Understanding Industrial Relations PDF

UNDERSTANDING INDUSTRIAL RELATIONS  Understanding IR How do we make sense of what’s happening Briefly, Individuals, groups, organizations & institutions making decisions that shape or regulate the relationship between employers & employees. Some rules (Formal & Informal) are the...

UNDERSTANDING INDUSTRIAL RELATIONS  Understanding IR How do we make sense of what’s happening Briefly, Individuals, groups, organizations & institutions making decisions that shape or regulate the relationship between employers & employees. Some rules (Formal & Informal) are there which govern the involved people & the workplace. Understanding this relation of employment is the essence of understanding industrial relations However any social phenomenon can be looked at from different perspective.  UNITARIST APPROACH Basic assumption: Each organization is an integrated harmonious entity with a common purpose and a shared goal. Role of management is to provide strong leadership and consequently the rules of the workplace Role of employee is to be loyal to the organization and its management in recognition of their common objective Which implies The employment relationship is based on mutual cooperation and harmony of the interest between employers & employees. There is no fundamental conflict between those who own capital & those who supply their labour since they all are a part of the same team. No possibility of conflict and they work as a team to attain the common goal. contd. 2  UNITARIST APPROACH Any conflict that may occur is seen as a result of misunderstanding or mischief. Industrial conflict is seen as an aberrant behavior induced by trouble makers, poor management, bad communications etc. Since there exist a direct relation between employer & employees trade unions are seen as unnecessary. Unions are judged to be in direct competition with management for the loyalty of employees. The orientation and application of rules may be managerial but employees are expected to be sincere & loyal to the organization.  SYSTEMS MODEL Dunlop stated An industrial relations system at any one time in its development is regarded as comprised of certain actors, certain contents, an ideology, which binds the industrial relations system together, and a body of rules created to govern the actors at the workplace and work community. These rules take a variety of forms in different systems. Actors A hierarchy of managers and their representatives in supervision A hierarchy of workers and any spokesmen Specialized government agencies contd…2.  SYSTEMS Model (contd.) Environment Technical characteristics of the work place and work community Market or budgetary constraints, which impinge on actors Locus and distribution of power in the larger society The system is bound by Ideology or understanding(s) shared by all the actors, and Rules are established (Rules : Procedural rules / Substantive rules) The establishment of these procedures and rules is the centre of attention in an Industrial Relations System (IRS) IRS is a network of rules which governs workplace and work community  PLURALIST APPROACH Orgn. is composed of individuals who coalesce into a variety of distinct sectional groups, each with its own interest, objectives & leadership. More than one centre of power. Orgn. is perceived as being multi-structured & competitive in terms of groupings, leadership, authority & loyalty; and this gives rise to ‘complex of tensions & competing claims which have to be managed in the interests of maintaining a viable collaborative structure’. Orgn. is in permanent state of dynamic tension resulting from the inherent conflict of interest between the various sectional groups & requires to be managed through a variety of institutions & processes. Here also rules are needed to manage this situation How are these rules made?  PLURALIST APPROACH (contd.) How are these rules made? “The rules of the system are determined through the rule making process of collective bargaining which is a political institution involving a power relationship between the employers and employees.” – A Flanders IR is the study of institutions of job regulation  Structural Contradictions Perspective Sometimes called the Radical perspective / Marxist perspective. This includes on the society surrounding the organization Emphasizes that the organization exists within a capitalist society, where the production system is privately owned, profit is the key influence on company policy, & control over production is enforced downwards by owners’ or their managerial agents Argues that: Class conflict arises primarily from the disparity in the distribution of & access to economic power within the society – principal disparity being between those who own capital & those who supply their labour. They emphasize the importance of class conflict  Structural Contradictions Perspective IR part of total social relations and is determined by relations of production (ownership) Capitalist enterprises PROFIT EXPLOITATION builds CONFLICT (between actual producers and the owners) Those who actually produce want to CHANGE Therefore Struggle for control IR is the study of processes of control over work relations  In brief UNITARIST APPROACH Employment relations is essentially harmonious, punctuated by occasions of temporary and illegitimate conflict PLURALIST APPROACH Potential for conflict is inherent in the employment relationship, but it is manageable and can be contained by appropriate rules and regulations. STRUCTURAL CONTRADICTIONS PERSPECTIVE Employment relations is basically embedded in the structural contradictions in the larger society and it is a class conflict  In brief SYSTEMS MODEL: IRS is a network of rules which governs the workplace and work community PLURALIST APPROACH : IR is the study of institutions of job regulation STRUCTURAL CONTRADICTIONS PERSPECTIVE : IR is the study of processes of control over work relations  Criticism SYSTEMS MODEL - Concentrates on the structures of the system ignoring the processes within it - Emphasizing the stability of IRS rather than the conflict and dissidence within them - No account is given on how the inputs into the system are converted into outputs PLURALIST APPROACH - Pays less attention to the structures of power and interests, and the economic, technological and political dynamics of the broader society - Stress on institutions which will promote rational efficient and effective conflict management. (contd..2.)  Criticism (contd.) STRUCTURAL CONTRADICTIONS PERSPECTIVE - Concerns with the transformation of society as a whole, which need not concern workers (or Trade Unions) who should essentially be involved in reforming the system of industrial government  Some learnings There are different approaches to study IR and each has its own ideological perspective and each has its own set of analytical tools The unitarist approach emphasizes the psychological contract between employers & employees, organizational structures and performance. The focus is on individual employees having universal psychological needs for happiness, social interaction etc. Whereas others stress more on conflict and its resolution in industrial relations, and that the labour contract is an open-ended arrangement and that the work-effort bargain is subject to processes of negotiation and contestation (sometimes even going beyond the workplace).  Some features Industrial Relations is a set of phenomena, operating both within & outside the workplace, connected with determining & regulating the employment relationship It has two faces – cooperation & conflict; a continuous feature in industrial systems and the change that takes place between the parties. It is an art which the parties learn by living with each other (the skills of adjustments) Understanding Trade Unions  WHAT ARE TRADE UNIONS A. Understanding the meaning / essence of trade union Voluntary association/group of ________ having a common purpose/goal/interest. Purpose : Reducing inequalities, promoting, improving one’s conditions Very much acceptable in a democratic society as long it follows the accepted norms of society B. Trade union as an organization I. Objectives II. Types III. Structure IV. Membership V. Leadership  WHAT ARE TRADE UNIONS B. Trade union as an organization Objectives Economic / Non-economic Achieving objectives : Retain some acceptability but not so acceptable so as to be psychologically absorbed by the management Various types and exists at various levels Levels: Plant, Regional, National Types: Craft, Industrial, General  WHAT ARE TRADE UNIONS Has a structure Body of office bearers, Rules/regulations etc Membership Each type of union has its specific type of membership Leadership Low social acceptance Insecurity - Authority of a manager vis-à-vis leader Exercises authority over those who has given them authority - Competition from rival union / “Unitarist Management” - Financial weakness  WHAT ARE TRADE UNIONS C. Roles performed / purpose of existence  Moral and Ethical Swords of justice Compassion for the unfortunate  Economic “a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives” (Webbs) Trade Unions concerned mainly with bread/butter issues and providing various welfare facilities  Revolutionary Trade Unions are schools of socialism and organizing centres, which impart class training to the workers & prepare them for their historic mission (rule of the proletariat)  WHAT ARE TRADE UNIONS C. Roles performed / purpose of existence  Psychological Trying to satisfy some higher order needs “Recovering their lost moorings due to industrialization”  Political TU want to have more control over job Power of unions TU’s “right” to be a part of industrial government  WHAT ARE TRADE UNIONS  Responsible TU becomes an ‘ally’ of management while considering interests of the larger community Worker protest as obstacle to larger national interest Unions should cease to be advocates of purely sectional interest Proper role of union was to persuade workers to increase productivity and sacrifice immediate consumption TU should be more concerned with production than distribution. In a developing country the economic cake is too small to think about distribution.  