1. Define industrial relations. Explain the significance of industrial relations.

The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings.

Industrial Relations

The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

The healthy industrial relations are key to the progress and success. Their significance may
be discussed as under i. Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. ii. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. iii. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

iv. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. v. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

2. What do you understand by trade or labour union? What are the objectives of and functions of trade unions? 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 labour practices. Trade unions play an important role and are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work. But they also have a wider role in protecting their interests. They also play an important educational role, organizing courses for their members on a wide range of matters. Trade unions are a part of society and as such, have to take into consideration the national integration as well. Trade unions are formed to achieve the following objectives: i. Representation - Trade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask /the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court.

ii. Negotiation - Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes. iii. Voice in decisions affecting workers - The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the managements personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests. iv. Member services - During the last few years, trade unions have increased the range of services they offer their members. These include: o Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications. o Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt. o Financial discounts - People can get discounts on mortgages, insurance and loans from unions. o Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed. Functions of Trade Unions: Trade unions perform a number of functions in order to achieve the objectives. These functions can be broadly classified into three categories: (i) Militant functions, (ii) Fraternal functions. i. Militant Functions - One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. The aim of such activities is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc. When the unions fail to accomplish these aims by the method of collective bargaining and negotiations, they adopt and put up a fight with management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence, these functions of the trade unions are known as militant or fighting functions. Thus, the militant functions of trade unions can be summed up as: o To achieve higher wages and better working conditions. o To raise the status of workers as a part of industry. o To protect labours against victimization and injustice.

ii.

Fraternal Functions - Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote friendly industrial relations and diffuse education and culture among their members. They take up welfare measures for improving the morale of workers and generate self confidence among them. They also arrange for legal assistance to its members, if necessary. Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, readingrooms, in-door and out-door games, and other recreational facilities. Some trade unions even undertake publication of some magazine or journal. These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership. Thus, the fraternal functions of trade unions can be summed up as: o To take up welfare measures for improving the morale of workers. o To generate self confidence among workers. o To encourage sincerity and discipline among workers. o To provide opportunities for promotion and growth. o To protect women workers against discrimination.

3. What do you understand by industrial disputes? List and explain various causes of industrial disputes. Industrial Dispute means any dispute or difference between employer and employees, or between employer and workmen or between workmen and workmen, which is connected with the employment or non-employment, or the terms of employment or with the conditions of Labour, or any person. The Scope and definition of Industrial Dispute is very wide. The words employment and non employment in the definition are of widest amplitude and have been but in juxtaposition to make the definition comprehensive. Any dispute concerned with employment or non-employment constitute the subject matter of one class or industrial disputes. The causes of industrial disputes can be broadly classified into two categories: (i) economic and (ii) non-economic causes. i. The economic causes includes issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments. ii. The non economic factors will include victimization of workers, ill treatment by staff members, sympathetic strikes, political factors, indiscipline etc. Miscellaneous: The miscellaneous factors include Inter/Intra Union Rivalry, Charter of Demands, Work Load, Standing orders/rules/service conditions/safety measures, Non-implementation of agreements and awards etc.

4. Write notes on following :1) Strikes A strike is a very powerful weapon used by trade unions and other labour associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike. According to Industrial Disputes Act 1947, a strike is a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment. Causes of strikes: Strikes can occur because of the following reasons: o o o o o o o o o Dissatisfaction with company policy. Salary and incentive problems. Increment not up to the mark. Wrongful discharge or dismissal of workmen. Withdrawal of any concession or privilege. Hours of work and rest intervals. Leaves with wages and holidays. Bonus, profit sharing, Provident fund and gratuity. Retrenchment of workmen and closure of establishment.

Effects of Strikes: o The employer is likely to lose money due to delayed service to clients or to lost production time. The employees will lose their pay due to the no work, no pay principle. If the strikers are dismissed they will lose their livelihoods altogether. o Once the strike is over, even if the business has not been closed down by it, the feelings of hostility resulting from the strike can severely damage teamwork, productivity and profitability. o While some companies are strong enough to survive the damage caused by a strike, they can still lose market share, and weaker businesses could go under as a result of industrial action. 2) Lock-Outs A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers weapon while a strike is raised on part of employees. According to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.

