Relationship between the management (The employers – capitalist class that provide the

capital; the owners) and the workers (The employees)

IR - Relationships between management and workers in the industry. The term not be
restricted to mean merely the relations between the employees and the management,
but between the union and the management, management and employers, union and
employees and between employees themselves
It is not restricted to employee and the management, it is between union and the
management, management and employers, union and employees, and relationship
between employees.
Union being the trade union - the employees and workers, form a group to protect the
interests of the employees like espirit de corps.
Parties to IR:
Employees, employee associations, government; employers, employer associations (Like
FICCI - Federation of Indian Chambers of Commerce & Industry), courts & tribunals.
Trade unions are voluntary organizations consisting of workers or employees. It is formed to
protect the interests and put forth the demands of the workers collectively. Their
philosophy is that unity is strength and it is called a voluntary association as joining and not
joining is the free will of the worker.
Works committee – It consists of people representing the trade union as well as the
employer. A company that has employed more than 100 workers is required to mandatorily
have a works committee by law. It is responsible for maintain goodwill amongst the
employees and the employers and to try to resolve any conflicts that may arise.
Industrial relations signifies the relationship between the employer and management,
workers and management, trade unions and employees and between the employees.
Industrial relations is not just restricted to parties within the company but also include the
courts, government, etc.
The participants of industrial relations are primarily the employees and the employers.
Then we have the trade unions and employer federations, followed by the courts, tribunal
and the government. While trade unions and employer federations assist in maintaining
harmony between the workers and the management, the courts and the tribunal helps in
resolving disputes that may arise.

LABOUR LAWS: Articles from the constitution of India

Article 16 of the Constitution of India, talks about the right of equal opportunity in the
matters of public employment. 
Article 19 in The Constitution Of India 1949
19. Protection of certain rights regarding freedom of speech etc
(1) All citizens shall have the right
(a) to freedom of speech and expression;
(b) to assemble peaceably and without arms;
(c) to form associations or unions;
(d) to move freely throughout the territory of India;
(e) to reside and settle in any part of the territory of India; and
(f) omitted
(g) to practise any profession, or to carry on any occupation, trade or business
Article 23 – Prohibition of traffic in human beings and forced labour
Article 24 of Indian Constitution: Prohibition of employment of children in factories, etc. No
child below the age of fourteen years shall be employed to work in any factory or mine or
engaged in any other hazardous employment.
Constitution Of India Article 41 - Right to work, to education and to public assistance in
certain cases Description The State shall, within the limits of its economic capacity and
development, make effective provision for securing the right to work, to education and to
public assistance in cases of unemployment, old age, sickness and disablement, and in other
cases of undeserved want.
Central Government Act Article 42 in The Constitution Of India 1949 42. Provision for just
and humane conditions of work and maternity relief The State shall make provision for
securing just and humane conditions of work and for maternity relief
Article 43A in The Indian Constitution Participation of workers in management of
industries The State shall take steps, by suitable legislation or in any other way, to secure
the participation of workers in the management of undertakings, establishments or other
organisations engaged in any industry
Article 54 of Constitution of India "Election of President" The President shall be elected by
the members of an electoral college consisting of the elected members of both Houses of
Parliament; and the elected members of the Legislative Assemblies of the States.

Employee Grievances
“Any discontent or dissatisfaction with any aspects of the organization”
A complaint becomes a grievance when this dissatisfaction, which is mostly related to work, is
brought to the notice of the management grievance may be written or verbal, grievance may be
voiced or unvoiced, grievance refers to any form of discontent or dissatisfaction with an aspect of
the organization.
The causes of grievances maybe Working conditions, management policies or/and personal reasons.
THE FACTORIES ACT 1948
An Act to consolidate and amend the law regulating labour in factories. The Act makes it obligatory
on part of the employer to provide for health, safety and welfare of workers employed. There is
provision for appointment of Welfare Officer in every factory where 500 or more workers are
employed.

THE TRADE UNIONS ACT 1926

Trade unions are major component of the modern industrial relations system. Trade Unions are
voluntary organizations of employees or employers formed to promote and protect their interests
through collective action
Nature of trade unions:
 A combination of workers or employers
 Combination could be permanent or temporary
 Could include federation of two or more unions
 To regulate relations among workmen, between workmen and employers or among
employers themselves

INDUSTRIAL DISPUTES ACT 1947

"Industrial disputes mean any dispute or difference between employers and employees, or between
employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment or with the conditions of labor of any person”
There are provisions regarding disputes related to termination, discharge, dismissal, lay-off and
retrenchment for relief under The Industrial Disputes Act 1947
Many a times cases have been decided by Supreme Court of India and High Courts also.

