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Industrial Relations and Labor Laws Assignment: Q1. Outline The Factors Affecting The Industrial Relations
Industrial Relations and Labor Laws Assignment: Q1. Outline The Factors Affecting The Industrial Relations
MBA IV SEM.
represented by their representatives for determining mutually agreed terms and conditions of
work which protect the interest of both workers and the management. According to Dale
the one hand, and representatives of employees, on the other, attempt to arrive at agreements
covering the conditions under which employees will contribute and be compensated for their
services”.
the representatives of the employees and the employers. By collective bargaining we mean
the ‘good faith bargaining’. It means that proposals are matched with counter proposals and
that both parties make every reasonable effort to arrive at an agreement’ It does not mean
either party is compelled to agree to a proposal. Nor does it require that either party make any
specific concessions.
Why is it called collective bargaining? It is called “collective” because both the employer and
the employee act collectively and not individually in arriving at an agreement. It is known as
‘bargaining’ because the process of reaching an agreement involves proposals and counter
Importance:
The need for and importance of collective bargaining is felt due to the advantages it offers to
an organisation.
1. Collective bargaining develops better understanding between the employer and the
employees:
It provides a platform to the management and the employees to be at par on negotiation table.
As such, while the management gains a better and deep insight into the problems and the
aspirations of die employees, on the one hand, die employees do also become better informed
about the organisational problems and limitations, on the other. This, in turn, develops better
Both the employer and the employees who best know their problems, participate in the
negotiation process. Such participation breeds the democratic process in the organisation.
The negotiation arrived at is acceptable to both parties—the employer and the employees.
organisational processes to match with the changed conditions. Among other alternatives
available, collective bargaining is found as a better approach to bring changes more amicably.
The direct participation of both parties—the employer and the employees—in collective
Q3. What are Industrial conflicts? Why do they take place and what can be done to
resolve them amicably to restore harmony at workplace.
Ans. Industrial conflict occurs when employees express their dissatisfaction with management
over the current state of the management-employee relationship. The causes of such
dissatisfaction are typically matters related to regular wage payment, wage increase or
remunerations according to terms of the employment contract.
The causes of industrial disputes are many and varied.
1. Wage Demands - The demand for wages has never been fully met because of inflation and
high cost of living. High inflation results in increased cost of living resulting in never-ending
demands from unions.
2. Union Rivalry -Multiplicity of unions leads to inter-union rivalries. If one union agrees to a
wage settlement, another union will oppose it. The consequence is never-ending disputes, as
has been happening at the Singareni Collieries.
3. Political Interference - Major trade unions are affiliated to political parties. Political
affiliation is not peculiar to our country alone. Even a cursory assessment of labour
movements around the world would show that trade unions are, by their very nature,
political, and that politicisation of labour is the rule rather than the exception.
4. Multiplicity of Labour Laws - Labour laws in our country, as in several other countries,
have been enacted to create conditions for the protection of labour from unfair employment
practices and to provide a legal framework within which Industrial Relations is to be
regulated.
Q4. Discuss the provisions regarding strikes, lockouts, layout, and retrenchments
under the Industrial Dispute Act.
Layoffs:
Essentially, a lay-off is a condition where the employers are constrained to deny work to their
workforce owing to conditions that bring forth a temporary inability to keep their business going.
The said case scenario can happen only in a continuing establishment.
Special Provisions: The employer cannot, without prior permission from the appropriate
government, lay-off an employee featuring on the muster rolls of the establishment A copy of the
said application has to be given to the concerned workmen as well. If the lay-off happened where
the workmen (other than badli workmen or casual workmen) of an industrial establishment, being a
mine, owing to reasons of fire, flood or excess of inflammable gas or explosion, the employer, in
relation to such establishment, shall, within a period of thirty days from the date of commencement
of such lay-off, apply in the prescribed manner, to the appropriate Government or the specified
authority for permission to continue the lay-off.
Strike:-
Strike action, also called labour strike, on strike, greve (of French: grève), or simply strike, is a
work stoppage caused by the mass refusal of employees to work. A strike usually takes place in
response to employee grievances. Strikes became important during the industrial revolution, when
mass labour became important in factories and mines. In most countries, they were quickly made
illegal, as factory owners had far more political power than workers. Most western countries
partially legalized striking in the late 19th or early 20th centuries.
Lock-out :
Lock-out means the temporary closing of a place of employment, or the suspension of work, or the
refusal by an employer to continue to employ any number of persons employed by him;
The essential requirements of lockout are:-
1. There should be some demand for which industrial establishment is locked out.
2. The temporary closing of a place of employment/undertaking. The permanent closure
does not constitute lockout.
3. Intention to re-open or take the worker back if they accept the demand must exist.
Retrenchments:
The Act defines “Retrenchment” as the termination by the employer of the services of a workman
for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action,
but doesn't include-
(b) Retirement of the workman on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a stipulation in that
behalf; or Termination of the service of the workman as a result of the on-renewal of the contract
of employment between the employer and the workman concerned on its expiry or of such contract
being terminated under a stipulation in that behalf contained therein; or
(c) Termination of the service of a workman on the ground of continued ill-health;
Special Provisions: It is pertinent to note that a worker who has served for at least a year of
continuous service cannot be retrenched unless served a notice three months in advance and prior
permission from the appropriate government. The said application has to be submitted by the
employer along with the reasons for such retrenchment. The said application will be taken into
consideration and scrutinized through an inquiry. They shall provide an opportunity to be heard for
both sides and may decide on the outcome of the application for reasons recorded in writing. If
there’s no reply from the appropriate government for a period of sixty days from the date of
application, the permission shall be deemed to have been granted.