49994222-industrial-relation

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Slide 1:

Meaning Industrial relation means the relationship between the management and workmen in a unit or an industry. It is an art of living together for the purpose of production, productive efficiency, human well-being and industrial progress . It comprises of a network of institutions such as trade union, collective bargaining, employers, the law, and the state, which are bound together by a set of common values and aspirations.

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Industrial relations are the composite results of the attitudes and approaches of employers and employees towards each other with regard to planning, supervision, direction and co-ordination of the activities of an organization with a minimum of human efforts and frictions with an animating sprit of co-operation and with proper regard for the genuine well-being of all members of the organization. -------- Tead & Metcalfe Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions. ---------- Industrial dispute Act 1947 Conclusively I.R. is that part of management which is concerned with the manpower of the enterprise. It is, thus, the relation created at different levels of the organization by the diverse, complex and composite needs, aspirations, attitudes and approaches among the participants.

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SCOPE The scope of industrial relations are quite vast. The main issues involved here include the following: 1. Collective bargaining 2. Machinery for settlement of industrial disputes 3. Standing orders 4. Workers participation in management 5. Unfair labor practices

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Objectives – Primary-Bringing about the sound and healthy relations between employers and employees. Secondary To facilitate the production and productivity; To safeguard the rights and interest of both labour and management by enlisting their co-operation; To avoid unhealthy atmosphere in the industry, especially like Work stoppages Go slow Gheraos Strike Lock-out etc. To establish and maintain industrial democracy.

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1.To promote and develop congenial labour management relations. 2. To enhance the economic status of the worker by improving wages, benefits and by helping the worker in evolving sound budget. 3. To regulate the production by minimizing industrial conflicts through state control. 4. To socialize industries by making the government as an employer . 5. To provide an opportunity to the workers to have a say in the management and decision-making. 6. To improve workers strength with a view to solve their problems through mutual negotiations and consultation with the management. 7. To encourage and develop trade unions in order to improve the workers strength, 8. To avoid industrial conflict and their consequences and 9. To extend and maintain industrial democracy.

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Importance To enhance the economic status of workers. To reduce conflict of the organization. To make good relation with subordinates. To develop relation with other. To participate in decision making. To extent and maintain industrial democracy.

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The significance of good industrial relation in any country cannot be ones emphasized. Good industrial relations are necessary for the following reasons. 1. To help in economic progress of a country . The problem of an increase in productivity is essentially the problem of maintaining good industrial relations. That is why they form an important part of the economic development plan of every civilized nation.

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2. To help establishing and maintaining true industrial democracy this is prerequisite for the establishment of a socialist society .

3. To help the management both in the formulations of informed labour relations policies and in their translation into action. :

3. To help the management both in the formulations of informed labour relations policies and in their translation into action.

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4.To encourage collective bargaining as a means of self-regulation. They consider the negotiation process as an educational opportunity a chance both to learn and to reach .

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5. To help government in making laws forbidding unfair practices of unions and employers . In climate good industrial relations every party works for the solidarity of workers movement. Unions gain more strength and vitality. There is no inter-union rivalry.

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6.Employees give unions their rightful recognition and encourage them to participate in all decisions . Unions divert their activities from fighting and belligerence to increase the size of the distribution and to make their members more informed (workers education) on vital issues concerning them.

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7 . To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness. Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste, loss and confusion. It also means in sub-ordination and non-co-operation.

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8. Industrial relations are eventually human relations therefore, the same basis of human psychology prevails in the field of industrial relations therefore, and the efficiency of an industry is directly related with the quality of relationship, which is being built up amongst the individuals who work together

Industrial relation participants:

Industrial relation participants

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Workers and their organization- Workers -industrial relations are influenced by the personal characteristics of workers as an individual like their Culture Educational attainments Qualification Skills Attitudes towards work etc. Workers organization - On the other hand worker’s organizations, known as trade unions, are political institution. Trade unions are formed for safeguarding the economic and social interest of the workers

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Employers and their organization- Employer -The employer is the second key variable in industrial relation system. Employer try to regulate the activities of workers to get the maximum output at low facilities that led to industrial unrest. Employers organization – In order to increase the bargaining power of employer against the unlawful demands of the workers, some of the employers in several industries have organized employers associations. These associations put pressure on trade union and government to safeguard the interest of management.

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Government Government -The fifth important player in industrial relation is government. It plays following role to contribute to industrial relation system Providing employment Intervening in working relationship Regulating wages, bonus, and working conditions Laid down various statutory rules and regulation Dog-watch for both employees union and employer unions

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The features or characteristics of industrial relation system in India can be seen in the diagram plotted above. Industrial relations, in India, can be characterized as follow Preventive- the preventive machinery has been set up with a view to create harmonious relations between labour and management so that the disputes do not arise. It includes

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Workers’ participation in management- It is a method whereby the workers are allowed to be consulted and to have a say in the management of the unit. work committee Joint management council shop council

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Tripartite bodies- employee representatives employers representatives, central government constituted body

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Code of discipline- is a set of self imposed mutually agreed voluntary principles of discipline and good relation between the management and workers in industry. the Indian labour conference held in 1958 approved a code of discipline containing three set of principles.

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Code for both management and workers- it makes it obligatory upon them to comply with existing system for the settlement of disputes by Mutual negotiation, Conciliation, Voluntary arbitration, To give up coercion, victimization, work stoppages, lock-outs and litigations To set up grievance procedure.

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2. Code for management- consist of obligations to be observed by the management Management should not raise the work load unless agreed otherwise. Settle grievance promptly Implement the settlements and awards Allow grievance appeal in all cases Give recognition to unions according to the criteria laid down in the code.

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The third set of principles consist of obligations of unions. Should not engage in coercion and un peaceful acts in demonstrations. There is no union activity during working hours unless permitted by law or agreement. Practices like Negligence of duties Careless operations Damage to property will be strictly discouraged. Settlement and awards will be implemented promptly.

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Standing order Under the standing order act, 1946, it was made obligatory that standing order should govern the condition of employment. It regulate the employment conditions from entry to exit. The provisions of standing order regulate the condition of employment like the discharge grievances misconduct and disciplinary actions etc.

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Judicial machinery The judicial machinery has been set up under the industrial dispute act, 1947, to settle the industrial disputes. The nature of the machinery is curative and this machinery comprises of following provisions Conciliation Voluntary arbitration Adjudication (compulsory arbitration) labour court industrial tribunals

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Conciliation Conciliation is a method of resolving the industrial conflict with the help of a third party, who intervene in the dispute situation upon a request by either or both the parties. A conciliator plays a passive role in the settlement of conflicts and the scope of his function is limited to the rules and regulations as provided by the law. Conciliation officer (appointed by the government of India and posses the power of a civil court awards will be binding on both the parties)

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Board of conciliation consisting of one chairman and two or four members from the parties Court of inquiry- the government can also appoint a court of inquiry to enquire into any matter connected with industrial dispute. The court is expected to submit its report within six months.