Four major forms of disputes in which industrial disputes are evident:

1. Strike – A strike takes place when a dispute goes beyond the control of the organization. It leads
to collective stoppage of work by the workers for a common goal or due to a common problem
is for a short duration of time since they temporarily cease to work. It may be for a few or
several hours, weeks, or months. It could be a peaceful demonstration, where they shout
slogans or hold placards either outside or within the premises of the company, but it may turn
violent when workers are not heard.
2. Lockout – This is also temporary, and it is the opposite of a strike. If workers are on strike, and
the strike turns violent such that they might pose a threat to the property or people of the
company. For example: workers might begin throwing stones, breaking furniture, or property,
setting fire to the property, etc. In such a scenario the employer can lock out the workers and
close the main gate of the company or factory. This prevents workers from getting inside the
premises of the company and causing any damage. Lockout is used by employers to counter
strikes.
3. Gherao – Gherao means surrounding. When workers are on a strike for a long period of time it
halts the production and leads to heavy losses to the company. If a key official of the company
is seen, the workers may surround the person and not let him move or leave the premises,
either in his office or somewhere in the premises unless their demands are met. This puts
pressure on the person, mentally as well as physically and the person is forced to accept their
demands.
4. Layoff - When there is no work or stoppage in production due to shortage of material,
recession, low demand, etc. the employer may let go the employee temporarily. If the workers
are asked to work, they would still have to be paid wages although there is no work. The
employer is required to compensate the workers by paying half the wages and to give a notice
to the workers that they are being laid off for with the specific time and reason. When
 production resumes, or the materials are acquired they are asked to report back. If employer is
does not issue a notice, provides compensation, or calls back for work then it leads to a strike.

[A] Methods for Prevention of Industrial Disputes

1. Collective Bargaining - Takes place when representatives of labour union meet management
representatives to determine employees’ wages and benefits and to solve other issue. Process of
discussion and negotiation between employer and union resulting into an agreement or contract
and adjustment of problems arising under the agreement or contract

2. Code of discipline – the standing orders. Standing orders should govern the conditions of
employment under the Industrial Employment Standing Orders Act, 1946. Standing orders act as the
code of conduct for the employees from the stage of their entry into the organization to the stage of
their exit or retirement.

3. Grievance procedure –

Step 1: When an employee feels aggrieved, he/she presents his/her grievance to Departmental
Representative, who is appointed as a representative of management. Departmental Representative
has to give the answer in 48 hours

Step 2: When the departmental representative fails to give the solution or has not taken any
decision, the aggrieved employee can present his/her grievance to Head of Department where
he/she is working. The HOD gives decision in 3 days from the date of submission of grievance.

Step 3: Head of department gives decision and aggrieved employee is not satisfied, he/she can take
the grievance to Grievance Committee. Grievance Committee makes its recommendations to the
management within 7 days. Decision of top management on the basis of report of Grievance
Committee would be communicated to the aggrieved employee within 3 days. If aggrieved employee
is not satisfied, again an appeal can be made to Management for revision. On appeal, management
can give decision to the aggrieved employee within 7 days from the date of appeal.

Step 4: When aggrieved is not satisfied, he can refer the case of redressing to ‘Voluntary Arbitration’.
Arbitrator is an independent person or body officially appointed to settle the dispute. Decision of
the Arbitrator would be binding on both parties under the law.

4. Consultative machinery

[B] Machinery for Settlement of Industrial Dispute

1. Arbitration - If two parties to the dispute fail to come to an agreement either by themselves or
with help of a mediator or conciliator, they agree to submit the dispute to an impartial authority
whose decision, they are ready to accept.

2. Conciliation - The appropriate Government has been authorized to appoint one or more
Conciliation Officers for mediation in and promoting the settlement of industrial dispute. Conciliation
Officer can be appointed either for a special area or for a specified industry. Though Conciliation
Officer has certain statutory powers they are generally expected to function through suggestion and
persuasion.
Board of Conciliation is the third authority created by the Act. The board comprises two or more
members representing parties to the dispute in equal number and a ‘Chairman’ who is an
‘independent person’. Board has the status of a civil court and can issue summons and administer
oaths.
3. Adjudication - One of the Adjudicating Authority set up under the Act. Setting up a labour court is
at the discretion of the Government. It is a One Man Court presided over by a person who has held
either a Judicial Position in India for not less than 7 years or who has been Presiding Officer of a
Labour Court constituted under any State Act for not less than 5 years.

