INDUSTRIAL RELATIONS

PERSPECTIVES OF INDUSTRIAL RELATIONS

1. UNITARY PERSPECTIVE: In unitarism, the organization is perceived as an integrated

and harmonious system, viewed as one happy family. A core assumption of unitary approach
is that management and staff, and all members of the organization share the same objectives,
interests and purposes; thus, working together, hand-in-hand, towards the shared mutual
goals. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all
employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.
Work place conflict is seen as a temporary aberration, resulting from poor management,
from employees who do not mix well with the organizational culture. Unions co-operate
with the management and the management’s right to manage is accepted because there is no
‘we-they’ feeling. The underlying assumption is that everyone benefits when the focus is on
common interest and promotion of harmony. Conflict in the form of strikes is not only
regarded as necessary but destructive.
2. PLURALISTIC APPROACH: In pluralism the organization is perceived as being made
up of powerful and divergent sub-groups – management and trade unions. This approach
sees conflicts of interest and disagreements between managers and workers over the
distribution of profits as normal and inescapable. Consequently, the role of management
would lean less towards enforcing and controlling and more toward persuasion and co-
ordination. Trade unions are deemed as legitimate representatives of employees. Conflict is
dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed
could in fact be channeled towards evolution and positive change. Realistic managers should
accept conflict to occur. There is a greater propensity for conflict rather than harmony. They
should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of the pluralistic approach to industrial relations include:
 The firm should have industrial relations and personnel specialists who advise managers
and provide specialist services in respect of staffing and matters relating to union
consultation and negotiation.
 Independent external arbitrators should be used to assist in the resolution of disputes.
 Union recognition should be encouraged and union representatives given scope to carry
out their representative duties
 Comprehensive collective agreements should be negotiated with unions
3. Marxist Perspective: Marxist perspective is also called radical perspective. This
perspective is to reveal the nature of the capitalist society. It thinks that workplace relations
are against the history. It recognizes inequalities in power in the employment relationship
and in wider society as a whole. Consequently, conflict is perceived as an inevitable result.
What’s more, a natural response regarding workers against the capitalism exploitation is
seen as trade unions. This view of industrial relations is a byproduct of a theory of capitalist
society and social change. Marx argued that:
 Weakness and contradiction inherent in the capitalist system would result in revolution
and the ascendancy of socialism over capitalism.
 Capitalism would foster monopolies.
 Wages (costs to the capitalist) would be minimized to a subsistence level.
 Capitalists and workers would compete/be in contention to win ground and establish their
constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and labor,
and sees workplace relations against this background. It is concerned with the structure and
nature of society and assumes that the conflict in employment relationship is reflective of the
structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural
response of workers to their exploitation by capital.

4. SYSTEMS APPROACH (John T. Dunlop): Dunlop defines an industrial relations

system in the following way – An industrial relations system at any one time in its
development is regarded as comprised of certain actors, certain contexts, an ideology, which
binds the industrial relations system together, and a body of rules created to govern the
actors at the workplace and work community. There are three sets of independent variables –
the ‘actors’, the ‘contexts and the ‘ideology’ of the system. The actors are:
 hierarchy of managers and their representatives in supervision,
 a hierarchy of workers (non-managerial) and any spokesmen, and
 specialized governmental agencies (and specialized private agencies created by the first
two actors) concerned with workers, enterprises, and their relationships.

The contexts are the environment in which the actors are interacting with each other at
various levels and the ideology is their philosophy of industrial relations.

5. SOCIOLOGICAL APPROACH: Industry is a social world in miniature, organizations

are communities of individuals and groups with differing personalities, educational and
family backgrounds, emotions, sentiments, etc., these differences in individuals create
problems of conflict and competition among the members of industrial societies. Industry is,
thus inseparable from the society in which it functions. Through the main function of an
industry is economic, its social consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas, disintegration of family
structure, stress and strain, etc. As industries develop, a new industrial-cum-social pattern
emerges, which provides general new relationships, institutions and behavioral pattern and
new techniques of handling human resources. These do influence the development of
industrial relations.
6. PSYCHOLOGICAL APPROACH: The problems of IR have their origin in the
perceptions of the management, unions and the workers. The conflicts between labour and
management occur because every group negatively perceives the behavior of the other i.e.,
even the honest intention of the other party so looked at with suspicion. The problem is
further aggravated by various factors like the income, level of education, communication,
values, beliefs, customs, goals of persons and groups, prestige, power, status, recognition,
security etc. are host factors both economic and non-economic which influence perceptions
unions and management towards each other. Industrial peace is a result mainly of proper
attitudes and perception of the two parties.
7. GANDHIAN APPROACH: Mahatma Gandhi’s views on industrial relation are based
on his fundamental principles of truth, non- possession. Under the principle of non-violence
and truth, Gandhi meant a peaceful co-existence of capital and labour. Trusteeship implies
cooperation between capital and labour. His approach to labour problems was completely
new and refreshingly human. He held definite views regarding fixation and regulation of
wages, organization and functions of trade unions, necessity and desirability of collective
bargaining, use and abuse of strikes, labour indiscipline, and workers participation in
management, conditions of work and living, and duties of workers. Gandhiji laid down
certain conditions for a successful strike. These are:
 the cause of the strike must be just and there should be no strike without a grievance
 there should be no violence;
 non-strikers or “blacklegs” should never be molested.
He was not against strikes but pleaded that they should be the last weapon in the armory of
industrial workers and hence, should not be resorted to unless all peaceful and constitutional
methods of negotiations, conciliation and arbitration are exhausted. His concept of
trusteeship is a significant contribution in the sphere of industrial relations. According to
him, employers should not regard themselves as sole owners of mills and factories of which
they may be the legal owners. They should regard themselves only as trustees, or co-owners.
He also appealed to the workers to behave as trustees, not to regard the mill and machinery
as belonging to the exploiting agents but to regard them as their own, protect them and put to
the best use they can.
8. HUMAN RELATIONS APPROACH (Elton Mayo with Roethlisberger, Whitehead,
W. F. Whyte and Homans): Human resources are made up of living human beings. They
want freedom of speech, of thought of expression, of movement, etc. When employers treat
them as inanimate objects, encroach on their expectations, throat-cuts, conflicts and tensions
arise. In fact, major problems in industrial relations arise out of a tension which is created
because of the employer’s pressures and workers’ reactions, protests and resistance to these
pressures through protective mechanisms in the form of workers’ organization, associations
and trade unions. Through tension is more direct in work place; gradually it extends to the
whole industry and sometimes affects the entire economy of the country. Therefore, the
management must realize that efforts are made to set right the situation. Services of
specialists in Behavioral Sciences (namely, psychologists, industrial engineers, human
relations expert and personnel managers) are used to deal with such related problems.
Assistance is also taken from economists, anthropologists, psychiatrists, pedagogists, tec. In
resolving conflicts, understanding of human behavior – both individual and groups – is a
pre-requisite for the employers, the union leaders and the government – more so for the
management. Conflicts cannot be resolved unless the management must learn and know
what the basic what the basic needs of men are and how they can be motivated to work
effectively. It has now been increasingly recognized that much can be gained by the
managers and the worker, if they understand and apply the techniques of human relations
approaches to industrial relations. The workers are likely to attain greater job satisfaction,
develop greater involvement in their work and achieve a measure of identification of their
objectives with the objectives of the organization; the manager, on their part, would develop
greater insight and effectiveness in their work.