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Voluntary arbitration This method of settling disputes refers to getting disputes settled through an independent person chosen the parties involved mutually or voluntarily. It may, however, be noted that arbitrator is not vested with any judicial powers. He drives his powers from the agreement that parties have made between themselves regarding the references of disputes to the arbitrators. The arbitrator submit his award to the government and it publishes it within 30 days of such submission.

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Adjudication Adjudication consist of settling disputes through intervention by the third party appointed by the government. The law provides the adjudication to be conducted by the labour court industrial tribunal or national tribunals.

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Labour court The labour court deals with disputes relating to The legality of an order passed by an employer under the standing orders.] The application and interpretation of a standing orders. Discharge and dismissal of workmen and grant of relief to them. Withdrawal of any statutory concession. Illegality or otherwise of any strikes or lock-outs. All matters not specified in the third schedule of industrial dispute act, 1947.

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Industrial tribunals deals with Wages includes the mode and period of payment. Compensatory and other allowances. Hours of work and rest intervals. Leave with wages and holidays. Bonus, provident fund, profit sharing, and gratuity. Rules of disciplines Retrenchment Any other matter that may be prescribed.

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Trade Union Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as “Any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers, or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”

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Then this definition talks about three relationships. They are relationship between the: Workmen and employer Workmen and workmen and employers and employers

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Features of Trade unions It is an association either of employers or employees or of independent workers. They may consist of :- – Employers’ association (EFI), – General labor unions (AITUC) – Friendly societies (Rotary Club) – Unions of intellectual labor (All India Teachers Association) It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. It is formed to protect and promote all kinds of interests –economic, political and social-of its members. It achieves its objectives through collective action and group effort

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Trade union in India In the light of the efforts of few social reformers under the leadership of Sorabjee Shapurjee Bengali, the Bombay factory commission (1875) recommend the introduction of factories act and it was passed in 1881. To remove the inadequacy of factories act, 1881, the first labour organization of India “Bombay millhands association” was formed in 1890.

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The successive outcome to this gave impetus to the development of several other workers unions the major one are Amalgamated society of railway servants of India and Burma (1897) The printers union Calcutta (1905) The Kamgar Hitvardhak Sabha (1910) These were the Ad Hoc bodies and was not regarded as the trade unions in true sense

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World war first provided the true trade union movement in India. To ensure the workers well being as well as industrial progress in the country, the international labour organization was established in 1919. Later on the first Indian trade union “Madras labour union” was formed on systematic lines by B.P.Wadia in 1919. 1920 was of crucial importance in the history of Indian trade union movement. All India trade union congress was formed

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In 1921 a trade union legislation was made by the efforts of N.M.Joshi, however his efforts succeeded only a lapse of five year when the Indian trade union act was enacted in 1926. AITUC was split into all India trade union federation in 1929 in 1931 there was another split of AITUF called all India red trade union congress

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Finally in 1940, the frictions among these different split parts were over and the later two merged with AITUC, but it could not last long due the world war second and it was split again and an India federation of labour was formed. Indian national trade union congress (INTUC) came into existence in 1947 Bhartiya majdoor sangh (1955) The hind majdoor panchayat (1965) Centre of Indian trade union (1970) National labour organization due to the split in INTUC.

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Here, further, at a glance, we can see the growth of trade union in India in the table given below Year Number of registered union 1991 1995 1998 2000 current 53535 57952 61992 66056 search

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The minimum requirement for central recognition of trade union is that the trade union should have a membership of at least 5 lakhs and should be spread over in four states and industry.

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Objectives of Trade Union To improve the economic lot of employees by securing for them better wages. To secure better working conditions for the workers. To secure bonus for the employees from the profit of the concern. To resist schemes of the management which reduce employment, e.g., rationalization and automation.

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To secure welfare of employees through group schemes which give benefit to every employee. To protect the interests of employees by taking active participation in the management. To secure social welfare of the employees. To secure organizational stability, growth, and leadership.

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Functions of Trade Unions : Functions of Trade Unions Broadly speaking, trade unions perform two types of functions, viz., Militant Functions . One set of activities performed by trade unions leads to the betterment of the position of their members in relation to their employment. The aim of such activities is to ensure adequate wages, secure better conditions of work and employment, get better treatment from employers, etc. When the unions fail to accomplish these aims by the method of collective bargaining and negotiations , they adopt an approach and put up a fight with the management in the form of so-slow, strike, boycott, gheraos, etc. Hence, these functions of the trade unions are known as militant or fighting functions.

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Fraternal Functions . Another set of activities performed by trade unions aims at rendering help to its members in times of need, and improving their efficiency. Trade unions try to foster a spirit of cooperation and promote friendly relations and diffuse education and culture among their members. They also arrange for legal assistance to its members , if necessary. Besides, these, they undertake many welfare measures for their members, e.g., school for the education of children, library, reading-rooms, in-door and out-door games, and other recreational facilities. Some trade unions even undertake publication of some magazine or journal. These activities, which may be called fraternal functions, depend on the availability of funds, which the unions raise by subscription from members and donations from outsiders, and also on their competent and enlightened leadership.

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Functions of Trade Unions : Functions of Trade Unions Another broad classification of the functions of unions may be as follows Intra-mural activities . These consist of those functions of the unions that lead to the betterment of employment conditions such as ensuring adequate wages and salaries, etc. for which the methods adopted may be collective bargaining, negotiations, strikes, etc. Extra-mural activities . These activities help the employees to maintain and improve their efficiency or productivity, e.g., measures intended to foster a spirit of cooperation, promote friendly relations, and diffuse education among members and various other types of welfare measures. Political activities. Modern trade unions also take up political activities to achieve their objectives. Such activities may be related to the formation of a political party or those reflecting an attempt to seek influence on public policy relating to matters connected with the interests of working class.

Basic functions:

Basic functions To secure for workers fair wages To safeguard security of tenure and improve conditions of service To enlarge opportunities for promotion and training To provide for educational, cultural, and recreational facility 5. To promote the identity of interest of workers with their industry 6. To offer responsive co-operation in improving levels of production and productivity, discipline and high standard of quality 7. To promote and collective welfare

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Economic function To arrange funds

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Social function Improving the Quality of work life via cooperative credit society, cooperative stores, training and development programme especially designed to empower the house wives, and organization of mutual fund etc. Education - informing workers about their statutory rights and responsibilities etc. Research - collection and analysis of wage data, fringe benefits, working conditions, and welfare activities through region-cum-industry surveys. Publication - publication of periodicals, news letters or magazines for establishing communication with members and making them aware of union policies and programme.

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Political functions. Modern trade unions also take up political activities to achieve their objectives. Such activities may be related to the formation of a political party or those reflecting an attempt to seek influence on public policy relating to matters connected with the interests of working class.

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Structure of Trade Unions Plant level Unions: The first level in the structure from below is the plant level union. This comprises the unions in one organization or factory. Please note that only seven members are required to form a union. Local Level federations. This is the second level in the structure from below. The local trade union federation holds together the plant level unions at the local level in a particular craft and industry. These local level federations might be affiliated to either some regional level or national level federation or these may be independent.