APPROACHES TO INDUSTRIAL RELATIONS

Employees often perceive industrial relations as a means to improve their employment
conditions, to voice their grievances, a way for employees to register their complaints to the
managers/supervisors, to exchange views and ideas with the management, to have a say in
the decision making in the organization (workers participation)
Employees have the economic power while they also have employer association on their
side to state and bargaining their terms and conditions.
Government is on both sides and seeks to protect the interest of the companies as well as
the workers.
Judiciary – They have the authority and power from the GOI to give their judgement, which
will be binding on both the parties.

Theoretical perspectives:
The theories on which the IR in our country is built, the thought process and
the philosophies.

1) Unitary approach
The classical or the oldest approach. The bedrock or foundation approach used when
industrial relations first came into picture. In the unitary approach, it is believed that the
only source of authority is the capital class; the capitalist, those who possess and won the
capital. Employers were the source of income, job, and social security such as insurance,
pension, etc. provided over and above the wages t the employees and the workers so that
they can sustain themselves and their families. It was thought that conflict was unnecessary,
and it was not supportive since it was believed that only the management had the privilege
had to make decisions about running the company, handling the employees, etc. It was also
believed that the trade union could be avoided and instead, workers were oppressed and
suppressed under this approach. This approach is outdated, and this philosophy does not
apply in the current period, since everyone now has a say in the management of the
company and this tends to be more conservative.

2) Pluralist approach
The thinking was evolving, and IR was taken in a different way. The thought process was
much different from the unitary approach. In this approach, conflict between the
management and the employees is seen as unavoidable and logical. The mindset and
viewpoint have changed from the previous approach. We talk about the common interest,
the goals, and objectives of the entire company, that everyone is mutually dependent on
each other. Employers are necessary for the survival of employees and workers while
employers need employees and workers for their services. It was believed that employees
should be allowed to form unions to bargain collectively and to protect their interests. It was
believed that although conflict it necessary it needs to be controlled and settled.

3) Radical approach – Modern thinking; the Marxian perspective

This is more of an independent thinking instead of a conservative one, something that is
revolutionary, something different and not thought about. This is something that bring
 about social change, not jut in a company or factory but in the entire society – given by Karl
Marx. He emphasized that production system is privately owned and motivated by profits.
Managers are known as the agents of the owners, and they have the ultimate control over
the production. This approach also says that conflict is inevitable and necessary for social
change. Social change is needed to end the disparity between those who own the capital
and those who supply the resources, those who have the resources and those who don’t
have the resources. Law gives the employer the right to give order while imposing on the
workers the duty to obey the workers. Trade unions are seen by Karl Marx for protesting
against exploitation.

4) Lastly, the trusteeship approach is given by Mahatma Gandhi during the freedom struggle
in India. In industrial relations, business enterprise is responsible towards their customer,
their workers, their shareholders, and the community at large and all these parties are
mutually responsible for each other. Conflict is said to exist due to one party being in
command while the workers have to obey the order and conflict needs to exist. There will
always be competitiveness since businesses run for profits and compete with each other,
there is some form of exploitation, some form of deprivation and lastly, we also need some
form of economic security – whether workers, managers or employees. Conflict is said to
manifest in one or more ways; through employee low morale when they seem demotivated;
high labor turnover-the rate at which employees are leaving the organization that means
they are not happy with some aspect of the organization; absenteeism – employees and
workers are often absent from work, if workers feel satisfied and safe and happy then they
would not be absent from work but unfavorable environment and policies leads to
absenteeism; one more way conflicts arise is in form of accidents due to disturbance, lack of
concentration, etc.; it could show in the form of grievances; in form of indiscipline – if they
are dissatisfied then they start breaking the rules and rebel against the company due to
frustration; it could result in a strikes, layoffs, Gheraos, etc. – if there were frequent strikes
then is showcases conflict and dissatisfaction of workers. Layoffs could be due to
indiscipline. As per Mahatma Gandhi, conflict can be approach through collective bargaining.

