follow such procedure, as he thinks fit.

(iii) Where in an order referring a trade union dispute to the Registrar, the appropriate
government has specified the points of dispute for adjudication, the Registrar shall confine his
jurisdiction to those points and matters incidental thereto.

(iv) The award of the Registrar shall be in writing and shall be signed by him.

(v) The award published shall be final and shall not be called into question by any count in any
manner whatsoever.

(vi) Any award made by the Registrar in a reference made to him shall be final and shall not be
called into question by any Court in any manner whatsoever.

Penalties and Fines:

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 A Penalty may be imposed for default in submitting returns or for the supply of false
information or statements.

(a) Failure to give notice which is required to be given by a registered trade union;

(b) Failure to send any return, required to be sent by a registered trade union; or

(c) Failure to send any documents, required to be sent by a registered trade union.

Every office bearer or other member of the executive is bound to give such information,
or send statements or documents, as required under the provisions of the Act; and if this is not
done, they are punishable with fine which may extend to Rs.25. In the event of a continuing
default, and additional fine, not exceeding Rs. 25, may be imposed for each week after the first
week during which the default continues. But in no case shall the total amount of the fine exceed
Rs.500.

The following information or statements are required to be submitted by the registered

trade union:

(i) Notice of change in the address of the head office of the trade union:

(ii) Notice of change of the name or amalgamation of the union;

(iii) Notice of change in the officers of the trade union;

(iv) Copies of the corrected rules; and

(v) Copy of every alteration made in the rules;

(vi) Notice of dissolution of trade union; and

(vii) Annual returns for the period ending March 31

The Act also lays down that where any person with intent to deceive gives; to any
member of such trade union, a copy of the rules or a copy of any alterations of rules which he
knows or has reason to believe is not a correct copy of the rules of alteration or rules that are for
the time being in force, shall be punishable with fine which may extent to Rs.200.

PART-C (IR)

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Answer 8 (a) Causes of Industrial Disputes:

There is no one single cause for industrial disputes in India. The causes are many;
psychological potential and economic. As early as in 1931, the Royal Commission on Labour
observed; “although workers may have been influenced by persons with nationalist, communist
or commercial ends to serve, we believe that there has rarely been a strike of any importance
which has not been due entirely or largely to economic reasons.”

A classification for work-stoppages by cases is given for disputes whose causes are
known. The Labour Bureau, simla, has listed the following causes:-

(i) Wages and Allowances;

(ii) Bonus;

(iii) Personnel;

(iv) Leave and hours of work; and

(v) Others

In 1971, a new cause indiscipline and violence was added to the older classification.

During the period from 1921 to 1931, 15.2 percent of the demands related to wages, 4.6
percent to bonus, 21.3 percent to personnel matters, 4.4 percent to leave and hours of work and
18.5 percent to other matters.

According to V.B Singh the causes of industrial disputes may be categorized under:

(a) Income

(b) Employment; and

(c) Technological changes

Under these three groups are included the following causes:

(a) The causes of industrial disputes falling under the Income category include wage
items and piece rates, dearness allowance, bonus, minimum and basis wages, the
fixation and scales of provident fund, gratuity and pension, pay for night and overtime
work, and fines.

(b) The causes falling under “Employment” are : holidays and leave, including maternity,
privilege and sick leave, shift duty and hours of work, welfare activities, including
canteens, dispensary, crèches, sports, and education, recruitment, dismissals
retirement and permanency, reintatement and discharge, standing orders. Code of
Discipline, production target and lay-off, lockout and strikes.

(c) Technological changes include those relations to workload, standardization of raw

materials, rationalization scheme and modernization of the plant.

The Ways of Industrial Peace:

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 One of the prime threads to the efficient conduct of the modern industrial system
seems to be the ravaging industrial disharmony, characterized by embittered relationships
between the employer and the workers. The gulf between the employer and the employee has
widened more than ever before. Distributional disparities have worsened. Discounted and
frustration at the lower ends of the echelon have heightened; and if things are not put in there
proper setting, the ‘grand’ industrial frabic ma show tears that may not be repaired.

Industrial peace can be built upon mutual and proper understanding of the problems of
employers and workers. It is absolutely necessary to have an enlightened management and
workers union.