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Regional level federations. These are the organizations of all the constituent unions in a particular state or region. National federations . These are national level bodies to which plant level unions, local unions or regional level unions may get affiliated. These are the apex bodies at the top of the structure. They act as coordinating bodies. These national federations may have their own regional or state level coordinating bodies to which the plant level unions may get affiliated.

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Some of the Trade Union Organizations in India: 1 . A l l In d ia T r a d e U n ion Con g ress (A I T U C ) 2 . B h a r a t iy a Majdoor S a n g h (B M S ) 3 . C e n t re O f In d ian T r a d e U n ion s (C I T U ) 4 . H i n d Majdoor K i sa n Pa n c h a y a t (H M K P ) 5 . H i n d Majdoor S a b h a (H M S ) 6 . In d ia n F e d e ra t ion O f F r ee T r a d e U n ion s (I F F T U ) 7 . In d ia n N a tion a l T r a d e U n ion Con g ress (IN T U C ) 8 . N a tion a l F r on t O f I n dia n T r a d e U n ion s (N F I T U ) 9 . N a tion a l L a b o r O r g a n i za t ion (N L O ) 1 0 .T r a d e U n ion s Co - ordin a tion C e n t re (T U C C ) 1 1 .U n ited T r a d e U n ion Con g ress (U T U C ) 1 2 .A l l I n dia B a nk Em p loyees’ As s oc i a t ion 1 3 .A l l I n dia In s u r a n c e Em p loyees’ F e d e ra t ion 1 4 .A l l I n dia Ra i lw a y m e n ' s F e d e ra t ion 1 5 .N a tion a l F e d e ra t ion of Post s & T e leg r a p h s Em p loyees 1 6 .In d ian Pa p er M i ll Assoc i a t ion

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Growth problems, issues, and weaknesses of trade unions Uneven growth Limited membership Political domination Multiplicity of unions Inter-union rivalry Lack of full time office bearers Lack of funds Lack of interest by the members Lack/negligence of workers’ welfare Lack of education

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To facilitate the weakness of unionization in India on the initiative of shri N.M. Joshi, the legislative assembly a resolution on 1 st march, 1921 to take steps to introduce legislation for registration of trade unions and protection of bona fide trade union activities. The central govt after consulting with provincial govt drew up a bill providing for registration of trade unions and introduced it in the assembly on 31 st august, 1925. It was passed on 25 march, 1926. The trade union act, thus was brought into force on 1 st June, 1927

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Highlights of the act Chapter I Preliminary 1 Short title, extent and commencement. 2 Definitions. .

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Chapter II Registration of Trade Unions 3 Appointment of Registrars. 4 Mode of Registration. 5 Application for registration. 6 Provisions to be contained in the rule of a Trade Union. 7 Power to call for further particulars and to require alteration of name. 8 Registration. 9 Certificate of registration. 10 Cancellation of registration. 11 Appeal. 12 Registered office. 13 Incorporation of registered Trade Unions. 14 Certain Acts not to apply to registered Trade Unions.

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Chapter III Rights and liabilities of registered trade unions 15 Objects on which general funds may be spent. 16 Constitution of a separate fund of political purposes. 17 Criminal conspiracy in the trade disputes. 18 Immunity from civil suit in certain cases. 19 Enforceability of agreements. 20 Right to inspect books of Trade Unions. 21 Rights to minors to membership of Trade Unions. 21A Disqualification of office bearers of Trade Union 22 Proportion of office-bearers to be connected with the industry.

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23 Change of name. 24 Amalgamation of Trade Union. 25 Notice of change of name on amalgamation. 26 Effects of change of name, and of amalgamation. 27 Dissolution. 28 Returns

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Chapter IV Regulations 29 Power to make regulations. 30 Publication of regulations

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Chapter V Penalties and procedure 31 Failure to submit returns. 32 Supplying false information regarding Trade Unions. 33 Cognizance of offences.

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Under sec-1 Short title – This Act may be called the Trade Unions Act,1926. Extent - 2. It extends to the Whole of India Commencement - 3. It shall come into force on such date as the Central Government by notification in the Official Gazette, appoint

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Definitions under section-2 Appropriate government- Central govt- whose objects are not confined to one state in relation to trade unions. State govt- whose objects are confined to one state in relation to trade unions . Executives - the body to which the management of the affairs of a trade union is entrusted. Office bearer- office bearer in the case of a trade union, includes any member of the executives thereof, but not include an auditor.

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Trade dispute- any dispute between Employer and employee Employer and employer Employee and employee which is connected with the employment and non-employment or the terms of employment or the terms of the labour, of any person Workmen- workmen means all the persons employed in trade or industry whether or not in the employment of the employer with whom the trade dispute arises.

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Definition of Trade union- Section 2(h) “Any combination, whether temporary or permanent, formed 1.Primarily for the purpose of regulating the relations between workmen and employers, between workmen and workmen, between employers and employers, 2. For imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”

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The act provide for the registration of trade unions under chapter 3 rd Appointment of registrar (sec-3) The act provide that the appropriate govt shall appoint a person to be the registrar of trade unions for each state. It may appoint as many additional and deputy registrar of trade unions as it thinks fit for the purpose of exercising and discharging under the superintendence and direction of the registrar Powers and functions of registrar under this act as it may, by order, specify defining the local limits within which any such additional or deputy registrar shall exercise and discharge the powers and functions so specified.

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Mode of registration (sec-4) The act provide that any seven or more members of a trade union may apply for registration of the trade union All the members applying for registration must subscribe their name to the rules of the trade union and also comply with the provisions of the act relating to registration Provided that no trade union of workmen shall be registered unless at least 10% or 100 of the workmen, whichever is less employed in the establishment with which it is connected are the members of such trade unions on the date of making of application for registration.

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Application of registration (sec-5) The act provide that a trade union may become a registered trade union in the following manner An application should be sent to the registrar The application in form “A” should be accompanied with a copy of rules of the trade union and a statement stating Name, occupation, and the addresses of the members making application and in case of workmen Name, occupation, and the addresses of the workplace Name of trade union and the address of its head office etc. Already functional trade union not registered yet may sent an application giving the details of particulars in prescribed form

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Provisions to be contained in the rules of a trade union (sec-6) Every registered trade union is required to have written rules dealing with the certain matters specified in schedule 2 nd of the central trade union regulations, 1938. Power to call further particulars and to require alteration of name (sec-7) Provide that the registration of a trade union will be refused by the registrar if require any more particular or alteration in the name of trade union applied in application is required

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Registration (sec-8 ) The section 8 of the act provide that a registrar will register the trade union in the register if he is satisfied that the trade union has complied with all requirements of the act in regard to registration. Certificate of registration (sec-9) The registrar on registering a trade union shall issue a certificate of registration on a prescribed form Minimum requirement about membership of a trade union (sec-9A) Provide that the trade union shall at all times continue to have not less than 10% or 100 of the workmen whichever is less, subject to a minimum 7 should be engaged or employed in the establishment with which it is connected.

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Cancellation of registration (sec-10) The section 10 of the trade union act provide a registrar with the power of withdrawing or cancelling the registration of any registered trade union on various ground like Voluntary application by the trade union Any violation of the provisions of the act may cause the cancellation of trade union etc but the act also provide a registrar has to give a 2 months prior notice to the trade union.