Partnership model of sound Industrial relations:

Since everyone is a party to the industrial relationships, it should be a happy and sound relationship.
This partnership models were initiated to share information. If information is hidden, the other party
feel like they are not trusted or do not have the right to the info. It removes any form of fear or
suspicion. If employees and workers are well informed, then they won’t make any assumptions if
they are well informed.
Then consulting each other – when employers and employees consult each other in certain matters
like employer asking for solutions from employees then there is a sense of belonging. Management
should organize employee boosting activities to avoid low morale and give opportunities to them to
gain more skills and learn more. It also ensures, supports, and sustains.
This model emphasis on the choices we have – first choice is that the employers or employees can
force or coerce; workers forcing by striking, disobeying, etc. Second is the conflicts that lead to
expending of energy from both sides and only one side has some marginal gains, third choice we
have is to compete – whereon only one wins and other losses. The fourth choice is compromise,
although no one really gets exactly what they want and fifth choice is to cooperate – the one
initiating the cooperating always has more benefits and the sixth choice is to collaborate, which
leads to the gain of everyone.

Role of HR manager in IR
  If an organization has motivated, competent and trouble free workforce, the credit goes to
HR Department
 The blame goes to the same department if the opposite occurs
 Through better recruitment, hiring, induction, training & development, safety and health,
remuneration, welfare, communication and other practices, the HR department can
contribute to the quality of work life (QWL) of employees
 QWL refers to fair remuneration, safe and healthy environment and opportunities for
growth
 Better QWL leads to motivation and satisfaction
 Motivated and satisfied employees have no reason to indulge in strike and ‘gherao’

***TRADE UNIONS:
Trade union act, 1926.
ILO – international labor organization
Theoretical perspective and legal framework
Trade union is defined as any combination or unions of people (employees or workers) formed for a
special purpose temporarily or permanently. The purpose is to regulation relationships between
parties to the IRs and to impose some restrictive conditions or legal bounds.
Primary function of trade unions is to protect workers from unfair labor practices and discriminations.

Purpose of trade unions: Need of trade union

 Employment protection and job creation – wherever the need for protection of employment
of workers, to protect the working class from discrimination and enabling them to avail
employment opportunities. They support their fellow workers and help them find jobs.
 Economic protection – it means the protection of their income, wages and salaries. How the
pay is received, whether the pay is adequate or not.
 Social status & identity – when workers join a union, they get an identity as the member of
that union. These unions strike to protect the workers rights and improve their standard of
living. Sinvce they are a federation, they get an identity
 Democratic institution – They work on democratic line – for the, of the and by the workers.
 Transformation – They have brought about a lot of changes in the working class; the
perspective of people in which workers are seen, development in the society,
transformation in thinking and the belief system.
 Sustainable development – the development continues and keeps on evolving. Like the
various stages of the industrial revolution.

Why employees or workers join unions:

 Greater bargaining power – individually they might be ignored, but this membership gives
them strength and makes them stronger collectively.
 Minimize discrimination - It also gives them greater bargaining power and reduces
discrimination
 Sense of security – all workers will be more confident since they have someone backing and
supporting them.
 Sense of participation – they participate in the activities, interact and are aware of what is
going on
 Sense of belonging – they develop a sense of belonging when they are part of the union
 Platform of self-expression – they can raise their concerns and problems much more easily
 Betterment of relationships – it improves the relationships with colleagues, supervisors, etc.
 Improve working conditions – since they have to sometimes work in precarious situations,
do hazardous work and sometimes they might face some discomfort in their work, in such
 case they can improve and collectively find way so that employer would take measure to
improve the conditions.
 Remove dissatisfaction – the grievance redressal mechanism

Historical perspective of Trade unions

FUNCTIONS OF TRADE UNIONS/purpose of existence:

 Wages & salary bargaining – most important agenda for every trade union
 Employee benefits like insurance, pensions, over and above the salary to maintain the
minimum standard of living
 Working conditions at workplace
 Welfare, healthcare & recreation activities, leisure at workplace
 Rest periods, number of holidays and paid leaves – number of medical, casual, earned
leaves, etc.
 Working hours, workload especially manual, hazardous working conditions – provisions of
safety measures
 Career and salary rise prospect ^& job security
 Protecting employees against arbitrary/unjust actions of the management

OBJECTIVES OF FORMING A UNION:

