Unit II: Trade Unionism and Collective Bargaining - Trade Union origin and growth, unions

after independence, unions in the era of liberalization; concept, objectives, functions and role
of Trade Unions in collective bargaining; problems of Trade Unions. Labour problems:
Discipline and misconduct; Grievance Handling Procedure; Labour turnover; Absenteeism;
Workers’ participation in management.

Trade Unionism and Collective Bargaining

The ability of developing countries and the new transitional economies to compete in the global
marketplace will depend on their ability to transform industrial relations policies involving
trade unions and collective bargaining so that they promote flexibility in the workplace and
encourage the formation and effective use of human resources
Collective bargaining, 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.
Advantages of Collective Bargaining
1. It is pro-employees.
Advocates for collective bargaining posit that with collective bargaining, it will be easier for
employees to fight for their rights as hard-working people. By being members of trade unions,
they will have a voice through the representatives of the unions whose aim is to work for the
betterment of its employee members such as higher wages, shorter working hours, safer
workplaces and better health care.

2. It keeps abusive employees powerless.

In collective bargaining, employees who normally will not have the means and confidence to
fight for their rights if they are not part of a trade union will have individuals who will challenge
employers who take advantage of their workers. Supporters of collective bargaining say that
employees have better chances to get compensated accordingly or leave their jobs if they want
to without having to worry they will be sued or not get their wages.

3. It prevents employees from going on strikes.

When there are big issues between employees and employers that are not settled, a popular
option for employees are to go on strikes. These actions hamper operations and consequently
cripple businesses. In the end, consumers suffer. With collective bargaining, there is no need
for workers to stop working because they have representatives with them who will work for
their benefits. Moreover, collective bargaining protects employers as well. This is because
collective bargaining will result to an agreement. And normally, this will also be agreed upon
if the negotiations are beneficial for both parties.
4. It gives protection to all employees.
People who are in favour of collective bargaining say that in the contracts signed by the
employers and trade union representatives, all employees in the company will benefit from
whatever conditions are stipulated in the agreement, regardless if they are members of the trade
union or not. Additionally, this gives employees the right to question the policies of the
company they belong to.
5. It provides security and stability.
On the part of employees, this will give them security of tenure since they will not have to
worry about getting terminated unlawfully and in case they will be, they have a support system
as well as representatives to fight for their rights as employees. Conversely, business owners
will be able to project the expenses to finance operations and compensation packages and
benefits. This way their businesses will be more stabilized.

Main Features of Collective Bargaining:

Some of the salient features of collective bargaining are:
1. It is a Group Action:
Collective bargaining is a group action as opposed to individual action. Both the parties of
settlement are represented by their groups. Employer is represented by its delegates and, on the
other side; employees are represented by their trade union.
2. It is a Continuous Process:
Collective bargaining is a continuous process and does not end with one agreement. It provides
a mechanism for continuing and organised relationship between management and trade union.
It is a process that goes on for 365 days of the year.
3. It is a 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 given-
and-take rather than take-it-or-leave-it method of arriving at the settlement of a dispute.
4. It is a Process:
Collective bargaining is a process in the sense that it consists of a number of steps. The starting
point is the presentation of charter of demands by the workers and the last step is the reaching
of an agreement, or a contract which would serve as the basic law governing labour-
management relations over a period of time in an enterprise.
5. It is Flexible and Mobile and not fixed or Static:
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.
6. It is Industrial Democracy at Work:
Collective bargaining is based on the principle of industrial democracy where the labour union
represents the workers in negotiations with the employer or employers.
7. It is Dynamic:
It is relatively a new concept, and is growing, expanding and changing. In the past, it used to
be emotional, turbulent and sentimental, but now it is scientific, factual and systematic.
8. It is a Complementary and not a Competitive Process:
Collective bargaining is not a competitive process i.e., labour and management do not coopt
while negotiating for the same object. It is essentially a complementary process i.e., each party
needs something which the other party has, namely, labour can put greater productive effort
and management has the capacity to pay for that effort and to organise and guide it for
achieving the enterprise’s objectives.
9. It is an Art:
Collective bargaining is an art, an advanced form of human relations.