The Royal commission on Labour, 1931, has suggested three ways of stabilizing
industrial relationship.

1) Appointment of labour officer in undertakings to look after the welfare of workers and to
represent their grievances to the employers with a view to establishing and promoting
healthy contacts between labour and management;

2) Constitution of Works Commities in industrial establishing and joint consultative councils

for different industries;

3) Development of stable and responsible trade unions.

Answer 8 (b) The definition is very wide and covers a variety of disputes between and employer and a
workman. A dispute is an industrial dispute provided it satisfies the following conditions:-

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(a) There should be an industry, employer and workman. There must be a “collective will” of a
substantial or appreciable number of workmen taking up the cause of the aggrieved workman. It
must be fully raised with the management and rejected by it, i.e., the employer must be in a
position to redress the grievance.

(b) There should be a real and substantial dispute or difference. It should be one in which the
workman is substantially interested, i.e., there must be a ‘community of interest’.

(c) The dispute should be between the employer and his workmen, between employers and
employers or between workmen and workmen.

(d) The dispute must be connected with

(i) the employment, or

(ii) non-employment, or

(iii) terms of employment or conditions of non-employment includes retrenchment

and refusal to reinstate

(e) An individual dispute may assume the character of an industrial dispute provided it is
sponsored either by a trade union or by a number of workmen.

Collective support by workmen is essential before an individual dispute becomes an

industrial dispute, i.e., the workmen as a body or a considerable section of them must make
common cause with the individual workman before his dispute becomes and industrial dispute.

Authorities under the Act

The Act provides for a number of authorities. Viz.:

(a) Works Committee; Sec 3

A works committee shall be constituted in every establishment where 100 r more

workmen are employed or have been employed on any day in the preceding 12 months; to
‘promote measures, for securing and preserving amity and good relations between the employers
and workmen and comment upon matters of common interest or concern and endeavor with a
view to reconciling any material difference of opinion on such matters.” It shall consist of an
equal number of representatives of employers and of the elected representatives of workmen (the
total number must not to exceed20). The representatives of the employer shall be nominated by
the employers and those of workmen by the registered trade union or by non-members, if there is
no trade union. The tenure of office of the representatives is for two years; and they lose
membership if they fail to attend three consecutive meetings. The committee may meet as often
as possible, but not less than once in 3 months.

(b) Conciliation Officer, Sec 4

His duty is to induce the parties to come to fair and amicable decisions on matters in
disputes. He is an independent person who investigates the dispute and all matters affecting it. He
is not an adjudicating body but is merely a suggesting body. He goes from company to company
and finds out the greatest common measures of agreement. He is charged with the duty of
mediating in, and promoting the settlement of industrial disputes.

18
 The appropriate government appoints this officer by a notification in the official gazette.
The number of conciliation officers to be appointed is determined by number of industrial
disputes that actually exist or may arise. A conciliation officer may be appointed for a specified
are or for specified industries either permanently or for a limited time.

(c) Boards of Cociliation: Sec 5

A Board of Conciliation is constituted an ad hoc body by the appropriate government. Its

purpose is to induce the parties to come to a fair and amicable settlement. The appropriate
government is not empowered to constitute a Board for the purpose of referring criminal
proceedings. The Board cannot enforce and award. It also cannot thrust upon the contending
parties its own terms and conditions of settlement. It can take action only when the appropriate
government has referred a dispute to it.

The appropriate government may constitute the board by a notification in the Official
Gazette. It shall consist of a chairman (who shall be an independent person, i.e., unconnected
with the dispute or with any industry directly affected by such dispute) and two or four members,
as the government thinks fit, who shall be appointed to represent the parties. If any party fails to
recommend any name within the prescribed time, the appropriate government shall appoint such
persons as it thinks fit to represent that party.

(d) Courts of enquiry: Sec 6

A court of Inquiry is constituted as an ad hoc body by the appropriate government. It can

inquire into any matter connected with or relevant to an industrial dispute; but not into the dispute
itself. The constitution of the court has to be notified in the Official Gazette. It may consists of
one independent person or such member of independent persons as the appropriate government
thinks fit. If there are more than Two persons, one them shall be appointed as chairman. A court,
having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its
members or any vacancy that may have occurred. The court of inquiry is not required to make
any recommendations for resolving disputes. It is seldom appointed, as it is a superfluous and an
ad hoc body. It has no power to impose any settlement on the parties. It is merely a fact-finding
body. It does not care much for the settlement of the dispute.