TRADE UNIONS
Trade unions are organizations formed by workers from related fields that work for the
common interest of its members. They help workers in issues like fairness of pay, good
working environment, hours of work and benefits. They represent a cluster of workers and
provide a link between the management and workers. The purpose of these unions is to look
into the grievances of wagers and present a collective voice in front of the management.
Hence, it acts as the medium of communication between the workers and management.
Regulation of relations, settlement of grievances, raising new demands on behalf of workers,
collective bargaining and negotiations are the other key principle functions that these trade
unions perform. The Indian Trade Union Act, 1926, is the principle act which controls and
regulates the mechanism of trade unions. In India, political lines and ideologies influence
trade union movements. This is the reason why today political parties are forming and
running trade unions.
PRINCIPLES OF TRADE UNION
Trade union functions have three fundamental principles;
1. Unity is strength
2. Equal pay for equal work/ same job
3. Security of service
OBJECTIVES;
1. To improve the economic lot of workers by securing them better wages.
2. To secure for workers better working conditions.
3. To secure bonus for the workers from the profits of the enterprise/organization.
4. To ensure stable employment for workers and resist the schemes of management which
reduce employment opportunities.
5. To provide legal assistance to workers in connection with disputes regarding work and
payment of wages.
6. To protect the jobs of labour against retrenchment and layoff etc.
7. To ensure that workers get as per rules provident fund, pension and other benefits.
8. To secure for the workers better safety and health welfare schemes.
9. To secure workers participation in management.
10.To inculcate discipline, self-respect and dignity among workers.
11.To ensure opportunities for promotion and training.
12.To secure organizational efficiency and high productivity.
13.To generate a committed industrial work force for improving productivity of the system.

TYPES:
ON THE BASIS OF MEMBERSHIP STRUCTURE

1. CRAFT UNION: The workers belonging to the same craft, specialized skill or same
occupation can form their trade union irrespective of industry or trade they be employed. For
example, mechanists working indifferent industries may form a union of mechanists only. In
the same way electricians, carpenters, and turners may form their separate unions. Therefore,
craft unions are open to members of a certain trade/skill, like Air India Navigator’s unions
and Indian Pilots Guild. The main drawback of this union is that during strike in craft union,
the entire working of the organization paralyzes because the workers of this union cannot be
easily replaced by other workers. Their unions generally oppose technologically advances in
the organization.
2. INDUSTRIAL UNION: The workers on the basis of industry can form unions
irrespective of their craft. For example, if entire workforce of a cement industry decides to
form a union consisting of workers of different craft; the union is called an industrial union.
Therefore, an industrial union is open to the members of workers of a factory like Girni
Kamgar Union at Bombay. This type of union encourages workers solidarity and makes
negotiations easy because a single agreement covers all workers of a particular industry. One
major drawback of this type of union is that the skilled workers in it feel that their specific
demands are not scientifically taken care of.
3. GENERAL UNION: This type is open to all members irrespective of their craft and
industry within a particular city or region. For example, Jamshedpur Labour Union, whose
membership includes workers engaged indifferent industries and crafts of Jamshedpur. In
this case, there is no distinction between skilled and unskilled workers.
4. FEDERATIONS: These are national level apex bodies in which plant level unions, craft
unions, industrial union and general unions are affiliated. They coordinating the affairs of
various unions in their fold.

ON THE BASIS OF PURPOSE:

1) REFORMIST UNION: The main objective of reformist unions is preservation of the
capitalist economy and the maintenance of competitive production on the basis of employee
relations. They do not insert on changing the present structure instead they want to continue
the existing, social, economic and political structures. However, it improves the wage level,
working conditions, quality of work life by increasing the productivity level and by
bargaining for a share in the increased productivity.
(a) BUSINESS UNIONS: They are also known as ‘bread and butter unions’ and aim at
securing economic interests of their members and follow the method of collective bargaining
to accomplish their objectives.
(b) UPLIFT UNION: These unions lay emphasis on collective bargaining and mutual
insurance they advocate cooperative enterprises and profit sharing altogether. These unions
aspire to elevate the moral, intellectual and social life of workers. Friendly unions
concentrate on health, education, insurance and benefits.
2) REVOLUTIONARY UNIONS: As is evident from their tide, these unions aim at
replacing the present system with the new and different institutions based on the ideals these
are consider the most preferable one. These unions aim at destruction or cessation of the
capitalistic system, abolition of private property and installation of socialist or communistic
systems. These unions are further classified into four types as under:
a) POLITICAL UNIONS: These unions resort to political action to protect the worker’s
interest. The unions prefer minimization of wage differentials.
b) ANARCHIST UNIONS: The main aim of these unions is to destroy the existing
economic system by taking resort by the medium of revolution.
c) PREDATORY UNIONS: Predatory union has no ideology. It can adopt any method
which will deliver the goods and it sticks at nothing. Its distinguishing characteristic is the
ruthless pursuit of the matter in hand adopting any means that seems most appropriate at the
time, paying no regard to the ethical and legal codes or the effect upon those outside its own
membership. It may employ business, friendly or revolutionary methods.
d) GUERRILLA UNIONS: These unions can go to any extent, including resorting to terror-
ism and other violent means, to accomplish their objectives. It is the boss who rules the
roost.

FUNCTIONS: The basic function of trade unions is to protect and promote the interest of
the workers and condition of the employment. Some other functions are:

1. MILITANT FUNCTIONS: One set of activities performed by trade unions leads to the
betterment of the position of their members in relation to their employment. The aim of such
activities is to ensure adequate wages secure better conditions of work and employment get
better treatment from employers, etc. When the unions fail to accomplish these aims by the
method of collective bargaining and negotiations, they adopt an approach and put up a fight
with the management in the form of go-slow tactics, strike, boycott, gherao, etc. Hence,
these functions of the trade unions are known as militant or fighting functions. Thus, the
militant functions of trade unions can be summed up as:
a. To achieve higher wages and better working conditions
b. To raise the status of workers as a part of industry
c. To protect labors against victimization and injustice
2. Fraternal Function: Assisting the workers in getting financial and non-financial assistance
during the period of strike and lockout getting medical facilities during sickness and
casualties facilitating provision of recreational and housing facilities come under fraternal
function.
3. SOCIAL FUNCTIONS: These functions include carrying out social service activities
discharging social responsibilities through various section of the society like educating the
customers.
a. Promoting and maintaining national integration by reducing the number of industrial
disputes,
b. Incorporating a sense of corporate social responsibility in workers
c. Achieving industrial peace.
4. POLITICAL FUNCTION: Affiliation of union to a particular political party, helping
political parties in increasing their enrolment, collecting donation, canvassing during
election and seeking the help of political parties during strike and lockout are political
functions.
5. ANCILLARY FUNCTION: Ancillary functions of trade unions include:
a. Communications: Trade unions communicate its activities, programmes, decisions,
achievements, etc., to its members through publication of news letters or magazines.
b. Welfare activities: Trade unions undertake welfare activities like acquiring of house sites,
construction of houses, establishment of cooperative housing societies, cooperative credit
societies, organizing training activities, etc.
c. Education: Trade unions provide educational facilities to its members and their family
members.
d. Research: Trade unions arrange to conduct research programmes. They systematically
and analyses date and information for collective bargaining, preparing of notes for union
officials for court cases, etc. They also arrange to analyses macro data about the economy,
industry and different sectors, etc.