 Representation
 Negotiation
 Voice in decisions affecting workers
 MEMBER SERVICES:
 Education and training programs provided on business process, operating machines,
technology
 Legal assistance and financial assistance for the workers – they can take loans from the fund
for any medical or personal reason
 Welfare benefits – rules, regulations, policies, benefits provided out of the funds they have
created so that every member o the union will benefit

LEGAL PERSPECTIVE:
Indian is a founder of ILO – international legal organization. India derives it’s provisions of the
constitutions from the conventions of the ILO.
ILO convention 87
No admin authority, the government or the employer has the right or suspend or dissolve any
union.
All unions have certain rights, like right to elect representatives through election, who become office
bearer or spokesperson of the union. They have the right to organize any activities within their union
without any interference as long as it is outside the working hours.
Unions also have certain right under ILO convention. (PPT)
Rights under the Indian constitution and freedom of association.

Registration of trade unions:

Maximum or threshold for people to form a union is either 10% of total number of workers and
employees in the organization or 100, subject to minimum of 7 members. There are also some
minimum membership fees allotted for workers from different areas, like rural areas, urban areas,
etc.
One the union is formed, a name or nomenclator is decided for it.
There is a registration office in each state of India, the registrar overlooks the affairs of the office.
The union can exist in any city in that state.
In the application the rules of the trade union, the constitution of why it has been created like the
purpose of the union, membership fees, etc.
The application consists of a statement with the name and address of the members, name and
address of the head office of the union. Generally, it operates in the premises of a company itself or
somewhere nearby.
The registrar gives a certificate of registration, which is recognized by the GOI as a registered trade
union. It gives them a legal status and they enjoy certain privileges and protection. The act is
applicable throughout India.
Recognition of Trade Union:
Recognition is in the hands of the management. The management may accept only certain unions
and they may enter into collective bargaining with that union only.
Unregistered union does not get recognized. If management recognizes a number of unions, then
those union become collective bargaining council – representatives from every union are called for
collective bargaining.
BUT registration and recognition is not mandatory, there is no legal compulsion
Every citizen that is employed has the right to form unions. But it may not be recognized.
Just like Tax avoidance is legal but tax evasion is illegal, similarly, union avoidance by the
management is legal BUT union evasion is not legal.
Right of collective bargaining is only provided to the unions recognized by the management.

Privileges of registered trade union:

It gives them a legal status and they enjoy certain privileges and protection. The act is applicable
throughout India.
If there are majority of members, there is a higher chance that they will be herd and recognized by
the management. If the union is small and not recognized, they can go through the labor office set
up by GOI. They will talk to the representative from the union and management, to persuade them
and to settle the matter
Privileges of registered and recognized trade union:
Right of collective bargaining is only provided to the unions recognized by the management. They
also have a written proof signed by both parties, so the management cannot back out from what has
been decided through collective bargaining.
Special benefits the unions get are office space, time-off for union work, notice board, etc.
Other types of supports are financial supports for recreation activities, training and education
programs for the union members, etc.
But if unions are dependent on the management for such benefits, then it can weaken the
bargaining power of the unions.

**FUNCTIONS OF TRADE UNIONS**

I. MILITANT FUNCTIONS (these are the issues for which the unions aggressively bargain)
Higher wages, raise status of workers, working conditions, oppression
II. FRATERNAL FUNCTION (mild issues that are concerned with the welfare of the workers)

Importance of Trade unions:

They brought above social change – occupational health & safety, social security like pension, etc.
for workers throughout the country.
Trade unions help in accelerated pace of economic development:
 by inculcating discipline among workforce
 by enabling settlement of industrial disputes in a rational manner
 by helping social adjustments, workers have to adjust themselves to the new working
conditions, the new rules and policies
  Workers coming from different backgrounds may become disorganized, unsatisfied and
frustrated Unions help them in such adjustment

Social responsibilities of trade unions include:

 promoting and maintaining national integration by reducing the number of industrial
disputes
 incorporating a sense of corporate social responsibility in workers
 achieving industrial peace

Strikes, Lockouts, Gherao,

Picketing – a form of strike, a protest by the workers. In this, workers stand at the factory gates and
form human barricades (like by holding hands) to prevent other workers from entering into the
premises to cause complete stoppage of work. They do so to draw attention to themselves and to
the problem that they are facing. If media and politics gets involved, it creates a bad reputation of
the firm in the public.

