Professional Documents
Culture Documents
UNIT 2, 3 &4: International Labour Organisation (Ilo)
UNIT 2, 3 &4: International Labour Organisation (Ilo)
International Labour Organisation (ILO) is the most important organisation in the world level
and it has been working for the benefit of the workers throughout the world. It was
established in the year 1919. It is a tripartiate body consisting of representatives of the
Government, Employer, workers. It functions in a democratic way by taking interest for the
protection of working class throughout the world.It is also working at the international level
as a ‘saviour of workers’ ‘protector of poor’ and it is a beacon light for the change of social
justice
International Labour Conferences: - General Assembly of the ILO – Meets every year
in the month of June.
Governing Body: - Executive Council of the ILO. Meets three times in a year in the
months of March, June and November. The Governing Body of ILO functions through its
various Committees..
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(i) Programme, Planning & Administrative
(ii) Freedom of Association
(iii)Legal Issues and International Labour Standards
(iv) Employment & Social Policy
(v) Technical Cooperation
(vi) Sectoral and Technical Meetings and Related issues.
FUNCTIONS OF ILO
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1. The first plan period :The first five year plan emphasized the need for industrial peace
industry, the ultimate oneness of interests and the virtue of harmonious relations between
capital and labour .the plan encouraged mutual settlement , collective bargaining and
voluntary arbitration. It observed : it is incumbent on the state to arm itself with legal
power s refer disputes for settlement by arbitration or adjudication, on failure of efforts to
reach an agreement by other means.
The plan stressed that the machinery to settle dispute e should be managed in
accordance with these principles
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Legal technicalities and formalities of procedure should be used to the minimum
possible extent.
Each dispute should be finally and directly settled at a level suited to the nature and
importance of the case.
Tribunals and courts should be manned by specially trained expert personnel.
Appeals to these courts should be reduced.
Provision should be made for prompt compliance with the terms of any award.
2. The second five – year plan: The second five year plan continued the policy formulated
in the previous plan. It observe that inadequate implementation and enforcement of
awards and agreements had been a source of friction between labour and management. It
suggested that there should be restrictions on the number of outsiders who serve as office
bearers of unions.
3. The third five year plan: The third five year plan laid stress on moral rather than legal
sanctions for the settlement of disputes. It laid stress on the prevention of unrest by
timely action at the appropriate stages and giving adequate attention to root causes. The
plan suggested that workers participation in management should be accepted as a
fundamental principles and an urgent need.
4. Fourth five - Year plan :No fresh direction or any shift in the government’s industrial
relations policy was indicated in the fourth plan. The plan hoped that “trade unions
would be serve not only as agencies seeking for their members fairs wages and proper
conditions of workers and living , but play an increasingly important role in the nations
development.
5. The Fifth Five Year Plan:The Fifth five year plan stress the need for greater
involvement of labour by ensuring its vertical mobility in industrial organizations .Stress
will be laid on strengthening industrial relations and conciliation machinery , better
enforcement of labour legislation, research in labour relations and labour law,
improvement of labour statistics.
6. The Sixth Five Year plan : The plan stress that “collective bargaining should be
encouraged , for this would enhance the strength and facilitate the enlargement of trade
unions’ role. Serious efforts should be made by trade unions to promote greater
involvement of workers in the enterprise to fulfill the norms of greater efficiency and
achieve excellence In its overall performance
7. The Seventh Year Plan :There is considerable scope for improvement in industrial
relations which would obviate the need for strikes and the justification for lockouts. in
proper management of industrial relations the responsibility of unions and employees has
to be identified and inter-union rivalry and intra union divisions should be avoided.
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A )Post Independence Era
1.Industrial relations during Pre- Independence Period: In this era, Indian workers did
not enjoy any freedom of expression or association. Workers used to be hired and fired. They
were not in a position to raise voice against poor working conditions. British employers were
exploiting the workers with poor payments and miserable working conditions.Till the end of
First World War, there were no trade unions in India. No attempt was made to pass
legislation measures to protect the interest of workers.In fact after the end of first World War,
when Indian workers got support from British workers, then Govt. of British reluctantly
passed Trade Dispute Act : 1929.
The passing of the factories act in 1881 brought a wakening among the
working class.
In were given to Bombay Labour Commission headed by N.M. Lokhande.
In 1890 First Bombay Mill hands Association was established.
In 1897 Amalgamated society of railway servants of India was made.
In 1905 Printer’s Unions was formed.
In 1907, Postal Unions were formed in Bombay.
Due to influence of ILO (International LabourOrganisation). The Workmen’s
Compensation Act 1923, The Trade Union Act 1926 and Trade Dispute Act
1929 were passed which provided significant measures of protections to
workers during the course of employment.
During the tenure from 1957-65, the ILO worked towards achieving voluntary
agreements between labour and management. In 1957, code of discipline was
introduced. The Joint Management Councils (JMC) and Works Committee were also
formed during this period.
Liberalization came in India in 1990s and it has caused a huge change in the Indian
Industry.
It opened the door for MNC companies in India 31 which attracted foreign investment
in the country.
It also developed up the quality of products, delivery and service standards in the
industry. Employees and workers were exposed to different world class technologies
and work environment.
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Industry has witnessed unprecedented increase in salaries and benefits. Talent in
Indian Industry received international exposure through visits to parent companies
and their work culture and practices.