 A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work. For example, if a group of the workers strike so that the work of the rest of the workers becomes impossible or less productive, the employer may declare a lockout until the workers end the strike. Another case in which an employer may impose a lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has been the traditional method of response to lock-outs by the workers' movement. 3) Picketing When workers are dissuaded from work by stationing certain men at the factory gates, such a step is known as picketing. If picketing does not involve any violence, it is perfectly legal. Pickets are workers who are on strike that stand at the entrance to their workplace. It is basically a method of drawing public attention towards the fact that there is a dispute between the management and employees. Picketing is an act of posting pickets and implies patrolling with signs, banners and placards for the purpose of excluding others from the place. In short, the meaning of the word picketing is , watching and dissuading those who want to go to work during a strike. Boycott and picketing are twin weapons of the same effect to disrupt the normal functioning of the enterprise. Boycott is an appeal to all the voluntary withdrawal of cooperation and so, it is persuasive in nature. Picketing on to other hand connotes necessary and adequate measures to disallow co-operation by others for the normal function and flow of business. The purpose of picketing is: to stop or persuade workers not to go to work to tell the public about the strike to persuade workers to take their union's side. 4) Gherao Gherao in Hindi means to surround. It denotes a collective action initiated by a group of workers under which members of the management are prohibited from leaving the industrial establishment premises by workers who block the exit gates by forming human barricades. The workers may gherao the members of the management by blocking their exits and forcing them to stay inside their cabins. The main object of gherao is to inflict physical and mental torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a great extent.

 The blockade may be complete or partial and is invariably accompanied by wrongful restraint, and / or wrongful confinement, and occasionally accompanied by assault, criminal trespass, mischief to person and property, unlawful assembly and various other criminal offences. It amounts to criminal conspiracy under Section 120-A of the I.P.C. and is not saved by Sec. 17 of the Trade Unions Act on the grounds of its being a concerted activity.

5. Explain the various methods of employed for settling disputes? The machinery for prevention and settlement of the disputes has been given in the following figure Methods of settling disputes
Voluntary Methods Government Machinery Statutory Measures

Code of Discipline

Tripartite Machinery

Workers Participation

Collective Bargaining

I.D. Act, 1947

State Acts

Labour Administration (States & Central Levels) Works Committee Conciliation Voluntary Arbitration Court of Enquiry Adjudication

Conciliation Officers

Conciliation Board

Labour Court

Industrial Tribunal

National Tribunal

Voluntary Methods Code of discipline:Formally announced in 1958, the Code of Discipline provides guidelines for the workers, unions and employers. The code which was approved by major national trade unions and principal organisation of employers enjoyed on them to create an environment of mutual trust and cooperation and to settle the disputes by mutual negotiation, conciliation and voluntary arbitration. A few important provisions of code of discipline are: Strikes and lockout cannot be declared without proper notice. The parties should not take any action without consulting each other. There should be no go slow statistics or any resort to deliberate damage to plant or property or resort to acts of violence, intimidation, coercion etc.