Importance of Collective Bargaining:

To Employees:
It helps in developing a sense of responsibility amongst employees.
It helps ensure adequate wages and working conditions for employees.
It improves the morale and productivity of employees.
It helps in quick settlement of grievances.
To Employers:
It is relatively easier for the management to resolve disputes at the bargaining level instead of
taking up complaints individually.
It improves the morale of employees and thereby reduces the cost of labor turnover.
It improves workers participation in decision making.
To Society
It promotes peace in the country. It results in a harmonious industrial climate which helps in
the economic and social development of the country.
Trade Union origin and growth
Trade Unions play an important role in the settlement of industrial disputes. The trade unions
of employees and employers bargain collectively in solving the grievances of the industrial
workers. Before going to discuss the role of trade unions in the settlement of industrial disputes
it is appropriate to project the historical background for establishing the trade unions. Not only
the workers associations, but also employers’ associations are regarded as trade unions. The
worker’s union or association as well as employer’s union have to be registered their union
Under the Indian Trade Union’s Act, 1926. Therefore, under the existing law the expression
“Trade Union” includes both employers and workers organizations.
The origin, growth and development of Trade Union Freedom
are determined by multiple concomitant factors and it is not feasible to isolate a single factor
from the rest in the context of the reluctant dynamics. In order to have a scientific and rational
study of the trade union freedom in India, it is rather imperative to investigate and enquire into
various economic, political and legal situations available in some major countries where trade
union freedom has now become an integral part of the national main stream. Since, it is a vast
subject to deal with the developments of trade unions of each and every country and it is very
difficult to do so, the researcher confined to the historical background of the trade unions to
the England only
The trade union movement in India can be distinctively studied through three
phases (Sahoo, 1999). The first phase covered the period from 1875 to the end of World War
I. This phase was mainly characterized by a humanitarian spirit that was employed by the
friendly societies in dealing with the labour. The second phase began from the end of World
War I and went on till 1947, the year of India’s independence. This phase was quite remarkable
as it saw the beginning of real modern trade unionism in India with organized and continuous
labour movement.

The earliest trade union was formed in Bombay when textile mills were established in 1851.
Trade unions also emerged in Calcutta in 1854 with the establishment of jute mills there.
Shorabji Shapuri Bengali and C.P. Mazumdar were among the pioneers of these early labour
uprisings in the country.

The first factory Commission was set up in 1879 to study the problems of workers. In 1891,
the first factory act- The Indian factory Act was passed but it remained ineffective. The Second
Factory Commission was formed in 1884 to which a memorandum signed by Narayan Meghji
Lokhande along with 5300 workers was submitted. Thus Lokhande emerged as the first trade
union leader of India. In the year 1890, Lokhande arranged a mass rally of 10,000 workers,
where two women workers demanded Sunday as weekly off. Simultaneously, the first
memorandum was submitted to Mill Owners’ Association who accepted the demand. This
event was recognized as the first trade union victory in the country. This trade union rally led
to the formation of the first trade union called ‘Bombay Millhands Association’. However, the
union had no funds, office bearers and committee members.

This was followed by the formation of other trade unions across the country and organized
strikes started taking place. Trade unions like Ahmedabad Weavers (1895), Jute Mills, Calcutta
(1896), Bombay Mill workers (1897) and the Social League (1910) were formed. Some of the
notable strikes that took place around this time were by the Madras Press Workers (1903),
Printers Union, Calcutta (1905) and the Bombay Postal Union (1907). The strike of the Madras
Textile Workers (The 1921 Buckingham and Carnatic Mills Strike was a strike by the workers
of Buckingham and Carnatic Mills in the city of Madras that is now called Chennai) was
remarkable. As, V. Kalyanasundaram Mudaliar, the leader of the strike puts it

“… There have been many lock-outs and strikes in the world. It is said that the Gret Steel
Sorkers’ strike in America was the biggest of them. The lock-out and the strike of Madras
Textile Workers (1921) stand on par with that…”

Thus, the trade union movement began to gather momentum in the country. The Madras
Labour Union was formed in 1918 with B.P. Wadia as the president. Wadia, an ex-member of
the Indian Home Rule League, was the president of five trade unions in Madras. One of the
foremost influential trade union leaders in India, he said that the economic aim of the Indian
Labour movement is not only to get higher wages and other benefits but to completely eradicate
wage slavery. Despite the absence of legal protection and facing bullets and intimidation threats
from the employers, the union achieved dignity and improved conditions.

Another important figure in the trade union movement in India was N.M. Joshi. In 1921,
Joshi was quite influential in persuading the Government of India to accept the resolution
moved by him in 1921 in the Central Legislative Assembly requesting for the legislation for
the registration and protection of trade unions. It was after 5 years that the Trade Unions Act
of 1926 was enacted. There was a rise in the membership of trade unions during this time which
but declined during the Great Depression of 1930. In 1934, the number of trade unions in India
was 191.