The Liberalization had impact on IR in terms of reduction in labour disputes in
the1990s.
Due to increased automation employment growth has also slowed down in 1991 from
1.6 to 1.1 in 1998 (Gupta’s 1999, comparative study of the period).
Employment insecurity among the labour has increased.
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The first national commission on labour was set up on 24 December 1966 under the
chairmanship of justice P.B.Gajendragadhar.
The commission submitted its report in august, 1969 after detailed examination of all
aspects of labour problems, both in the organized and unorganized sectors.
The recommendations of the National Commission on Labour had far reaching
implications on labour policy in different fields.
It has observed that the concern of the state in labour matter emanates from its
obligations to safeguard the interest of the workers and employees so as to ensure the
social welfare facilities at a reasonable price.
The recommendations include the categorization by NCL of industries as essential
and non-essential for the purpose of strikes and lockouts.
It laid down the procedure for the settlement of disputes and for the recognition of
trade unions.
The strengthening of trade unions, the strengthening of collective bargaining,
statutory formulation of grievance procedure are the other major recommendations.
In India the policies on industrial relations are influenced by the Constitution on India,
the instruments of ILO and the policies on industrial relations announced.
In a democratic set up industrial relation policies are shaped by basic philosophy for
governance of the people based on human values for freedom and human rights.
Government intervention in India becomes necessary in view of alarming industrial
unrest, poor conditions on work and workers and lack of strong trade union
movement.
The directive principles of the Indian constitution require the government to intervene
in industry to safeguard the interest of working class and to increase productivity.
Certain laws applicable throughout the country such as
o The Plantations Labour Act 1952
o The Minimum Wages Act 1948
o The payment of Bonus Act 1965
o The Contract Labour Act 1970
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o The Payment of Gratuity Act 1972
o The Bonded Labour Act 1975
o The Equal Remunerations Act 1976 have been enacted to protect the
economic and social interests of the working class.
T he second national commission on Labour was set up on 15 October 1999 under the
chairmanship of Ravindra Varma
Submitted its report to the Prime Minister Atal Bihari Vajpayee on 29 June 2002.
The initiation of several economic reforms during the 1990s further necessitated a
review of industrial relations scenario, labour laws and other related matters and
brings the desired changes to deal with the challenges of future.
Changes have occurred at the workplace like character of employment, changes in
hours of work, and overall change in the scenario of industrial relations.
These changes have resulted in the uncertainties in the labour market requiring a new
look to the labour laws.
The existing labour laws are so inflexible that employers are reluctend to hire labour
because they would not be able to fire surplus labour un the future.
Unless the labour laws are changed higher manufacturing growth will not
automatically result in greater employment.
They will be constrained to undertake downsizing or restructuring for fear of trouble
from the trade unions.
In the light of the above position, the government resolved on 15-10-1999 to set up
the second National Commision on Labour so that a high powered body could
dispassionately look into these aspects and suggests appropriate changes in the labour
legislation and labour policy.
The commission was entrusted to suggest, among other things, rationalization of the
existing labour laws in the organized sector so as to make them more relevant in the
changing economic conditions under the impact of globalization.
The second National Commission on Labour was expected to formulate an umbrella
law to ensure protection to workers in the unorganized sector which the absence of
growth in job opportunities in the organized sector, is expanding at a rapid pace,
absorbing school dropouts, women, and children.
It is of the utmost importance to look after the welfare and interests of the 32 crore
workers in the unorganized sector because they are often made to suffer silently.
They are not always paid minimum wages and even their low salaries are not paid on
time besides being subject to deduction by way of commission to middlemen.
The terms of reference of the second National Commission on Labour are
a. To suggest rationalization of existing laws relating to labour
in the organized sectors and
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b. To suggest an umbrella legislation for ensuring a minimum
level of protection to the workers in the unorganized sector.
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FEATURES OF DISCIPLINE
(i) It is a determinative and positive willingness which prompt individuals and group to carry
out the instructions that have been issued, and abide by the rules of conduct and the standards
of work which have been established to ensure the successful attainment of organizational
goals.
(ii) It is negative approach which encourages individuals to undertake some activities and
which restrains them from undertaking others.
(iii) It is punitive or a big stick approach which imposes a penalty or punishment if the rules
and regulations, which have been laid down by an organization, are ignored or disobeyed.
OBJECTIVES OF DISCIPLINE
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To give and seek direction and responsibility;
To create an atmosphere of respect of for the human personality and human relations
To increase the working efficiency and morale of the employees
To promote constructive co operation between the parties concerned at all leaves
To secure settlement of disputes and grievances by negotiation conciliations and
voluntary arbitration
To avoid work stoppage
To facilitate the free growth of trade union
To eliminate all forms of coercion intimidation and violence in industrial relations
To maintain discipline in the industry
1.Knowledge of Rules. The employee must be informed clearly about what constitutes good
behaviour and the rewards that may emanate from it. All instructions should be clear and
understandable. It is common sense that an employee will obey an instruction more readily if he
understands it.
2. Prompt Action. All violations and misconducts-big and small-should be promptly enquired
into. For example, a supervisor is most unwise to wait until lunch break before rebuking a worker
for arriving late. Beat the iron when it is hot. This is because when the penalty is imposed
immediately following the violation of a rule the person punished tends to identify the
punishment with the act he committed.
