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Transcript of IIML Day1& Day 2.pdf
IIM LucknowER/IR
CONCEPTS & CONTOURS
Agenda
Different models and approaches to study IR, actors of IR; New trends and challenges in the field of IR.
Comparative Industrial Relations: Comparing dynamics of IR in selected countries.
Overview of IR in India:
Role Of Trade Unions-Rationale, Background, Current Status & Changing role of Trade Unions
Collective Bargaining and wage negotiations
Overview of IR in India: Role of State – IR machinery; current status, relevance and future prospects
Legal Framework: Understanding Indian Labour Laws -ID Act, TU Act, and Industrial Employment (Standing Order) Act
Dynamics of Labour-Management Relations: Concepts of Industrial democracy and workers participation in management
Grievance management and Discipline
Other Relevant issues in IR: Globalization and IR; Social Realities.
BROADBRUSH
Political Regimes
Totalitarian
-North Korea
-Political participation & opposition is nil
Authoritarian
-Limited forms of participation by certain groups like religious org,civicassociations egSouth Korea under Gen Park
Democratic
-Protects individual & group political rights
The 1st two can be termed as DictatorshipsSultanistic eg. Saudi Arabia..any guesses where are famed neighbour could be mapped??
20th century vs 21st century
WW 1
Interwar period
WW2
Cold War
Spread of Democracy
Automobile
Failed States
International terrorism
2 bn people continue to live under authoritarian regimes mostly in Africa,the Middle East,SouthAsia & East Asia
Automobile
Governance
A disparate world !
Landscape
Jim’O Neil
Lucas Paradox
G7 ,G 20.
Innovation landscape –geographical shift-so will financial flows, trade & migration
1.4 bn below poverty line(UN report)
EMERGING MARKET MULTINATIONALS
25% of the largest 500 companies in the world
Landscape…GTP… The changing order…VUCA ?
GTP
-Sovereignty, political influence & geopolitics
-Hegemonic to polycentric organization-FDI etc.
-New Demography-inverted age pyramids,>60
-Technology
-Inequality
What is the relevance?
Especially in an IR/ER session
Landscape( IR/ER)“Converging Divergences” thesis-Global convergence & local divergence in employment relations
Original/ Modern IR
K/L Power Balance
IR in the twentieth centuryProposition 1
AN ORIGINAL PARADIGM CENTRED ON THE EMPLOYMENT RELATIONSHIP
OIR
Employment Relationship
It included both union and non-union sectors and
personnel/human resource management and labour–
management relations.
It is a distinctly North American phenomenon, having
been born there in the immediate post-First World
War years. This paradigm went into eclipse in the
1930s and disappeared by the 1960s
A MODERN PARADIGM CENTRED ON UNIONS AND LABOUR–MANAGEMENT RELATIONS
More narrowly constructed paradigm centred on the
union sector and associated topics, such as collective
bargaining, labour–management relations and
national labour policy.
Modern industrial Relations (MIR) paradigm and it
originated more or less simultaneously in Britain,
Canada, the USA and elsewhere in the immediate
post-Second World War period.
Kaufman,2008
IR in the twentieth centuryProposition 2
As per the modern paradigm, it takes an overly narrow and union-centric perspective on the employment relationship.
It has been a significant factor behind the oft-noted threatened status of the IR field worldwide and its marked decline in a number of countries
Unfortunately for IR, over the last two to three decades, unions and the organized sector of most economies have significantly eroded, with no rebound in sight.
In the 1980s and 1990s, IR in nearly all countries felt substantial downward pressure
IR in the twentieth centuryProposition 3
Integrating human resource management (HRM) into the IR field is welcome –it was long overdue .
The IR field’s original impulse towards HRM in the 1980s–1990s was threatened, defensive and critical
Present Context:
The stance has shifted towards greater accommodation, acceptance and integration.
One could view this shift as a strategy of expediency born out of the IR field’s challenged survival prospects.
HRM was actually an integral, well-accepted partner in OIR
EXTANT POPULAR LITERTATURE-IR is viewed as….
Different Approaches of looking at IRUnitary Approach-(Managerially oriented in its inception)
Common purpose
No conflict of interest(K& L)
Strong Leadership from the team
Unitary in structure, purpose, single source of authority, cohesive set of participants.