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Appeals (sec-11) The act Provide the provision for limited right to appeal from the decision of a registrar If any person is not satisfied by the refusal of the registrar to register or by the cancellation of a certificate. Registered office (sec-12) ----Provides provisions in relation to the registered office address, ----If change in current address within 14 days registrar should be informed in writing. ----These changes should be recorded in the register referred to in section 8 of the act.

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Incorporation of registered trade union (sec-13) Provides that after registration, a trade union become entitled to the following It becomes a body corporate It gets a common seal It can acquire and hold asset It can sue and be sued in its registered name

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Certain acts do not apply to the registered trade union namely (sec-14) The societies registration act, 1860 The co-operative societies act, 1912 The companies act, 1956

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Rights and liabilities of a registered trade union (chapter 3) Objects on which general funds may be spent (sec-15) Provide provision in the form of general restraints against expenditure of the general funds of a trade union. The funds shall not be spent on any other than Expenses of office bearers, administration, prosecution, compensation for loss out of industrial disputes, educational and publication related provision for the members of the trade union, etc. Constitution of a separate fund for political purpose (sec-16) This section provide that a registered trade union may constitute a separate fund for political and civic purpose from the contributions separately levied or made to that fund, no expenditure from the general fund for such purpose will be permitted.

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Criminal conspiracy in trade disputes (sec-17) Provides the provision to confer immunity from liability in case of criminal conspiracy under section 120-B of the Indian penal code committed by an office bearer or a member of registered trade union Immunity from civil suits in certain cases (sec-18) Deals with the immunity from civil proceedings afforded to a registered trade union, and to its members or office bearers. Enforceability of agreement (sec-19) Provides that an agreement, made between the members of registered trade union not to accept employment unless conditions as to pay, hours of work etc., are fulfilled, will not be void

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Right to inspect books of trade unions (sec-20) Provides that the account books of a registered trade union and the list of members of trade union shall be open to inspection by an officer or member of the trade union at such times as may be provided for in the rules of trade unions. Right of minors to membership of trade unions (sec-21) The act also provide for that a person who has attain the age of 15 years may be a member of a registered trade union. Although a person of 15 year may become the member of a registered trade union but could not become the office bearer until he attains the age of 18 year as prescribed in the section 21-A.

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Disqualification of office bearers (sec-21A) The sec-21A provides that a person shall be disqualified for being chosen as, and for being a member of executives or any other office bearer of any registered trade union, if- He has not attained the age of 18 years He has been convicted by a court in India of any offence and sentenced to imprisonment, unless a period of 5 years has elapsed since his release. Proportion of office bearer to be connect with industry (sec-22) Not less than one half of the total number of the of every registered Trade Union shall be persons actually engaged in an industry with which the Trade Union is convicted.

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Change of name (sec-23) Provides that any trade union may, with the consent of not less than 2/3 of the total number of its member and subject to the provision of section 25of the act, change the name of trade union Amalgamation of trade unions (sec-24) Any two or more trade unions may, with the consent of not less than one half of the members of each trade union without the division or dissolution of the funds via the voting method where minimum 60% vote in favor, amalgamate, and this new trade union shall have give and seek prior notice (sec-25) and application for registration (sec-6) thus the amalgamation shall have effect from the date of registration.

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Notice of change of name or amalgamations - (sec-25) (1) Notice in writing of every change of name and every amalgamation, signed, in the case of change of name, by the Secretary an by seven members of the Trade Union changing its name and in the case of an amalgamation by the Secretary and by seven members of each and every Trade Union which is a party thereto, shall be sent to the Registrar, and where head office of the amalgamated Trade Union is situated in a different (State), to the Registrar of such (State).

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(sec-25) (2) If the proposed name is identical with that by which any other existing Trade Union has been registered or in the opinion of the Registrar so nearly resembles such name as to be likely to deceive the public or the members of either Trade Union, the Registrar shall refuse to register the change of name.

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(sec-25) (3) the Registrar shall if he is satisfied that he provisions of this Act in respect o change of name have been complied with, register the change of name in the register referred to in Section 8, and the change of name shall have effect from the date of such registration.

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(sec-25) (4) The Registrar of the (State) in which the head office of the amalgamated Trade Union is situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been complied with and that the Trade Union formed thereby is entitled to registration under Section 6 register the Trade Union in the manner provided in Section 8, and the amalgamation shall have effect from the date of such registration

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Effects of change in name and of amalgamation(sec-26) – (1) The change in the name of a registered Trade Union shall not effect any rights or obligation of the Trade Union or render defective any legal proceeding by or against the Trade Union, and any legal proceeding which might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name. (2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any such Trade Unions or any right of a creditor or any of them.

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Dissolution (sec27)- (1) When a registered Trade Union is dissolved, notice for the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar and shall be registered by him if he is satisfied the dissolution has been effected in accordance with the rules of the Trade Union, and the dissolution shall have effect from the date of such regulation. (2) Where the dissolution of a registered Trade Union has been registered and the rules of the Trade Union do not provide for the distribution and funds of the Trade Union on dissolution, the Registrar shall divide the funds amongst the member in such manner as may be prescribed.

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Returns (sec- 28) – (1) There shall be sent annually to the Registrar, on or before such date as may bee prescribed a general statement, audited in the prescribed manner, of all receipts and expenditure of every registered Trade Union during the year ending on 31st day of next preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such 31st day of The statement shall be prepared in such form and shall comprise such particulars as may be prescribed.

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(2) Trade Union during the year which the general statement refers, together also with copy of the rules of the Trade Union corrected up to the date of the dispatch thereof to the Registrar.

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(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the Registrar within fifteen days of making of the alteration .

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(4) For the purpose of examining the documents referred to in subsections (1), (2) and (3), the Registrar, or any officer authorized by him, by general or special order may, at all reasonable times, inspect the certificate of registration account books, registers, and other documents relating to a Trade Union, at its registered office or may require their production at such place as he may specify in this behalf, but no such place shall be at a distance of more then ten miles from the registered office of a Trade Union.

Chapter IV Regulations :

Chapter IV Regulations Power to make regulations (sec- 29)– (1) The [appropriate Government] may make regulations for the purpose of carrying into effect the provisions of this Act.

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(2) In particular and without prejudice to the generality of the foregoing power, such regulations may provided for all or any of the following matters, namely; (a) The manner in which Trade Union and the rules of Trade Unions shall be registered and the fees payable on registration; (b) The transfer of registration in the case of any registered Trade Union which has changed its head office from one State to another;

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(c) The manner in which, and the qualifications of persons by whom, accounts of registered Trade Unions or of any class of such Unions shall be audited; (d) The conditions subject to which inspection of documents kept by Registrars shall be allowed and the fees which shall be chargeable in respect of such inspections; and (e) Any matter which is to be or may be prescribed

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Publication of regulations (sec-30) -The Power to make regulations conferred by section 29 is subject to the condition of the regulations being made after previous publications.