3. Fair Action. Promptness of disciplinary action at the cost of its fairness is not proper. An
action in order to be fair must possess the following characteristics:
4. Well Defined Procedure. The procedure to be followed to reach to a penalty decision should
be carefully laid down. It should include the following steps:
(a) The supervisor must assure himself that some violation of the rules has taken place.
(b) He should state precisely and objectively the nature of the alleged violation.
(c) He should then proceed to gather full facts about the case and maintain proper records
(d) The appropriateness of a disciplinary action should be decided in terms of its effectiveness in
correcting the employee
(E) The accused employee should have the right to appeal to higher authorities.
6.Hot-stove Rule :This rule, so called by Douglas McGregor, draws an analogy between
touching a hot stove and undergoing discipline. When a person touches a hot stove:
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1. The burn is immediate.
2. He had warning. Particularly if the stove was red hot he knew what would happen if he
touched it.
3. The effect is consistent. Every one who touches a red-hot stove would be burned.
4. The effect is impersonal. A person is burned not because of who he is but because he touched
the hot stove.
5. The effect is commensurate with the gravity of misconduct. A person who repeatedly touches
the hot stove is burnt more than one who touched it only one. The same should be with discipline.
The disciplinary process should begin immediately after the violation is noticed.
6.Recording the findings of the Enquiry :When the process of enquiry is over, the enquiry
officer should record his findings and the reasons thereof.
7. Review and Revision :A supervisor must play the role of a judge enforcing the law with
impartiality. He should not engage in personal ridicule, insult or even criticism.
All rules and regulations should be appraised at regular intervals to ensure that they are
appropriate to the changing times. If a particular rule is violated time and again, it should be
thoroughly studied to discover and remove the causes of such violations.
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STEPS INVOLVED IN DISCIPLINARY ACTION
P r o c e d u r e f o r D is c ipl in a r y
Ac t io n
Statement of disciplinary problems
Types of penalties
Application of penalty
Follow up
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Types of Punishment
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TYPES OF DISCIPLINE:
A)Positive Discipline :
b)Negative Discipline
KINDS OF PUNISHMENT
Minor punishment: includes oral reprimand, written repriment, loss of privilege and fines.
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Oral reprimand: It is mainly given minor offences. The supervisor tells the
subordinate not to repeat a particular act. It is a disapproval of the employee’s action.
He conveyed the displeasure of management
Written reprimand:
In this stage when the employees go on repeating the offences, and do not try to
improve upon their habits, then written reprimands is issued. A record is maintained
of reprimands.
Loss of privileges:If the employees commit some serious offences then the
organisation stops certain privileges employed by him in the organisation.
Fines:The company may fine the employees for the commitment of certain offences.
This amount should be deducted from his wages.
Major punishment
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The management itself must abide by the provisions of labour and regulations, standing
orders, industrial awards and collective agreements and statements. Only then it can expect a
compliance of rules by the employees
The standing orders relating to Acts and omissions constituting misconduct should be framed
in consultation with the union or worker’s representatives and must contain elements of
fairness and clarity and be made known to the workers
The penalties for different kinds of offences should be clearly defined, and these must be in
proportion to the severity of offences committed
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The rules of discipline should be uniformly enforced without any element of discrimination
and manoeuvring. The management must also be careful about appraising these rules from
time to time and insert modifications in the light of change conditions
Adequate attention should be given on the preventive aspects such as fostering human
relations approach and provision of incentives
Where a particular type of offence is more frequent, the circumstances leading to the offence
should be carefully investigated and contributing factor modified
There should also be the provision of appeal and review of the decisions taken at lower
levels
Domestic enquiry / Enquiry:In case the management is not satisfied with the outcome of
stage of charge sheeting and the offence is of serious nature, the next step of domestic
enquiry is invoked. The charge sheeted employee is served with a notice of enquiry, and the
persons designated to hold the enquiry is communicated to him. The enquiry officer is
required to make an investigation into the matter, collect relevant information, interview
fellow workers or others for the purpose and keep a record of the statements of the witness
and the evidences collected.
Inflicting of punishment: On the basis of the report by the enquiry officer, statements of
witness and other material evidences and the recommendations of the enquiry officer as to the
type of punishment which could be inflicted on the offender, the authority takes a final
decision in the matter and issues an order of the punishment to be inflicted. A copy of the
order is served on the employee found guilty of the offence. The authority, prior to taking a
final decision in matter, must try to ensure that the principles of natural justice have been
followed in the procedure and that the punishment awarded is in proportion to the severity of
the offence committed.
1. Accurate statement of the problem:The first step is to ascertain the problem by seeking
answers to the following questions:
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What , exactly, is the nature of the violation or offence?
Under what condition did it occur?
Which individual or individuals were involved in it?
When, or how often, did the violation occur?
2. Collecting facts bearing on the case:Before any action is taken in a case, it is essential to
gather all the facts about it. A thorough examination of the case should be made within the
stipulated time limit. The facts gathered should be such as can be produced before a higher
authority, if and when needed.
4.Choice of penalty:When a decision has been taken to impose a penalty, the punishment
to be awarded should be such as would prevent a recurrence of the offence. If the punishment
is lighter than it should be , it may encourage the violation of the same rule or another:, if it
is greater than it should be, it may lead to a grievance.