The International Labour Organization (ILO) was formed soon after the first World War
in 1919. The formation of ILO was instrumental in inspiring the leaders of India towards the
formation of All India Trade Union Congress (AITUC), the first national-level trade union in
India in 1920. Lala Lajpat Rai was elected as its first president who later also attended the ILO
Conference in Geneva in 1926. Other national-level trade unions were also formed
subsequently. The most notable among these were Indian National Trade Unions Congress
(INTUC) in 1947, the Hind Mazdoor Sabha (HMS) in 1948 and the Centre of Indian Trade
Unions (CITU) in 1970.

Trade Unions in India have grown since then. As per data obtained from the Labour Bureau,
the total number of registered trade unions across the country numbered to 11556 in 2013 and
the average membership per union was 1283. Amidst the well-known fact that the degree of
unionism is not very high in India, the concentration of union membership is high in critical
sectors like banking, insurance, railways, postal services, ports, telecoms and power (Sundar,
2008). In addition, in recent decades, the stronghold of the political unions has been challenged
by the growth of enterprise unions. The prevalence of the Liberalization, Privatisation and
Globalisation (LPG) model in India since 1991, along with the various labour flexibility
measures adopted by employers, and the decline in jobs in the organized sector are creating
challenges to unions, which are also simultaneously, providing opportunities to restructure the
union movement.
TRADE UNION MOVEMENT: Before Liberalization:
TU movement was divided according to ideologies after
independence and regional parties came to power in different states with each political party
having its trade union wing (Venkatratnam:2006:87). India’s socialist democratic policies
protected both workers and TUs. The relation between employee and employers are always
bound by legislations and jurisdictions but not by suo – motto, human resource approach (Rao
& Patwardhan: 2000:128). Public sectors were expanded and allowedthe white collar workers
in banks and insurance sectors to organize themselves (Mamkottam: 2000:92). Power of unions
grew along with the number. Political parties found the unions a strong medium. For fear of
losing power, ruling parties heeded to the demands of the TUs (ibid.). The situation continued
till the declaration of emergency by the late Prime Minister Mrs. I.Gandhi. This period of
emergency had seen the decline in power of TUs. But soon, the lower level TUs were revived
to become militant (ibid.). As a result, the management, especially in the public sector became
weak partner in IR. Strikes and indiscipline increased with loss of working days, especially in
the essential service sectors like hospitals, airways, railways and telecommunications and
postal services (ibid.). Productivity and performance were declined as a result of strike earning
the displeasure of public making the TUs responsible for the decline. When the other countries
were progressing forward in their export policies, India was lagging behind in technology and
quality to compete in the global market because of the rigid laws that did not allow flexibility,
which is crucial for globalization.

After Liberalization:
Introduction of neo-liberal policies had created fear in the
minds of people that technological changes would reduce the number of labour-intensified jobs
(Mamkottam: 2000:100). TUs registered their disapproval (ibid.). Unions in public sector
rejected the offer of discussion and also threatened to boycott and opposed the implementation
of various measures announced by the government (ibid.). Technological changes and other
measures of liberalization at the work place made the unions helpless (ibid: 101). Management
adopted soft policies towards workers and their attitude towards unions is changed. Many
employers migrated to cheap labour and non-unionized settings (ibid.103). State’s welfare
policies have been rolled up. Organized sector shrunk in size giving rise to informal economy.
Even though it is difficult to say that the TUs have declined in size, bargaining power of the
unions is on the decline (Mamkottam: 2000:101). Number of strikes and the workers involved
in strikes has been reduced. Independent/enterprise unions sprang up. National TU centres
seem to be losing their control over enterprise unions (ibid: 2000:106.). Unions who earlier
opposed to technological up gradation have gradually agreed to the same in return for linking
wages with productivity (Mamkottam: 2000:101). All these indicate that central unions are
losing ground (ibid: 104).
TRADE UNIONS
An organized association of workers in a trade, group of trades, or profession, formed to protect
and further their rights and interests.