Chapter V Penalties and procedure :

Chapter V Penalties and procedure Failure to submit returns (sec-31) (1) - If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any provision of this Act, every (office-bearer) or other person bound by the rules of the Trade Union to give or send the same or if there is no such person, every member of the executive of the Trade Union, shall be punishable with fine which may extend to five rupees and in the case of a continuing default, with an additional fine which may extend to five rupees for each week after the first during which the default continues: Provided that the aggregate fine shall not exceed fifty rupees.

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(2) -Any person who willfully makes, or causes to be made, any false entry in, or any omission from the general statement required by section 28, or in or form any copy of rules or of alterations of rules sent to the Registrar under that Section, shall be punishable with fine which may extend to five hundred rupees.

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Supplying false information regarding TU (sec-32) – Any person who, wit intent to deceive, gives to any member of a registered Trade Union or to any document purporting or applying to become a member of such Trade Union, any document purporting to be a copy of the rules of the Trade Union or of any alterations to the same which he knows, or has reason to believe, is not a correct copy of such rules or alterations as are for the time being in force, or any person who, with the like intent gives a copy of any rules of an unregistered Trade Union to any person on the pretence that such rules are the rules of a registered Trade Union, shall be punishable with fine which may extend to two hundred rupees.

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Cognizance of offence – (1) No court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence under this Act. (2) No court shall take cognizance of any offence under this Act unless complaint thereof has been made by or with the previous sanction 32, by the person to whom the copy was given, within six months of the date on which the offence is alleged to have been committed.

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Employer’s organizations in India The trade union act 1926 under section-2 provided the definition of a trade union as 1. Any combination, whether temporary or permanent, formed 1.Primarily for the purpose of regulating the relations between workmen and employers, between workmen and workmen, between employers and employers, 2. For imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more trade unions.”

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Evolution and development Phase1- prior to 1930 formation of Bombay Mill owners Association The Bengal Mill owner association The Ahmedabad Mill owner association etc.

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Phase 2- the period from 1931 to 1946 which witnessed the development and growth of chambers of commerce and industrial association for dealing with a variety of problems connected with industry. The all India organization of industrial employers (AIOIE ) was formed in 1932. The employers'’ federation of India (EFI) came into existence in 1933 The all India manufacturer’s organization (AIMO) was formed in 1941 These organizations were set up in response to the need felt for representation in international conferences and legislative bodies

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Phase 3- The post independence period This period saw the development and growth of the employers’ organization to meet the requirements of individual employers for advice on labour matters Federation of Indian chambers of commerce and industry ( FICCI ) Standing conference of public enterprises (scope) formed in 1970 to assist the public sector

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Structure of employers’ organization Have a three-tier system and it includes Local association at the bottom- which operate mainly through the chambers of commerce cover all industries in an area. Industrial association- they are formed at area/ regional level as also at all-India level and are generally affiliate to the central industrial organization at the apex All India federation- these are the national level federation to give representation on different tripartite labour consultative bodies.

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Functions of employers’ organizations- P rimarily any employer organization seeks to protect and promote the commercial objectives of its members. The activities, an employer organization perform to achieve these objectives may fall in following categories The direct negotiation of collective agreements with employee trade unions Assisting its members in the resolution of disputes Providing general help and advice to its members on industrial relation matters Representation in consultative bodies

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Secondly, the employers organization also perform certain function in the field of labour and these includes Communication - they keep their members informed of all new labour legislation and other matters so related. Advisory function- to provide expert opinion on issues of complex some employers’ organization may provide the constitution of expert advisory body Educational efforts- they also organize seminars, conferences, and training programs at different level to discuss important issues in the labour management relations Representation Social responsibility- organize some sort of training and development programs to induce technical know-how in the general mass to improve their life

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Some Indian employers’ organizations are Employees federation of India (EFI) Objectives are To promote and protect the interest of its members To maintain harmonious relations between labour and management To initiate and support all well considered schemes that would increase productivity and at the same time , give labour a fair share of the increased return. To collect and disseminate information affecting employers and to advise members

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All India organization of employers (AIOE) The objectives are To take all necessary steps for promoting, supporting or opposing legislative and other measures affecting or likely to affect directly or indirectly, industries. To nominate delegates and advisers to represent the employers of India at the international labour conferences To promote all other well-considered schemes for the general uplift of labour and to take all possible steps to establish harmonious relation among labour and capital.

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All India manufacturers organization (AIMO) The functions of AIMO is more or less similar to the functions or objective of EFI and AIOE. Apart from those similar to previous organization the AIMO seeks to achieve A high living standard of its members and labour Launching of sound policies led to national economic progress

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Standing conference of public enterprises (SCOPE) Formed to assist mainly public sector enterprises and the objectives are: Internally To assist the public sector in such a way as would help improve its total performance and Externally To participate in the policy making process of public sector enterprises

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Workers participation in management To discuss the term/ process of workers participation in management first we need to consider the concept of industrial democracy Democracy – in which all citizens are treated as equal and are allowed to participate freely in the affairs of the state indirectly. Industrial democracy – workers are treated as responsible partners of an enterprise and are allowed to participate in the decision making process through different methods. Collective bargaining Work committee Joint management councils etc.

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Concept of workers participation in management The term has been interpreted by different people associated with industrial relation namely employers, employee, and government. Managers generally interpret it merely as joint consultation prior to decision making Workers generally view it as equivalent to co-decision in the spheres of managerial functions. Industrial relation experts regards it as association of labour with management without the final authority or responsibility in the general area of management

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Thus in tune with all the concepts of different parties to industrial relation Workers’ participation in management means giving scope for workers to influence the managerial decision making process at different levels by various forms in the organization.

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Objectives of WPM To elevate workers status in the industry To promote democratic practice in the resolution of IR problems To mobilize the energy and intelligence of workers and management with a view to increase productive efficiency. To provide labour a sense of importance, pride and accomplishment, freedom and opportunity for self expression To promote cordial relation between workers and management To prevent exploitation of labour To create a good communication system within the establishment

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Importance Opportunity for Self expression Increased commitment Reduced misunderstanding Individual development Improved communication Higher productivity Industrial democracy Decreased resistance to change Development of Team sprit Reduced industrial unrest

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Pre requisites for the success of WPM There should be a strong, democratic and representative unionism for the success of participative management. It is desirable to have participation of workers directly through their representative at plant level rather than through the external trade union leaders. There should be clearly formulated and mutually agreed objectives for participation to be succeed. Both the management and workers must develop favorable attitude and out look and must have full faith in the soundness of the philosophy underlying the concept of labour participation

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Proper understanding of rights and responsibility also contributes towards the success of labour participation Education and training to workers and employers related to- Conceptual and philosophical aspects, Aim, scope, roles and responsibilities Change in managerial and trade union approaches to industrial relation Communication skills Technical and managerial knowledge for decision making, also makes or a major prerequisite for the success of failure of labour management participative decisions. specific Forum of participation , areas of participation and guidelines for implementation of decisions should be specific and there should be prompt follow-up action and feed-back.