Another broad classification on the basis of function performed by trade union is:

1. INTRA-MURAL FUNCTIONS: These functions are termed as militant functions too

because unions may resort to strikes and other pressure tactics to get their demands
implemented. Intramural functions include wage rises, proper working conditions,
sanitation, safety, continuity in employment and so on. The unions try to resolve these
issues through collective bargaining. If discussions and meetings do not help in resolving
these issues then unions use strike and other pressures as tools in getting these demands
accepted.
2. EXTRAMURAL FUNCTIONS: Trade unions also undertake functions which are
required for the welfare of their members. These functions include provision of educational,
recreational and housing facilities. The unions raise funds in the form of subscription from
members and spend them for the welfare of workers. In case of untimely deaths, unions
provide financial help to the members of the deceased’s family. Extramural functions are
very important as they inculcate the spirit of co-operation against members.

INDUSTRIAL DISPUTES
Disputes are always a drawback for any industry. A dispute arises for several reasons, the
most common being the relation between the labourers and their wages. It is the conflict of
interests between two parties that give rise to a dispute. The parties involved in an industrial
dispute are the employer and the employee.
“Industrial dispute” is defined as, “Any disputes or differences between employers and
employers, or between employers and workmen, or between workmen and workmen, which
is connected with the employment or non-employment or the terms of employment or with
the conditions of labour, of any person”.

SETTLEMENT OF INDUSTRIAL DISPUTE

1. CONCILIATION: Conciliation, is a form of mediation. Mediation is the act of making
active effort to bring two conflicting parties to compromise. Mediation, however, differs
from conciliation in that whereas conciliator plays only a passive and indirect role, and the
scope of his functions is provided under the law, the mediator takes active part and the scope
of his activities are not subject to any statutory provisions. Conciliation is the “practice by
which the services of a neutral party are used in a dispute as a means of helping the disputing
parties to reduce the extent of their differences and to arrive at an amicable settlement of
agreed solution.” Conciliation is the procedure in which there is an involvement of a third
party who provides assistance to the parties in dispute to carry out negotiation between them.
The two types of machinery that are available for executing the conciliation functions are:
 By the conciliation officers who work in the department of labour
 The Conciliation Board is a body of several members consisting of a chairman, two to
four members as the representatives of the employers and the employees. These members
are to be appointed by the government on parties’ recommendation.

CONCILIATING OFFICER: A conciliation officer is required to hold proceedings, carry

out investigations regarding the dispute in a fair manner to help the parties arrive at a
settlement. They are appointed to regulate settlement disputes for a specified area either for a
temporary time period or permanently

BOARD OF CONCILIATION: In case Conciliation Officer fails to resolve the differences

between the parties, the government has the discretion to appoint a Board of Conciliation.
The Board is tripartite and ad hoc body. It consists of a chairman and two or four other
members. The chairman is to be an independent person and other members are nominated in
equal number by the parties to the dispute. Conciliation proceedings before a Board are
similar to those that take place before the Conciliation Officer. The Government has yet
another option of referring the dispute to the Court of Inquiry instead of the Board of
Conciliation. The machinery of the Board is set in motion when a dispute is referred to it. In
other words, the Board does not hold the conciliation proceedings of its own accord. On the
dispute being referred to the Board, it is the duty of the Board to do all things as it thinks fit
for the purpose of inducing the parties to come to a fair and amicable settlement. The Board
must submit its report to the government within two months of the date on which the dispute
was referred to it. This period can be further extended by the government by two months.

2. COURT OF INQUIRY: In case of the failure of the conciliation proceedings to settle a

dispute, the government can appoint a Court of Inquiry to enquire into any matter connected
with or relevant to industrial dispute. The court is expected to submit its report within six
months. The court of enquiry may consist of one or more persons to be decided by the
appropriate government. The court of enquiry is required to submit its report within a period
of six months from the commencement of enquiry. This report is subsequently published by
the government within 30 days of its receipt. Unlike during the period of conciliation,
workers’ right to strike, employers’ right to lockout, and employers’ right to dismiss
workmen, etc. remain unaffected during the proceedings in a court to enquiry. A court of
enquiry is different from a Board of Conciliation. The former aims at inquiring into and
revealing the causes of an industrial dispute. On the other hand, the latter’s basic objective is
to promote the settlement of an industrial dispute. Thus, a court of enquiry is primarily fact-
finding machinery.
 3. VOLUNTARY ARBITRATION: On failure of conciliation proceedings, the
conciliation officer many persuade the parties to refer the dispute to a voluntary arbitrator.
Voluntary arbitration refers to getting the disputes settled through an independent person
chosen by the parties involved mutually and voluntarily. In other words, arbitration offers an
opportunity for a solution of the dispute through an arbitrator jointly appointed by the parties
to the dispute. The process of arbitration saves time and money of both the parties which is
usually wasted in case of adjudication. Voluntary arbitration is one of the democratic ways
for setting industrial disputes. It is the best method for resolving industrial conflicts and is a
close’ supplement to collective bargaining. It not only provides a voluntary method of
settling industrial disputes, but is also a quicker way of settling them.
4. ADJUDICATION: The ultimate remedy for the settlement of an industrial dispute is its
reference to adjudication by labour court or tribunals when conciliation machinery fails to
bring about a settlement. Adjudication consists of settling disputes through intervention by
the third party appointed by the government. The law provides the adjudication to be
conducted by the Labour Court, Industrial Tribunal of National Tribunal.
LABOUR COURT: A labour court consists of one person only, who is normally a sitting or
an ex-judge of a High Court. It may be constituted by the appropriate Government for
adjudication of disputes which are mentioned in the second schedule of the Act.
The issues referred to a labour court may include:
i. The propriety or legality of an order passed by an employer under the Standing Orders.
ii. The application and interpretation of Standing Orders.
iii. Discharge and dismissal of workmen and grant of relief to them.
iv. Withdrawal of any statutory concession or privilege.
v. Illegality or otherwise of any strike or lockout.
vi. All matters not specified in the third schedule of Industrial Disputes Act, 1947. (It deals
with the jurisdiction of Industrial Tribunals).

INDUSTRIAL TRIBUNAL: Like a labour court, an industrial tribunal is also a one-man

body. The matters which fall within the jurisdiction of industrial tribunals are as mentioned
in the second schedule or the third schedule of the Act. Obviously, industrial tribunals have
wider jurisdiction than the labour courts. Moreover, an industrial tribunal, in addition to the
presiding officer, can have two assessors to advise him in the proceedings; the appropriate
Government is empowered to appoint the assessors.

The Industrial Tribunal may be referred the following issues:

 i. Wages including the period and mode of payment.
ii. Compensatory and other allowances.
iii. Hours of work and rest intervals.
iv. Leave with wages and holidays.
v. Bonus, profit sharing, provident fund and gratuity.
vi. Shift working otherwise than in accordance with the standing orders.
vii. Rule of discipline.
viii. Rationalization.
ix. Retrenchment.
x. Any other matter that may be prescribed.