(e) Labour courts: Sec 7

One or more Labour Courts may be constituted by the appropriate government by a

notification in the Official Gazette to adjudicate on industrial disputes relating to any matter
specified in the Second Schedule to the Act, and to perform such other functions as may be
assigned to them.

A labour court shall consist of one person only to be appointed by appropriate

government such a person is or has been a judge of a High Court; or has been, for a period of not
less than 3 years, a District Judge or an Additional District Judge; or has held any judicial office
in India for not less than 7 years;

(f) Industrial Tribunal: Sec 7A

The appropriate government may appoint one or more Industrial Tribunals for the
adjudication of industrial disputes reacting to any matter, whether specified in the Second
Schedule or the Third Schedule. The matters, which are in the form of new demands and give rise
to industrial disputes, which affect the working of a company or industry, are usually referred to
an industrial tribunal.

19
 The functions of the industrial tribunal are essentially quasi-judicial and, are therefore,
subject to the over-riding jurisdiction of the Supreme Court. The powers of the Tribunals are
derived from the Statute that creates them and they have to function within the limits imposed
thereon and to act according to its provisions.

(g) National Tribunals, Sec 7B

The Central Government may, by a notification in the Official Gazette, constitute one or
more national tribunal for adjudication of industrial disputes

(i) Involving questions of national importance; or

(ii) Which are of such a nature that industries in more than one state are likely to be
interested in, or affected by, such disputes.

It consists of one person only, who is an independent person below 65 years of age. He
should be or has been a judge of a High Court or has held the office of chairman or any
other member f the Labour Appellate Tribunal for a period of not less than 2 years.

Answer 9 (a) TRIPARTITE BODIES :

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 The Industrial Relations in India have been shaped largely by principles and policies
evolved through Tripartite consultative machinery at the Industrial and National levels. The
process of consultations was itself the outcome of a realization between employers and workers,
without their participation in direct action.

Importance:

(1) To bring the parties together for a mutual settlement of differences and
a spirit of cooperation and goodwill.
(2) To promote uniformity in labour legislation.
(3) To discuss all matters of All India importance as between employers
and employees.
(4) To determine a procedure for the settlement of Industrial disputes.

Evolution:

The need for tripartite consultation on labour matters on the pattern set by the ILO
was recommended by the Whitley Commission in 1931. It envisaged a statutory organization
which should:

(1) Be sufficiently large to ensure adequate representation of the various

interests involved.
(2) Not be too large to prevent the members from making individual
contributions to the discussions.
(3) Representatives of employers, Labour and government should meet
regularly in a conference.

Separate consultations held during the Second World War highlighted the necessity of
holding joint meetings of the representatives thus providing a a common platform for the
resolution of differences.

Accordingly, the fourth labour conference held in August 1942, set up permanent
tripartite collaboration machinery and constituted a preliminary labour conference, named as the
Indian Conference and The Standing Labour Advisory Committee.

BIPARTITE BODIES :

Relations between laborers and managements set the tone of social relationships in an
industrial society. With industrialization the government has attempted to democratize these
relations and thus extend democracy to the work place. The institutions of WORKS
COMMITTEES and JOINT MANAGEMENT COUNCILS were some of the early steps taken by
the country in stride towards this goal.

Evolution:

The importance of BIPARTITE CONSULTATIVE MACHINERY was recognized as early

as 1920, when a few joint committees were set up in the presses controlled by the Government of
India. They were introduced in TISCO in Jamshedpur.

In 1922, the worker Peoples Welfare Committee was established in the Buckingham
and Carnatic Mills, Madras to achieve close contact with workers. Some other committees were
also started in private and state owned enterprises. The results were rather disappointing.

21
 By the end of Second World War, committees were functioning in a few industrial undertakings;
and these were known as Worker’s councils, Joint Committees or Workers Committees.