Systems Approach:The Dunlop ModelAn industrial relation system is regarded as comprising :
◦ Certain actors
◦ Certain contexts
◦ An ideology, which binds industrial relations systems together
◦ Processes-Bargaining, Conciliation ,Arbitration ,Adjudication & Legislation
◦ Creation of rules –common denominator of ideologies
Criticisms
◦ Human aspects
◦ Focuses more on the structural aspects/Processes leading to conflict are left out
◦ Analytical approach
The Conflict ApproachPluralism: existence of more than one ruling principle; negotiation, compromise and concession.
-Politics pluralism-Industrial Relations Pluralism
Post Capitalism: Capitalist and wage earners. Changed a lot.
-Open Society
-Politics/Social/Economic power is dispersed.
-Possibilities of compromise is there based on the interaction between different stakeholders
-Collective bargaining was used as a medium
Trusteeship ApproachMahatma Gandhi was the main proponent with truth, non-violence and non-possession asideologies.
Responsibilities are mutual.
Conflict is inevitable but labour and capital must learn to co-exist for mutual benefit, and for thecommunity at large.
Time to ponder !
Indian Labour laws47 major pieces of CL & 100 SL was intended to carry out the Constitutional vision of a welfare state as laid out in the Directive Principles of the state policy
Indian Labour laws
Laws relating to working conditions
Wages and monetary benefits
Industrial relations
Social Security
Miscellaneous labour laws
Ref: Saini,2013
Collective BargainingNegotiations
Between organizations of workers and employers
Subject matter is working conditions, terms of employment, relationship between employers and employees.
Fixing up the price of labour services
Establishing a system of industrial jurisprudence
Providing a machinery for the representation of individual and groupinterests.
Trade Unions Act
7 workers can join together to form a trade union
From 2001, 10% of the workforce or 100, whichever is less – is the number required to form the trade union
Registration
Trade Unions ActRecognition
Neither registration nor recognition is mandatory
15 years – minimum age to become a member of trade union
Objectives of Trade UnionTo regulate the relations
Between employers
Among workmen or
Between employers and workmen
Union SecurityClosed Shop : The company can hire only union members
Union Shop: The company can hire nonunion people, but they must join the union after a prescribed period of time and pay dues.
Agency Shop: Employees who do not belong to the union still must pay union dues on the assumption that the union’s efforts benefit all the workers.
Open Shop: It is up to the workers whether or not they join the union – those who do not, do not pay dues
Trade Unions Act
18 years – minimum age to contest elections for a position in trade union
Outsiders can also be part of trade union executives.
Legal strike – no criminal proceedings, no disciplinary proceedings.
Central Trade UnionVerified membership of five lakhs
Spread over at least 4 states and four industries
Central Trade Unions in IndiaAll India Central Council of Trade Unions (Communist Party of India (Marxist-Leninist) Liberation)
All India Trade Union Congress (Communist Party of India)
All India United Trade Union Centre (Socialist Unity Centre of India (Communist))
Bharatiya Mazdoor Sangh (Rashtriya Swayamsevak Sangh)
Indian National Trade Union Congress (Indian National Congress)
Central Trade Unions in India
New Trade Union Initiative (Independent from political parties, but left)
Centre of Indian Trade Unions (Communist Party of India (Marxist))
Hind Mazdoor Sabha (socialists)
Labour Progressive Federation (Dravida Munnetra Kazhagam)
SEWA
Trade Union Coordination Committee (All India Forward Bloc)
United Trade Union Congress (Revolutionary Socialist Party)
Industrial Conflict..is it here to stay??
Main actors in an industry:
Owners, managers & workers
Union leaders & managers
Union leaders & workers
Union leaders & Management
Ultimate manifestation of a conflict will result in ?
Measures of conflict resolution
Statutory ( ID Act,1947) eg. labour courts, industrial tribunals
Non Statutory ( Code of Discipline, Collective bargaining, etc.)
Government sponsored ( Labour administration machinery)
India’s IR law is enshrined in three pieces of legislation
Industrial Disputes Act 1947 (IDA)
Trade Unions Act 1926 (TUA), and
Industrial Employment (Standing Orders) Act 1946 (IESOA).