Non-union firms – companies where unions don’t exist. In such companies, employees are treated
better since there is direct participation and issue is resolved directly. Some companies may pay
additional incentive to employees that will not join any union, but such an agreement or contract is
illegal.

Trends in the trade union movement:

Since education levels have improved and increased, there is a lot of technological growth, so the
union have become more responsible, realistic with dealing with the management.
Unions are also realizing that they require changes, they discuss about implementation of advanced
tech, productivity, TQM, competition among similar companies, aligning with corporate plans,
customer friendly approaches to improve quality of the products, cooperating with the govt & the
management, voluntary retirement scheme (VRS) . The work processes have also changed.
Depoliticization of trade unions is also a recent trend. Politicians tried to get votes by taking
advantage of the workers, but they have now realized that they don’t need the backing of political
parties.
Multiple unions weakened the bargaining powers of workers, so they have realized that single
unions are better. Outsiders being union leader, a person who does not work for the company.
Professionalism is something that the unions have now adopted.
 Unions are becoming increasingly matured, responsive and realistic in their thinking and
action
 Gone are the days of strikes, bandhs, ‘gheraos’ and violence
 Unions are reconciled to economic reforms
 Discussions among trade unions circles nowadays is on issues like productivity, total quality
management, technology, competition, MNCs, exports and the like.
 Major unions are on line with corporate plans
 They are now talking about issues like gearing up for competition and customer friendly
approach
 They are therefore extending co-operation to schemes
 Depoliticization of unions is another trend witnessed these days
 Days when unions were affiliated with political parties are gone by
 Multiplicity of unions is caused by ideological rifts, personal ambitions of leaders and division
among workers
 Multiple unions weakens bargaining power of employees
 Union leaders are now conscious on the need for single union plants
  Outside leadership is another defect of our trade union movement. In a course of time
unions started selecting their own office bearers as their representatives from among
themselves
 Professionalism of trade unions is another trend witnessed these days
 Upgrading leadership quality, personnel as well as services rendered, strategic planning,
diversity, networking, OD techniques, productivity are mostly inputs of the training
programmes of trade unions these days

ILO defines Collective bargaining as “Voluntary negotiation between employers or employers’

organisations and workers’ organisations, with a view to the regulation of terms and conditions of
employment by collective agreements”. Hence, collective bargaining comprises negotiation
pertaining to working and service condition. Collective bargaining may result in collective
agreement.

Video:

31-10-2021
Industrial disputes as per the industrial disputes act 1947 (in detail in previous and new
PPT)