The industrial Truce Resolution 1947 found a place in the Industrials Disputes Act of 1947.

FUNDAMENTALS OF THE INDUSTRIAL SETTLEMENT :

(1) Both the parties agree that this settlement is being entered into at a a time when the total
business environment in the country is undergoing a a metamorphic change towards
liberalization, globalization and fierce international competition. This break-away from the
past is in turn going to put continuous pressure on improving the quality of man-power at all
times and positive and pro-active response from human resource to the demanding changes in
the future from time to time.
(2) It is also agreed and understood by the parties that survival in the demanding business
environment, calls for a greater degree of working together and sharing together to bring about
highest degree of qualitative performance, timely response and supply of goods to the society
at competitive price.
(3) Appreciating above realities, parties agree and accept following Charters of “Human
Resources Policy” which will govern the conduct of employee in future.
(a) Every effort shall be made by every individual employee to improve his performance,
quality of skill through training and participation in development activities. The
Company will organize/introduce programmes /schemes from time to time and the
employee shall participate and respond to the needs of the company, multi-trades,
versatility skills, etc.
(b) As a departure from the past, every employee will appreciate through including skills,
and versatility in operations, and in doing so, shall be available for any operations
depending upon the exigencies of work.
(c) Under no circumstances, machinery shall remain idle and inoperative for want of
either skill or availability of trained man-power, meaning thereby depending on the
needs of the industry, it would be the joint endeavor to utilize the machinery round the
clock throughout the year.
(d) There shall be a growing emphasis on conversion of indirect employees into direct
employees thereby reducing the indirect cost and optimise utilization, etc..
(e) There shall be a greater degree of emphasis on planned absenteeism to reduce uncalled
for holdups in the process.
(f) A greater degree of concern towards ensuring all critical operations is being considered
as top priorities for man-power development in order to avoid bottlenecks and to
ensure that the trained employees will bring down progressively the need for increase
in short term employment. Short term employment will be resorted only to meet
sporadic increase in business commitments, but shall be in accordance with relevant
statues.
(g) It is also clearly understood between the parties that the above measures are intended
to bring about utilization, cost effectiveness, quality of performance and timely
response to changing situations. The intent and purpose is not exploitation in any form,
not avoidance of any of the statutory obligations but taking care of ups and downs in
the demand.
(h) It is agreed endeavor of the parties that every employee is totally committed to 100%
quality standards and shall strive hard to ensure Zero defect performance in every role
he plays, namely customer to the earlier process, Supplier to the subsequent process
and Inspector of his own work process. Every employee will spread the Quality
mission not only in his work environment, but also in his total quality of life. Towards
this end, he shall take part in training ad developmental programmes and disseminate
the message to all others in the organization.

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Answer 9 (b) MEDIATION :

“Mediation” is the ancient art of the peace-maker. It has been practiced in the number
of areas when people disagree; it is an ancient and honorable process for the settlement of
disputes between two warring nations, disputes between litigants, disputes between labour and
management and in general disputes between people.

Mediation is an attempt at setting disputes with the help of an outsider who assists the
parties in their negotiations. It contemplates affirmative and positive action by a third party to
bring about and a settlement of disputes. It encourages the employers and the union to come to a
decision without any force or orders from the mediator. He does not exercise any compulsion; he
cannot and should not undertake to decide what parties should do; he may advance various
considerations, but certain evaluations and judgments must be left to the parties themselves.

CONCILIATION:

Conciliation is the most important method for the prevention and settlement of
industrial disputes through third party intervention.

It may be described as “the practice by which the services of a neutral third party are used
in a dispute as a means of helping the disputing parties to reduce the extent of their differences
and to arrive at an amicable settlement or agreed solution. It is a process of rational and orderly
discussion of differences between the parties to a dispute under the guidance of a conciliator”. It
is a process by which representatives of workers and employers are bought together before a third
person or a group of persons with a view to persuading them to arrive at an agreement by mutual
discussion between them.

As a process of peace-making in industrial relations, conciliation tends to bring about a

speedy settlement of disputes without resorting to strikes or lockouts, and to hasten the
termination of work stoppages when these have occurred.