Industrial Disputes Act,1947Roots of IDA
It has its roots in the Rule 81 -A of Defence of India Rules that was promulgated by the British Indian Government in 1942 to control industrial unrest in the country, as the British were focusing themselves on fighting the Second World War and could not afford to have a rising curve of industrial disputes.
Act envisages a
-conciliation
-adjudication
-arbitration ,model of industrial disputes resolution
IDA
Enacted to promote industrial peace & harmony by providing
appropriate machinery for amicable settlement of disputes
Investigation & Settlement of disputes
Prevention of illegal strikes & lockouts
Provision of relief in matters of lay-off and retrenchment
IDA –Relevant authoritiesWorks committees
Conciliation officers ( could be permanent or for a limited period of time)
Board of conciliation
Court of enquiry
Arbitration(voluntary)
Labour courts
Industrial tribunals
National tribunals
Industrial DisputesThere must be a dispute or a difference
between employers and employers
between employers and workmen
between workmen and workmen.
Industrial Disputes
It should be connected to employment or non-employment or
terms of employment or with the conditions of labour
A relationship between the employer and the workman should
exist and it should be the result of the contract and the workman
actually employed.
DisputesDisputes of Rights (application or interpretation of existingagreement)
Disputes of Interest (terms and conditions of employment)
Causes of Disputes
Economic
Political
Personnel
Indiscipline
Management
Absence of grievance redress machinery
Government machinery
Forms of Industrial Action
Strikes
Lockouts
Industrial Disputes Act - StrikesNo person employed in a public-utility service shall go on strike in breach of contract:
Without giving to the employer notice of strike, as hereinafter provided, within six
weeks before striking.
Within 14 days of giving such notice
Before the expiry of the date of strike specified in any such notice
Before the pendency of any conciliation proceedings before a conciliation officer
and seven days after the conclusion of such proceedings.
Industrial Disputes Act – LockoutNo employer carrying on any public utility service shall lockout any of his workmen:
Without giving them notice of lockout, as hereinafter provided, within six weeks before
striking.
Within 14 days of giving such notice
Before the expiry of the date of lockout specified in any such notice
Before the pendency of any conciliation proceedings before a conciliation officer and seven
days after the conclusion of such proceedings.
Industrial Disputes Act
The employer must inform the appropriate authority within 5 days from the date of receipt of notice.
No lockout or strike during pendency of conciliation proceeding and seven days after conclusion of such proceedings;
Different Forms of StrikeEconomic Strikes – more facilities and wages
General Strikes – unions and industry
Stay-in-Strike – tool down or pen down
Slow down Strike – rate of output is reduced
Management’s Actions To Counter StrikesEmployers Association
Lockout
Termination of Service
Lay-offFailure, refusal or the inability of an employer
Shortage of coal/power/raw materials
Accumulation of stocks
Breakdown of machinery
Natural Calamity
Lay-offAn application by employer
Enquiry
Permission – deemed – 60 days
Order shall remain in force for one year
RetrenchmentTermination of service by an employer, of a workman for any reason whatsoever other than:
As punishment inflicted by way of disciplinary action
Retirement on reaching superannuation
Voluntary retirement
Non-renewal of contract
Continued ill health
Retrenchment of WorkmenOne month’s notice to the workman indicating the reasons forretrenchment and the period of notice.
15 days average pay for every completed year of continuousservice or any part thereof in excess of six months.
Notice to the appropriate government
Closure of UndertakingSixty day notice to be given of intention to close down any undertaking.
Exceptions: Accident in the undertaking or death of the employer.
Average pay for three months
Unfair Labour PracticesTo threaten lockout, if union is recognized
To threaten workmen with discharge or dismissal, if they join trade union.
Granting wage increase
Taking active interest in organizing a trade union of his workmen.
Unfair Labour Practices - PenaltiesImprisonment up to six months or Fine up to Rs.1000/- or both
Penalty for illegal strikes and lockouts: one month imprisonment or Fine up to Rs.50 or both
Rs.1000/- or one month imprisonment or both.
Conciliation The conciliator brings the rival parties together for discussion and assists them in finding out asolution to their problem.