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Forms of workers’ participation in management- In the light of the complexity in terms of different interpretation of workers’ participation in management by different parties to industrial relation, the forms of WPM may include following Informative participation- This refers to information sharing from either of the party specifically it is concerned with the information regarding balance sheet, production, and general economic situation of the plant. Though the worker will have no right to have a close scrutiny of the information provided but can have an idea about what is going on in the organization.

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Consultative participation- this involves a higher degree of participation in the sense that here the workers are consulted on such matters like welfare programme, and methods of work and safety. Here the workers and their representatives act in an advisory capacity and the final decision rest with the management. Associative participation- here the workers’ role will not be purely advisory, unlike that in consultative participation, the management will under a moral obligation to accept and implement the unanimous decisions taken jointly. Administrative participation- this involves a greater degree of sharing by the workers in the authority and responsibility of management functions. this form of participation allow the workers greater autonomy in the exercise of administrative and supervisory powers in respect of several welfare and safety measures (working hour, holiday etc.)

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Decisive participation- it is a form of participation where sharing of decision making is complete and the delegation of authority and responsibility of managerial functions to joint forum is maximum. it covers matters like economic, financial, and administrative policy decisions are taken jointly. Ownership participation- this involves the total control of management by workers through an elected board and workers’ council.

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Tools/methods of WPM Shop council and joint councils Works committee Joint management councils Board representation Workers’ ownership of enterprise Quality circles

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Workers participation management in India The idea of workers’ participation in management in India has a long history, but actually it has been enshrined in the Directive principles of the state policy in the Indian constitution. The first five year plan noted that to create a sense of partnership to ensure the optimum contribution of workers in national industrial progress, efforts made to introduce workers participation in management T he industrial policy resolution 1956 made it clear that, in a socialist democracy, labour is a partner in the common task of development and should participate in it with enthusiasm.

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Highlights of Workers participation management in India Initially was introduced around 1910 in textile industry. Secondly the emergence of workers’ participation in management in India, can be seen when soon after the first world war, Tata Iron and Steel Company at Jamshedpur set up a works committee with workers’ cooperation. In successive order many other works committees were set up in Ahmadabad and Calcutta etc. The Royal commission on labour in India recommended works committee at industry and plant levels for consultation and resolution of industrial disputes. In the light of the failure or comparatively less success of these committees, the trade unionist and political leaders made a demand for the labor's association with management ( joint consultation)

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Finally with the enactment of industrial dispute act 1947 the scheme of joint consultation got a firm legislative foundation. Industrial dispute act made it obligatory, for the enterprises employing more than 100 workers, to constitute works committee. Joint management councils 1956 Establishment of Shop councils and joint councils 1975

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Tools of ensuring effective workers’ participation in management in India Works committee – The works committees were envisaged as the first step in an attempt to bring about labour management association. Industrial dispute act, 1947 under sec 3 (a) made it obligatory, for the enterprises employing more than 100 workers, to constitute works committee and such a committee is to be composed of equal number of workers’ and management’s representatives. Objective - a works committee is expected to discuss matters of common interest and to promote measures for maintaining cordial relation between management and workers.

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Appraisal of works committees In their initial phase the response of worker was good or encouraging, by the end of 1951, there came into existence 1142 work committees. Gradually it started fading away as the numbers of WCs fell from 2095 to 1969. Though the committees were functioning on regular basis but it was not a consultative one, employers consulted workers and their leader informally on their own terms. Left confined to merely discuss matter of welfare and holidays. In some cases the committee existed only on papers. Thus conclusively it can be said the scheme of works committee for workers participation failed to make any mark in the matter of forging participation or workers in the managerial functions .

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Causes of failure of works committees Government have expressed the views that Advisory nature of the recommendation Vagueness regarding their exact scope and function Inter-union rivalries Union opposition Reluctance of employers to utilize such medium etc have rendered works committees ineffective. The employers association and labour unions have attributed the failure of scheme to the following factors Inter union rivalries Attitude of the members of work committee (workers’ wing) in trying to raise in the committee discussion on extraneous issues. Unhelpful attitude of the employers etc.

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Factors to be considered to make works committee effective. ? ? ? ? ? Etc.

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Joint management councils ( JMCs ) Ministry of labour and employment, to study the overall problems of participative management, set up a study group composed of labour and management representatives in 1956. After visiting many country, the group suggested the introduction of Joint Management Councils. Suggestion of study group was accepted in the 15 th Indian labour conference held in 1957. Such councils should be entitled to be consulted on certain specific matters may include economic situation, state of market, annual balance sheet and term expansion plans etc. The management is expected to supply certain information to such councils. The councils should be constituted in units where more than 500 workers are employed and similarly units where trade unions are strong will be given preference to form JMCs

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Constitution Voluntary formation rather obligatory To be more effective and manageable, the JMCs should be consist of equal number of representatives of workers and employers, not exceeding 12 in all, at same time the number of representatives should not be less than 6. The representatives of union were to be appointed by the registered or well established unions.

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Function/objective Informative - the council was given a right to receive information to discuss and to make suggestions. Consultative - the council was entitled to be consulted on matters such as administration of standing orders, changes in production methods and techniques etc. Administrative - the councils are also entrusted with administrative responsibilities in respect of safety, welfare and training programme, work schedules, holidays etc. exception - It was explicitly stated that all matters which are subject to collective bargaining and individual grievances should be excluded from the jurisdiction of JMCs.

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Working appraisal of JMCs Year Total Private sector Public sector 1958-59 1963-64 1966-67 1968-69 1972-73 23 80 140 89 80 15 55 97 55 49 8 25 43 34 31 The table given above state the appraisal of JMCs in India, two points emerge clearly Only a negligible number of units established the JMCs Even these few JMCs have experienced a serious decline over time

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In addition it has been observed that a large number of these councils existed only on papers. Cases are known where the workers and employers have decided to wind up the council and merge it into some other committee, but continue to report the activities of latter as the activity of JMCs.

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Shop council and joint council scheme of 1975 The scheme envisaged the setting up of shop council at departmental level and joint council at the enterprise level. These were, at the first instance, to be implemented in units employing more than 500 workers, whether in public, private, or cooperative sector. The scheme was voluntary in nature.

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Shop councils – Membership - Every industrial unit employing more than 500 workers, whether in public, private, or cooperative sector, shall constitute a shop council for each department or shop, or one council for more than one shop. The number will be decided by the employer in consultation with the recognized trade union or the workers as case may be, in a manner best suited to local condition. Employers’ representatives must consist of persons from the unit concerned. Similarly the workers’ representatives must be from those actually engaged in the shop concerned. Decisions - All decision of the shop council will be based on the consensus and the decisions taken should be implemented by the parties concerned within a period of 1 month and a report of such implementation shall be submitted to the council.

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Meeting - a shop council so formed shall function for a period of two year and shall meet as frequently as possible. President – the chairman of the council shall be a nominee of the management and the vice- chairman shall be elected by working members from among themselves.

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Functions of shop councils Assist management in achieving production targets Improvement of production, productivity, and efficiency including elimination of wastage and optimum utilization of resources. Identification of low productivity areas and their elimination Assist in reducing absenteeism Assist in safety measures Assist in general discipline Maintain a two way flow of communication to eliminate hurdles.