NATIONAL TRIBUNAL: The Central Government may constitute a national tribunal for
adjudication of disputes as mentioned in the second and third schedules of the Act or any
other matter not mentioned therein provided in its opinion the industrial dispute involves
“questions of national importance” or “the industrial dispute is of such a nature that
undertakings established in more than one state are likely to be affected by such a dispute”.
The Central Government may appoint two assessors to assist the national tribunal. The
award of the tribunal is to be submitted to the Central Government which has the power to
modify or reject it if it considers it necessary in public interest. It should be noted that every
award of a Labour Court, Industrial Tribunal or National Tribunal must be published by the
appropriate Government within 30 days from the date of its receipt. Unless declared
otherwise by the appropriate government, every award shall come into force on the expiry of
30 days from the date of its publication and shall remain in operation for a period of one year
thereafter.

COLLECTIVE BARGAINING:

The term collective bargaining is made up of two words “COLLECTIVE” which means
‘group action’ through representation and “BARGAINING” means ‘negotiating’ which
involves proposal and counter proposal, offers and counter-offers. Thus, collective
bargaining means negotiating between the employees and employers relating to their work
situations.

Collective bargaining is the ongoing process of negotiation between representatives of

workers and employers to establish the conditions of employment. The collectively
determined agreement may cover not only wages but hiring practices, layoffs, promotions,
job functions, working conditions and hours, worker discipline and termination, and benefit
programs.

Collective bargaining usually sets out-

1. Wage scales
2. Working hours
3. Training
4. Health and safety
5. Overtime
6. Grievance mechanism
7. Rights to participate in workplace or company affairs.

“Collective Bargaining is a process in which the representatives of a labor organization and

the representatives of business organization meet and attempt to negotiate a contract or
agreement, which specifies the nature of employee-employer union relationship”

“Negotiations about working conditions and terms of employment between an employer, a

group of employees or one or more employers’ organization on the other, with a view to
reaching an agreement”

Collective Bargaining Involves:

1. Negotiations
2. Drafting
3. Administration
4. Interpretation of documents written by employers, employees and the union
representatives
5. Organizational Trade Unions with open mind.

FEATURES OF COLLECTIVE BARGAINING:

1. Collective Process: The representatives of both the management and the employees
participate in it. Employer is represented by its delegates and on the other side employees are
represented by their trade union. Both the groups sit together at the negotiating table and
reach at some agreement acceptable to both.
2. Continuous Process: It is a continuous process. It does not commence with negotiations
and end with an agreement. It establishes regular and stable relationship between the parties
involved. It involves not only the negotiation of the contract, but also the administration or
application of the contract. It is a process that goes on for 365 days of the year.
3. Flexible: It has fluidity. There is no hard and fast rule for reaching an agreement. There is
ample scope for compromise. A spirit of give-and-take works unless final agreement
acceptable to both the parties is reached.
4. Dynamic: Collective bargaining is a dynamic process because the way agreements are
arrived at, the way they are implemented, the mental make-up of parties involved keeps
changing. As a result, the concept itself changes, grows and expands overtime. It is
scientific, factual and systematic.
5. Bipartite Process: Collective bargaining is a two-party process. Both the parties–
employers and employees–collectively take some action. There is no intervention of any
third party. It is mutual give — and —take rather than a take-it-or-leave it method of
arriving at the settlement of a dispute.
6. Industrial Democracy: It is based on the principle of industrial democracy where the
labor union represents the workers in negotiations with the employer or employers. It is a
joint formulation of company policy on all matters affecting the labor.
7. Complementary Process: Collective bargaining is essentially a complementary process,
i.e., each party needs something which the other party has, namely, labor can put greater
productive effort and management has the capacity to pay for that effort and to organize  
and guide it for achieving the organizational objectives.
8. It is an Art: Collective bargaining is an art, an advanced form of human relations.

OBJECTIVES OF COLLECTIVE BARGAINING:

1. To facilitate reaching a solution that is acceptable to all the parties.

2. To provide an opportunity to the workers, to voice their problems on issues related to
employment.
3. To resolve all conflicts and disputes in a mutually agreeable manner.
4. To prevent any conflict/ dispute in the future through mutually signed contracts.
5. To develop a conductive atmosphere to Foster good organizations relations.
6. To provide stable and peaceful organization relations.
7. To enhance the productivity of the organization by preventing strikes Lockout etc.

SUBJECT MATTER OF COLLECTIVE BARGAINING:

1. Purpose of the agreement, its scope and the definition of important terms.
2. Rights and responsibilities of the management and of the trade union.
3. Wages, bonus, production norms, leave, retirement benefits and terms and conditions of
service.
4. Grievance redressal procedure.
5. Methods and machinery for the settlement of possible future disputes.
6. Termination clause

ESSENTIAL CONDITIONS FOR THE SUCCESSFUL COLLECTIVE

BARGAINING:

1. Equal bargaining power.

2. Strong and stable union (union cooperation).
3. Pro-active and problem-solving approach.
4. Quick disposal and desire to settle the issues,
5. Mutual respect and accommodation.
6. Representative union.
7. Unanimity among workers.
8. Fair practices.

IMPORTANCE OF COLLECTIVE BARGAINING:

From Workers and Trade Union Point of View:

1. Trade Unions are the bargaining agents for the workers. Their main function is to protect
the economic and non- economic interests of the workers through constructive programmes.
2. Trade Unions may negotiate with the employer for better employment opportunities.
3. It may provide a feeling of job-security to the workers through collective-bargaining.
4. It may compel the management not to indulge in the practices of victimization and
exploitation.
5. It may also satisfy the ego of the workers by introducing schemes of worker’s
participation in management.
6. Due to presence of collective bargaining system, employer is not free to make and
enforce all decisions as per his own will.
7. Employer cannot take any unilateral decision. All conditions of employment and rates of
wages can be decided and fixed only through collective bargaining system.
8. The collective bargaining may impose certain restrictions upon the employer to provide
all those facilities to the workers for which they are legally entitled for.
9. As individually worker has no existence because labour is perishable. So, their existence,
position and importance are possible only if there is strong collective bargaining.

From Management Point of View:

1. Through collective bargaining the management has to ensure that there is maximum
utilization of worker for an efficient management growth and prosperity.
2. Collective bargaining is the only way to improve industrial relations and to have cordial
atmosphere.
3. It may reduce the presence of strikes and go-slow tactics which is going to adversely
affect the productivity and profitability of the enterprise.
4. Collective bargaining opens up the channels of communication between the top, middle
and operative levels of the organization which may be difficult otherwise.
5. It may promote a sense of job-security among the employees and thereby tends to reduce
the cost of labour turnover.
6. Collective bargaining enhances the good-will of the organization due to the presence of
industrial democracy.
7. It may develop a feeling of co-operation and coordination among the workers and
between employer and employees.
8. It may induce the workers to work at the minimum cost with maximum efficiency and
high motivation.

From Government Point of View:

1. Collective bargaining prevents the government from using the force because an amicable
agreement can be reached between employers and employees for implementing the
legislative provisions.
2. In fact, collective bargaining is a peaceful settlement of any dispute between workers and
employers and therefore it promotes industrial peace and higher productivity.
3. If there is a strong system of collective bargaining, government can easily implement
different labour laws and employer will have to give all those facilities to the employee for
which he is entitled for.
4. Labour problem shall be minimized through collective bargaining and industrial peace
shall be promoted in the country without any force.