Conciliation may be voluntary or compulsory
Board of conciliation
Duties of Conciliation OfficerThe conciliation officer to send a report of proceedings to the government or within such extended time as may be allowed
Memorandum of settlement and binding on all parties
Failure report
SettlementThe settlement shall be binding:
◦ For the period agreed upon by the parties
◦ Where no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed.
Board of Conciliation Outside chairman and two to four other members nominated by the parties to the dispute.
Two months.
Criticism of conciliationDelays
Parties do not attend the meeting.
Most conciliation officer lacks training and competence in conciliation work.
Treated as preliminary step leading to adjudication through the Labour Courts or Tribunals.
ArbitrationCompulsory Arbitration
Voluntary Arbitration
AdjudicationMandatory settlement of a dispute by Labour Courts, or Industrial Tribunal or National Tribunalunder the ID Act.
Labour Court:
◦ Standing Order◦ Withdrawal of any statutory concession◦ Strike or lockout –
Industrial TribunalWage including the period of payment
Hours of work and rest intervals
Compensatory and other allowances
Bonus, Provident Fund, Profit Sharing and Gratuity
Rules of indiscipline
Rationalization
Retrenchment of workmen and the closure of an establishment
Shift working other than in accordance with the Standing Orders.
Who is a workmen?All employees other than supervisors and managers (even if they draw more than Rs.10,000/-)
Supervisors who draw less than Rs.10,000/- are also considered as workmen under Industrial Disputes Act.
FACTORIES ACT
Factory Legislation in Great Britain Rapid growth of industrial towns and factories
Insanitary and crowded living and working condition
The object of Factories Acts was ‘to protect the health of employees from injury by overwork,unwholesome or dangerous conditions of labour, and especially the younger and weakeremployees’ (J J Clark, 1946).
Factory Legislation in IndiaThe first cotton textile factory was set up in Bombay in 1854.
Employment of women and children, excessive hours of work and insanitary working condition.
Competition with textile mills in Lancashire
Factories Act, 1881Manufacturing establishments using mechanical power and employing 100 or more persons for4 months in a year.
Regulation of child labour.
Employment of children below 7 years was prohibited and the maximum hours of work for thosebetween 7 and 12 were fixed at 9 hours a day.
Indian Factories Act, 1891Factory included manufacturing undertaking employing 50 persons or more
Employment of children below the age of 9 was prohibited – 7 hours of work.
Prohibition of night work for women and children – 11 hours of work
Indian Factories Act, 1911 Unprecedented boom in cotton textile industry in 1904-05.
Maximum of 12 and 6 hours of work for adults and children.
In other factories, daily hours of work for women and children remained 11 and 7.
Indian Factories (Amendment) Act, 1922All individual undertakings using mechanical power and employing 20 or more person.
11 hours a day and 60 hours in a week.
Children below 12 were prohibited. – 6 hours per day (12-15).
Factories Act, 1934Distinction between seasonal and non-seasonal factories (less than 180 days in a year).
Perennial (54 and 10)
Seasonal (60 and 11)
A new category of employees created – Adolescents (15 and 17).
Weekly holiday on Sunday – Not to work more than 10 days continuously.
Factories Act, 1948The Factories Act, 1937 was taken as a useful guide in drafting the bill.
Factory: any premises◦ Ten or more workers – manufacturing process with the aid of power
◦ Twenty or more workers – without power
Who is a worker?A “worker” means
◦ Directly or by or through any agency
◦ With or Without the knowledge of the Principal Employer
◦ (s)he may be employed with or without remuneration
◦ A worker can be employed in
◦ Manufacturing process
◦ In cleaning some parts of machinery or premises used for the manufacturing
◦ In some other kind of work incidental or connected with the manufacturing process
Procedure for applying for new license Permission from Chief Inspector of factories regarding construction
Plan approval by chief inspector of factories/ certificate of stability
Application for license along with fee, evidence for power,
When the license can be cancelledWhen a factory is totally closed
When the machinery installed are shifted and manufacturing activity ceases.
If the number of employees reduces
Records to be maintainedMuster Roll
Register of leave with wages
Register of accidents, major accidents and dangerous occurrences
Register of lime washing and painting
Inspection book
Register of adult workers
Wages Register
Hours of work, Intervals for Rest and Spread overNot to exceed 9 in a day and 48 in a week.