5. Application of the penalty:The application of the penalty involves a positive and assured
attitude on the part of the management. “if the disciplinary action is simple reprimand, the
executive should calmly and quickly dispose of the matter. But when severe action is called
for, a forthright, serious and determined attitude is highly desirable.”
In our country , the following steps in disciplinary procedure are usually followed:-
1.Calling for explanation: The employee asked to give an explanation as to his conduct or
mis- behaviour and sufficient time like 24hours to 48 hours should be given to him to enable
him to give explanation.
3.Show cause notice: It is another chance given to the employee in writing to explain his
conduct and rebut the allegation made against him. If the employee fails to give a satisfactory
explanation to the charges levelled against him ,a regular enqiry must be held.
4. Notice to hold enquiry: A notice giving the name of the enquiry officer, time , date and
place of enquiry into his conduct is served on the employee who is expected to give relevant
information in support of his innocence or against the allegations.
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5.Holding of enquiry: The enquiry officer should allow the employee to produce his own
evidence or witnesses to rebut the charges levelled against him. All the proceeding of the
enquiry must be properly recorded by the enquiry officer. He must make his report stating his
findings and recommend the nature of action to be taken.
6.Punishment:When the charges against the employee are proved, the necessary disciplinary
action may be taken by management keeping in view the employee’s past record and
recommendation of the enquiry officer.
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Before imposing any punishment against an employee, the employer has to conduct a
domestic enquiry. The domestic enquiry is a quasi-judicial proceeding and there are no
written rules for conducting a domestic enquiry. Therefore it becomes utmost important that
all the principles of natural justice are followed during the course of enquiry.
DOMESTIC ENQUIRY
Some of the basic principles to be followed in the domestic enquiry are as under:
The employee proceeded against has been informed of the charges levelled against
him;
The witnesses are examined ordinarily in the presence of the employee in respect of
the charges;
The employee is given a fair opportunity to cross-examine the witnesses;
The employee is given a fair opportunity to examine his own witnesses including
himself in defence, if he so wishes;
The enquiry officer records his findings with reasons for the same in his report
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1.A domestic enquiry is held by an enquiry officer.
The enquiry officer who is not a judge but at the same time the principles of natural justice
have to be complied with so that proper opportunity is given to the charge- sheeted employee:
Example: to be heard, to cross-examine the witness, to produce his document with witness
and himself.
2.When an enquiry officer is appointed from the establishment. The enquiry officer
should preferably be superior in status of the charge-sheeted employee.
3.The notice for holding of enquiry with time, date and venue of enquiry. It should be
sent by the Enquiry Officer to the Charge-Sheeted Employee and to the management. A
personal delivery of the notice through a messenger can be appropriate when the Charge-
Sheeted employee.
5.The enquiry proceedings should be recorded in tripartite. Example: one copy for the
Enquiry Officer, one for the Charge- Sheeted Employee and the third copy for the
Management Representatives.
6.In an enquiry, no arguments are required to be advanced by either of the parties after
producing evidence for or against. The enquiry officer should, thereafter, submit his written
findings to the management.
7.The Enquiry Officer should not recommend any punishment to be imposed upon the
Charge–Sheeted Employee by the disciplinary authority.
11.The whole procedure carried out in good faith and without any bias or intent of
malice.
12.The Enquiry Officer should refrain from asking or probing questions to the Charge
–Sheeted Employee.
ENQUIRY AUTHORITIES
The principles of natural justice require that the enquire that the enquiry into the charges
against an employee should be held by an impartial authority. The enquiry officer, therefore,
should be a person with an open mind. He should act impartially, objectively and without
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bias because justice must only be done but also appear to be done. With regard to the
appointment of enquiry officer, the following principles may be follows:
2.The disciplinary authority, ie, the authority which has been given the power to take
disciplinary action under the rules.
3.The authority to whom the power to issue charge sheet has been delegated under the
service rules or in accordance with a valid administrative order. The right offer an
appeal is substantive right vested in an employee. The standing orders or service rules contain
provisions regarding submission of appeal against orders passed in disciplinary matters.
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EMPLOYEE COUNSELLING
It seeks to establish a helping relationship in which the one counselled can express their
thoughts and feelings in such a way as to
Functions of counselling
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Advise
Re-assurance- provide courage, confidence, strength and positive feeling
Release of tension
Reorientation- changing the basic self
Clarified thinking- think in rational and realistic manner
Benefits of counselling
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INDUSTRIAL UNREST IN INDIA
Wage Related Issues: The wage levels in different industries vary tremendously. The
disparity in wages between skilled and unskilled labour is large even within an
enterprise. This is true in both the organised and the unorganized sectors. The demand
for higher bonus has been a major cause for industrial disputes.
Lack of Welfare and Social Security:Social security measures can be divided into two
categories:Social insurance & Social assistance.
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Social insurance schemes are generally financed by the employees, employers and the
State. However, such welfare measures face the following problems:
Insufficient coverage
Lack of employment insurance,
Inherent bottlenecks of an exit policy,
Overlapping schemes, and
Lack of facilities vis-a-vis requirement of beneficiaries.
New Lifestyles :The workers are increasingly adopting new urban lifestyles and this is
expensive and requires a larger income for the family. The workers are often drawn into
industrial battle by such compulsions.
Low-cost Production Alternatives: The employers often defeat the purpose of trade
unions by searching out low-cost production alternatives in the form of small-scale
subsidiary units in smaller towns where low wages will do.