WHAT ARE TRADE UNIONS D. Are Trade Union successful ? Pluralist “Trade Unions are a mixture of movement and organization. Trade Unions need organization for their power and movement for their vitality” (Flanders) Unfortunately most unions having emerged as an organization become oblivious to the movement which provided the initial impetus to organize. Loss of a sense of movement and the neglect of goals other than the material have resulted in the stagnation of the labour movement.  WHAT ARE TRADE UNIONS D. Are Trade Union successful ? Revolutionary Trade union consciousness confines to the struggle for improving the economic condition of employees Social Democratic consciousness Is the struggle of the working class for the abolition of the social system that compels the propertyless to sell themselves to the rich  WHAT ARE TRADE UNIONS Revolutionary Trade Unions are schools of socialism and organizing centres, which impart class training to the workers & prepare them for their historic mission They cannot get entrapped in Trade union consciousness, but move into Social Democratic consciousness. Otherwise they cannot fulfill the historic mission. Trade Unions in India  Trade Unions in India Evolution Why Trade Unions emerged, Removal of inequities National movement  Trade Unions in India HISTORY OF TRADE UNIONISM IN INDIA 1918: Madras Labour Union - B P Wadia 1920: Textile Labour Association, Ahmedabad All India Trade Union Congress (AITUC) formed to organize labour at national level Three major influences in AITUC Communist / Nationalist / Reformist or Moderates Their objectives, Their affiliation  Trade Unions in India COMMUNISTS Party ideology supreme NATIONALISTS Independence was the ultimate goal REFORMISTS/ MODERATES Pursue trade unionism in its own right and not subjugate it completely to broader political aims and interests They wanted affiliation to COMMUNISTS League Against Imperialism Pan-Pacific TU Secretariat NATIONALISTS Preferably no affiliation as this might amount to the acceptance of perpetual dominion status for the country REFORMISTS/ MODERATES International Federation of Trade Union  HISTORY OF TRADE UNIONISM IN INDIA 1926 : Indian Trade Unions Act Trade Unions given legal status Splits & Alliances in Indian TU movement (some important examples) 1947 : AITUC split – INTUC 1948 : AITUC split+socialist leaders+IFL  HMS 1949 : UTUC [Later splits  UTUC (LS)] 1953 : Alliance between INTUC & HMS ; did not last 1955 : BMS formed 1970 : AITUC split – CITU [CPI splits CPI (M)] 1971 : INTUC split – NLO [Cong splits into Cong(o) & Cong (I)]  HISTORY OF TRADE UNIONISM IN INDIA 1950: The CONSTITUTION Why important for us? Articles 14 to 16, 19(1) (c), 23, & 24 of the Indian Constitution are directly concerned with labour rights & laws. Article 14 assures equality before the law, Article 15 directs the State to not discriminate against citizens. Article 16 extends the right of “equality of opportunity” for employment or appointment. Article 19(1) (c) gives everyone the freedom “to form associations or unions”. Article 23 provide safeguards against trafficking and forced labour Article 24 prohibits the employment of children under 14 in a factory, mine or “any other hazardous employment”.  Trade Unions in India Structure Various ways of categorizing Indian Trade unions Craft unions Industrial unions General unions Plant level Region cum industrial Industrial Federations at National level The National Federations There are International Federations also  Trade Unions in India Constitution of a trade union Rules governing the functioning of the union (Objectives, Structure, Membership, Finance etc.) Affiliation Membership to a larger body (e.g. Federation) whose ideology the union officially follows Every ideology has got some aims and objectives so any affiliated trade union has to officially follow these aims and objectives. Why affiliation needed – Apart from same belief, help from federation (e.g. Leadership, Financial, Infrastructure etc.)  Trade Unions in India Membership Types of Memberships - Ordinary, Honorary (non- employees) Average membership (2005) in unions submitting returns is 1049 No legal objection to multiple membership  Trade Unions in India Finance Status (2010) 2937 submitted annual returns with earnings of Rs.3763.6 Lakhs. Avg. – Rs. 1.28 lakhs expenses of Rs. 3417.59 Lakhs. Avg. – Rs. 1.16 lakhs Why need finance? Sources of funds – Membership How collected - Subscription - Check-off - Contribution - Sometimes unions have special levy  Trade Unions in India Finance (contd.) Usually two categories of funds (TU Act 1926) Funds for general purpose (e.g.) - Salary expenses of office bearers - Various activities of membership - Defense / prosecution of any legal cases etc Funds for political purpose Separate contribution for political fund can be spent on Getting candidates elected in legislative bodies Holding of political meetings / distribution of political literature etc. Contribution to political fund not compulsory. [It is also there in IR Code sections – 15(1) & 15(2)]  Trade Unions in India Leadership Various types of leaders from all walks of life. Indian labour movement is a part of nationalist movement. Both intertwined closely. Difficulties / Dilemmas faced Low Social acceptance Insecure, since Financial weakness Challenge of members  Trade Unions in India Leadership (contd.) Difficulties / Dilemmas faced (contd.) Role conflict People want the leader to behave as opposition ( sheer survival ) Situation sometimes are conflicting Till now difficult to be independent since dependence is the key feature of Indian IR framework. What will happen after IR Code is implemented is yet to be seen  Trade Unions in India Leadership (contd.) Inside vis-à-vis Outside leadership Who is a better leader? Can we stop outside leadership? Who can be a leader?  Who can be a leader as per IR Code? (secn. 23) Unorganized sector Not less than one-half of the total number of office bearers of every registered TU in an unorganized sector shall be persons actually engaged or employed in an industry with which the TU is connected. Others All office bearers of a registered TU, except not more than one-third of the total number of office bearers or five, whichever is less, shall be persons actually engaged or employed in the establishment or industry with which the TU is connected Restriction No member of the council of ministers or a person holding an office of profit in the Union or a State shall be a member of the executive or other office-bearer of a registered TU (Employee who has retired or has been retrenched shall not be construed as outsider)  Who can be a leader as per IR Code? (In essence) Unorganized sector (Max.) 50% of office bearers can be outsiders Other sector (Max.) One third or 5 outsiders (which ever is less) can be office bearers Restriction No member of the council of ministers or a person holding an office of profit in the Union or a State shall be a member of the executive or other office-bearer of a registered TU. Retired/retrenched employees are not outsiders. What is given in the IR Code 2020 is similar to that given in TU Act 1926  Critical concepts in Indian I R and the changes that have come  INDIAN TRADE UNIONS - Features History shows us that Indian TUs are Fragmented Why? REGISTRATION & RECOGNITION Registration – Acceptance of the existence by the Government In India acceptance by the Government i.e. REGISTRATION is under the Trade Union Act 1926 or the IR Code 2020 Whoever satisfy the definition of Trade Union under these Acts can be registered  TRADE UNIONS The definition of Trade Union under the T U Act: “Trade Union” means any combination whether temporary or permanent, formed primarily of the purpose of regulating the relations between workers and employers or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions”  TRADE UNIONS The definition of Trade Union under the I R Code: “Trade Union” means any combination whether temporary or permanent, formed primarily of the purpose of regulating the relations between workers and employers or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions” However as per IR Code (definition of worker includes)…..  TRADE UNIONS The definition of Trade Union under the T U Act: “Trade Union” means any combination whether temporary or permanent, formed primarily of the purpose of regulating the relations between workers and employers or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions” However as per IR Code for the purposes of Chapter III (dealing with Trade Unions), "worker" (a) means all persons employed in trade or industry; & (b) includes the worker as defined in clause (m) of secn 2 of the Unorganised Workers Social Security Act, 2008 Secn. 2 (m) states Unorganised worker means “a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act”  Liabilities & Rights of a REGISTERED Union a. Liabilities of a Registered TU (e.g.) (i) Have only eligible people as office bearers (ii) A/C books to be open for inspection (iii) Annual returns have to be sent to Registrar with (1) Audited receipt and expenditure (2) Changes in Office Bearers (3) Changes in Rules etc. b. Rights of Registered TU (e.g.) (i) Power to make rules (ii) Creation of Funds  Liabilities & Rights of a REGISTERED Union b. Rights of Registered TU (e.g.) (i) Power to make rules (ii) Creation of Funds (iii) Immunity of Office Bearers and Members against Sub Secn. (2) of Secn. 120(B) of IPC & Civil Suits for furthering TU objectives. However there is NO immunity for committing a criminal offence (iv) Can have “Protected workmen”  INDIAN TRADE UNIONS - Features REGISTRATION VIS-À-VIS RECOGNITION Registration – Acceptance of the existence by the Government In India acceptance by the Government i.e. REGISTRATION is under The IR Code 2020 Whoever satisfy the definition of Trade Union under this Act can be registered Recognition - Acceptance of the existence by the Management Till IR Code is implemented No Central Law on Recognition as per statutes  RECOGNITION the current status No Central Law on Recognition but there are State legislations on Recognition (e.g.) - BIR Act 1946 - ID (Rajasthan Amendment) act 1958 - MP IR Act 1960 - recently other states (e.g. West Bengal) Other deliberations on Recognition - Code of Conduct 1958, - Code of Discipline 1958 - National Commission on Labour 1968 Unenacted bills on recognition 1947 Amendment of ITU Act 1926, TU Bill 1950, Labour Relations bill 1950, IR Bill 1978 Changes have been brought in as per IR Code 2020  IR Code 2020 Recognition (secn. 14) (1) There shall be a negotiating union or a negotiating council, in an industrial establishment having registered Trade Union for negotiating with the employer of the industrial establishment, on such matters as prescribed. (2) Where only one Trade Union of workers registered under the code then, the employer of such industrial establishment shall, recognise such Trade Union as sole negotiating union of the workers.  