PROCESS OF COLLECTIVE BARGAINING:

The collective bargaining process has three main stages, that is, the identification stage, the
negotiation stage, and the stage of contract administration. In the process of identifying the
problem, both parties have to decide if the problem needs to be addressed immediately or
alternately can be deferred for some time. The influencing factors in problem identification
stage are selection and size of representatives, negotiation period, agreement duration, etc.

While negotiating for the agreement, the chief negotiator from the management side presides
the process and presents the problem, its scope, and invites views from both parties. After
listening to the arguments and counter arguments, he or she facilitates a solution, which is
acceptable to both parties.

In this process the following main steps are involved:

1. Preparatory phase
2. Discussion phase
3. Proposal phase
4. Bargaining phase
5. Settlement phase
6. Formalizing Agreement
7. Enforcing agreement

PREPARATORY PHASE

At the very first step, both the representatives of each party prepare the negotiations to be
carried out during the meeting. Each member should be well versed with the issues to be
raised at the meeting and should have adequate knowledge of the labor laws. The
management should be well prepared with the proposals of change required in the
employment terms and be ready with the statistical figures to justify its stand. On the other
hand, the union must gather adequate information regarding the financial position of the
business along with its ability to pay and prepare a detailed report on the issues and the
desires of the workers

DISCUSSION PHASE

In this stage both the parties decide the ground rules that will guide the negotiations and the
prime negotiator is from the management team who will lead the discussion. Also, the issues
for which the meeting is held are identified at this stage. The issues could be related to the
wages, supplementary economic benefits (pension plans, health insurance, paid holidays,
etc.), Institutional issues (rights and duties, ESOP plan), Administrative issues (health and
safety, technological changes, job security, working conditions).

PROPOSAL PHASE

At this stage, the chief negotiator begins the conversation with an opening statement and
then both the parties put forth their initial demands. This session can be called as a
brainstorming, where each party gives their opinion that leads to arguments and counter
arguments.

BARGAINING PHASE

The negotiation begins at this stage, where each party tries to win over the other. The
negotiation can go for days until a final agreement is reached. Sometimes, both the parties
reach an amicable solution soon, but at times to settle down the dispute the third party
intervenes into the negotiation in the form of arbitration or adjudication.

SETTLEMENT PHASE

In this stage of the collective bargaining process, both the parties agree on a common
solution to the problem discussed so far. Hence, a mutual agreement is formed between the
employee and the employer which is to be signed by each party to give the decision a
universal acceptance.

FORMALIZING AGREEMENT

In this phase drafting of the agreement is done. After a good faith bargaining, a formal
document must be prepared which should be simple, clear and concise. Then signing of the
agreement must be done by both the parties and also abide by the terms and conditions put
forth in the agreement.

ENFORCING AGREEMENT

To have the agreement effective and meaningful, it should be enforced or implemented

immediately.

WORKERS PARTICIPATION IN MANAGEMENT

Worker’s participation in management refers to the participation of non-managerial
employees in the decision-making process of the organization. Worker’s participation gives
employees the mental and psychological satisfaction and thereby increases their involvement
in the affairs of the organization. Worker’s participation in management is the most accepted
principle of industrial relations in modern industry throughout the world. Worker’s
participation in management is one of the important aspects of industrial democracy. It is
distribution of social power in industry so that the power is shared among all those who are
engaged in work rather than power being concentrated only in the hands of a few managers.
Participation is a system of communication and consultation either formal or informal by
which employees can express their opinions and ideas and contribute to managements
decisions. Worker’s participation is a method of providing opportunities for all the members
of the organization to contribute their mental ideas along with his physical efforts towards
the improvement of organizational effectiveness as well as enhancing his own economic
welfare. Better participation and greater responsibility in the decision-making process on
part of the general workers will perhaps develop their organizational loyalty, confidence,
trust involvement and a sense of responsibility towards supervisors, managers and the
organizations in general.

The following points are important in regard to workers participation:

1. The participation has to be at different levels of management.

2. Acceptance of responsibility and commitment towards implementation of decisions.
3. Participation is conducted through the mechanism of different forums and practices
which provide for the association of worker representatives.

DEFINITIONS

“Workers’ participation refers to the mental and emotional involvement of a person in a

group situation which encourages him to contribute to group goals and share in
responsibility of achieving them”- Keith Davis

“Applied to industry, the concept of participation means sharing the decision-making power
by the rank and file of an industrial organization through their representatives, at all the
appropriate levels of management in the entire range of managerial action”- Mehtras
LEVELS OF WORKERS PARTICIPATION IN MANAGEMENT

1. Information period

It involves passive participation of the workers, employees; unions i.e., they are taken as a
part of decision making but their inputs are to be heard only and are not considered as a
decision.

2. Joint decision making

There is active participation of worker leaders, union leaders, their inputs are taken into
consideration but they don’t have an actual say in the final decision.

3. Self-control

Both the parties i.e., the management as well as the workers or the employees have an equal
participation in the decision-making process of an organization. Due to which the feels that
they have some power, and they are have a sense of belongingness towards the organization.

OBJECTIVES OF WPM

1. INCREASED PRODUCTIVITY: It ensures increased production through cooperative

efforts as workers think themselves as part and parcel of the company. Workers’
participation in management stimulates workers for higher productivity. This works in two
ways. First, if workers are involved in decision-making process, they perceive that decision
outcomes are their own and not externally imposed. Own decisions have better implement
ability as compared to imposed ones. Workers have higher level of enthusiasm and
motivation to implement their own decisions. Second, in the joint decision-making process,
workers and their representatives may provide more relevant information on the issues
concerning them. Thus, because of enhanced information input, the quality of decisions on-
these issues is likely to be better. All these help in stimulating workers for increased
productivity.
2. FACILITATE BETTER UNDERSTANDING: Giving employees a better understanding
of their role in the working of the industry and of the process of production. They recognize
and honor the achievements of one another. It gives employees a better understanding of
their role in the working of industry and of the processes of production. Participation brings
the two parties closer and makes them aware of each other’s problems. As a result, better
understanding and mutual trust can be created between employer and workers.
3. PROMOTE SELF-EXPRETION: Worker’s Participation gives the worker a sense of
importance, pride and accomplishment; it gives him freedom and opportunity for expression;
a feeling of belonging to the place of work, and a sense of workmanship and creativity. It
provides for the integration of his interests with those of the management by making the
worker a joint partner in the enterprise.
4. MAINTAINING INDUSTRIAL PEACE AND DEMOCRACY: Strengthens and develop
mutual cooperation between management and workers for the maintenance of industrial
peace and harmony. Workers’ participation in management enables the workers to
participate in the deliberations over the conditions under which they work and take part in
reaching decisions. Such an opportunity develops a sense of belongingness among the
employees to their enterprise. The success of one scheme leads to the adoption of another
and the process goes on continuing.
5. STRENGTHEN LABOUR-MANAGEMENT RELATIONS: Both the workers and
management realize their duties and responsibilities.

