Human Resources System

Industrial Relations
 Human Resources System
Industrial Relations:
• Living Together For A Common Purpose
• Social, Political And Psychological
Influences Are The Frame Work Of
Industrial Relations
• Workers Form Unions
• Employers Form Associations
• Government Regulates The Relations
 Human Resources System
IR Is A Composite Result OF The Attitudes And
Approaches OF Employers And Employees
Towards Each Other With Regard To Planning,
Supervision, Direction And Coordination Of The
Activities Of An Organisation With A Minimum
Of Human Efforts And Frictions With An
Animating Spirit Of Cooperation And With
Proper Regard Of Genuine Well Being Of All
Members Of Organisation – Tead And Metcalfe
 Human Resources System
• Three Sets Of Determinants:
- Institutional Factors
- Economic Factors
- Technological Factors
 Human Resources System
Scope:
• Labor Management Relations
• Group Relations
• Community/Public Relations
 Human Resources System
Objectives:
• Good Labor- Management Relations
• Trade Unions And Employers Are Desirous Of
Resolving Problems
• To Facilitate Government Control Over Industries
In Regulating Production And Industrial Relations
• To Establish And Develop Industrial Democracy
Based On Workers’ Partnership In Management
Of Industry
 Human Resources System
Industrial Relations In India:
• 19th Century
• World War I (1919-1939) – Workmen’s
Compensation Act 1923, Trade Union Act 1926,
The Indian Trade Disputes Act – 1929
• All India Trade Union Congress – 1920
• World War II – Indian Federation Of Labor 1941,
Indian Labor Conference - 1942
 Human Resources System
• 1946-47 – INTUC (1947), Industrial
Employment (Standing Order) –
1946,Industrial Disputes Act (1947)
• After Independence – Minimum Wages
Act, (1948) Factories Act (1948), Employee
State Insurance Act 1948
• Trade Unions - Hind Mazood Sabha 1948,
United Trade Union Congress 1949
 Human Resources System
• First Five Year Plan: Provident Fund Law1952
And Industrial Disputes Act Of 1947 Was
Amended In 1953
• Second Five Year Plan – Indian Labor Conference
1942
• Third Five Year Plan – Industrial Truce Resolution
Was Adopted – Payment Of Bonus Act1965
• Fourth Five Year Plan – National Commission Of
Labor 1966
Human Resources System

Trade Unions In India

 Human Resources System

• First Phase – 1850-1900

• Second Phase – 1900 –1946
• Third Phase – Post Independence –
Emergence Of Central Trade Unions
 Human Resource Systems

• Indian Labor Market – 420 Million Workers

Growing At 2% Annually
• Consists Of 3 Sectors – Rural Sector,
Organized Sector, Urban Informal Sector
 Human Resources System
Government’s Role:
• Primacy To Maintain Industrial Peace
• Encouragement Of Mutual Settlement
Collective Bargaining And Voluntary
Arbitration
• Recognition Of The Worker’s Right To
Peaceful And Lawful Strikes
Tripartite Consultation
 Human Resources System
Framework For Prevention Of Disputes:
• Workers’ Participation In Management
• Collective Bargaining
• Grievance Procedure
• Tripartite Bodies
• Code Of Discipline
• Standing Orders
 Human Resources System
Judicial Machinery:

• Conciliation,
• Court Of Enquiry
• Voluntary Arbitration
• Adjudication (Compulsory Arbitration
 Human Resources Systems
• Unitary Perspective
• Pluralistic Perspective
• Marxist Perspective
 Human Resources Systems
Unitary Perspective:
• Integrated Harmonious System
• Management, Employees Share Same
Objectives
 Human Resources System
From Employee Perspective:
• Working Practices Should Be Flexible
• Union Is Used As A Further Means Of
Communication
• Emphasis On Good Relationships, Sound
Terms Of Employment
• Employee Participation In Work Place
 Human Resource Systems
Employer Perspective:
• Staffing Policies Should Unify Effort
• Organization's Wider Objectives Should Be
Communicated
• Designing Of Reward Systems
• Line Managers Take Responsibility For Staffing
• Personal Goals vis-à-vis Organizational Goals
 Human Resources System
Pluralistic Perspective:
• Management And Trade Unions
• Management’s Role – Enforcing And
Controlling
• Trade Unions – Legitimate Representatives
 Human Resources Systems
Marxist Perspective:
• Ascendancy Of Socialism Over Capitalism
• Capitalism Would Foster Monopoly
• Wages Would Be Minimized To A
Subsistence Level
 Human Resources Systems
Objectives Of Trade Unions:
• Representation
• Negotiation
• Voice In Decisions Affecting Workers
• Member Services – Education/Training,
Legal Assistance, Financial Discounts,
Welfare Benefits
 Human Resources Systems
Functions Of Trade Unions:
• Militant Functions
• Fraternal Functions
 Human Resources System
Militant Functions:
• To Achieve Higher Wages And Better
Working Conditions
• To Raise Status Of Workers As Part Of The
Industry
• To Protect Labors Against Victimization
 Human Resource Systems
Fraternal Functions:
• To Take Up Welfare Measures
• To Generate Self Confidence Of Workers
• To Provide Opportunities For Growth
• To Protect Women Workers Against
Discrimination
• To Encourage Sincerity And Discipline
Among Workers
 Human Resource Systems
Refusal For Recognition Of Trade Unions:
• Politicians As Members
• Office Bearers Were Members From Outside
• Consisted Of Only Small Number Of Employees
• Existence Of Many Rival Unions
• Trade Union Was Not Registered Under The
Trade Unions Act 1926
 Human Resource Systems
Privileges Of Registered Trade Unions:

• Immunity From Criminal Conspiracy

• Immunity From Civil Actions
 Human Resources System
Collective Bargaining:
A Representative Of Employees Negotiate With
Employers Regarding:
• Agreement About Wage Rates
• Basic Conditions Of Employment
• Involves Negotiations, Drafting, Administration
And Interpretation Of Documents Written By The
Employers And The Union
• Promotes Mutual Understanding And Cooperation
 Human Resource Systems
Collective Bargaining:
Concept – Negotiations About Working
Conditions And Terms Of Employment
Between An Employer, A Group Of
Employers And More Representative
Workers Organizations With A View To
Achieve An Agreement.
 Human Resource Systems
Parties To Collective Bargaining:

• Management/Association Of Employers
• Workers Union/Federation
 Human Resource Systems
Subject Matter Of Collective Bargaining:
ILO Has Divided The Subject Matter Into
Two:
• Standards Of Employment
• Regulate The Relations Between The
Parties To The Agreement
 Human Resource Systems

Standards Of Employment – Wages,

Working Hours, Holidays With Pay, And
Period Of Notice For Termination
 Human Resource Systems
Regulation Of Relations Refers To:
• Provisions Of Enforcement Of Collective
Bargain
• Methods Of Settling Individual Disputes
• Recognition Of A Union
• Giving Preference To Union Members
Seeking Employment
• Duration Of Agreement
 Human Resource Systems
Prerequisites For Collective Bargaining:
• Freedom Of Association
• Strong And Stable Trade Unions
• Recognition Of Trade Unions
• Willingness To Give And Take
 Human Resource Systems
Collective Bargaining In India:
• Weakened Protest Movement
• Various Acts, Standing Orders
• Surplus Labor Market
 Human Resource Systems
Code Of Discipline 1958:
Refers To Unfair Labor Practices By Unions And
Management:
• Management – Not To Support/Encourage Unfair
Labor
• Interference In The Rights Of Members To Enroll
As Union Members
• Victimization Of Any Employee/Abuse Of
Authority
 Human Resource Systems
Code Of Discipline:
Unions Agree To Discourage Unfair Labor
Practices:
• Negligence Of Duty
• Careless Operation
• Damages To Property
• Interference With/Disturbance To Normal Work
• Insubordination
 Human Resources System
Code Of Discipline:
• Obligatory On Workers - To Comply With
Existing Methods Of Settling Disputes
• Obligatory On Employers – Not To Raise The
Workload, Should Recognize Unions As Laid
Down In The Code\
• Obligatory On Unions – Should Not Engage In
Rowdyism. No Union Activity During Working
Hours
 Human Resources System
Words To Remember:
• Arbitrator
• Average Pay
- Monthly – 3 Complete Calendar Months
- Weekly Pay – 4 Complete Weeks
- Daily Pay – 12 Working Days
 Human Resources System
• Award – Any Interim/Final Determination
Of Industrial Dispute
- Granting Of Hearing To Both The Parties
- Award Should Confine To The Theme Of
Reference
 Human Resources System
Standing Orders:

• Regulate The Conditions Of Employment

From Entry To Exit
• Code Of Conduct For The Employees
 Human Resource Systems
Nature Of Standing Orders:
• Statutory In Nature
• A Special Kind Of Contract
• Award
• A Form Of Delegated Legislation
 Human Resources System
Enforcement Of Award:
• Parties May Seek To Apply To Appropriate
Authority
• Workmen May Seek Help
• The Favored Party Can Obtain A Decree
Which Will Enforce Execution Under The
Provisions Of The Civil Procedure Code
 Human Resource Systems
Certification Process Of Standing Orders:
• Draft Standing Orders Are Submitted For
Certification By Employer
• CO Will Send The Draft Copy To The
Union
• CO Shall Enquire If The Standing Orders
Are In Conformity With The Model
Standing Orders
 Human Resource Systems
• CO Will Inquire If The Draft Is Reasonable
And Fair
• Certification Will Be Given Within 7 Days
Authenticated Copies Of Standing Orders
To Both Employers And Workmen
 Human Resources System
Tripartite Bodies:
Government
Workers
Employers
• Representatives Are Nominated By The
Central Government In Consultation With
All India Organization Of Workers And
Employers
Human Resources System

What Is A Layoff?
 Human Resources System
Lay Off:
Failure, Refusal, Inability Of Employer To Give
Employment To The Workmen. This May Be
Due To:
• May Not Be On The Master Rolls Of Employment
• Shortage Of Raw Materials, Coal, Power
• Accumulation Of Stocks
• Breakdown Of Machinery
• Natural Calamity
Human Resources System

What Is A Lock Out?

 Human Resource Systems
Lock Out:
• Temporary Closing Of Establishment
• Element Of Demands For Which
Employment Is Locked Out
• Intention To Re-employ If Workers Accept
The Demands
 Human Resources System
Following Does Not Mean A Lock Out:
• Retrenchment On The Grounds Of Rationalization
Of The Concern
• Prevention Of Employees From Coming To Place
Of Work After Termination Of Contract
• Refusal By An Employer To Allow Late Comers
On A Day To Work On That Day
• Termination Of Employment/Discharge Of One
Or More Employees
Human Resources System

Lock-Out Retrenchment
Temporary Permanent
Motive To Coerce Dispense With
Labor Surplus Labor
 Human Resource Systems
Differences
Lock Out Lay Off
Suspension Of Closed Due To Shortage
Work Of Raw Materials
Coerce Labor Trade Reasons Which Is
Not Under Employer’s
Control
Concerned With Not Concerned With
Industrial Labor Dispute
Disputes
 Human Resource Systems
Grievance Procedure:
• Management And Workers Will Establish
A Mutually Establish A Grievance
Procedure
• Abide By The Various Stages In The
Grievance Procedure
 Human Resource Systems
Pre-requisites:
• 50 Or More Workmen Employed For The
Last 12 Months
 Human Resources System
Grievance Procedure:
• Symptoms Of Conflicts In Enterprise
• Should Ensure Speedy Redressal Of
Grievances
 Human Resource Systems
Steps:
• Aggrieved Employee Makes A Representation To The
Departmental Representative
• To Respond Within 48 Hours
• Escalated To Head Of Department – To Respond Within 3
Days
• Escalated To Grievance Committee – To Respond Within 7
days
• Escalated To Chief Executive – To Respond Within 7 days
• Escalated To Voluntary Arbitration
 Participative Management

• Origin In America
• Successful In Japan
• Pros And Cons Of Participative
Management
 Participative Management