Occupational instability
Low profit
Low morale
Resistance to change
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Collective bargaining is a group action:In it no individual action is taken, all issues are
settled through group action by the representatives of the employers and employees. Both the
groups sit together at negotiating table and try to reach at some agreement acceptable to both
the parties.
Collective bargaining has become an art. Now- a- days collective bargaining has become
an art and an advance form of human relations. It is highly sensitive, tactful and organised
efforts from both sides to solve all types of problem and issues. Both the parties’ management
as well the members of trade unions have to be mature, with a broad mindness and the
foresightedness.
It is highly flexible. It is based on the principle of ‘Give and Take’ and on ‘Adjustment and
Compromise’. There is no rigidity and no hard and fast rule for reaching an agreement. All
efforts are done to reach on an agreement. All efforts are done to reach on an agreement,
’Take it or leave it’ principle does not apply here.
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It is a bipartite process. It is a two party common process of the employers and employees.
It is collective action without the interference of any third party. It is mutual and joint
approach process.
Ensure the
Participation
of TU’s
Maintain cordial
relation Protect the
interests
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From the Mgt Point of View
Recognized trade unions have the legal right to bargain about pay, hours and holidays.
Most agreements by employers to recognize trade unions for collective bargaining are
entirely voluntary.
Employees and other workers have the right to be accompanied at a disciplinary or
grievance hearing
Informing and consulting
Transfers of business ownership
Occupational and personal pension schemes
IMPORTANCE TO EMPLOYEES
IMPORTANCE TO MANAGEMENT
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 plays a vital role in settling and preventing industrial disputes.
It may determine employment conditions by law, for example, through setting the
minimum wages, legislating the length of holiday or preventing ethnic discrimination.
It may provide some benefits directly, for example, pensions.
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It may set the ground rules which govern the parties; conduct to take an example,
through giving unions the right to bargain, restricting the conditions under which
strikes may occur or determining the scope of bargaining.
It may settle disputes which the parties are unable to settle themselves often through
mediation or arbitration.
Through its macro-economic and social policies, it affects the terms of bargaining
agreements.
The government is a major employer itself and often bargains with unions
representing its employees, frequently setting a pattern for the entire economy. In fact,
union density is higher in the public sector, rather than in the private sector in most
countries today.
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1. Article 19(1)(c) of the Indian Constitution guarantees freedom of associations and unions as
a fundamental right. This was recognized in the Trade Unions Act, 1926, Industrial Disputes
Act, 1947 and the Industrial Employment (Standing Orders) Act, 1948
2. India ratified ILO Convention NO.11 concerning the Right of Association for Agricultural
Workers during British rule in 1923.
3. Trade Union Act, 1926 – The Act provides for the registration of trade union and determines the
rights, liabilities and immunities of the union. The primary purpose for the formation of the trade
union is to regulate the relations between the employer and employee or among themselves48 and
it is well established that collective bargaining is one of the means of regulating such a relation
4. The Industrial Employment (Standing Orders) Act, 1946 – Standing Order is drafted by the
employer which contains the conditions of employment. As per Section 3 of the Act, initially, the
employer needs to submit the draft standing order to the Certifying Officer which should be in
conformity to the model standing order as far as possible.
5. . In other words, framing of standing order is a kind of negotiation with the help of the third
person (Certifying Officer) which implies the process of collective bargaining.
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Strike as a weapon of collective bargaining :The Industrial Disputes Act,
1947, under Sections 22 and 23, provides for right to strike subject to
restrictions given in the above sections
8. In 1956 the Second Five-Year Plan document highlighted the importance of 'one-union
oneindustry’.
9. In 1958 the Indian Labour Conference evolved a code of discipline in industry which did not
and still does not have statutory force which contained “Criteria for recognition of unions. It
favoured workmen belonging to non-recognised unions to operate through the
representative union of the industry or seek redressal of grievances directly”.
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Distributive bargaining is the most common type of bargaining & involves zero-sum
negotiations, in other words, one side wins and the other loses.
Both parties try to maximize their respective gains.
They try to settle economic issues such as wages, benefits, bonus, etc.
For Example, Unions negotiate for maximum wages & the management wants to
yield as little as possible – while getting things done through workers.
In distributive bargaining, unions and management have initial offers or demands,
target points (e.g.: desired wage level), resistance points (e.g.: unacceptable wage
levels) & settlement ranges (e.g.: acceptable wage level). Another name for this type
of bargaining is conjunctive bargaining.
As its very name suggests it is a straight art of negotiating over the distribution of the
amount and hence under this type of bargaining economic issues like wages, salaries,
bonus, retiremental benefits are discussed and under this type of bargaining one
party’s gain in another party’s loss.
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Both the employer & the union try to resolve the conflict to the benefit of both parties.
Both sides share information about their interests and concerns and they create a list
of possible solutions to best meet everyone’s needs.
For Example, when companies are hit by recession, they cannot offer the kind of
wages and benefits demanded by workers. At the same time they cannot survive
without the latter’s support. Both parties realize the importance of surviving in such
difficult times and are willing to negotiate the terms of employment in a flexible way.
Under this type of bargaining, the subject matter of the negotiations is important as
issues are of that type where there is no party losses like issue may be for a better
training managerial development program or a better job evaluation system. It is a
productivity enhancing bargaining in which emphasis is not on getting bigger share in
of the cake but of increasing the size of the cake and then getting the bigger share.