No worker to work more than 5 hours
A rest interval of half an hour
Spread over – not more than 10.5 hours
Other provisionsSafety officer - one thousand or more employees
Notice of certain diseases
In case of hazardous process, safety committee
Overtime wagesMore than 9 hours or 48 hours in any week is entitled to wages at the rates of twice his ordinary wages in respect of overtime.
Working hours for children – note more than four and a half hours in any day
The total working hours in a week including overtime hours should not exceed sixty and the total overtime hours in a quarter should not exceed 50
Industrial Employment (Standing Orders) ActProtection of labour by providing uniform and stable conditions of service
Definition of conditions of employment, standing orders/service rules and to make them knownto workmen employed by them
Applicability All industrial establishments employing 100 or more workmen
The central and state governments may extend it to establishments with less than 100 workmen
Minor Penalties Censure
Withholding of his promotion
Recovery from his/her pay
Withholding of increments of pay
Major Penalties Reduction to a lower stage in the time-scale of pay for a specified period.
Compulsory Retirement
Removal from service
Dismissal from service
Procedure for imposing penalties Disciplinary Authority
Charge Sheet
◦ Substance of the imputation of misconduct
◦ A statement of the imputations of misconduct
◦ A statement of all relevant facts
◦ A list of documents by which, and a list of witness by whom, the articles of charge are proposed to be sustained.
Procedure for imposing penaltiesInquiry Authority
Presenting officer
Defence Assistant
Preliminary Inquiry
Inspection of documents
Procedure for imposing penalties
Examination
Cross-examination
Re-examination
Exparte Inquiry
CCS (Conduct) RulesEvery Government Servant shall at all times –
◦ Maintain absolute integrity
◦ Maintain devotion to duty
◦ Do nothing which is unbecoming of a government servant
No Government servant shall
◦ In performance of his official duties, act in a discourteous manner
◦ In his official dealings with the public or otherwise adopt dilatory tactics or willfully cause delays in disposal of work assigned to him.
When Suspension can be resorted to When a disciplinary proceeding against him is contemplated or pending
When a case against him in respect of any criminal offence is under investigation, inquiry or trial
When he has engaged himself in activities prejudicial to the interest of the security of the state
Deemed SuspensionIf he is detained in custody, whether on a criminal charge or otherwise for a period exceeding forty-eight hours.
In the event of a conviction for an offence, he is sentenced to a term of imprisonment exceeding forty-eight hours.
Standing Orders
Standing Orders means the rules of conduct for workmen employed in industrial establishmentsrelating to matters such as workmen, working hours, holidays, attendance, leave, termination ofemployment, suspension or dismissal, misconduct
Provisions
The employer has to prepare a draft of the standing orders and submit it to theCertifying Officer if the employer desires certified standing orders for the particularrequirements of the establishment
The Certifying Officer shall call the employer and the workmen and/or their union tohear their comments and objections
Provisions After considering their comments he shall make necessary changes in the draft
Employers and workmen can appeal within 30 days against the orders of the certifyingofficer to the appellate authority.
Once the standing orders are certified, they have the force of law
Provisions The certified standing orders can be modified, if necessary, but not before the expiry of 6months of their coming into operation or from the date of last modification.