IMPORTANCE OF WPM

1. REDUCED INDUSTRIAL UNREST: Industrial conflict is a struggle between two

organized groups which are motivated by the belief that their respective interests are
endangered by the self-interested behavior of the other. Participation cuts at this very root of
industrial conflict. It tries to remove or at least minimize the diverse and conflicting interests
between the parties, by substituting in their place, cooperation, homogeneity of objects and
common interests. Both sides are integrated and decisions arrived at becomes “ours” rather
than “theirs”.
2. INCREASED COMMITMENT: An important prerequisite for forging greater
commitment is the individual’s involvement and opportunity to express himself.
Participation allows individuals to express themselves at the work place rather than being
absorbed into a complex system of rules, procedures and systems. If an individual knows
that he can express his opinion and ideas, a personal sense of gratification and involvement
takes place within him. This, in turn, fortifies his identification with the organization
resulting in greater commitment.
3. IMPROVED COMMUNICATION: Participation tends to break the barriers of
communication flow. It makes the information and the consequences of the implemented
decisions, available to the managers.
4. LESS RESISTANCE TO CHANGE: when changes are arbitrarily introduced from above
without explanation, subordinates tend to feel insecure and take counter measures aimed at
sabotage of innovations. But when they have participated in the decision-making process,
they have had an opportunity to be heard. They know what to expect and why. Their
resistance to change is reduced.
5. DEVELOPMENT OF INDIVIDUALS: Participation enhances individual creativity and
response to job challenges. Individuals are given an opportunity to direct their initiative and
creativity towards the objectives of the group. This facilitates individual growth.

ESSENTIAL PERQUISITE CONDITIONS OF WPM

1. Ample time must be given to participate before action is required. Participation may not
be appropriate in emergency situations.
2. The financial cost of participation should not exceed the values, economic and otherwise,
that it produces.
3. The participant should possess the abilities, intelligence and knowledge so as to
participate effectively.
4. The participant must be able to communicate in order to be able to exchange his ideas.
5. No one (employee or manager) should feel that his position is threatened by participation.

WORKERS COMMITTEE

Under the Industrial Disputes Act, 1947, every establishment employing 100 or more
workers is required to constitute a works committee. Such a committee consists of equal
number of representatives from the employer and the employees. The main purpose of this
committee is to provide measures for securing and preserving amity and good relations
between the employer and the employees.

In the case of any industrial establishment in which one hundred or more workmen are
employed or have been employed on any day in the preceding twelve months, the
appropriate Government may by general or special order require the employer to constitute
in the prescribed manner a Works Committee consisting of representatives of employers and
workmen engaged in the establishment so however that the number of representatives of
workmen on the Committee shall not be less than the number of representatives of the
employer. The representatives of the workmen shall be chosen in the prescribed manner
from among the workmen engaged in the establishment and in consultation with their trade
union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926). It shall be
the duty of the Works Committee to promote measures for securing and preserving amity
and good relations between the employer and workmen and, to that end, to comment upon
matters of their common interest or concern and endeavor to compose any material
difference of opinion in respect of such matters.

OBJECTIVES:

1. The main objective to establish works committee is to promote measures for maintaining
harmonious relations in the work place and to sort out differences of opinion on work related
issues. E.g., Work conditions and benefits.
2. To negotiate on the matters of general interests.
3. To maintain industrial peace.
4. To share the workload.
5. To encourage workers to have a say.

STRUCTURE:

President: Employer Nominee

Vice-president: Worker’s Representative

Secretary

Joint Secretary

Tenure: 2 Years

Total Strength: 20

Compulsory for every undertaking employing 100 or more workers. The number of
members in the committee should be fixed and not more than 20. Here, it is also specified
that the members of employers should not be more than members of employees. The
representatives from the employer’s side should be selected with the consent of the employer
and these people should be associated with the organization directly.

FUNCTIONS

Works committee deals with matters of day-to-day functioning at the shop floor level.
Works committees are concerned with:

1. Health: Ventilation, Lighting, Temperature and Sanitation facilities.

2. Safety: Accident Prevention, Occupational diseases and Protective equipment’s.
3. Welfare: Rest rooms, medical and health services, drinking water.
4. Administration of welfare and fine funds. e. Educational and recreational activities. E.g.,
Health, Safety and Welfare committee. Such committees were made in TATA Iron & Steel
Works, Jamshedpur, Carnatik Mill in Madras in 1922.
5. Adjustments of festivals and national holidays.
6. Promotion of thrift and savings.
7. To see that the decisions taken in the works committee are fully enforced.

REASONS FOR FAILURE

1. Such committees are not that much effective in maintaining industrial peace and
harmony.
2. Employees consider it below their dignity and status to sit alongside blue-collar workers.
3. Lack of competence and interest on the part of worker’s representatives.
4. Lack of feedback on performance of works committee.
5. One of the main reasons of their failure was the vagueness of these purposes as stated in
the Act.
6. In many industries, the works committees have been only on papers. They do not
function at all, meet regularly or discuss matters of real importance

SUGGESTIVE MEASURES FOR EFFECTIVE WORKERS COMMITTEE

1. A more responsive attitude on the part of the management.
2. Adequate support from the unions.
3. Proper appreciation of the scope and functions of the works committees.
4. Whole-hearted implementation of the recommendations of the works committees.
5. Proper coordination of the functions of the multiple bipartite institutions at the plant
level.
6. The works committees must work on the basis of mutual trust and coordination. Both the
labor and the management must adopt the policy of ‘give and take’.
7. It should be a recommending body only. It must have some real power of influencing the
decision- making process in the organization.
8. The decisions of the works committee should be honored in all respects and implemented
within a reasonable time.
9. Regular evaluation of its working should be undertaken.

SHOP COUNCILS
Government of India on the 30th of October 1975 announced a new scheme in WPM. In
every Industrial establishment employing 500 or more workmen, the employer shall
constitute a shop council. Shop council represents each department or a shop in a unit. Each
shop council consists of an equal number of representatives from both employer and
employees. The employers’ representatives will be nominated by the management and must
consist of persons within the establishment. The workers’ representatives will be from
among the workers of the department or shop concerned. The total number of employees
may not exceed 12.
Every decision of the Shop Council shall be implemented by the parties concerned within a
period of one month unless otherwise stated in the decision itself A council once formed
shall function for a period of three years. The council shall meet as frequently as necessary
but at least once a month.
TENURE: 2 years
CHAIRMAN: Management’s Representative
VICE PRESIDENT: Worker’s Representative

FUNCTIONS:
1. Assist management in achieving monthly production targets.
2. Improve production and efficiency, including elimination of wastage of man power.
3. Study absenteeism in the shop or department and recommend steps to reduce it.
4. Suggest health, safety and welfare measures to be adopted for smooth functioning of
staff.
5. Look after physical conditions of working such as lighting, ventilation, noise and dust.
6. Ensure proper flow of adequate two-way communication between management and
workers.

JOINT MANAGEMENT COUNCILS

These councils were setup as early as 1958. These councils consist of equal number of
representatives of the employers and employees, not exceeding 12 at the plant level. The
plant should employ at least 500 workers. The council discusses various matters relating to
the working of the industry. This council is entrusted with the responsibility of administering
welfare measures, supervision of safety and health schemes, scheduling of working hours,
rewards for suggestions etc. Only such people who are actively engaged in the unit shall be
the members of the joint Council. A Joint Council shall meet at least once in a quarter. The
chief executive of the unit shall be chairperson of the joint council. the vice chairman of the
joint Council will be nominated by a worker member of the Council. Decisions of Council
are based on consensus and not by a process of voting. Definition of counsellor binding up
management and workers. tenure 2 years

OBJECTIVES

1. Promote healthy relations between management and workers.

2. Build trust and understanding between management and workers.
3. Improve worker efficiency.
4. Provide welfare facilities to the workers.
5. Educate workers about the scheme for their increased participation.