IR Code 2020 Recognition (secn. 14) (3) If more than one registered Trade Union of workers then, the Trade Union having fifty-one per cent. or more workers (supporting that Trade Union) shall be recognised by the employer of the industrial establishment, as the sole negotiating union of the workers. (4) If more than one registered Trade Union of workers and no such Trade Union has fifty-one per cent. or more of workers (supporting that Trade union), then, there shall be constituted by the employer, a negotiating council for negotiation, consisting of the representatives of such registered Trade Unions having the support of not less than twenty per cent. of the total workers on the muster roll and such representation shall be of one representative for each twenty per cent. and for the remainder after calculating the membership on each twenty per cent.  IR Code 2020 Recognition (secn. 14) (5) Where any negotiation on the matters referred to in sub- section (1) is held between an employer and a negotiating council, any agreement is said to be reached if it is agreed by the majority of the representatives of the Trade Unions in such negotiating council. (6) Any recognition made under sub-section (2) or (3) or (4) shall be valid for three years from the date of recognition or constitution or such further period not exceeding five years, in total, as may be mutually decided by the employer and the Trade Union, as the case may be. (7) The facilities to be provided by industrial establishment to a negotiating union or negotiating council shall be such as may be prescribed.  REGISTRATION VIS-À-VIS RECOGNITION Incase you would like to Recognize then how would you choose which union to recognize? No process described in the IR Code or the Rules What could be the processes to find the majority ? The processes could be Secret Ballot Check Off Verification and their Criticisms  REGISTRATION VIS-À-VIS RECOGNITION The concept of Recognition has been introduced in the IR Code But how successful will it be ?? WHITE COLLAR UNIONISM  WHITE COLLAR UNIONISM A. Who are “White collar employees”? B. Comparatively white collar unions are less in number Managers/Officers – a special case of white collar employees Do managers collectivize? Why do they collectivize?  MANAGERIAL “UNIONISM” Why Managers Collectivize Job security Improvement of Compensation & other benefits Protection from militant trade unionism Designated forums for workers to participate but not for managers “Managerial production line” (explosion in the number of managers) Promotee officers  MANAGERIAL “UNIONISM” Are these collectives Unions or Associations? These collectives Can register as a trade union and they “behave” like a worker’s union and also have a Fundamental Right to collectivize, but usually they do not collectivize or are unwilling. Why? Fear of victimization, loss of job etc. Can they protect themselves?  MANAGERIAL UNIONISM Their protection ? Seeking outside help (political leaders, media etc.) Linking with larger bodies (e.g. Federations etc. )  MANAGERIAL UNIONISM Their protection? (contd.) Seeking help from workers union Relationship between worker’s union & managerial union Ambivalent They can neither come together under a single banner nor actively cross each other’s path Managerial union would accept worker union’s help but not to become a junior/inferior member of the labour movement  MANAGERIAL UNIONISM Their protection? (contd.) Questioning their status Are “managers” really “managers”? Till the IR Code came in existence the answer was easy since there were only two categories. Now it’s different. What could s/he be ?? Either “Employee” or “Worker”  Who is an EMPLOYEE ? (IR Code 2020 secn. 2l) "employee" means any person (other than an apprentice engaged under the Apprentices Act, 1961) employed by an industrial establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union;  Earlier Sec. 2 (s) in ID Act defined "workman" as "workman" any person (including an apprentice) employed in any industry to do any skilled, unskilled manual, supervisory, operational, technical or clerical work for hire or reward. Whether the terms of employment be expressed or implied and for the purposes of any proceedings under this act in relation to an industrial dispute, includes any such person who has been dismissed, discharged, retrenched in connection with or as a consequence of that dispute or whose dismissal, discharge or retrenchment has led to that dispute  Sec. 2 (s) defines "workman" as (contd.) but does not include any such person (i) who is subject to Air Force Act, Army Act or Navy Act or (ii) who is employed in police service or prison service, (iii) who is employed mainly in a managerial and advisory capacity or (iv) who being employed in supervisory capacity draws wages exceeding Rs.10,000/- and exercises by the nature of the duties attached to the office or by means of powers vested in him, functions mainly of a managerial nature.  Who is a WORKER ? (IR Code 2020 secn. 2zr) "worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes working journalists as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person— (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or (ii) who is employed in the police service or as an officer or other employee of a prison; or (iii) who is employed mainly in a managerial or administrative capacity; or (iv) who is employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month or an amount as may be notified by the Central Government from time to time: Provided that for the purposes of Chapter III, "worker"— (a) means all persons employed in trade or industry; and (b) includes the worker as defined in clause (m) of section 2 of the Unorganised Workers' Social Security Act, 2008.  Who is a WORKER ? (IR Code 2020 secn. 2zr) contd. "worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute  Who is a WORKER ? (IR Code 2020 secn. 2zr) contd. but does not include any such person— (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or (ii) who is employed in the police service or as an officer or other employee of a prison; or (iii) who is employed mainly in a managerial or administrative capacity; or (iv) who is employed in a supervisory capacity drawing wages exceeding eighteen thousand rupees per month or an amount as may be notified by the Central Government from time to time Test for Determination of Supervisory Capacity The Bombay High Court (in Union Carbide (India) Ltd v. D Samuel & ors.) summarized the tests laid down by the Supreme Court in various decisions as follows: Designation is not material but what is important is the nature of work Find out the dominant purpose of employment and not any additional duties the employee may be performing Can he bind the company / employer to some kind of decisions on behalf of the company / employer Has the employee the power to direct or oversee the work of his subordinates Does he have the power to sanction leave or recommend it, and Does he have the power to appoint, terminate or take disciplinary action against workmen  In another case some more conditions were emphasized What is the nature of the supervisory duties performed by the employee? Do they include directing the subordinates to do their work and/or to oversee their performance? Does he have the power to assign duties and distribute the work? Does the employee have the authority to indent material and to distribute the same amongst the workmen? Does the employee have any workmen working under him and does he write their confidential report? Supervisory Capacity (contd.) The Supreme Court observed that one must always look into the main work and that must be found out from the main duties. A supervisor is one who could bind the company to take some kind of decision on behalf of the company. One who was reporting merely as to the affairs of the company and making assessment for the purpose of reporting was not a supervisor.  As a worker he is protected but as an employee ?? As an employee the protection is under secn. 91 which states: Where an employer contravenes the provisions of section 90 during the pendency of proceedings before (various Authorities), any employee aggrieved by such contravention, may make a complaint in writing in such manner as may be prescribed— (a) to such conciliation officer, who will mediate for promoting the settlement of, such industrial dispute; and (b) to (other bodies) who on receipt of such complaint, shall adjudicate upon the complaint and shall submit his or its award to the appropriate Government. and what does section 90 state ……..  Section 90 (IR Code 2020) (1) Where an industrial dispute pertaining to an establishment or undertaking is already pending before a conciliation officer or an Arbitrator or a Tribunal or a National Industrial Tribunal, as the case may be, with regard to matters not covered by the notice of change issued by an employer under section 40, no employer shall— (a) in regard to any matter connected with such dispute, alter to the prejudice of the workers concerned in such dispute the conditions of service applicable to them immediately before the commencement of such proceedings; or (b) for any misconduct connected with the dispute, discharge or punish, whether by dismissal or otherwise any worker concerned in such dispute, save with the express permission in writing of the authority before which the proceeding is pending.  Section 90 (IR Code 2020) (2) During the pendency of any such proceeding in respect of an industrial dispute referred in sub-section (1), the employer may, in accordance with standing orders applicable to a worker concerned in such dispute or, where there are no such standing orders, in accordance with the terms of the contract, whether express or implied, between him and the worker— (a) alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that worker immediately before the commencement of such proceeding; or (b) for any misconduct not connected with the dispute, discharge or punish, whether by dismissal or otherwise, that worker: Provided that no such worker shall be discharged or dismissed, unless he has been paid wages for one month and an application has been made by the employer to the authority before which the proceeding is pending for approval of the action taken by the employer.  