ROLE OF THE CONCILIATOR :

The conciliator induces the parties to a course of action. His intervention in the disputes
creates for the parties a situation different from one of direct confrontation. The conciliator opens
to the parties a variety of available options besides those they can think themselves. By
promoting their attitudes and discovering in what fields they may prepared to show some
flexibility, he gains a perspective of the issues in dispute and of alternative possibilities of
settlement.

The role of a conciliator may be discussed under the following heads:

(a) Discussion Leader:

As a discussion leader, the conciliator reduces irrationality and antagonism between the
parties. He guides them towards a problem solving approach to their dispute, he ensures that they
discuss their differences in as friendly a manner as possible, he helps them to analyze their
problem, always striving to keep the analysis on a a rational plane, he identifies the elements of
the problem for the benefit of both the parties and for his own.

(b) Safety Value:

The conciliator places him in the position of an alternative target when he feels that the
parties are in an aggressive mood. By setting a substitute target, the parties can achieve an
emotional release without direct and immediate damage to the negotiations.

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(c) Communication Link:

The conciliator fulfils an important function as communication link between the parties.
Serving as a communication link may either constitute his main conciliatory effort or be a
contribution to it.

(d) An Innovator:

The conciliator acts as an invaluable source of new information and new thoughts,
particularly in providing the parties with different views of the issues, with possible alternative
solutions and possibly an entirely new approach.

(e) A Sounding Board:

He is often described as a flying ambulance squad, appearing whenever or wherever a

collision or conflict, which threatens to disturb harmonious relations, occurs or is apprehended to
occur between interest of the parties.

(f) A Protector:

The conciliation plays a protecting role, for he readies the parties for collective
bargaining position by exploring alternative solutions during separate meetings.

(g) A Fail-safe Device

The conciliator often assists a party which has overstated its position to the extent of
bluff or exaggeration of its reaction to some move on the part of the other or taken a clearly
untenable stance to withdraw gracefully under the banner of reason.

(h) A Stimulator:

Sensing the need for positive action, the conciliator can provide the necessary impulse
to a settlement, he makes a concise statement, supplies some data, gives a hint or suggestion. He
crystallizes changes of opinion in the course of discussions by intervening at the appropriate
moment and giving such ideas a concrete form.

(i) An Advisor:

The conciliator tries to remove the misunderstandings regarding the other’s

position, intention and capabilities. He tries to see that misinterpretation do not occur and that
each side thoroughly understands the other’s point of view, obtains pictures of the opponent’s
strength and realizes its own limitations and weaknesses.

(j) A face saver:

When a party knows at the outsets or realizes during the course of proceedings that it
has a weak ease and can hope for little success in pursuing the dispute. The people concerned
often reluctant to admit defeat, because they feel that this involve them in loss of face, or prestige,
with their members or public. In such situations, the conciliator may devise a form of
accommodating settlement, which apparently makes some small concession to the party
concerned but which in reality gives it little or nothing.

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(k) Promoter of Collective Bargaining:

While intervening in dispute, he is not only concerned with promoting a settlement, but
often assists in collective bargaining and guides the parties in the development of their
relationship.

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Answer.10.

(a) Salary Administration Procedures:

In this section we will be concerned with the implementation and control of salary
policies and with the control of salary consists against budgets. Control is an essential element of
salary administration. We will also examine the following procedures:

Salary Budget:

A salary budget is a statement in qualitative/financial terms of the planned allocation and

use of resources to meet the operational needs of the company. Ina salary budget, you should
forecast the levels of activity, which will indicate the number of different categories of staff that
are needed for the budget period. When you prepare the salary budget you must take account of
the financial resources available to the company. This will, as you can see, affect the ability to
pay general or individual merit increases, or the numbers employed, or both.

Salary Reviews:

General salary reviews take place when it is necessary to increase all or most salaries as a
result of an increase in the cost of living or in market rates, or as a result of settlements. It is
equally important to keep individuals informed of how they stand in the salary structure and the
rewards they are getting or can obtain.

The purpose of an individual salary review is to decide on the merit increments that
should be given to staff. You can have one annual review for all staff or you may phase increases
through the year on the anniversary of the staff joining the organization. The later enables you to
give more individual attention to the staff and removes the emotional atmosphere that surrounds
the annual review.