5)Attitudinal structuring: In this type of bargaining, the attitudes of both the parties are
shaped and reshaped i.e; their distress is tried to change to trust or hostility is converted into
friendliness. A feeling of open mindness is attempted to be brought from both sides. Points of
bitterness are discussed and are subsidised.
6)Intra Organisational Bargaining: The aim and function of his type of bargaining is to
achieve consensus within each of the interacting groups. There may be difference among the
various groups. Both the parties management and the trade unions prefix their own strategy
by consensus. They set broader outlines or limits upto which they are prepared to go down in
their demands.
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CAUSES OF GRIEVANCE
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Grievance resulting from wages & working conditions
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I)Unfair Labour Practice on the Part of Employers Under the Trade Unions
(Amendment) Act, 1947 '
The expression 'unfair labour practices' has not been exhaustively defined in any of
the enforced legislative enactments in India. However. Section 28 (k) of the Trade
Unions (Amendment) Act, 1947, enumerated the following to be unfair labour
practices on the pan of the employer:
To interfere with, restrain, or coerce his workmen in the exercise of their rights to
organize, form, join assist a trade union and
To interfere with the formation or administration of any trade union or to contribute
financial or other support to it
To discharge, or otherwise discriminate against any officer of a recognized trade
union because of his being such officer
To discharge, or otherwise discriminate against any workman because he has made
allegations or given evidence in any inquiry or proceeding relating to any matter such
as is referred to in sub-section (i) of Section 28F
To fail to comply with the provisions of Section 28F
II )Unfair Labour Practices on the Part of Trade Unions Under the Trade Unions
(Amendment) Act, 1947
25
For a majority of the members of the trade union to take part in an irregular strike
For the executive of the trade union to advise or actively support or instigate an
irregular strike
For an officer of the trade union to submit any return required by or under this Act
containing false statements.
III) Unfair Labour Practices on the Part of Employers and Trade Unions Under the
Industrial Disputes (Amendment) Act, 1982
Section 2 (ra) read with the Fifth Schedule of the Industrial Disputes (Amendment)
Act, 1982, defines and enumerates unfair labour practices on the part of employers to
mean:
To interfere with, restrain from, or coerce workmen in the exercise of their right to
organize, form, join or assist a trade union or to engage in concerted activities for the
purposes of collective bargaining or other mutual aid or protection, that is to say
Threatening workmen with discharge or dismissal, if they join a trade
union.
o Threatening a lockout or closure, if a union k organized
o Granting wage increase to workmen at crucial periods of trade union
organisation, with a view to undermining the efforts of the trade union
organization
To dominate, interfere with or contribute support financial or otherwise to any trade
union, that is to say.
o an employer taking an active interest in organizing a trade union of his
workmen
o an employer showing partiality or granting favour to one of several ttade
unions attempting to organize his workmen or to its members, where such a
trade union is not a recognized trade union.
To establish employee; -sponsored trade unions of workmen
To encourage or discourage membership in any trade union by discriminating against
any workman, that is to say
o Discharging or punishing a workman because he urged other workmen to join
or organize a trade union
o Discharging or dismissing a workman for taking part in any strike (not being a
strike which is deemed to be an illegal strike under this Act)
o Changing seniority rating of workmen because of trade union activities;
o Refusing to promote workmen to higher posts on account of their trade union
activities
o Giving unmerited promotions to certain workmen with a view to creating
discord among other workmen, or to undermine the strength of their trade
union
o Discharging office-bearers or active members of the trade union on account of
their trade union activities
To discharge or dismiss workmen
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o By way of victimization
o Not in good faith but in the colourable exercise of the employer's rights
o By falsely implicating a workman in a criminal case on false evidence or on
concocted evidence
o for patently false reasons
o on untrue or trumped up allegations of absence without leave
o in utter disregard of the principles of natural justice in the conduct of
domestic-enquiry or with undue haste
o for misconduct of a minor or technical character, without having any regard to
the nature of the particular misconduct or the past record of service of the
workman, thereby leading to a disproportionate punishment
To abolish the work of a regular nature being done by workmen, and to give such
work to contractors as a measure of breaking a strike
To transfer a workman mala fide from one place to another under the guise of
following management policy
To insist upon individual workmen. Who are on a legal strike, to sign a good conduct
bond, as a pre-condition to allow them
To show favouritism or partiality to one set of workers regardless of merit
To employ workmen as badlis. casuals or temporaries and to continue them as
such for years, with the object of depriving them of the status and privileges of
permanent workmen
To discharge or discriminate gainst any workman for filing charges or testifying
against an employer in any chquity or proceeding relating to any industrial dispute
To recruit workmen during a strike which is not an illegal strike
Failure to implement awards, settlements or agreements
To indulge in acts of feree or vioience
To refuse to bargain collectively, in good faith. With the recognized trade unions.
Proposing or continuing a lockout deemed to he illegal under this' Act.