The Role of Trade Unions and Collective Bargaining

 Trade unions are uniquely able to take steps to "raise awareness of the problem of sexual
harassment in the workplace" by conducting training of company officers and
representatives on sexual harassment and by including information on sexual
harassment in all union-sponsored or approved training courses.
 Trade unions also have an opportunity to encourage employers to adopt "adequate
policies and procedures to protect the dignity of women and men at work in the
organization."
 Trade unions may play a role as advisor to union members who have sexual harassment
complaints, providing guidance on among other things, "any relevant legal rights. …
Trade unions could consider designating specially trained officials to advise and council
members with complaints of sexual harassment and act on their behalf if required. This
will provide a focal point for support. It is also a good idea to ensure that there are
sufficient female representatives to support women subjected to sexual harassment."
 Trade unions may introduce sexual harassment clauses in contracts that it negotiates on
behalf of union members. These clauses would obligate that the employer take the
appropriate steps to prevent harassment described in the Preventing Sexual Harassment
Section. In this way, the union can use the collective bargaining process to "achiev[e]
a work environment free from unwanted conduct of a sexual nature or other conduct
based on sex affecting the dignity of women and men at work and free from
victimization of a complainant or of a person wishing to give, or giving, evidence in
the event of a complaint."

Functions of Trade Unions:

(1) Collective bargaining with the management for securing better work environment for the
workers/ employees.
(2) Providing security to the workers and keeping check over the hiring and firing of workers.
(3) Helping the management in redressal of grievances of workers at appropriate level.
(4) If any dispute/matter remains unsettled referring the matter for arbitration.
(5) To negotiate with management certain matters like hours of work, fringe benefits, wages
and medical facilities and other welfare schemes.
(6) To develop cooperation with employers.
(7) To arouse public opinion in favour of labour/workers.
PROBLEMS FACED BY TRADE UNIONS IN INDIA

1. Lack of Balanced Growth: Trade unions are often associated with big industrial houses.
A vast majority of the working population is without any union backing. The entire
agricultural sector is highly unorganized in India. The agricultural workers are subject to
all kinds of exploitation. The same is true with respect to those working in small scale
and cottage industries. Lack of balanced growth of trade unions in all sectors is one of
the major weakness of the trade union movement in India.
2. Low Membership: Trade unions , with the exception of few have low membership. This
is because many employees are not willing to join unions although they are ready to enjoy
the benefits arising out of the union actions. The reasons for the hesitation of employees
to join unions include, among others, the need to take pat in strikes and such other
programmes, fear of pay cut and fear of punishment.
3. Poor financial Position: Low membership is one of the reasons for the poor financial
position of the unions. Moreover, the subscription payable by every member is kept low.
Some members may not even make a prompt payment of the small amount of
subscription. These are also not very many sources from which unions can get funds.
They may probably depend on contributions from philanthropists. The poor financial
position can only weaken the trade union movement.
4. Political Control: Most popular trade unions in India are affiliated to certain political
parties. These political parties are only keen on making every grievance of the working
class a political issue to attain political gains. As a result the problem only gets wide
publicity and remains unsolved.
5. Multiplicity of Unions: Often there exists more than one union within the same industry
each backed by a political party. These various unions have conflicting ideology. If one
union comes out with a strike proposal another union may work against it. As a result,
none of the unions is actually able to solve the problems of the workers.
6. Inter-Union Rivalry: The existence of many unions within a particular industry paves
way for what is called inter-union rivalry. These unions do not work together for the cause
of the workers. Each union may adopt a different approach to the problem. The inter-
union rivalry may become a more serious problem of the workers. As a result, the
employees are unable to derive the benefits of collective bargaining.
7. Lack of able Leaders: Another barrier to the growth of trade unions is the lack of able
leaders. Some union leaders give a strike call even for petty problems that can easily be
resolved through talks. On the other hand, there are leaders who have secret pact with the
management. They get bribes from the government and work against the interests of the
employees. Some leaders don’t convene a meeting of the general body at all even when
a crisis develops. They take unilateral decisions that are thrust on the employees.
 8. Lack of Recognition: Most management is not prepared to recognize trade unions. This
happens because of any of the following reason.The existence of low membership that
reduces the bargaining power of the union. The existence of more unions within the same
industry.Inter-union rivalry. The indifferent attitude of the employees themselves towards
trade unions.
9. Opposition from Employers: Apart from the fact that most employers are not prepared to
recognize trade unions, they also do not let their employees from a union. This the
employers are able to achieve by adopting certain punitive measures like intimidating
employees victimizing union leaders, initiating disciplinary action against employees
indulging in union activities and so on.
10. Indifferent Attitude of the Members: Union leaders alone cannot be blamed for the
weakness of the trade union movement. The indifferent attitude of the members of certain
unions is also a barrier. Some members do not even make a prompt payment of the
subscription amount. The treasurer of the union has to go behind them, remind and
persuade them to pay Problem

Labour Problems
1. Surplus Labour Force:
Labour market in India is suffering from surplus labour force. A huge number of labourers
are rendered surplus due to lack of adequate demand arising out of both primary, secondary
and tertiary sector. Due to high rate of growth of population, a huge number of labour
forces is continuously being added with the existing labour force leading to a huge surplus
in the labour market.