Fixing Salaries on Appointment or Promotion:

Control over starting salaries should be exercised by providing guidelines on the policies
to be flowed and by defining who has the authority to approve salaries. Promotions should be
dealt with as they arise rather then being left to the annual review. The increase should be
meaningful and the starting point in the new grade should provide adequate scope to reward
performance in the new job.

Other Allowances:

Employees are given various forms of additional cash remuneration or encourage

commitment to and participation in the success of the organization. Payment other than the basic
salary is also meant to compensate the employees for the special demands imposed on them by
working for the organization.

Bonus Schemes:

• The amount of reward received should be sufficiently high to encourage staff to accept
exacting targets and stands of performance.

• The scheme should be sensitive enough to ensure that rewards are proportionate to
achievements.

• The scheme should contain provisions for a regular review which could result in its being
changed or discontinued.

26
• The scheme should be easy to administrator and understand, and it should be tailored to
meet the requirements of your organization.

• The formula for calculating the bonus and the conditions under which it is paid should be
clearly defined.

27
Answer.10.

(b) Factors for Low Efficiency of Labours:

Efficiency of labour depends upon the capacity of laborer’s hand, head and heart i.e. upon
his ability, intelligency and willingness to do the work. Labour efficiency may be expressed in
terms of “Unit of Physical Output”-“Output Per Man Hour”, “Output Per Man Shift”. Ability
depends on diet, housing, climate, work combination and training.

1) Willingness depends upon the behavior of employer, family condition, social impacts,
prospects of rewards and promotion, his own intelligence and motivation and morale and
the remuneration that he gets.

2) Factors for Relatively low Efficiency:

(a) Climate

(b) Migratory Character

(c) Low Wages lower Standard of Living

(d) Break up of Joint family so insecure feeling

(e) Obsolete machinery, poor quality raw material

(f) Education and training

(g) Hours of work and unsatisfactory work condition

(h) Bad housing condition

(i) Indent tends

(j) Absenteeism

(k) Social habits

(l) Lack of discipline and easy going attitude

(m) Political influence.

(n) Relationship between low wages and high prices is evident.

3) Higher productivity: Not at End in itself But means of Production, Social progress and
Strengthening economic foundations of human well being.

4) Different to production “Production is mere volume of output.” Mere increase in

production does not mean higher productivity, though HIGHER productivity IMPLIES
higher production.

5) Increasing productivity IMPLIES the full, proper and optimum utilization of the available
resources of men, machines, materials, money, management techniques, power and level.
It implies ruthlessly cutting down waste in all.

28
Answer.10.

(c) Job Analysis:

Developing an organization structure results in the jobs, which have to staff. “Work” is an
organization’s primary function. The ‘basic work activities’ may relate to three categories Data,
People and Things. Under Data are include, computing, copying and comparing activities. People
relate to monitoring, negotiating, instructing supervising, and diverting, persuading, speaking,
signaling, serving and taking instructions.

The following are the certain terms relating to job analysis:

Job: A job may be defined as a “collection or aggregation of tasks, duties and responsibilities
which as a whole, is regarded as a regular assignment to individual employees, and which is
different from other assignments. In other words, when the total work to be done is divided and
grouped into packages, we call it a “job”.

Job Analysis: It is a procedure by which pertinent information is obtained about a job i.e. it is
detailed and systematic study of information relating to the operations and responsibilities of a
specific job. In authority has defined job analysis as “the process of determining, by observations
and study, and reporting of a specific job. It is the determination, the skills, knowledge, abilities
and responsibilities required of the worker of a successful performance and which differentiate on
job from all others.

Job Description: It is a written record of the duties, responsibilities and requirements of a

particular job. It is concerned with the job itself and not with the work. It is a statement
describing the job in such terms as its title, it is to be done” and ‘why’. It is a standard of
function, in that it defines the appropriate and authorized content of a job.

Job Specification: It is a standard of personnel and designed required for an acceptable

performance. It is a written record of the requirements sought in an individual worker for a given
job. In other words, in refers to a summary of the personal characteristics required for a job, it is a
statement of the minimum acceptable human qualities necessary for the proper performance of a
job.