Tripartite machinery:Tripartite machinery consists of various bodies like Indian Labour Conference, the Standing Labour Committee, the International Committees, the Central Implementation and Evaluation Committee and the Committee on conventions. Generally, these committees include representatives from centre and the states, and the same number of workers and employers organisations. These various committees are basically of advisory nature, yet they carry considerable weight among the government, workers and employers. Workers participation in management:Workers participation in management is an essential ingredient of industrial democracy. The concept of workers participation in management is based on Human Relations approach to management which brought about new set of values to labour and management. According to one view, workers participation is based on the fundamental concept that the ordinary workers invest his labour in, and ties his fate to, his place of work and, therefore, he has a legitimate right to have a share in influencing the various aspects of company policy. The forms of workers participation in management vary from industry to industry and country to country depending upon the political system, pattern of management relations and subject or area of participation. The forms of workers participation may be as follows: 1. Joint Consultation Modes 2. Joint Decision Model 3. Self Management, or Auto Management Scheme 4. Workers Representation on Board Collective bargaining:Collective bargaining is a source of solving the problems of employees in the work situation collectively. It provides a good climate for discussing the problems of workers with their employers. The employees put their demands before the employers and the employers also give certain concession to them. Thus it ensures that the management cannot take unilateral decisions concerning the work ignoring the workers. It also helps the works to achieve reasonable wages, working conditions, working hours, fringe benefits etc. It provides them a collective strength to bargain with the employer. It also provides the employer some control over the employees. Government Machinery The Ministry of Labour and Employment at the centre is the key agency for the policy formulation and administration in all the matters pertaining to labour. The State governments with the cooperation of their labour departments are responsible for the enforcement thereof. The Directorate General of Employment and Training (DGET), Office of Chief Labour Commissioner (CLC) (Central), the Director General of Mines Safety (DGMS), the Director General of Factory Advice and Labour Institutes, and Industrial Tribunals are some of the agencies through which the Central Government discharges its functions related to framing of labour laws and settlement of industrial disputes. The Labour Secretary is the overall incharge of policy formulation and administration, and commissioners of labour in the States are the operative arms for the effective implementation of Labour Laws.

Works committees:The IDA, 1947 provides for setting up works committees in every organisation having 100 or more employees. Having representatives of employees and employees, these are consultative bodies and are set up for maintaining harmonious relations at the work lace and sort out the difference if any. Though the act does not define the jurisdiction of these committees, yet their functions mainly include providing proper working conditions and amenities for the welfare of employees at the work place or away from the work. A work committee aims at promoting measures for securing the preserving amity and good relations between employees and workers. Conciliation:When the services of a neural party are availed for the amicable solution of a dispute between the disputing parties, this practice is known as conciliation. The IDA, 1947 provides for conciliation and it can be utilized either by appointing Conciliation Officer or by setting up Board or Conciliation. Voluntary arbitration:Industrial Disputes (Amendment) Bill, 1956 incorporated Section 10A favouring voluntary arbitration. In case of existed or apprehended dispute, the disputing parties can enter into an arbitration agreement in writing. The success of voluntary arbitration depends on a sufficient degree of mutual confidence in decision by agreement on subjects which may be submitted for arbitration. Court of enquiry:The IDA, 1947 empowers the appropriate government to constitute a Court of Enquiry. This body basically is a fact-finding agency, constituted just to reveal the causes of the disputes and does not care much for the settlement thereof. The Court of Enquiry is required to submit its report to the government ordinarily within six months from the commencement of enquiry. The report of the court shall be published by the government within 30 days of its receipt. Adjudication:If the dispute is not settled by any other method, the government may refer it for adjudication. Hence it is a compulsory method which provides for three-tier system for adjudication of industrial disputes. This machinery consists of Labour Court, Industrial Tribunals and National Tribunal. The first two bodies can be set up either by State or Central Government but the National Tribunal can be constituted by Central Government only, when it thinks that the solution of dispute is of national significance. Statutory Measures Industrial Disputes Act, 1947 The States are free to frame their own labour laws as the labour falls in the concurrent list, Some States like Maharashtra, M.P., U.P. and Rajasthan have their own Acts. In the rest of the states, Industrial Disputes Act, 1947 applies. However, in the States having their own Acts, the IDA, 1947 will be applicable to the industries not covered by the State Legislation.

6. Define Grievances. What are different types of worker grievances? Explain the step-bystep procedure of grievance handling. A grievance is a sign of the employees discontent with job and its nature. It is caused due to the difference between employee expectation and management practice. Beach defines a grievance as, any dissatisfaction or feeling of injustice in connection with ones employment situation that is brought to the notice of the management. A grievance is a problem submitted by an employee or by a few employees of different types. It may be concerning a situation or may likely to affect the terms and conditions of employment of one worker or a few workers. In the Indian context, grievance may be said to the representation by a worker, a group of workers or the unions to the management relation to the terms and conditions of employment, breach of the freedom of association or the provisions of standing orders or non-implementation of the Government orders, conciliation agreeme4nts or adjudicators awards. It may also include representation against non-compliance with provision of a collective agreement in an establishment where it has been signed. Grievances usually result in definite and considerable loses to employee morale, efficiency and productivity. The accumulation of grievance leads to strikes, lock outs and other forms of conflicts. Therefore, proper disposal of grievances deserves special and adequate consideration in any programme of harmonizing industrial relations. Types of Grievances

Grievances resulting from working conditions

Poor physical conditions of work place. Lack of proper tools, machines and equipments. Frequent changes in schedules or procedures. Rigid production standards Improper matching of the worker with the job. Poor relationship with the supervisor.