FUNCTION

1. Optimum productivity and efficiency for the unit as a whole.

2. Fixation of production norms.
3. Fixing issues which remain unsolved in shop Council.
4. Work planning - preparation of schedule of work holiday and working laws.
5. Achieving production targets.
6. Training – development of skills
7. Reward policy – for creative suggestion from workers
8. Health, welfare and safety measures for the unit of plant.

EMPLOYEE WELFARE

Employee welfare means anything done for the comfort and improvement of the employees,
over and above the wages paid. The efforts to make life worth living for workmen. It
includes various services, facilities and amenities provided to employees for their
betterment. These facilities may be provided voluntarily by progressive entrepreneurs, or
statutory provisions may compel them to provide these amenities; or these may be
undertaken by the government or trade unions, if they have the required funds.

According to ILO, “Employee welfare should be understood as such service, facilities and
amenities which may be established in or in the vicinity of undertakings to enable the
persons employed in them to perform their work in healthy and peaceful surroundings and to
avail of facilities which improve their health and bring high morale”.

FEATURES

1. Labour welfare includes various facilities, services and amenities provided to workers for
improving their health, efficiency, economic betterment and social status.
2. Welfare measures are in addition to regular wages and other economic benefits available
to workers due to legal provisions and collective bargaining.
3. Labour welfare measures are flexible and ever-changing. New welfare measures are
added to the existing ones from time to time.
4. Welfare measures may be introduced by the employers, government, employees or by
any social or charitable agency.
5. The purpose of labour welfare is to bring about the development of the whole personality
of the worker to make him a good worker and a good citizen.

OBJECTIVES

1. To enhance the level of morale of employees.

2. To create a loyal, contented workforce in organization.
3. To develop a better image of the company in the minds of the employees.
4. To enable the workers to live comfortably and happily.
5. To develop efficiency of the workers.
6. To reduce influence of trade unions over the workers.
7. To expose philanthropic and benevolent activities of the company.
8. To make the workers know that the company takes care of them.
9. To develop positive attitude towards job, company and management.
10.To reduce tax burden.
11.To develop a feeling of satisfaction of employees with the company.
12.To develop a sense of belonging to the company.
13.To retain skilled and talented workers.
14.To develop better human relation.
15.To prevent social evils like drinking, gambling through improvement of working
conditions, cultural activities and social conditions.

AGENCIES

1. Central government: The central government has made elaborate provisions for the health,
safety and welfare under Factories Act 1948, and Mines Act 1952. These acts provide for
canteens, crèches, rest rooms, shelters etc.

2. State government: Government in different states and Union Territories provide welfare
facilities to workers. State government prescribes rules for the welfare of the workers and
ensures compliance with the provisions under various labor laws.

3. Employers: Employers in India in general looked upon welfare work as fruitless and
barren though some of them indeed had done pioneering work.

4. Trade unions: - In India, trade unions have done little for the welfare of workers. But few
sound and strong unions have been the pioneering in this respect. E.g., the Ahmedabad
textiles labor association and the Mazdoor sabha, Kanpur.

EMPLOYEE WELFARE FUND AND SCHEME

Labour welfare fund is a statutory contribution managed by individual state authorities. The
state labour welfare board determines the amount and frequency of the contribution. The
contribution and periodicity of remittance differs with every state. Labour welfare is an aid
in the form of money or necessities for those in need. It provides facilities to labourers in
order to improve their working conditions, provide social security, and raise their standard of
living.

Various state legislatures have enacted an Act exclusively focusing on welfare of the
workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act
incorporates various services, benefits and facilities offered to the employee by the
employer. Such facilities are offered by the means of contribution from the employer and the
employee. However, the rate of contribution may differ from one state to another. The scope
of this Act is extended to housing, family care & worker's health service by providing
medical examination, clinic for general treatment, infant welfare, women’s general
education, workers activity facilities, marriage, education, funeral etc. State specific Labour
Welfare Funds are funded by contributions from the employer, employee and in few states,
the government also.

The contribution in the Labour Welfare Fund may be made annually, half yearly or monthly.
The frequency may differ depending upon the state specific Act. Further, if the frequency is
half yearly the period of deduction shall be divided into two consecutive periods as per the
date mentioned in the state specific Act. The employer needs to make the deduction from the
salary of the employee and submit the same to the Labour Welfare Fund board in the
prescribed form before the due date.

Employee Welfare activities are provided under various schemes by central

government/state government / trade unions / voluntary agencies etc.

Those are provided as:

Central Government has enacted various laws, to provide certain welfare facilities by the
employers to their employee’s viz.:

1. Canteen facility if employing more than 250 workers, creche, if employing more than 30
women, welfare officer if employing 500 or more workers.

2. Provision of shelters for taking food and rest if 150 or more persons are employed, first
aid rooms, in mines employing more than 150 workers

3. Educational facilities, in the estate for the children of workers where there are 25 workers
children, between the age of 6 and 12, housing facilities to every worker and his / her family
residing in the plantation.

4. Uniforms, raincoats to drivers, conductors and line checking staff, for protection against
rain and cold, medical facilities, to the motor transport worker
5. Ensure regular payment of minimum wages / equal pay for equal work irrespective of
sex / provide suitable residential accommodation to workers / to provide such protective
clothing to the workmen, as may be prescribed.

EMPLOYEE WELFARE BENEFITS SCHEMES

Organizations provide welfare facilities to their employees to keep their motivation levels
high. The employee welfare schemes can be classified into two categories viz. statutory and
non-statutory welfare schemes. The statutory schemes are those schemes that are
compulsory to provide by an organization as compliance to the laws governing employee
health and safety. These include provisions provided in industrial acts like Factories Act
1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non-
statutory schemes differ from organization to organization and from industry to industry.

STATUARY WELFARE BENEFITS

The statutory welfare benefits schemes include the following provisions:

Drinking Water: At all the working places safe hygienic drinking water should be provided.

Facilities for sitting: In every organization, especially factories, suitable seating

arrangements are to be provided.

First aid appliances: First aid appliances are to be provided and should be readily assessable
so that in case of any minor accident initial medication can be provided to the needed
employee.

Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the
office and factory premises and are also to be maintained in a neat and clean condition.

Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide

hygienic and nutritious food to the employees.

Spittoons: In every work place, such as ware houses, store places, in the dock area and office
premises spittoons are to be provided in convenient places and same are to be maintained in
a hygienic condition.
Lighting: Proper and sufficient lights are to be provided for employees so that they can work
safely during the night shifts.

Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap
on the stand pipe are provided in the port area in the vicinity of the work places.

Changing rooms: Adequate changing rooms are to be provided for workers to change their
cloth in the factory area and office premises. Adequate lockers are also provided to the
workers to keep their clothes and belongings.

Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of
water supply, wash basins, toilets, bathrooms, etc.

Non-Statutory welfare benefits

Many non-statutory welfare benefits may include the following schemes:

Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity
leave policies have also been introduced by various companies.

Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or injury
or pregnancy.