Section 90 (IR Code 2020) (3) Notwithstanding anything contained in sub-section (2), no employer shall, during the pendency of any proceeding in respect of an industrial dispute, take any action against any protected worker concerned in such dispute— (a) by altering, to the prejudice of such protected worker, the conditions of service applicable to him immediately before the commencement of such proceeding; or (b) by discharging or punishing, whether by dismissal or otherwise, such protected worker, save with the express permission in writing of the authority before which the proceeding is pending.  But is there at all any protection under Section 90 (IR Code 2020) ? Section 90 states : Where an industrial dispute pertaining to an establishment or undertaking is already pending before a conciliation officer or an Arbitrator or a Tribunal or a National Industrial Tribunal, as the case may be, with regard to matters not covered by the notice of change issued by an employer under section 40, no employer shall ………. Issues covered under section 40 are given in Third schedule Organizing the unorganized  What is unorganized labour ? What is unorganized labour ? Till 2008 no clear definition of unorganized sector Some broad characteristics by Ministry of Labour : Incidence of home-based work. Lack of concrete employer-employee relationship. Low levels of unionization (trade unions have serious difficulties in accessing workers who are under-employed, scattered and home-based) Why is unorganized labour our concern?  Why is the unorganized sector a concern? A large amount of contribution to our economy is by the unorganized sector. Moreover in the new economic era the unorganized sector is increasing Why do employers want unorganized labour ? Production at lower costs Engaging labour without fringe benefits Decrease in overheads and administration costs of maintaining establishments Outsourcing is cheaper than in-house production Maybe CONTROL is more !!! The conditions of unorganized labour are sub- standard What’s the way out ? Like the organized sector the unorganized labour would have benefitted if they were organized. Problems in organizing (some findings) Very scattered establishments Job Insecurity, Fear of personal safety Worker passivity, Time Constraints No Unity among workers More Supply than Demand Not much Faith in External Leaders Low Awareness, Do not have the necessary resources or skills, Illiteracy THE UNORGANISED WORKERS’ SOCIAL SECURITY ACT, 2008 THE UNORGANISED WORKERS’ SOCIAL SECURITY ACT, 2008 No. 33 OF 2008 [31st December, 2008] An Act to provide for the social security and welfare of unorganised workers and for other matters connected therewith or incidental thereto. Unorganised sector means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten; Unorganised worker means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act; Unorganised worker means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts mentioned in Schedule II to this Act; SCHEDULE II The Workmen's Compensation Act, 1923 The Industrial Disputes Act, 1947 The Employees' State Insurance Act, 1948 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972. Home-based worker means a person engaged in the production of goods or services for an employer in his or her home or other premises of his or her choice other than the workplace of the employer, for remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs; Self-employed worker means any person who is not employed by an employer, but engages himself or herself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be notified by the Central Government or the State Government from time to time or holds cultivable land subject to such ceiling as may be notified by the State Government; Wage worker means a person employed for remuneration in the unorganised sector, directly by an employer or through any contractor, irrespective of place of work, whether exclusively for one employer or for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by households including domestic workers, with a monthly wage of an amount as may be notified by the Central Government and State Government, as the case may be.  How the benefits will be provided a) The workers will be registered b) A body (Central / State) will be created Registered worker means an unorganised worker registered under sub-section (3) of section 10; (Sub secn. 3 of Secn 10) Every unorganised worker shall be registered and issued an identity card by the District Administration which shall be a smart card carrying a unique identification number and shall be portable. Registered worker Every unorganised worker shall be eligible for registration subject to the fulfillment of the following conditions, namely:- he or she shall have completed fourteen years of age; and a self-declaration by him or her confirming that he or she is an unorganised worker. Central Govt. will create a National Social Security Board (secn. 5) dealing with issues related to – Life & disability, Health & Maternity, Old age protection etc. [secn. 3(1)] Funding of the Schemes – Central Govt. or Others as and when required [secn. 4(1)] State Govt. will create a State Social Security Board dealing (secn. 6) with issues related to – Provident Fund, Employment injury benefits, housing, funeral assistance etc. [secn. 3(4)] Funding of the Schemes – State govt. or Others as and when required or assistance from Central Govt. [secn. 7(1)]  Similar provisions have been made in the Code of Social Security 2020 Definitions in Section 2 (36) "home-based worker" means a person engaged in, the production of goods or services for an employer in his home or other premises of his choice other than the workplace of the employer, for remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs; (75) "self-employed worker" means any person who is not employed by an employer, but engages himself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be notified by the Central Government or the State Government, as the case may be, from time to time or holds cultivable land subject to such ceiling as may be notified by the State Government; (85) "unorganised sector" means an enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs workers, the number of such workers is less than ten; (86) "unorganised worker" means a home-based worker, self-employed worker or a wage worker in the unorganised sector and includes a worker in the organised sector who is not covered by the Industrial Disputes Act, 1947 or Chapters III to VII of this Code; (90) "wage worker" means a person employed for remuneration in the unorganised sector, directly by an employer or through any contractor, irrespective of place of work, whether exclusively for one employer or for one or more employers, whether in cash or in kind, whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or workers employed by households including domestic workers, with a monthly wage of an amount as may be notified by the Central Government and the State Government, as the case may be; Similar provisions have been made in the Code of Social Security 2020 Definitions in Section 2 (continued) (35) "gig worker" means a person who performs work or participates in a work arrangement and earns from such activities outside of traditional employer-employee relationship; (61) "platform worker" means a person engaged in or undertaking platform work [which “means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment”; (60) (79) "Social Security Organisation" means any of the following organisations established under this Code, namely:—(c) the National Social Security Board for Unorganised Workers constituted under section 6; (d) the State Unorganised Workers' Social Security Board constituted under section 6; (81) "State Unorganised Workers' Board" means the State Unorganised Workers' Social Security Board constituted under sub-section (9) of section 6; TRADE UNION and POLITICS  TRADE UNION and POLITICS Linkage between TU & Political Party Commonly known as Politicization Is India an unusual case ? How did this linkage come about ? Labour movement a part of national movement Mutual help between the two Are TU and Political Party same ? Trade Union : Opposition in the organization Political Party : May one day rule the country  TRADE UNION and POLITICS Range of Political linkage Munson’s typology Member centered Dependent union Political unionism Politically neutral Politically committed Politically Singular  Politically Plural TYPOLOGY OF UNIONS ALONG THE DIMENSION OF POLITICAL LINKAGE Politically Neutral Politically Committed Politically Singular Politically Plural 1.Not affiliated Affiliated Affiliated No officially Strong commitment to Not so strong accepted political the officially accepted commitment to the ideology ideology official ideology 2. Presence of diverse Officially diversity is Presence of diversity elements possible but not accepted and no officially accepted. they cannot bring in other political ideology Individuals may have their political ideology other than that of strong links with in the working of the affiliation is political parties union propagated  TYPOLOGY OF UNIONS ALONG THE DIMENSION OF POLITICAL LINKAGE (contd.) Politically Neutral Politically Committed Politically Singular Politically Plural 3.Usually concerned Goes beyond trade Can go beyond but with trade union union issues following not to the extent issues e.g. bread and its strong commitment similar to the politically butter to the officially singular union accepted ideology 4. Can not use the Usually used as a Usually can not use as union as a political political forum to a political forum. forum propagate the However, the ruling ideology of affiliation majority might shape the union policies to their belief  Is it at all possible to have a non-political union? Even if TU not affiliated, what about individual beliefs, the rank & file’s individual political commitment WHY DISLIKE POLITICAL LINKAGE a. Furthers political interests at the expense of TU Against political linkage : Gandhi, V V Giri However other scholars have a different viewpoint In Favour : Kennedy, Sheth & Jain, Ramaswamy, Bogaert b. Cause Fragmentation Linkage leads to multiplicity ( but as we saw earlier multiplicity maybe caused by many other reasons)  Some have pointed out that there was a NEED FOR POLITICAL LINKAGE More workers have been organized since each political party trying to increase its strength Political parties impart more wider outlook It is not possible for unions to remain within the confines of the factory and remove major causes of industrial unrest Tremendous interference of State in our IR system In brief TU need to influence the political process which governs so many aspects of their functioning and benefits Workers who are committed to a political ideology are likely to identify quite strongly with their union and participate actively in its affairs. TU DEMOCRACY  TU DEMOCRACY Isn’t Democracy in TUs a forgone conclusion? However we cannot forget TU needs to be run, as an organization Chances of an emergence of oligarchy “Rule of few elite over the masses” Direct democracy is impracticable Representatives Representative system Full time administrators Administrators Bureaucracy Oligarchy What starts initially as the royal road to democracy succumbs to the Iron law of oligarchy (R Michel)  OLIGARCHY Once in power Oligarchs wants to continue. Leaders have a strong desire to continue in office (prestige, power, pecuniary etc) How perpetuated Large organizations give near monopoly of power - Tend to develop complicated bureaucratic structures - Leaders have control over channels of communication - Monopoly of political skills among the administrators General apathy among members (Olson’s logic of collective action)  EMPLOYER’S & their ASSOCIATION  EMPLOYER’S ASSOCIATION Are they different or similar to TU Federations ? A. They also have Objectives, Membership, etc. as any other Federation B. Can they can be registered? Yes, they can be (examples) Companies Act – Federation of Indian Chambers of Commerce & Industry, the Associated Chambers of Commerce & Industry etc. Society Registration Act – All India Exporters Chambers, the Federation of All India Foodgrain Dealers Association Etc. Trade Union Act – the Employers’ Federation of India, the West Coast Employers’ Federation, the Indian Jute Mills Association Etc. (This can happen under the IR Code also) C. Suffer multiplicity and Inter Federation rivalry  EMPLOYER’S ASSOCITATION D. Some differences Financially stronger than TU Federation Bargains with the State / Govt. but usually not confrontationist approach Possibly they don’t need to be Cannot afford to have overt political linkage But does have strong political clout Own members in Parliament Contribution to political party IR & THE STATE  IR & THE STATE Role of the State as an employer e.g. Own departments, Public Sector Undertakings As an influencer of labour management relationship It influences through its policies, guidelines, rules How did it evolve ?  IR & THE STATE Pre-independence Need for continuous production. So rules for Enforcing work contract Maintenance of order and security. They also tried to reduce grievances of working conditions Post-independence Government must build economy (Productionist goals) Government also professed its faith in democratic ideals - thus various rights were given and so government had to support growth of trade unionism as a part of democratic principles - trade unions are demanding (their rights) so plays Consumptionist Role  IR & THE STATE So a contradiction between the Productionist goals of the government and the Consumptionist outlook of trade unions. Dilemma of A Democratic Government in an Underdeveloped Economy What did the Government do? Decided to play a much larger role To control and contain industrial disputes (to satisfy the Productionist goals) Provide benefits to workers (to satisfy the Consumptionist outlook)  IR & THE STATE The State created a legal structure to (I) Provide benefits (e.g. Factories Act) (ii) Regulate & Resolve disputes (e.g. ID Act) (iii) Foster goodwill (e.g. Works Committee) Difficulty in deciding which method to adopt for dispute resolution Some advocated bipartite dispute resolution mechanism while others opposed  IR & THE STATE Arguments of those who opposed (including TUs e.g. INTUC etc.) Stated reasons Developing country / can't afford "rule of jungle" TU, labour to weak to fight employers so need state help Labour ministries want to control labour (by retaining the power of reference) Other covert reasons Strikes if permitted would play into the hands of communist Trade unions who can capitalize on discontent will be powerful. Possibility of communists coming to power Collective Bargaining would mean trade union recognition. Chances of opposition trade unions getting recognition Ultimately Tripartism prevailed  IR & THE STATE Industrial Disputes Act Mutual agreement only binding upon parties to the agreement whereas conciliation settlement binding upon all Trade Unions Act Leads to multiplicity Who actually represents? Industrial Employment (Standing Orders) Act Deals with matter which could have been subject of bipartite determination So Tripartism is an important feature in our IR structure  IR & THE STATE In mid 50s there was an Effort to reshape Indian labour relations by securing from the parties mutual agreement on, and voluntary compliance with a set of principles and rules whose observance, it is believed, will produce orderly and effective labour relations. Primarily a moralistic flavour  IR & THE STATE Characteristics of our IR framework Innumerable statutes State influence Dependence on state Tripartism is the focus – Feeling of “Litigation helps” Idealistic / Moralistic view (e.g. Belief in norms, Emphasis on harmony) How much will change after the new structure is implemented ?  What has been the New Role of the STATE After assimilating about 29 existing labour laws we have created the four Codes : A) Wage Code 2019 B) Industrial Relations Code 2020 C) Social Security Code 2020 D) Occupational Safety, Health & Working conditions Code 2020  The new Labour Codes cover Wage Code 2019 The Payment of Wages Act, 1936 The Minimum Wages Act, 1948 The Payment of Bonus Act, 1965 The Equal Remuneration Act, 1976 Industrial Relations Code 2020 The Trade Unions Act, 1926 The Industrial Employment (Standing orders) Act, 1946 The Industrial Disputes Act 1947  The new Labour Codes cover Social Security Code 2020 The Employees' Compensation Act, 1923 The Employees' State Insurance Act, 1948 The Employees Provident Fund and Miscellaneous Provisions Act, 1952 The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972 The Cine Workers Welfare Fund Act, 1981 The Building and Other Construction Workers Welfare Cess Act, 1996 The Unorganised Workers' Social Security Act, 2008  The new Labour Codes cover Occupational Safety, Health & Working conditions Code 2020 The Factories Act, 1948 The Plantations Labour Act, 1951 The Mines Act, 1952 The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 The Working Journalists (Fixation of Rates of Wages) Act, 1958 The Motor Transport Workers Act, 1961 The Beedi and Cigar Workers (Conditions of Employment) Act, 1966 The Contract Labour (Regulation and Abolition) Act, 1970 The Sales Promotion Employees (Conditions of Service) Act, 1976 The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 The Dock Workers (Safety, Health and Welfare) Act, 1986 The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996  What has been the New Role of the STATE We have created the four Codes : A) Wage Code 2019 B) Industrial Relations Code 2020 C) Social Security Code 2020 D) Occupational Safety, Health & Working conditions Code 2020 While the Codes incorporate most of the earlier sections there are some critical modifications and important new ones We are yet to see the impact REMUNERATION  Remuneration Why are remuneration paid ? Mode of payment Daily / Weekly / Monthly Cash / Bank Piece rated / Time rate  Wage Factors affecting the Wage Employers philosophy - to lead / lag / match the Market Capacity to pay Going rate - Local / Industry Job evaluation – worth of a job Collective bargaining agreements- within enterprise or outside (region) Legislations  WAGE Legislations and other related matters etc. effect remuneration Statutes Judiciary (settlements, awards), and Pay commissions  WAGE Legislation affecting wages We now have the Wage Code 2019, but earlier we had Payment of wages act 1936, Equal remuneration act 1976, Minimum wages act 1948 & Payment of Bonus Act 1965  WAGE Legislation Payment of wages act 1936 Regular and timely payment Prohibiting arbitrary fines / deductions, etc. Equal remuneration act 1976 Equal remuneration for men and women in same / similar jobs  Wage Legislation Minimum wages act 1948 Minimum Wage - No industry has right to exist unless it is able to pay its workmen at least a bare minimum wage Living Wage - Wage which is sufficient to provide not only the essentials but a fair measure of frugal comforts with an ability to provide for old age and evil days Fair Wage - Mean between the living wage and minimum wage sufficiently high to provide a standard family with food, shelter, clothing, medical care and education of children, appropriate to the workman but not at any rate exceeding his wage earning capacity in the class of establishment to which he belongs  Bonus Payment of bonus act 1965 Bonus is a deferred wage (and for calculations): eligible employees (Rs.21,000/- per mth.) who has worked 30 days during the period range: 8 1/3 % min. 20% max. For calculations wage deemed to be Rs.7,000/- per mth. or the minimum wage for the scheduled employment, as fixed by the appropriate Government, which ever is higher  Bonus Payment of bonus act 1965 Bonus to be given from Allocable surplus Calculations made on allocable surplus Gross profit – deductions = Available surplus Available surplus x 60% = Allocable surplus For first 5 years of starting, bonus only for year of profit Set on / set off following a 4-year cycle  PB Act 1965 (SET ON / SET OFF) Set on of allocable surplus Where for any accounting year , the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment then , the excess shall , subject to a limit of twenty percent of the total salary or wage of the employees employed in the establishment in that accounting year , be carried forward for being set on in the succeeding accounting year and so on upto and inclusive of the fourth accounting year to be utilized for the purpose of payment of bonus (in the manner illustrated in the Fourth Schedule).  