Grievances resulting from management policy and practices

Poor payment Lack of job security Inadequate benefits such as medical benefits leave travel concession etc. Leave facilities Seniority Transfer Promotion Lack of career planning and development Hostility towards labour union Defective leadership style

Grievances resulting from alleged violations of laws

Violation collective bargaining agreement Violation of Central/State laws

Grievances resulting from personal maladjustment

Over ambition Excessive self-esteem

Steps in handling grievances It is important that grievance must be handled in a systematic manner. The following steps should be taken in handling grievances:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who
is a representative of management. He has to give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved

employee can take his grievance to head of the department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he
can take the grievance to Grievance Committee. The Grievance Committee makes its recommendations to the manager within 7 days in the form of a report. The final decision of the management on the report of Grievance Committee must be communicated to the aggrieved employee within three days of the receipt of report. An appeal for revision of final decision can be made by the worker if he is not satisfied with it. The management must communicate its decision to the worker within 7 days.

STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary
arbitration. 7. Why the participation of employee is necessary in management? What are different types of employee participation method in management? What are necessary conditions for success of workers participation in management? Workers participation in management is in essential ingredient of industrial democracy. The concept of workers participation in management is based in Human Relations approach to management which brought about new set of values to labour and management. Traditionally, the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organisation. Workers participation in management meets the psychological needs of the workers to a greater extent. That way it may also be treated as the process of delegation of authority in the general areas of managerial functions. It should be borne in mid that when individuals are provided with opportunities for expression and share in decision-making; they show much initiative and accept responsibility substantially. The rationale of workers participation in management lies in that it helps in creation amongst the workers a sense of involvement in their organisation, a better understanding of their role in the smooth functioning of industry and provides them a means of self-realization, thereby, promoting efficiency and increased productivity. Thus the concept workers participation in management encompasses the following: a. It provides scope for employees in the decision making of the organisation. b. The participation may be at the shop level, departmental level or at the top level. c. The participation includes the willingness to share the responsibility by works as they have a commitment to execute their decisions. d. The participation is conducted through the mechanism of forums which provide for association of workers representatives.

e. The basic idea is to develop self control and self discipline among works, so that the management become Auto Management Methods of Workers Participation in Management The methods of workers participation in management vary from industry to industry and country to country depending upon the political system, pattern of management relations and subject or area of participation. The forms of workers participation may be as follows: 1. Joint consultation model: In joint consultation model the management consults with the workers before taking decisions. The workers represent their view through Joint consultative Committees. This form is followed in U.K., Sweden and Poland. 2. Joint decision model: In this form both the workers and management jointly decide and execute the decisions. This form of participation is followed in U.S.A. and West Germany. 3. Self management of auto management: In this model, the entire control is in the hands of workers. Yugoslavia is an example to this model. Where the state industrial units are run by the workers under a scheme called Self Management or Auto Management Scheme. 4. Workers representation on board: Under this method, the workers elect their representative and send them to the Board to participate in the decision making process. The participation of workers may be formal or informal. In the formal participation, it takes the forms of formal structures such as Works Committee, Shop Councils, Production Committee, Safety Committee, Joint Management Councils, Canteen Committee etc. The informal participation may be such as the supervisor consulting the workers for granting leave, overtime, and allotment of worked or transfer of workers from one department to another The success of workers participation in management requires certain conditions. a. Management should appreciate the scheme and accept them in full faith. b. Trade unions have to cooperate with the schemes. c. Workers have to be educated. Thus workers participation in management in India has yet to succeed. It can be done by educating the workers, creating an environment in the organisatoin for coordination of workers and management.