Industrial disputes are when issues go beyond the boundaries of the organization and beyond the
scope of collective bargaining. In such cases, they seek the help of a neutral and unbiased third
party.
The purpose of the existence of the industrial disputes act 1947 is to investigate and settle any
industrial disputes for the sake of industrial peace.
Appropriate government to deal with the dispute: In case of an industrial conflict in a particular
state, first the appropriate government would be the state government, which would be responsible
to resolve the conflict. But if the state government fails or is unable to do so, then the appropriate
government becomes the central government; specifically, if the matter is out of control and might
lead to conflicts in other industries or states as well.
Award – it means determination of the final or interim decision for a dispute.
Authorities under the act: Board of conciliation – conciliation officer role is persuading the parties to
settle the disputes and arrive at a resolution for it. He is not the judge, but he can give suggestions to
the parties.
Chairman – independent person representing the government and presiding over the conciliation
meeting.
Labor court – this is first level, presided over by a judge to decide upon the case. In case of the
conciliation officer, since he only gives suggestions, the parties may or may not take up the advice so
it is not binding but in case of a judge from the labor court, the judgement he gives on the dispute is
binding on both the parties. If they are not happy with the decision they can approach the high
court, and then the supreme court.
Tribunal
National tribunal – when there is a question of national importance, the national tribunal is set up
by the central government to promote investigation and settlement of disputes, in case a lot of
companies or industries or states are getting affected.
Court – In case the industrial disputes act, court means court of inquiry constituted by the
appropriate government. They investigate the matter and submit the report to the appropriate
government.
Official Gazette – Authentic, accurate, and direct information in accordance with the government
policy ties and decisions is relied to the public by the government y printing this gazette through the
GOI press. It is a public journal, accessible to all the citizens of India.
Industry
Separations – this happens when an employee leaves the organization either voluntarily or
involuntarily. So the employee separates from the organization or vice versa.
Retrenchment, layoff, rightsizing, VRS – in these cases, although employees are asked to leave the
organization it is not due to their mistake or ill-behavior but due to the organization policies or
problems.
Closure – permanently shutting down a company or organization or a place of work. Permanent
separation of employees and organization, leads to mass employment.
Layoff – failure, refusal, inability of employer to give work or employment to employees temporarily.
Retrenchment – termination by the employee by the employer permanently like in case of
automation of operations, surplus of workers, if they no longer render any value to the company,
etc. There is a provision under the act that retrenched and laid off employees are entitled for
compensation.
Difference between retrenchment and layoff
Difference between retrenchment and dismissal
Settlement – written agreement which implies the final determination of the case We arrive at a
resolution arrived at and it is signed by both the parties. The company seal is put, a copy is sent to
the authorized officer and one copy is retained by the labor court.
Workman
Wages
Industrial dispute
Strike: Types of forms of strike
- Stay away strike
- Stay in/sit down strike
- Tools down/pen down/mouth down
- Token/protest strike – this is an indication that if the demand of the workers are not fulfilled
then it will lead to a strike on a larger scale.
- Lightening/wild cat – usually workers have to give a notice to the employer that they are
going on a strike, but this is a strike that takes place without any notice. The notice period is
of at least 14 days.
- Go-slow
- Work to rule – strikers undertake the work according to the JD or rules and regulations since
it only causes inconvenience to the employer.
- Picketing
- Boycott
- Gherao
 - Hunger strike
- Sympathetic strike – this is a strike against a third party, if workers in an organization are
striking the workers from the other firms sympathize with their cause and also go on strike.
Outcomes of strike
Loss of job if it gets violent
Inconvenience for customers, intermediaries, etc.
Man days lost – no. of days lost in the year due to lack of production due to strike
Lockouts
Settlement of disputes: measure for prevention and settlement of Industrial disputes
Tripartite and Bipartite bodies – represented from the side of the government, from the
management side (so that they can understand the perspectives of everyone) as well as from the
side of the labor or workers. Like if new industrial policies are to be implemented then it is essential
to take perspective into consideration.
Standing orders – code of conduct, rules regarding day to day activities such as leaves, daily
behavior, etc.
Grievance procedure
Collective bargaining
Strong trade unions
Labour co-partnership and profit sharing: involving workers in the company to increase profits, so
the labors also become partners in the company. If production level rises then they could become
partners by giving them some shares of the company.
Joint consultations – they deal with matters that might lead to industrial disputes in advance itself.

Measures for settlement of Industrial disputes

1. Investigation – probing into the incidents, certain bodies or tribunal or court of inquiry may be set up
to find out the facts and the evidence. To find the instigator, sequence of events, stage of the dispute,
etc. and a report is generated accordingly.
2. Mediation – A mediator between the workers and the management. If the workers and management
fail to resolve the matter then a third, neutral, unbiased party could be asked to resolve it instead,
they understand both of their point of views and act as the spokesperson for both the parties.
3. Conciliation – conciliation officer is like a mediator; he gives suggestions and persuades both parties
to resolve the matter and come to a conclusion.
4. Voluntary arbitration – We need an arbitrator for voluntary arbitration. A person from outside who is
unaware what the dispute is like. In this case, the workers and the management voluntarily surrender
the issue to a neutral third party to give suggestions and a decision to resolve the matter. Although
they decision is not binding on the parties, they are voluntarily ready to accept it.
5. Adjudication – this is the last step wherein matters are just not getting resolved in any other way and
the matters go to the court.