PB Act 1965 (SET ON / SET OFF) Set off of allocable surplus Where for any accounting year , there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment, and there is no amount or sufficient amount carried forward and set on which could be utilized for the purpose of payment of the minimum bonus , then , such minimum amount or the deficiency , as the case may be , shall be carried forward for being set off in the succeeding accounting year and so on upto and inclusive of the fourth accounting year (in the manner illustrated in the Fourth Schedule).  Changes Eligibility Employees whose wages not exceeding as notified by appropriate government. Allocable surplus Available surplus x 60% (banking) 67% (Others) If Allocable surplus more than minimum bonus amount payable, then employer pays more than minimum upto a max of 20% (secn. 26) No schedules as fourth schedule in POB Act Appointment of Inspector-cum-facilitator They will inspect and also advice employers and workers relating to compliance with the provisions of this Code  WAGE (Components) What are the broad heads in remuneration Fixed / Basic Variable for adjusting hardships - how ? Incentives (Individual, Group, Organization wide) Benefits & Services  Wage BENEFITS / SERVICES Usually all the non-financial payments in a company for the employees for continuing his/her services in the organization Why given – Voluntarily for attracting and retaining Forced by Law Negotiated with union Industrial Conflict and its Resolution  Industrial Conflict and its Resolution Conflict in industry is inevitable Reasons for conflict are many Conflicts need not alwys be negative  Various theories trying to explain conflict Human Relations Theory Industrial society treats workers as an isolated individual and deprives him of all control over his environment. This loss of mooring and control is a major source of conflict. Pluralism Problem in the distribution of power and privilege. Union acts as a check to absolutism. Marxist Theory System of wage labour - Exploitation & Alienation - Beginning of class conflict (So resolutions differ since explanations differ) Industrial Dispute and its Resolution What is an Industrial Dispute & the Parties to the dispute A. Industry B. Workman C. Industrial Dispute  INDUSTRY Definition of “Industry” (ID Act section 2j) Industry means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or a vocation of workmen.  INDUSTRY We had our usually ideas of an industry (After Justice Iyer's judgement in 1978) Systematic activity Carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency, including a contractor) For the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious nature but inclusive of material things/services geared to celestial bliss) (Modified in 1982 which excludes Hospitals, educational institutions, etc. but has not been notified)  INDUSTRY (IR Code secn. 2p) Industry means any systematic activity carried on by co-operation between an employer and worker (whether such worker is employed by such employer directly or by or through any agency, including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature), whether or not, — but does not include— (i) institutions owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic service; or (ii) any activity of the appropriate Government relatable to the sovereign functions of the appropriate Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or (iii) any domestic service; or (iv) any other activity as may be notified by the Central Government;  WORKER We have already understood the definition earlier and observed that the Stress is on the nature of job/duties and not his designation. In case of an worker doing many duties then the main duties and not some work incidentally done by the worker is decisive New addition in IR Code – “Employee” (already discussed) and “Fixed term employment”  New additions “Fixed term employment” "fixed term employment" means the engagement of a worker on the basis of a written contract of employment for a fixed period: Provided that— (a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent worker doing the same work or work of similar nature; (b) he shall be eligible for all statutory benefits available to a permanent worker proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute; and (c) he shall be eligible for gratuity if he renders service under the contract for a period of one year  What is an INDUSTRIAL DISPUTE What is an Industrial Dispute (ID Act Secn. 2 k) "Industrial Dispute" means any dispute or difference between employers and employers 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 of any person.  INDUSTRIAL DISPUTE In brief There must be a "collective will" of a substantial / appreciable number of workmen taking up the cause of the aggrieved workman. There must be a "community of interest." It must be first raised with the management and rejected by them. A minority union can raise industrial dispute (Even if a union has come into existence later it doesn't matter.) Individual Dispute is not always an Industrial Dispute Individual dispute per se is not an Industrial Dispute unless it is espoused by (i) Trade Union (ii) Appreciable number of workmen  Individual Dispute to become an Industrial Dispute However incase of separation Individual Dispute becomes an Industrial Dispute (Section 2 A) Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.  Redressal of Industrial Disputes Redressal of Industrial Disputes Through adjudication in LC / IT is possible only through Government and they cannot directly approach LC or IT The parties have to apply to government for reference to those bodies. However in case of individual separation this may lead to some difficulties. (2010 amendments)  Individual Dispute becoming an Industrial Dispute (Section 2 A) (Amendment 2010) “(2) Notwithstanding anything contained in section 10, any such workman as is specified in sub-section (1) may, make an application direct to the Labour Court or Tribunal for adjudication of the dispute referred to therein after the expiry of forty five days from the date he has made the application to the Conciliation Officer of the appropriate Government for conciliation of the dispute, and in receipt of such application the Labour Court or Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as if it were a dispute referred to it by the appropriate Government in accordance with the provisions of this Act and all the provisions of this Act shall apply in relation to such adjudication as they apply in relation to an industrial dispute referred to it by the appropriate Government.  Individual Dispute becoming an Industrial Dispute (Section 2 A) (Amendment 2010) (2) Deemed reference after forty five days from the date of the application before the conciliation officer (3) Limitation to raise a dispute- 3 Yrs. The application referred to in sub-section (2) shall be made to the Labour Court or Tribunal before the expiry of three years from the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in sub- section (1).”  Individual Dispute in IR Code 2020 (Section 2 q) "industrial dispute" means any dispute or difference between employers and employers or between employers and workers or between workers and workers which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person and includes any dispute or difference between an individual worker and an employer connected with, or arising out of discharge, dismissal, retrenchment or termination of such worker During disputes and otherwise Workmen & Management take actions Action(s) by - Workmen - Management What is a Dispute, Parties to the dispute & Actions taken by Parties A. Industry B. Workman C. Industrial Dispute D. Workmen’s action : Strike E. Management’s action: Lockout, Layoff, Retrenchment, Closure  Strike Means a cessation of work or refusal to continue to work by a body of workmen acting in combination, or a concerted refusal under common understanding to continue to work or to accept employment. (ID Act secn. 2q) Important features - Work stoppage by a group - Acting in combination - Concerted refusal, refusal under common understanding  Strike in IR Code 2020 (secn. zk) "strike" means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment and includes the concerted casual leave on a given day by fifty per cent. or more workers employed in an industry  STRIKE (Workmen Action) Earlier we had General Prohibitions & Special prohibitions for Public Utility Services Strike notice needs to be given Employer to send within 5 days of receipt to appropriate authorities Commencement of Strike Not before 14 days Not after 6 weeks If date mentioned not before expiry of date Not during the pendency of any conciliation proceedings before a conciliation officer and 7 days after the conclusion  STRIKE (IR Code secn 62) No person employed in an industrial establishment shall go on strike, in breach of contract— (a) without giving to the employer notice of strike, as hereinafter provided, within sixty days before striking; or (b) within fourteen days of giving such notice; or (c) before the expiry of the date of strike specified in any such notice; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings; or (e) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days, after the conclusion of such proceedings; or (f) during the pendency of arbitration proceedings before an arbitrator and sixty days after the conclusion of such proceedings, where a notification has been issued under sub-section (5) of section 42; or (g) during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award.  STRIKE (Workmen Action) Wages to be paid or not Question of Legality and Justifiability of a strike Just because a strike is legal does not entitle a workman to get wages Entitlement to wage is possible when strike is legal and justified Legal / Illegal – look into S-22, 23 & 24 Violation of S-22 & S-23 leads to illegal strikes Can be penalized (Disciplinary action) Justified / Unjustified - Depends upon the reason. Enquiry into Service condition of workmen, the cause of strike, urgency of strike, the reason for not resorting to dispute resolving machinery, contract of employment Strike whether legal or justified will be decided by the Industrial Adjudicator provided under I D Act. Payment is to be made when a strike is legal & justifiable Illegality & justification cannot co-exist and illegal strike can never be justified.  