Job Design: It is the division of the total task to be performed into the manageable and
efficient units, position, departments and divisions and to provide for their proper integration. The
sub-division of work is both on a horizontal scale with different tasks across the organization
being performed by different people and on the vertical scale, in which higher levels of the
organization are responsible for the supervision of such groups, more complex planning etc.

Job Analysis (JA): After a job has been defined, it is analyzed i.e. each task is described in
detail. Job analysis is a procedure and tool for determining the specified tasks, operations and
requirements of each job. In the process of getting information about jobs: specially, what the
worker does, how he gets it don; why he does it; skill, education and training is required;
relationship to other jobs; physical demands; environmental conditions. In other words, it refers
to the anatomy of the job. It is a complete study of the job, embodying every known and
determinable factor including the duties and responsibilities involved in its performance, the
nature of the task, the qualities required in the worker, and such conditions of employment as pay,
long, opportunities and privileges. It also emphasized the relation of one job to others in the
organization.

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Answer.10.

(d) Recruitment Checklist:

Recruitment Policy assesses the objective of recruitment and provides a framework of

implementation of the recruitment programme. In the form of procedures, a good Recruitment
Policy must contain the following elements.

(a) Organization’s objective: Both the short-term and the long-term.

(b) Identification of the recruitment needs to take decisions regarding the balance of

The Qualitative dimensions.

(c) Preferred sources of recruitment – Whether internal or external

(d) Criteria of selection and preference.

(e) Cost of recruitment and the financial implications of the same.

The following checklist has to be made:

1) Has the responsible Manager agreed the vacancy?

2) Is there up to date job description?

3) What are the conditions of employment (salary, hrs, and holiday) for the vacant position?

4) Has a candidate specification been prepared?

5) Has a notice of vacancy been submitted earlier?

6) Has the job advertisement been agreed?

7) What arrangements have been made fro drawing a short list of candidates?

8) Have the interview arrangement been made?

9) Have unsuitable candidates held in reserve been inform?

10) Have offer letters been agreed and dispatched?

11) Have suitable rejection letters been sent to unsuccessful short listed candidates?

12) Have all replies to offer letters been accounted for?

30
Answer.10.

(e) Rights of Recognized Trade Union

(1) Such officers, members or the office staff and members of a recognized union as may be
authorized by or under rules made in this behalf by the stage government shall in such manner
and subject to such condition as may be prescribed, to have a right:

(a) to collect sums payable by members of recognized union on the premises, where wages are
paid to them.

(b) To put up or cause to be put up a notice board on the premises of the undertaking in which the
members are employed and affix or cause to be affixed notice thereon.

(c) For the purpose of the prevention or settlement of an industrial dispute:

(i) to hold discussion on the premises of the said undertaking with the employees concerned,
who are the members of the union, but so as not to interfere with the due working of the
undertaking.

(ii) to meet and discuss, with an employer or any person appointed by him in that behalf, the
grievances of employees employed in his undertaking.

(iii) to inspect, if necessary, in an undertaking any place where an employee of the

undertaking is employed.

(d) to appear on behalf of any employee or in any domestic or departmental inquiry held by the
employer.

(2) Where there is a recognized union for any undertaking:

(a) that union alone shall have the right to appoint it’s nominee to represent workmen on the
works committee constituted under sec.3 of the central Act (IDA)

(b) no employee shall be allowed to appear or act and be allowed to be represented in any
proceedings under the Central Act (not being a proceeding in which the legality or propriety of an
order of dismissal, discharge, removal, retrenchment, termination of service or suspension of an
employee is under consideration) except through the recognized union; and the decision arrived
at, or order made, in such proceeding shall be binding all the employees in such undertaking.

31
Answer.10.

(f) Women Workers in India:

The following are the salient features of employment of women observed in the Annual
Report 1993-94, Ministry of Labour, Government of India and as revealed by the 1991 Census
figure:

• As per 1991 Census over one third of India population is working. Among males, more
than half are workers while among females nearly one in four is engaged in some kind of
work.

• The Census of 1991 has registered 22.89% of the female population as workers 91.4
million persons is absolute terms out of a total female population of 402.8 million.

• The rate of women Workers in the total worker population in urban and rural areas is
respectively 9.73% and 27.06%.