• Increase In Employee Satisfaction

• Higher Employee Morale Effectiveness
• Greater Acceptance Of Employees
Regarding Organizational Change
• Employee As A Valuable Asset Not Viewed
As A Collection Of Individuals
• Upward And Downward Communication
 Participative Management

• Financial Involvement
• Task Based Participation
• Team Working
• Sources Of Powerlessness Of Employee
Can Be Eliminated
 Participative Management
• Basic Assumption – Employee And
Employer Will Share Common Interest Is
Questionable
• Nature Of PM – Relies On The Manager
• Multi Tasking Vs. Work Intensification
 Participative Management
Intangibles:
• Feeling Of Making Important Contribution
• Feeling Of Being In Control
• Loyalty
• Growth
 Disciplinary Proceedings In A
Trade Union
• Suspension Of A Member – Relief By A Suit
Maintainable
• Expulsion Of A Member
- Should Be Stated In The Rules Of The Union
- Notice To Member
- The Decision To Expel The Member Should
Be Bona Fide
- The Decision To Expel Should Not Be
Arbitrary/Unreasonable
 Disciplinary Proceedings
Against An Employee:
• Warning
• Fine
• Demotion
• Suspension
• Discharge
 Disciplinary Proceedings
• Proceedings Under The Labor
Court/Industrial Tribunal Under The Act
• Labor Tribunal Should Hold The
Proceedings Judiciously
• Award Publication Within 30 Days
• Award Becomes Enforceable On The
Expiry Of 30 Days From The Date Of Its
Publication
 Disciplinary Proceedings
Procedural Safe Guards:

Termination Of Services Of Workmen

Without Following Principles Of Natural
Justice Is Wrongful.
 Disciplinary Proceedings
• Charge Sheet:
1. Must Be Specific
2. Contain Full Particulars Of Misconduct
3. Is Served On The Erring Workmen
4. Should Contain Relevant Clause – Standing Order
5. Should Be Issued Under The Signature Of The
Disciplinary Authority
6. It Should Refer To The Name Of Enquiry Officer,
Time, Date And Place Of Enquiry
 Disciplinary Proceedings
• Explanation
1. The Workmen May Admit The Charge
2. May Refute The Charge
3. Ask For Extension Of Time For
Explanation
4. Not Submit Explanation At All
 Disciplinary Proceedings
• Proper Managerial Enquiry:
1. Quantum Of Punishment Decided By Manager
2. Conduct Enquiry Under The Provisions Of The
Standing Order
3. Tribunal Has No Jurisdiction Sit Over The
Judgment Of The Employer As An Appellate Body
4. Tribunal Has To Give Opportunity To Both The
Employer And Employee To Adduce Evidence
Before it.
 Disciplinary Proceedings
• Right To Be Defended By A Lawyer
• Domestic Enquiry Pending Criminal
Proceedings
• Supply Of Enquiry Report To The
Delinquent
• Non Discriminatory Treatment
 Disciplinary Proceedings
• Relief To Wrongfully Dismissed Workmen
- Unfair Labor Practice And Victimization
- Arbitrary Conduct And Effective Procedure
- Harshness Of The Order
- Reinstatement Cannot Be Refused Because
A Long Time Has Lapsed
- Whether Mere Civil Trespass Bars The
Claim To Reinstatement Of Strikers
 Disciplinary Proceedings
• Relief To Wrongfully Dismissed Workmen
- Loss Of Confidence
- Participating In Strike And Refusal To Join
Duty
- Participation In Violent Demonstration
During Strike
- Loss Of Lien
 Labor Welfare And Social
Security
Social Security Doctrine
First Act In India In 1855 – The Indian Fatal
Accidents Act Of 1855 – Employers Can
Be Sued.
The English Law Was Applicable To
Determine The Right Of An Injured
Workmen – Personal Action Dies With The
Person
 Labor Welfare And Social
Security
• Workmen Can Claim Compensation For
Injury Suffered During The Course Of
Work
• Workmen Compensation Act – 1923
- Compensation
- Dependent
- Right To Recover The Debt Passes On To
The Legal Representative
Labor Welfare And Social
Security

Thank you