Management's Action Lockout, Layoff, Retrenchment, Closure Essence of what are they? The conditions to be remembered  Lockout, Layoff, Retrenchment, Closure Lockout (ID Act secn. 2l) Means the temporary closing of a place of employment or the suspension of work or the refusal of the employer to continue to employ any number of persons employed by him. Similar restrictions as applicable for Strikes are also applicable for Lockout  Lockout, Layoff, Retrenchment, Closure Lay Off (ID Act secn. 2kkk) means the failure, refusal or inability of an employer to give employment to a workman in the circumstances such as, shortage of coal, power or raw material or accumulation of stock, or breakdown of machinery or natural calamity or any other connected reason. As a workman He is in the muster roll of the establishment, He is not a "badli" or "casual" worker, He has completed one year of continuous service with the employer. A workman shall be deemed to have been laid off if he presents himself for work in the establishment at the time prescribed and not given employment within two hours.  Lockout, Layoff, Retrenchment, Closure Lay Off (IR Code secn. 2t) "lay-off" (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the break-down of machinery or natural calamity or for any other connected reason, to give employment to a worker whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched. Explanation.—Every worker whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment by the employer within two hours of his so presenting himself shall be deemed to have been laid-off for that day within the meaning of this clause: Provided that if the worker, instead of being given employment at the commencement of any shift for any day is asked to present himself for the purpose during the second half of the shift for the day and is given employment then, he shall be deemed to have been laid-off only for one-half of that day: Provided further that if he is not given any such employment even after so presenting himself, he shall not be deemed to have been laid-off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day;  Lockout, Layoff, Retrenchment, Closure Lay Off Compensation (applicable to industrial establishments which have 50 – 299 workers) A worker is entitled for lay-off compensation equal to 50% of his basic wages and D A for all days during which he is laid off except for weekly holidays that may intervene. Not entitled: A. If he refuses to accept any alternative employment (within 5 miles radius) which does not require any special skill or previous experience. B. If he does not present himself in the establishment at the time prescribed. C. If such layoff is due to a strike or slowing down by workmen in another part of the establishment.  Lockout, Layoff, Retrenchment, Closure Lay Off Restrictions (applicable to industrial establishments which have 300 or more workers) Cannot be Laid off: Without permission from appropriate government. Incase of emergency post facto application has to be made within 30 days. Application has to be made by the employer Has to wait for 60 days after applying. Worker has not been laid off if alternative employment is offered.  Lockout, Layoff, Retrenchment, Closure Retrenchment means the termination by the employer of the services of the workman for any reasons other than as a punishment inflicted by way of disciplinary action, but does not include (i) voluntary retirement of the worker; or (ii) retirement of the worker on reaching the age of superannuation; or (iii) termination of the service of the worker as a result of the non-renewal of the contract of employment between the employer and the worker concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or (iv) termination of service of the worker as a result of completion of tenure of fixed term employment; or (v) termination of the service of a worker on the ground of continued ill-health.  Lockout, Layoff, Retrenchment, Closure Retrenchment (≥ 50 workers) Any industry workman who has been in continuous employment for not less than one year shall be retrenched until: Notice: One month to the worker in writing indicating the reason for retrenchment and the period of notice has expired or has been paid wages in lieu of the notice period and to the appropriate Government Compensation to be paid: Equivalent to 15 days average pay for every completed year of service or any part thereof in excess of 6 months Transfer of undertaking: As if retrenched or conditions in new undertaking is similar to the earlier one.  Lockout, Layoff, Retrenchment, Closure Retrenchment (≥ 300 workers) No workman who has been in continuous employment for not less than one year shall be retrenched until: The worker has been given 3 months notice in writing indicating the reason for retrenchment and the period of notice has expired or has been paid wages in lieu of the notice period; He has been paid compensation equivalent to 15 days average pay for every completed year of service or any part thereof in excess of 6 months; Prior permission of the appropriate Government or such authority as may be specified by the Government has been obtained on an application made in this behalf. If the appropriate Government does not communicate the order granting or refusing to grant permission within 60 days the permission applied for shall be deemed to have been granted.  Lockout, Layoff, Retrenchment, Closure Retrenchment (contd.) When any worker belonging to a particular category is to be retrenched the employer (in the absence of any agreement between employer and workmen) shall ordinarily retrench the worker who was the last person to be employed in that category. The reason for deviation from the LIFO principle is to be recorded. Preference is to be given to retrenched workers when additional persons are required.  Lockout, Layoff, Retrenchment, Closure Closure means the permanent closing down of a place of employment or part thereof.  Lockout, Layoff, Retrenchment, Closure Closure Having ≥ 50 workers & NOT for construction work – two years) Notice: To the appropriate Government at least 60 days before the date on which the intended closure is to become effective, stating clearly the reasons for the intended closure. Compensation: All conditions as if retrenched. For closure beyond employer’s control max. 3 months. Not beyond control does not include: - Financial difficulties - Accumulation of stocks - Expiry of lease / license - Exhaustion of mineral (Mining industry no notice or compensation if offered alternative employment on similar terms)  Lockout, Layoff, Retrenchment, Closure Closure ≥300 workers & NOT for construction work – two years) Notice: Has to apply for prior permission to the appropriate Government at least 90 days before the date on which the intended closure is to become effective, stating clearly the reasons for the intended closure. Copy shall be simultaneously served on the representatives of the worker. The appropriate Government may by order grant or refuse to grant permission (copy of order shall be communicated to the workmen and the employer). Wait for 60 days from the date on which the application was made. On expiry the permission shall be deemed to have been granted. Compensation: 15 days average pay for every completed year of service or any part thereof in excess of 6 months. Approaches to resolving (industrial disputes) Bipartite (Mutually settle) Tripartite (Structured process involving external agency) Approaches to resolving industrial disputes Bipartite (Mutually settle) (COLLECTIVE BARGAINING) Collective Bargaining  What is Collective Bargaining? ILO definition Negotiations about working conditions and terms of employment between an employer, a group of employers or one or more employers' organizations, on the one hand, and one or more representative workers' organizations on the other, with a view to reaching agreement. Features of CB Collective in nature basically a Two Party process Negotiation / Flexibility - give and take Power relationship Negotiation with a view to reaching agreement Continuous process  CB in India – as it was & now Difficulties Bargaining agent and its selection This was a problem earlier and organizations solved it by Coalition Bargaining e.g. Jt. Forums in BHEL, SAIL etc. In IR Code we have “Negotiating Union” or “Negotiating Council” (section 14) to negotiate on such matters as prescribed. But process to determine them yet to be given.  CB in India – as it was & now Enforcement of agreement Earlier in ID Act – Settlement more binding than Agreement How it is overcome ? “Convertive bargaining”  CB in India – as it was & now Enforcement of agreement Now in IR Code we have (section 14) (5) Where any negotiation on the matters referred to in sub- section (1) is held between an employer and a negotiating council, any agreement is said to be reached if it is agreed by the majority of the representatives of the Trade Unions in such negotiating council. (6) Any recognition made under sub-section (2) or (3) or (4) shall be valid for three years from the date of recognition or constitution or such further period not exceeding five years, in total, as may be mutually decided by the employer and the Trade Union, as the case may be. So agreement will happen However Agreement is still binding on the parties to the agreement  Difficulties in CB in India Attitudes of the parties ( Employers and Trade Unions ) towards CB & Other difficulties We need to accustom ourselves with the new scenario as envisaged in IR Code Employers are changing but more needs to be done Trade Unions are weak in many respects Grievance Management  Grievance Management Grievance: Any discontent or dissatisfaction whether expressed or not and whether valid or not, arising out of anything connected with the company that an employee thinks, believes, or even feels is unfair, unjust or inequitable. There are many sources of grievance We need mechanisms of grievance resolution We need a Grievance Redressal Procedure  Indian scenario (as it was till 1982) A grievance resolution system has been suggested in ID Act 1947 Chapter – II B, section 9-C (1982 amendment) Main feature of the section Applicability: 50 workmen or more employed Employer shall provide a grievance settlement Authourity for industrial dispute of an individual workman No reference (to anywhere) (under Chapter – III) of any dispute unless such dispute has been referred to the Grievance Settlement Authourity but date of notification was not given.  