Sexual Harassment Policy: To protect an employee from harassment of any kind, guidelines
are provided for proper action and also for protecting the aggrieved employee. For more
information go through - Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013

Personal Health Care (Regular medical check-ups): Some of the companies provide the
facility for extensive health check-up

Flexi-time: The main objective of the flextime policy is to provide opportunity to employees
to work with flexible working schedules. Flexible work schedules are initiated by employees
and approved by management to meet business commitments while supporting employee
personal life needs

Employee Assistance Programs: Various assistant programs are arranged like external
counselling service so that employees or members of their immediate family can get
counselling on various matters.
Employee Referral Scheme: In several companies’ employee referral scheme is implemented
to encourage employees to refer friends and relatives for employment in the organization.

5 DIFFERENT CATEGORIES OF LABOUR WELFARE

Some of the major categories of labour welfare are:

1. Intra-mural Facilities: The facilities provided inside the factory are known as intra-mural
facilities. These facilities include activities relating to minimization of industrial fatigue,
provision of safety measures like fencing and covering of machines, good layout of the plant
and machinery, sufficient lighting conditions, provision of first aid appliances etc. Provisions
of such facilities are also obligatory in all industrial establishments all over the world.
2. Extra-mural Facilities: Facilities offered to the workers outside the factory are known as
extra-mural facilities. They include better housing accommodations, indoor and outdoor
recreation sports, educational facilities etc. The provision of these facilities is voluntary.
Earlier, due attention was not given to the provision of extra-mural facilities to the workers
but now it is realized that these facilities are very important for the general welfare and
upliftment of the workers.
3. Statutory Facilities: Under this category, welfare facilities are provided according to the
labour legislations passed by the Government. The nature and coverage of these facilities
vary from country to country. Again, these facilities may be either intra-mural facilities or
extra-mural facilities. These facilities must be provided by all the employers and cannot be
ignored. Any contravention of the statutory provisions shall render the employer punishable
under the Act concerned. The National Commission of Labour has divided all the statutory
measures under two distinct heads:
a) Facilities which have to be provided irrespective of the size of the establishment e.g.,
drinking water.
b) Facilities which are to be provided subject to the employment of a specified number of
persons, e.g., creches.

4. Mutual Facilities: These facilities are usually outside the scope of the statutory facilities.
These activities are voluntarily undertaken by the workers themselves for their own interest.
As such the employer has no say in it.
5. Voluntary: The facilities which are voluntarily provided by the employers come under
this category. Hence these are not statutory. No doubt, the activities under this category
ultimately lead to increase in the efficiency of workers.
INDUSTRIAL ACCIDENTS
An accident (industrial) is a sudden and unexpected occurrence in the industry which
interrupts the orderly progress of the work. According to the Factories Act, 1948: “It is an
occurrence in an industrial establishment causing bodily injury to a person who makes him
unfit to resume his duties in the next 48 hours”
accident is an unexpected event in the course of employment which is neither anticipated nor
designed to occur. Thus, an accident is an unplanned and uncontrolled event in which an
action or reaction of an object, a substance, a person, or a radiation result in personal injury.
It is important to note that self-inflicted injuries cannot be regarded as accidents.
An industrial injury is defined as “a personal injury to an employee which has been caused
by an accident or an occupational disease and which arises out of or in the course of
employment and which could entitle such employee to compensation under Workers’
Compensation Act, 1923”.
CAUSES OF INDUSTRIAL ACCIDENTS
Unsafe Conditions (work-related): Unsafe working conditions are the biggest cause of acci-
dents. These are associated with detective plants, tools, equipment’s, machines, and
materials. Such causes are known as ‘technical causes’. They arise when there are improper
guarded equipment’s, defective equipment’s, faulty layout and location of plant, inadequate
lighting arrangements and ventilation, unsafe storage, inadequate safety devices, etc.
Besides, the psychological reasons such as working overtime, monotony, fatigue, tiredness,
frustration and anxiety are also some other causes that cause accidents. Safety experts
identify that there are some high danger zones in an industry. These are, for example, hand
lift trucks, wheel-barrows, gears and pulleys, saws and hand rails, chisels and screw drivers,
electric drop lights, etc., where about one-third of industrial accidents occur.
Unsafe Acts:
Industrial accidents occur due to certain acts on the part of workers. These acts may be the
result of lack of knowledge or skill on the part of the worker, certain bodily defects and
wrong attitude.
These acts may be the result of lack of knowledge or skill on the part of the employee,
certain physical defects and wrong attitudes.
These acts include acts like:
1. Operating without authority.
2. Failing to secure equipment or warning other employees of possible danger.
3. Failing to use safe attire or personal protective equipment.
4. Throwing materials on the floor carelessly.
5. Operating or working at unsafe levels of speed, either too fast or too slow.
6. Making safety devices inoperative by removing, adjusting, disconnecting them.
7. Using unsafe equipment or using equipment unsafely.
8. Using unsafe procedures in loading, placing, mixing, combining.
9. Taking unsafe positions, under suspended loads.
10.Lifting improperly.
11.Cleaning, adjusting, oiling, repairing, etc. or moving a dangerous equipment.
12.Distracting, teasing, abusing, startling, quarreling, day-dreaming, horseplay.

Miscellaneous Causes: Young, untrained and experienced workers are more prone to
accidents. Alcoholic and drug addicted workers, workers having disturbed family life,
overwork, monotony, fatigue, and quarrelling, abusing, unsatisfactory behavior of
supervisors are some of the reasons of industrial accidents.

MEASURES FOR ENSURING INDUSTRIAL SAFETY

Safety Training & Education: Safety training and education programmes should be held
from time to time to train and educate employees, supervisor and workers, about precautions
to be taken during machine handling. These programmes should develop and encourage
among them safety habits like paying attention to warnings etc. Disciplinary actions may be
used for breach of safety regulations.

Safety Committee: A safety committee should be constituted is every plant and factory. It
should consist of the representative of both the management and the workers. The committee
should educate and impress upon the line manger about the safety measures required in the
establishment. The safety programmes & policies should be formulated and implemented
through the safety committee. The committee should also hold safety campaigns and safety
contests from time to time.

Clean Floor: A messy workplace can lead to unnecessary accidents. Make sure boxes are
stacked safely and spills are cleaned up quickly. Conduct regular inspections to check for
potential dangers such as tangled cords, messy floors, and disorganized tools. Programs like
5S often provide beneficial improvements in organization that can lead to reduced clutter.
Proper Clothing: In order to ensure the safety of workers, protective gear should be used. If
you are doing welding works, you should use goggles to protect your eyes. If you are
working in a warehouse, you should wear hard hats and your eyes should be protected.
Usage of helmet, leather coat, apron, gloves and other equipment is necessary depending on
the working conditions. The helmet should be provided with a focusing light if you are
working in low light or no light conditions. If you are working in a paint shop, the eyes
should be protected. It is the responsibility of the safety manager that even visitors will be
provided with safety gear.

Guarding of machines: Dangerous parts should be out of reach during operation. Some
guards are built into a permanent casing, while some are attached after wards. Machines or
their parts should be fenced when it is not possible to provide safe guards. All boilers and
other pressure vessels must be kept in good/ proper condition. Safety valves, pressure gauges
and water gauges etc. must be thoroughly examined at regular intervals. Cranes, hoists and
lifts etc. must be of sound construction. They should be periodically tested. Repair work on
machines to be avoided during running of machines. All belts, gears, fly wheels and pulleys
etc. should be covered with adequate guards.

Equipment re-design

Safety Campaign