• Majority of women workers in rural areas and 87% of them are employed in agriculture
as cultivators and laborers.

The average daily annual rate of growth of employment amongst educated women was
11.08% during the period 1983 to 1987-88, compared to only 6.58% during the period 1977-78
to 1983. These figures reflect a higher rate of growth than for men during the same period
which men 6.76 and 5.51 respectively.

The Report of the National Commission on Self-Employed Women in the Informal Sector
observes that 90% of the working women are in the informal and unorganized sector, and only
10% work in the formal sector. According to a World Bank Report, 1991, the percentage of
women in the non-agricultural formal sector ranges between 2 and 5% of the total female
labour force and the non-agricultural informal sector between 7 and 15% Women in agriculture
account for 81% of the work force.

Types of Work Done By Women:

According to Maitheryi Krisnaraj the type of work done by women in India can be
classified into the following categories:

1) Wage and Salaried employment.

2) Self-employment outside the household for profit.

3) Self-employment in cultivation and household industry for profit.

4) Self-employment in cultivation for own consumption.

5) Other subsistence activities in all allied sectors like dairying, other livestock rearing such
as poultry, goats, pigs, etc. and fishing, hunting cultivation of fruit and vegetable gardens.

6) Activities related to domestic work such as fetching fuel, fodder, water, forest produce,
repairing

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Answer. 10.

(g) Sources of Income and Items of Expenditure:

Membership Fee:

The main source of the income of a trade union is the membership fee. Every member is
expected to pay a fee which may be recovered monthly, quarterly or annually. The fee is small or
big depending upon the emoluments of members and services rendered by the union. In India,
according to Trade Union Act, 1926, minimum membership fee to be charged is 25 paisa per
member.

Admission Fees:

A union may charge an admission fee. This admission fee may be deposited in a fund to
be utilized for special purpose.

Donations:

A union may also recover from members from time to time donations and other levies.
Such recoveries are usually made when members get some lump sum payments by way of bonus
or arrears of wages. Usually such payments are secured as a result of the efforts of the union.
Members do not then grudge making additional contributions to the funds of the union.

Levy Charges:

A union may levy charges for some of its services. For example, there may be a fee for
the use of a library or reading room or for medical and other type of help that may be rendered.

Welfare Fund:

A union may also start a welfare fund out of which assistance may be provided in cases of
sickness, unemployment or old age. Members may be asked to make contributions to it. British
and American unions have many such funds and they have contributed materially to their strength
and stability.

Fines and Forfeitures:

Fines may be levied upon members for non-payment of dues or other departures from
rules. There may be also some forfeiture, when members may leave the union and not claim the
benefit due to them.

Interest on Investments:

When unions make investment in securities, fixed deposits etc. they get interest thereon.
It is so far an insignificant factor because in the case of our unions very few have funds which
can be invested in securities. But the position change in the next few year.

Sale of Periodicals, Books etc.:

Unions may publish some periodicals and books about their activities. They are sold to
workers and other concerned people. From this sale proceed union may get some amount. But
this amount also is very small.

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Income from Miscellaneous Sources:

Unions can also raise donations from non-members. They can also get in times of need,
financial assistance from sister unions or from their federations and nations organizations, But
these are not usual items of revenue on which a union can build its activities.

Items of Expenditure:

The funds of a union can be spent only for the purpose of the unions. Section 15 of the
Indian Trade Union Act 1926 provides “The General funds of a registered trade union cannot
spent on any other object than the following:

1) The payment of salaries, allowances and expenses to officers of the trade union.

2) The payment of expenses for the administration of the trade union, including audit of
accounts of the trade unions.

3) The prosecution or defense of any legal proceedings to which the trade union or any member
thereof is a party.

4) The conduct of trade disputes on behalf of the trade union or any member thereof.

5) The compensation of members for loss arising out of trade disputes.

6) Allowances to members or their dependents on account of death, old age, sickness, accidents
or an employment of such members.

7) The issue of or the undertaking of liability under policies of assurance on the lives of
members, or under policies insuring members against sickness, accidents or unemployment.

8) The upkeep of periodical published mainly for the propose of discussing questions affecting
employers or workmen as such.

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