THE FACTORIES ACT 1948

It applies to all the factories, it makes it the responsibility of the employer to provide for the worker’s health,
safety, and welfare.
If employer does not comply with the provisions, it may lead to levying of fine or imprisonment.
Factory
Worker – in case of contract workers, the principal employer provides a lump sum to the agency that provides
the workers, and the agency is responsible for paying their wages.
Important provisions for health, safety and welfare of workers
Safety
Young person here implies those that are 18 and above, they are entitled to a stipend, they can only operate
the machine after they are trained, and they should be given adequate supervision.
Badly workers – tgheir work is seasonal in nature and they are asked to leave once the season is over.
THE INDUSTRAIL EMPLOYEMENT (STANDING ORDERS) ACT
Why do employees join unions
1. For more wages, to gain benefits from the demands put forth by the workers together
instead of acting alone, to ensure fair working hours and workload as well as good working
conditions.
2. The main reason for joining a trade union would be that it provides a sense of job security
for the workers. In case of layoffs or retrenchment, the trade unions strike if the workers are
not adequately compensated or if they are not given a prior notice or called back for work in
case of a layoff.
3. Another reason that workers may join a trade union is that provides them with a sense of
belonging and gives them some reassurance to be part of a community. In a way, it gives
them mental peace and stability.
4. Trade unions also gives them a sense of identity and recognition. Workers that would
otherwise go unheard or unnoticed are recognized since they represent a larger association.
Even more so if they one of the elected representatives for the union.
5. Lastly, workers join trade unions because it ensures that they are treated fairly. Since the
unions speak collectively, they can negotiate with the management for better wages or
working conditions or insurance or safety equipment, etc. Members of the trade union
automatically gain a lot of benefits and since they are voluntary associations, they are free to
join or leave the association as they want.

Four major forms of disputes in which industrial disputes are evident:

1. Strike – A strike takes place when a dispute goes beyond the control of the organization. It
leads to collective stoppage of work by the workers for a common goal or due to a common
problem is for a short duration of time since they temporarily cease to work. It may be for a
few or several hours, weeks, or months. It could be a peaceful demonstration, where they
shout slogans or hold placards either outside or within the premises of the company, but it
may turn violent when workers are not heard.
2. Lockout – This is also temporary, and it is the opposite of a strike. If workers are on strike,
and the strike turns violent such that they might pose a threat to the property or people of
the company. For example: workers might begin throwing stones, breaking furniture, or
property, setting fire to the property, etc. In such a scenario the employer can lock out the
workers and close the main gate of the company or factory. This prevents workers from
getting inside the premises of the company and causing any damage. Lockout is used by
employers to counter strikes.
3. Gherao – Gherao means surrounding. When workers are on a strike for a long period of time
it halts the production and leads to heavy losses to the company. If a key official of the
company is seen, the workers may surround the person and not let him move or leave the
premises, either in his office or somewhere in the premises unless their demands are met.
This puts pressure on the person, mentally as well as physically and the person is forced to
accept their demands.
4. Layoff - When there is no work or stoppage in production due to shortage of material,
recession, low demand, etc. the employer may let go the employee temporarily. If the
workers are asked to work, they would still have to be paid wages although there is no work.
The employer is required to compensate the workers by paying half the wages and to give a
notice to the workers that they are being laid off for with the specific time and reason. When
production resumes, or the materials are acquired they are asked to report back. If employer
is does not issue a notice, provides compensation, or calls back for work then it leads to a
strike.
Why do disputes occur? Strategies to resolve the disputes?
Any type of unresolved conflict, differences of opinion, discontent, or discomfort can take the form
of a dispute when it goes beyond the control of the management. Issues may be related to working
conditions, the management policies, personal problems, clashes between workmen, clashes
between employees, etc. These issues are all connected to the employment of the workers but there
are some issues related to non-employment, like when an employee is terminated. Termination is
usually when there is some issue such as non or under performance, leaking private info, unethical
behaviour, etc. Termination by the employer for one person or for a group of people. Other non-
employment issues are layoff and retrenchment.
Layoff occurs when there is no work or stoppage in production due to various reasons, the employer
may let go the employee for some time. The employer is required to compensate the workers and
give a notice that they are being laid off along with the reason. When production resumes, they
should be asked to report back. But if the employer does not follow these conditions it leads to
industrial dispute.
Retrenchment is also a sudden removal of a number of workers. Example: If the company has
acquired a machinery to automate the processes a number of people may be removed from the
company as they are no longer required. In this case, a notice must be given to all the workers with
the reason, and they have to be compensated to support themselves until they get another job. But
if the employer again fails to comply with these two conditions then it leads to industrial disputes.
One strategy to avoid disputes is frequent meetings between the representatives of the trade unions
and the representatives of the management so that they can put forth their problems, issues, and
demands and resolve them before they escalate any further and get out of hand.
In case of strikes, the best way to deal with it is to meet with the representatives of the union at the
earliest so that no one from either side suffers severe losses and they can reach an agreement
peacefully.
Lastly, it is essential for the management to be transparent while communicating to the workers and
the union. It is also essential that they compensate the workers in case of layoffs to avoid any future
conflicts.