IV )Unfair Labour Practices on the Part of Workmen and Trade Unions of Workmen
Under the Industrial Disputes (Amendment) Act, 1982
Section 2 (va) read with the. Fifth Schedule of the Amendment Act also enumerates
the following unfair labour practices on the part of workmen and their trade unions:
To advise or actively support or instigate any strike deemed to be illegal under this
Act
To advent workmen in the exercise of their right to self-organization or to join a
'fade union or refrain from joining any trade union, that is to say:
For a trade union or its members to picketing in such a manner that non-striking
workmen are physically debarred from entering their workplaces
To indulge in acts of force or violence or to hold out treats of intimidation in
connection with a strike against non-striking workmen or against managerial staff
For a recognized union to refuse to bargain collectively in good faith with the
employer.
27
To indulge in coercive activities against certification of a bargaining representative.
To stage, encourage or instigate such forms of coercive actions as wiflul ‘go slow’
squatting on the work premises after working hours or ‘gherao’ of any of the members
of the managerial or other staff
To stage demonstrations at the residences of the employers or the managerial staff
members
To incite or indulge in wilful damage to employer's property connected with the
industry
To indulge in acts of force or violence or to hold out threats of intimidation against
any workman with a view to prevent him from attending work
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Badli Workman
A badli workman means a workman who is employed in an industrial establishment
in place of another workman whose name is borne on the muster rolls of the
establishment. But if he has completed one year of continuous service in the
establishment, he shall cease to be a badli workman for the purpose of Sec. 25-C.If a
badli workman has completed 240 days of continuous service and his name is borne
on the muster rolls of the establishment, he becomes entitled to layoff compensation.
28
Sec. 25-D casts a duty upon the employer to maintain muster rolls of workmen
notwithstanding that they have been laid off. The employer shall also provide for the
making of entries therein by workmen who may present themselves for the work at
the establishment at the appointed time during normal working hours. When a
workman does not so present himself and sign the muster rolls, he shall not be entitled
to claim layoff compensation.
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When Layoff Compensation not Payable. (Sec. 25-E) In the following cases, no
layoff compensation shall be payable to the laid off workman :
When he refuses to accept any alternative employment in the same establishment
from winch ne has been laid off, or in any other establishment belonging to the same
employer. The establishment must be situated in the same town or situated within a
radius of 5 miles from the establishment to when he belongs.
The alternative employment should not call for any special skill or previous
experience and should be such as can be done by the workmen- The wages which
would normally have been paid to the workman should be offered for the alternative
employment also.
When he does not present himself at the establishment at the appointed time during
normal working hours at least once a day.
When such layoff is due to a strike or slowing down of production on the part of
workmen in another part of the establishment.
The Supreme Court has laid down the following tests for this purpose
o unity of ownership ;
o unity of management, supervision and control;
o unity of finance ;
o unity of labour and conditions of service ;
o functional integrity;
o general unity of purpose, and
o geographical proximity.
No single absolute test should be applied in all cases and what has to be determined is
the true relation, between the different units. If in their true relation, the different units
constitute one integrated whole, such units will constitute one establishment.
============================================================
1. No workman (other than a badli workman or a casual workman) whose name is borne on
the muster rolls of an industrial establishment employing one hundred or more workmen shall
be laid off by his employer except with the prior permission of the appropriate Government
29
or such authority as may be specified by that government by notification in the Official
Gazette. The permission shall be obtained on an application made in this behalf.
3. An application for permission shall be made by the employer in the prescribed manner
stating clearly the reasons for the intended layoff. A copy of such application shall also be
served simultaneously on the workmen concerned in the prescribed manner.
4. Where the workmen (other than badli workmen or casual workmen) of an industrial
establishment, being a mine, have been laid off for reasons of fire, flood or excess of
inflammable gas or explosion, the employer, in relation to such establishment, shall apply in
the prescribed manner to the appropriate government or the specified authority for permission
to continue the layoff. The application shall be made within a period of 30 days from the date
of commencement of such layoff.
5. Where an application for permission has been made, the appropriate Government or the
specified authority may by order and for reasons to be recorded in writing grant or refuse to
grant such permission and a copy of such order shall be communicated to the employer and
the workmen. The appropriate Government or specified authority shall, however, pass the
order after making such enquiry as it thinks fit and after giving a reasonable opportunity of
being heard to the employer, the workmen concerned and the persons interested in such
layoff, having regard to the genuineness and adequacy of the reasons for such layoff, the
interests of the workmen and all other relevant factors.
6. Where an application for permission has been made and the appropriate Government or the
specified authority does not communicate the order granting or refusing to grant permission
to the employer within a period of 60 days from the date on which such application is made,
the permission applied for shall be deemed to have been granted on the expiry of the said
period of 60 days.
8. The appropriate Government or the specified authority may, either on its own motion or on
the application made by the employer or any workmen, review its order granting or refusing
to grant permission or refer the matter or cause it to be referred to a tribunal for adjudication.
9. Where a reference has been made to a tribunal, it shall pass an award within a period of
thirty days from the date of such reference.
10. A layoff shall be deemed to be illegal from the date on which the workman has been laid
off:
30
(a) where no application for permission is made, or .
(b) where no application for permission is made within the specified period, or
(c) where the permission for any layoff has been refused.
In such a case, the workman shall be entitled to all the benefits under any law for the time
being in force as if they had not been laid off.
11. The appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident/ in the establishment or death of the employer or the like, it is
necessary so to do, by order, direct that the provisions given above shall not apply in relation
to such establishment for such period as may be specified in the order.