The employer should prominently display the text of the certified standing orders near the mainentrance of the establishment and in all departments
Notices
The period and hours of work for all classes of workers in each shift shall be exhibited on notice boards maintained at or near the main entrance of the establishment and at the time keeper’s office
Notices specifying the days observed by the establishment as holidays
Notices specifying the rates or wages payable to all classes of workmen and for all classes of work
Notice of discontinuing or of restarting of a shift work shall be continuously displayed on a notice board
Model Standing Orders
Holidays with pay will be allowed as provided in Factories Act, 1948 and other holidays in accordance with law, contract, custom and usage
On the receipt of a leave application, the concerned officer shall issue orders on the application within a week of its submission or two days prior to the commencement of the leave applied for, whichever is earlier
Model Standing Orders
A workman may be granted casual leave of absence with or without pay not exceeding 10 days in the aggregate in a calendar year
Such leave shall not be for more than three days at a time except in case of sickness
Such leave is intended to meet special circumstances which cannot be foreseen
Any wages due to the workman but not paid on the usual pay day on account of their being unclaimed shall be paid by the employer on an unclaimed wage pay day in each week which shall be notified on the notice boards
All workmen will be paid wages on a working day before the expiry of the seventh or the tenth day after the last day of the wage period
Model Standing Orders
A workman may be suspended for a period not exceeding four days at a time, or dismissed without notice or any compensation in lieu of notice if he is found to be guilty of misconduct
Acts of Misconduct
Wilful insubordination or disobedience, whether alone or in combination with others to any lawful and reasonable order of a superior
Theft, fraud or dishonesty in connection with the employer’s business or property
Wilful damage to, or loss of, employer’s goods or property
Taking or giving bribes or any illegal gratification
Acts of Misconduct
Habitual absence without leave or absence without leave for more than 10 days
Habitual late attendance
Habitual breach of any law applicable to the establishment
Riotous or disorderly behaviour during working hours at the establishment or any act subversive of discipline
Habitual negligence or neglect of work
Frequent repetition of any act or omission for which a fine may be imposed to a maximum of 2 per cent of the wages in a month
Striking work or inciting others to strike work in contravention of the provisions any law
Sexual Harassment
Physical contact and advances
A demand or request for sexual favours
Sexually coloured remarks
Showing pornography
Any other unwelcome physical, verbal or non verbal conduct of sexual nature
The Complaints Committee to inquire into the complaints of sexual harassment shall contain a chairperson who is a woman and two members representing non governmental organisations
The Complaints Committee shall make and submit every year an annual report, to the appropriate government, of the complaints and action taken
Model Standing Orders
Where a disciplinary proceeding against a workman is contemplated or is pending or where criminal proceedings against him in any respect of any offence are under investigation or trial, then the workman may be suspended
A workman who is placed under suspension shall be paid subsistence allowance
In the enquiry, the workman shall be entitled to appear in person or to be represented by an office bearer of a trade union of which he is a member
The proceedings of the inquiry shall be completed within a period of three months and extended for reasons recorded in writing
Penalty may be in the form of dismissal, suspension, fine, stoppage of annual increment or reduction in rank
When an order of dismissal is passed, workman shall be deemed to have been absent from duty during the period of suspension
Model Standing Orders
Where an order imposing fine or stoppage of annual increment or reduction in rank is passed, the workman shall be deemed to have been on duty during the period of suspension
If the workman has been found to be not guilty he shall be deemed to have been on duty during the period of suspension
The payment of subsistence allowance shall be subject to the workman concerned not taking up any employment during the period of suspension
In awarding punishment the authority imposing the punishment shall take into account the gravity of misconduct, the previous record, other extenuating or aggravating circumstances
A copy of the order will be given to the workman concerned
Model Standing Orders
A workman may appeal within 21 days to the appellate authority
The employer shall specify the appellate authority
The appellate authority shall pass an order within fifteen days of its receipt and communicate the same to the workman in writing
All complaints arising out of employment including those relating to unfair treatment or wrongful exaction on the part of the employer or his agent, shall be submitted to the manager specified
Every employee is entitled to receive a certificate during the time of dismissal, discharge or retirement
Model Standing Orders
The employer of the establishment shall personally be held responsible for the proper and faithful observance of the standing order
Every workman shall indicate his exact date of birth to the employer at the time of entering service of the establishment
The employer shall in accordance with the terms and conditions stipulated in the letter of appointment, confirm the eligible workman and issue a letter of confirmation to him
The age of retirement or superannuation of a workman shall be as may be agreed upon between the employer and the workman
A workman may be transferred according to exigencies of work from one shop or department to another or from one station to another or from one establishment to another under the same employer
Model Standing Orders
Where a workman meets with an accident in the course of arising out of employment, the employer shall, at the employer’s expense, make satisfactory arrangements for immediate and necessary medical aid to the injured workman and shall arrange for his further treatment
No workman shall take any papers, books, drawings, photographs, instruments, apparatus, documents or any other property of an industrial establishment out of the work premises except with the written permission of his immediate superior
A workman shall not at any time work against the interest of the industrial establishment in which he is employed and shall not take any employment in addition to his job in the establishment, which may adversely affect the interest of his employer