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Joint councils Every industrial unit employing more than 500 workers, whether in public, private, or cooperative sector, shall constitute a join council for the whole enterprise. features Members of the council must be actually engaged in the unit. Tenure of council shall be of two year. The chief executive shall be chairman of the council and the vice- chairman shall be elected by working members from among themselves. Joint council shall meet at least once in a quarter. Every decision shall be based on consensus not by a process of voting. The decisions shall be binding on both workers and management and shall be implemented within one month.

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Functions of joint councils Fixation of productivity norms of man and machinery for the unit as whole Resolution of the matters remaining unresolved by the shop council The development of skills workmen through training. The preparation of schedules of working hours and others Working appraisal of the scheme The scheme like other initially showed great success. A large number of enterprise go for it. But later these councils ceased to function in most of the enterprise.

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Weakness of workers participation in India Managerial resistance to workers participation Low levels of interest in workers and low level of education Inability to perform dual function by the employee representatives Political involvement of employee representatives Lack voluntary need of workers participation by the management Govt legislation conclusion - More less conclusively it can be said that the workers participation in management in India have not been conducive to participative management et all. The various schemes of participation were all the creation of govt, and were almost imposed. The idea of participation in India can work only if management is convinced of its merits and workers are responsible enough to make it success.

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Industrial relation Industrial Peace (state of satisfaction) Harmonious Relationship among The participants of Any industry Industrial unrest/industrial Disputes (state of dissatisfaction) Non-harmonious relationship Among the participants Industrial relation system (degree of industrial peace as well as the degree of industrial unrest/disputes) in any country reflects the state of industrial Development. Industrial peace implies the existence of harmonious relations between Management and workers and on the other hand Industrial unrest/dispute implies non- harmony in the relations

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Industrial dispute -Industrial disputes are organized protests against existing terms of employment or conditions of work. Industrial dispute means any dispute or difference Between employer and employer Between employee and employer Between employee and employee Which is connected with The employment or non-employment or the terms of employment or with the conditions of labour of any person. Sec-2, Industrial Dispute Act,1947

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Nature of Industrial dispute Unorganized Industrial Dispute like Low morale Low productivity Frustration etc. Organized industrial Disputes like Strike Lock-out Gheraos Picketing Boycott etc.

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The term ‘strike’ has been defined in a wide variety of branches of human knowledge, viz. sociology, political economy, law and political science Strike has been defined in Section 2 (q) of the Industrial Disputes Act as under— “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.”

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The analysis of the definition would show that there are the following essential requirements for the existence of a strike: (1) There must be cessation of work. (2) The cessation of work must be by a body of persons employed in any industry; (3) The strikers must have been acting in combination; (4) The strikers must be working in any establishment which can be called industry within the meaning of Section 2(j); or (5) There must be a concerted refusal; or (6) 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; (7) They must stop work for some demands relating to employment, non-employment or the terms of employment or the conditions of labour of the workmen

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When strike is illegal? 1. If it is in breach of Contract of Employment. 2. If it is in Public Utility Services. 3. If Notice under Section 22(1) is not given. 4. If commenced during Award or settlement period. 5. If commenced during or within 7 days of completion of Conciliation Proceedings. 6. If commenced during or within Two months of completion of Adjudication Proceedings.

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Types of strike Sympathetic Strike: When workers of one unit or industry go on strike in sympathy with workers of another unit or industry who are already on strike, it is called a sympathetic strike. The members of other unions involve themselves in a strike to support or express their sympathy with the members of unions who are on strike in other undertakings. The workers of sugar industry may go on strike in sympathy with their fellow workers of the textile industry who may already be on strike.

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General Strike: It means a strike by members of all or most of the unions in a region or an industry. It may be a strike of all the workers in a particular region of industry to force demands common to all the workers. These strikes are usually intended to create political pressure on the ruling government, rather than on any one employer. It may also be an extension of the sympathetic strike to express generalized protest by the workers.

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Sit down Strike: In this case, workers do not absent themselves from their place of work when they are on strike. They keep control over production facilities. But do not work. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show up to their place of employment, but they refuse to work. They also refuse to leave, which makes it very difficult for employer to defy the union and take the workers' places. In June 1998, all the Municipal Corporation employees in Punjab observed a pen down strike to protest against the non-acceptance of their demands by the state government.

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Slow Down Strike: Employees remain on their jobs under this type of strike. They do not stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.

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Sick-out (or sick-in): In this strike, all or a significant number of union members call in sick on the same day. They don’t break any rules, because they just use their sick leave that was allotted to them on the same day. However, the sudden loss of so many employees all on one day can show the employer just what it would be like if they really went on strike.

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Wild cat strikes: These strikes are conducted by workers or employees without the authority and consent of unions. In 2004, a significant number of advocated went on wildcat strike at the City Civil Court premises in Bangalore. They were protesting against some remarks allegedly made against them by an Assistant Commissioner

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Lockout Section 2(1) of the Industrial Disputes Act, 1947 defines “Lock-out” to mean: The temporary closing of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. A delineation of the nature of this weapon of industrial warfare requires description of: The acts which constitute it; The party who uses it; The party against whom it is directed; and The motive which prompts resort to it.

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When Lockout is illegal? In the similar circumstances the lockout has been prohibited in the public utility service. Section 22 (2) of the Act provides that no employer carrying on any public utility service shall lock out any of his workmen: 1. Without giving them notice of lockout as hereinafter provided, within six weeks before locking out; or 2. Within 14 days of giving notice; or 3. Before the expiry of the day of lockout specified in any such notice as aforesaid; or 4. during or before any conciliation proceedings before a Conciliation Officer.

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Other forms of industrial dispute Gheraos A form of industrial action in India in which workers imprison their employers on the premises until their demands are met Picketing: is a form of protest in which people (called picketers) come together outside a place of work or location where an event is taking place. Often, this is done in an attempt to dissuade others from going in ("crossing the picket line"), but it can also be done to draw public attention to a cause. Picketers normally endeavor to be non-violent. It can have a number of aims, but is generally to put pressure on the party targeted to meet particular demands.

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causes of industrial dispute 1. Demand for Higher wages - The employees want higher wages. The employer wants more profit by paying lower wages. This results in frustration among employees and they resort to agitation. ] 2. Non-Implementation of Bonus Schemes - Bonus is a strong incentive for the employees. They want share in the profit in the form of bonus. However, the employers generally show deficit and do not pay bonus to the employees. This results in industrial dispute. 3. Demand for better working condition - The employees want better working conditions. If their demand is not accepted by the employer they resort to agitation approach. The result is industrial disputes.

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4. Failure to recognize Unions- The employers cannot tolerate trade unions as they feel that these unions are threat to their profit. Therefore, they discourage union movement by the policy of divided and rule. But the workers believe in collective bargaining and desire the recognition of unions by the employers. 5. Demand for proper leave Rules - The employers want that leave rules and working hours should as laid down in factory act. No worker should be forced to work more than 48 hours or more in a week. However, generally employers ignore these rules which results in industrial dispute. 6. Over Time Payment - The employees demand over-time payment as prescribed in the factory act. But the employer either does not make any payment or makes under-payment. This causes frustration among employees and they resort to agitations.