Indian scenario (2010 amendment) After section 9B of the ID Act, for Chapter IIB, the following Chapter shall be substituted, namely: “CHAPTER IIB Grievance Redressal Machinery Setting up of Grievance Redressal Machinery 9C. (1) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances. (2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.  Indian scenario (2010 amendment) Grievance Redressal Machinery 9C. (3) The Chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year. (4) The total number of members of the Grievance Redressal Committee shall not exceed more than six. Provided that there shall be, as far as practicable one woman member if the Grievance Redressal Committee has two members and in case the number of members are more than two, the number of women members may be increased proportionately.  Indian scenario (2010 amendment) Grievance Redressal Machinery (5) Notwithstanding anything contained in this section, the setting up of Grievance Redressal Committee shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions of this Act. (6) The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a written application by or on behalf of the aggrieved party. (7) The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision of Grievance Redressal Committee and the employer shall, within one month from the date of receipt of such appeal, dispose off the same and send a copy of his decision to the workman concerned.  Indian scenario (2010 amendment) Grievance Redressal Machinery (8) Nothing contained in this section shall apply to the workmen for whom there is an established Grievance Redressal Mechanism in the establishment concerned.”  Grievance Redressal Committees (IR Code secn 4) (1) Every industrial establishment employing twenty or more workers shall have one or more Grievance Redressal Committees for resolution of disputes arising out of individual grievances. (2) The Grievance Redressal Committee shall consist of equal number of members representing the employer and the workers to be chosen in such manner as may be prescribed. (3) The chairperson of the Grievance Redressal Committee shall be selected from among persons representing the employer and the workers alternatively on rotational basis every year. (4) The total number of members of the Grievance Redressal Committee shall not exceed ten: Provided that there shall be adequate representation of women workers in the Grievance Redressal Committee and such representation shall not be less than the proportion of women workers to the total workers employed in the industrial establishment. (5) An application in respect of any dispute referred to in sub-section (1) may be filed before the Grievance Redressal Committee by any aggrieved worker in such manner as may be prescribed within one year from the date on which the cause of action of such dispute arises.  Grievance Redressal Committees (6) The Grievance Redressal Committee may complete its proceedings within thirty days of receipt of the application under sub-section (5). (7) The decision of the Grievance Redressal Committee on any application filed under sub-section (5) shall be made on the basis of majority view of the Committee, provided more than half of the members representing the workers have agreed to such decision, otherwise it shall be deemed that no decision could be arrived at by the Committee. (8) The worker who is aggrieved by the decision of the Grievance Redressal Committee or whose grievance is not resolved in the said Committee within the period specified in sub-section (6), may, within a period of sixty days from the date of the decision of the Grievance Redressal Committee or from the date on which the period specified in sub- section (6) expires, as the case may be, file an application for the conciliation of such grievance to the conciliation officer through the Trade Union, of which he is a member, in such manner as may be prescribed.  Grievance Redressal Committees (9) Where any employer discharges, dismisses, retrenches, or otherwise terminates the services of an individual worker, any dispute or difference between that worker and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other worker nor any Trade Union is a party to the dispute. (10) Notwithstanding anything contained in this section or section 53, any worker as is specified in sub-section (5) may, make an application directly to the Tribunal for adjudication of the dispute referred to therein after the expiry of forty-five days from the date he has made the application to the conciliation officer of the appropriate Government for conciliation of the dispute, and on receipt of such application the Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as the Tribunal has in respect of the application filed under sub-section (6) of section 53. (11) The application referred to in sub-section (10) shall be made to the Tribunal before the expiry of two years from the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in sub-section (9)  Grievance Redressal Procedure Formal system of several steps through which a grievance can be taken to higher levels of management for redressal within some specified time limits Usual features : Time limit Various steps  Grievance redressal mechanism is a process of providing justice in organizations System which provides employees with VOICE Characteristics Simple procedures, Accessibility Easy to avail & use, Non-punitive, non-retributive , maintains anonymity, Responsive, gives answer & timely, Correctable outcome, administered well, includes follow up. So an effective Grievance Redressal system should have these features Resolving grievances - Some suggestions  Common errors 1. Stopping too soon in the search of facts 2. Expressing an opinion before all relevant facts have been discovered 3. Resorting to “bossism” instead of discussion 4. Settling the wrong grievance  Steps in handling grievance Grievance constitutes a managerial problem. In the solution of a problem, the greater burden rests on management. Its our duty as a manager to try and solve the grievances. We should remember that any unresolved grievance contains the seeds of future industrial disputes  Steps in handling grievance Receive and define the nature of the dissatisfaction The supervisor should assume that the employee is fair in presenting the grievance He should not be too busy to listen and should not give an impression of condescension He must listen carefully and with empathy.  Steps in handling grievance (contd.) Get the facts Facts must be separated from opinions and impressions Analyze and decide Try & understand the various factors that contributed to this grievance While deciding do not forget the implications One must be aware that the decision may constitute a precedent within the department and the company.  Steps in handling grievance (contd.) Always give an answer Some answer is better than none. The privilege and responsibility of communicating favourable decision to the employee should be delegated to the immediate supervisor Follow up To determine whether grievance has been handled satisfactorily  Grievance Audit What is it? Why do we do it? How effective is the grievance procedure Organizational health How do we do it? Gather data on Grievances & Analyze Industrial Disputes & its resolution (contd.)  Industrial Disputes & its resolution Approaches to resolving industrial disputes Bipartite (Mutually settle) Tripartite (Structured process involving external agency) Authorities under ID Act 1947 (till IR Code is implemented)  THE INDUSTRIAL DISPUTES ACT, 1947 (for Regulating & Resolving ID) This legislation is designed to ensure industrial peace by recourse to a given form of procedure and machinery for investigation and settlement of industrial disputes. Its main objective is to provide for a just and equitable settlement of disputes by negotiations, conciliation, voluntary arbitration and adjudication instead of by trial of strength through strikes and lock-outs.  MACHINERIES FOR INVESTIGATION AND SETTLEMENT OF DISPUTES The following authorities are provided under the. Industrial Disputes Act for resolving the same. Conciliation by Conciliation Officer, Board of Conciliation, Court of Inquiry Arbitration by Voluntary Arbitration Adjudication by Labour Court (LC), Industrial Tribunal (IT), and National Industrial Tribunal (NIT)  Dispute Resolving mechanisms in India (till IR Code is implemented) DISPUTE Mutually Agree Fail to Agree (Agreement) Conciliation Officer Succeeds (Settlement) Fail to Settle Vol. Arbitration Appropriate Govt. to decide (Award) Govt. has discretionary power Refers to Adjudication Does not Refer. Labour Court, Industrial Tribunal Govt. will give you reasons for not referring National Tribunal (Award)  CONCILIATION Conciliation is a process by which representatives of management and workmen and their unions are brought together before a third person or a body of persons with a view to induce or persuade them to arrive at some agreement to their satisfaction and in the larger interest of industry and community as a whole.  Conciliation Officer Conciliation Officer Appropriate Government appoints. To mediate & promote settlement of industrial disputes. His role is only advisory and mediatory. Conciliation Officer may be appointed for a specified area or for specified industries in specified area and his appointment may be permanent or for a limited period. IR Code also contains similar ideas  Powers of Conciliation Officer Although conciliation officer is not a judicial officer, but to enable him to discharge his duties cast upon him under the Act, he has been empowered to enter the premises occupied by an establishment. He can also interrogate any person. He can also call for any document which he has ground for considering relevant in the dispute. He is also empowered to enforce the attendance of any person for the purpose of examination of such persons. For all these purposes the conciliation officer shall have the same power as are vested in a Civil Court under the Code of Civil Procedure. He is also deemed to be public servant. IR Code also contain similar ideas  Process of Conciliation Where any industrial dispute exists or is apprehended or is brought to the notice of conciliation officer by the parties concerned, or he receives a notice of strike or lock-out, he is to hold