12. The workman will not be deemed to be laid off in the following cases :
If he is offered an alternative employment (which does not call for any special skill or
previous experience and can be done by the workman) by the employers : (a) in the same
establishment from which he has been laid off, or (b) in any other establishment belonging to
the same employer situated in the same town or village, or within such distance that it will
not cause undue hardship to the workman ;
==================================================================
31
The appropriate government may, either on its own or on the application made by the
employer or any workman, review its order granting or refusing to grant permission
or refer the matter or, cause it to be referred to a tribunal adjudication.
When a reference has been made to a tribunal, it shall pass an award within a
period of 30 days from the date of such reference.
Where no application for permission is made or where the permission for any
retrenchment has been refused, such retrenchment shall be deemed to be illegal from
the date on which the notice of the retrenchment was given to the workman. The
workman in such a case shall be entitled to all the benefits under any law for the time
being in force as if no notice had been given to him.
Where permission for retrenchment has been granted or where permission for
retrenchment is deemed to be granted, every workman who is employed in that
establishment immediately before the date of application shall be entitled to receive,
at the time of retrenchment, compensation equivalent to 15 days average pay for every
completed year of continuous service or any part thereof in excess of 6 months.
The employer who makes illegal retrenchment is liable to imprisonment up to
month or fine to Rs 1000 or both.
=============================================================
Procedure for Retrenchment (Sec. 25-G) : the employer shall ordinarily retrench the
workman who was the last person to be employed in that category unless for reasons to be
recorded, the employer retrenches any of the workmen.
When he does not present himself at the establishment at the appointed time during
normal working hours at least once a day.
When such layoff is due to a strike or slowing clown of production on the part of
workmen in another part of the establishment.
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Where any workman in an industrial establishment, who is a citizen of India, is to be
retrenched and he belongs to a particular category of workmen in that
establishment, in the absence of any agreement between the empl°v6r and the
workmen in this behalf, the employer shall ordinarily retrench the workman who was
the last person to be employed in that category unless to. reasons to be recorded, the
employer retrenches any of the workmen.
This section lays down the principle of' last come first go'. In other words the junior
most employee in each category must be retrenched first of all' whenever
retrenchment is necessary. However, an employer can depart from this rule if there
are sufficient reasons which must be recorded. While departing from this rule the
employer must act fairly and in a bonafide manner.
In the interest of the business, an employer can retain the junior most employee
possessing special qualifications and aptitude. The rule contained is Sec. 25-G is not
immutable but any departure there from must be justified by sound and valid reasons.
Where any workmen are retrenched, and the employer proposes to take into his
employment any persons, he shall, in such manner as may be prescribed, give art
opportunity to the retrenched workman who are citizens of India to offer themselves
for re-employment, and such retrenched workmen who offer themselves for re-
employment shall have preference over other persons.
The benefit of preferential treatment in the matter of re-employment can be claimed
only by a retrenched workman and not by a workman who has been dismissed,
discharged or superannuated. If a workman has been improperly and illegally
retrenched, he is entitled to reinstatement even if the employer has engaged some
other workman in the meantime.48
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33
Any workmen who commences, continues or otherwise acts in furtherance of strike
which is illegal shall be punishable with imprisonment for a term which may extend
to one month or with fine which may extend to fifty rupees or with both.
Any employer who commences, continues or otherwise acts in furtherance of a
lockout which is illegal shall be punishable with imprisonment for a term which may
extend to one month, or with fine which may extend to one thousand rupees ,or with
both.
Any person who instigates or incites others to take part in ,or otherwise acts in
furtherance of a strike or lockout which is illegal ,shall be punishable with
imprisonment for a term which may extend to six months ,or with fine which may
extend to one thousand rupees ,or with both.
Any person who knowingly spends or applies any money in direct furtherance or
support of any illegal strike or lockout shall be punishable with an imprisonment for a
term which may extend to six months, or with fine which may extend to one thousand
rupees, or with both.
An illegal strike has been additional consequences;
Loss of benefit of annual holidays with wages under sec .79 of the factories act, 1948.
Loss of wages where the strike is unjustified.
Suspension of workmen forthwith pending an enquiry in to their conduct.
Dismissal of workmen provided they resort to violence or are guilty of physically
obstructing/intimidating the loyal workmen.
==================================================================
Importance of WPM
34
Improved communication. "Participation tends to break the barriers and makes the
information available to managers. To the extent such information alters the decisions, the
quality of decisions is improved."
Higher productivity. Increased productivity is possible only when there exists fullest co-
operation between labour and management. It has been empirically tested that poor labour
management relations' do not encourage the workers to contribute anything more than the
minimum desirable to retain their jobs. Thus, participation of workers in management is
essential to increase industrial productivity.
Strong Union. There must be a strong and stable union in every enterprise to represent the
workers in various forums of participation such as work committees, joint management
councils, etc. The trade union leadership must be guided by the philosophy of cooperation in
resolving the problems of the enterprise.
Mutual Trust and Faith. Existence of the atmosphere of trust, faith, confidence and
recognition is a must for co - operation between workers and management. There must be a
genuine desire on the part of the management and the workers to understand each other to
arrive at decisions acceptable to both the parties.
35
Continuity. Workers' participation must be an 'on - going' process and should not be treated
as 'one time' affair. Workers' participation should not be used merely as a fire - fighting
instrument for handling industrial relation problems.
==================================================================
36