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7. Political Interference - Most of the trade unions in India are dominated by political parties. Sometimes, political leaders use workers as tool for their selfish ends. They excite the workers to go on strike or adopt other agitation approach. 8. Punishment to Workers - Sometimes, the employer adopts dictation policy and victimizes the employers by suspending or dismissing them from services. In order to get the victimization redressed the employees resort to agitation approach. This disturbs the industrial peace. 9. Mass retrenchment & undue promotions :- One major cause of industrial dispute is the mass retrenchment and undue promotions of the employees. The employees start agitation to show their resentment against the callous attitude of the management.

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10. Insecurity of Service - In India, the employment opportunities are very tight. The employees want security of service. If the employer does not meet with their demand they adopt agitation approach. 11. Wrong policy or decision - Sometimes, the policy or decision taken by the management is detrimental to the interests of employees. This causes frustration among the employees and they went to agitation approach in bid to put pressure on the management to withdraw the wrong decision. 12. Bad Behaviour - The pre-requisite of industrial peace is the cordial relations between the employer and employees. If the behaviour of the management is bad towards the employees, good will disappears and dispute arises.

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13. Non - redressal of grievances - The employees place their grievances before the management time and again. If their genuine grievances are not removed or properly attended, it give rise to frustration and ultimately a dispute.

Collective bargaining:

Collective bargaining Collective Bargaining is negotiation between an employer or group of employers and a group of work people to reach an agreement on working conditions. Representatives of employers and employees negotiate, administer and enforce an agreement. Group process Involves negotiations Bipartite exercise involving representatives of union of employees and employers Objective is to reach an agreement Purpose is to improve working conditions of employees viz. wages, welfare, security, freedom, etc., Not merely an economic process but socio-economic process (mutual respect to views, values, aspirations, etc)

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Definition : Negotiation 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. According to Dale Yoder, “Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other.” In the words of Flippo , “Collective bargaining is a process in which the representatives of a labour organization and the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer-union relationship.”

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Features of Collective Bargaining It is a collective process . The representatives of both workers and management participate in bargaining. It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract. It is a flexible and dynamic process . The parties have to adopt a flexible attitude through the process of bargaining. It is a method of partnership of workers in management

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Process of Collective Bargaining: Charter of demands by Bargaining Agent Phase Preparation for Negotiation Phase Bargaining Phase Collective Agreement Phase Contract Administration

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1. Preparing for negotiations through collective bargaining involves assembling and consulting extensive data such as: Internal company data related to issues to be discussed (e.g. benefits, leave, work hours and overtime, grievance procedures, discipline, dismissals etc.) (ii) Labour practices employed by other companies or factories in the same industry or region (iii) Relevant national legislation related to the issues to be discussed.

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2. Establishing bargaining teams composed of four to six representatives on each side of the negotiating table, including appointed chief negotiators for management and for workers. Try to have all types/levels of workers/management represented as well as all the different job categories so that there will be good representation at all levels and types of jobs. The chief negotiators should not be the highest-level of staff member in each team, as lower level management/supervisors and regular rank-and-file workers will have the most credibility to represent the interest of the groups they represent.

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3. Members of the bargaining teams must consult thoroughly with all groups that they represent prior to coming to the negotiation table. This consultation process is key to building trust and buy-in to the collective bargaining process. It involves Explaining the steps of the negotiation process Learning the major issues Asking questions to understand and note what are the main concerns, interests and expectations regarding these issues.

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4. Conducting negotiations through collective bargaining : Open the negotiations with a first meeting devoted to establishing the bargaining authority of the representatives of each side and to determine the rules and procedures to be used during negotiations. Bargaining rights must be clearly defined for both management and for workers. List and priorities issues for discussion and set up a meeting schedule. Submit, analyze and resolve proposals put forward by each side. (iv) In order to reach an agreement, proposals must be resolved. They may be withdrawn, accepted by the other side in its entirety, or accepted in some compromise form. However all decisions must be made by consensus of both sides.

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5. Communication the outcome of collective bargaining : Collective bargaining agreements must be put in writing in language that is acceptable to all parties. (ii) Copies of the agreement should be distributed to all supervisors, managers and workers and explained at a meeting (or series of meetings).

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Scope of Collective Bargaining : Wages fixation, Increments and bonus payment Hours of work and overtime Terms and conditions of work, Safety, welfare and health care Grievance procedure Labour productivity, Labour standard and modernization Union-Management relations including workers participation

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Importance of Collective Bargaining Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees. It increases the strength of the workforce , thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. It restricts management’s freedom for arbitrary action against the employees . Moreover, unilateral actions by the employer are also discouraged.

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Effective collective bargaining machinery strengthens the trade unions movement . The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances . 7 It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced

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Importance of Collective Bargaining Importance to employers It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes.

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Importance of Collective Bargaining Importance to government & society Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports and helps the pace of a nation’s efforts towards economic and social development. The discrimination and exploitation of workers is constantly being checked It provides a method or the regulation of the conditions of employment for those who are directly concerned about them.

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Types of Collective Bargaining : Plant level Agreement settled between management and representatives of workers union - Industry level -Number of mfg. units within an industry where workers face similar problems Union of Unions (Industry Union) National level- Common problems cutting across industries, regions are discussed E.g.. Agreement between labour and management to “Rationalize Work Practices”

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Pre-requisites for collective bargaining: Effective negotiations and enforcement requires a systematic preparation of the base or ground for bargaining which involves the following three steps: A- Recognition of the Bargaining Agent . The management should give recognition to the trade union for participating in the collective bargaining process. In case there is more than one union, selection could be done through verification of membership by a government agency giving representation to all the major unions through joint consultations. Thus, the bargaining agent of the workers should be properly identified before initiating any action .

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B- Deciding the Level of Bargaining. Whether the dealings are confined to enterprise level, industry level, regional or national level should be decided as the contents, scope and enforcement agencies differ in each case. C- Determining the Scope and Coverage of Bargaining. It would be better to have a clear understanding of what are the issues to be covered under bargaining. Many a time, bargaining is restricted to wage and working conditions related issues but it would be advantageous for both the management and union to cover as many issues as possible to prevent further friction and disputes. Therefore, all the important and interrelated issues are to be taken for consideration.

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Problems of Collective Bargaining: Due to the dominance of outsiders in trade unionism in the country, there is multiplicity of unions which are weak and unstable, and do not represent majority of the employees. Moreover, there are inter-union rivalries, which further hinder the process of collective bargaining between the labour and the management. Since most of the trade unions are having political affiliations , they continue to be dominated by politicians, who use the unions and their members to meet their political ends. There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the workers

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In India, the law provides an easy access to adjudication . Under the Industrial Disputes Act, the parties to the dispute may request the Government to refer the matter to adjudication and the Government will constitute the adjudication machinery, i.e., labour court or industrial tribunal. Thus, the faith in the collective bargaining process is discouraged . There has been very close association between the trade unions and political parties . As a result, trade union movement has leaned towards political orientations rather than collective bargaining .

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