2. Unskilled Labour:
Another major problem of labour market in India is that there is a growing number of
unskilled labourers in the country. In the absence of adequate vocational institutes, skill
formation among the labour force in the country is very slow. This huge number of
unskilled labourers fined it difficult to become self-employed and thus create a huge army
of unemployed in the country.

3. Lack of Absorption of Skilled Labour:

In India the absorption rate of skilled labour force is also very poor. A huge number of
technically educated youths after completing their technical education like engineering,
vocational courses etc. are finding it difficult to get themselves absorbed in the secondary
sector, leading to a huge problem educated unemployment in India.
4. Imperfections:
Labour market in India is also suffering from some imperfections such as lack of adequate
information regarding jobs, lack of suitable agency for the proper utilisation of labour
force, child labour practices, lack of proper manpower planning etc. Such imperfections
have been resulting in various hurdles in the path of absorption of labour force smoothly.

5. Work Culture:
Work culture among the Indian labour force is not at all good. Whatever work force is
absorbed in various productive sectors it is not adhered to healthy work culture. This has
been resulting in lesser economic surplus in the production system which restricts
indirectly its absorption capacity in future.

6. Militant Unionism:
Labour market in India is also facing the problem of militant unionism. In some productive
sectors and that too in some particular states, trade unions are not adhering to healthy
practices. This has led to militancy in the union structure and its activities, which is
detrimental for the greater interest of the nation.

7. Unemployment:
Labour market is also facing a serious problem of unemployment. A huge number of work
forces of our country remain partially or wholly unemployed throughout the year or some
part of the season. This has led to the problems like disguised unemployment, seasonal
unemployment, general unemployment and educated unemployment.

8. Lack of Labour Reforms:

Labour market in India is also suffering from lack of adequate labour reforms provision.
Economic reforms introduced in the country during the 1990s have changed economic
scenario of the country. But the country is lagging behind in adopting necessary labour
reforms which are rational and important under the present context. the subscription that
is often a very small amount.

Misconduct and Discipline

The College expects that following basic standards of conduct will

promote a high quality work environment and ensure responsible behaviour. You must, at
a minimum, perform adequately in the job, follow the rules established by your department
or supervisor, follow the policies of the College and the law, act with honesty and integrity,
and respect the rights of others in the work environment. Any discipline that is imposed is
intended to correct or modify your conduct, to deter such conduct on the part of others,
and to protect the rights of the College and everyone working at, or associated with, the
College. The supervisor should notify you if your job performance is inadequate,
explaining the job requirements, the deficiencies, and the expectations for improvement.
 Also, any act that Interferes with the rights or proper interests of the College or its faculty,
staff, or students may subject you to disciplinary action.

Discipline may take the form of verbal or written warnings,

suspension with or without pay, or termination of employment. You may also be
suspended with or without pay during any investigation of possible misconduct. All
disciplinary action is administered with consideration given to the seriousness and
frequency of the offense, your past record (including work history and earlier disciplinary
record), and the circumstances surrounding the particular case. Because of the individual
nature of each situation, the College reserves the right to impose discipline appropriate to
the circumstances up to and including dismissal

MISCONDUCT
Any act or omission on the part of an employee which is a breach of any duty, obligation or
assignment arising under or flowing from any law or contract of employment or service rules
or standing orders, settlements or awards or improper conduct or wrongful behavior is a
misconduct.
TYPE OF MISCONDUCTS

Minor Misconducts
The following acts or omission on the part of an employee shall amount to minor
misconduct:
1. Late coming
2. Absence from duty without leaves for a period of less than six days
3. Loitering, gossiping in department during working hours
4. Failure to ware tight clothes/specified uniform.
5. Negligence of duties or neglect of work.

Major Misconducts
The following acts or omission on the part of an employee shall amount to major
misconduct:
1. Wilful insubordination or disobedience of any lawful and reasonable order of a
superior.
2. Going on legal strike or abetting, inciting, instigation.
3. Wilful slowing down in performance in work or instigation thereof.
4. Theft, fraud or dishonesty in connection with the employer’s business or property.
5. Taking or giving bribes or any illegal gratification.
6. Habitual absenteeism without leave for more than 10 consecutive days or over
staying the sanctioned leave without sufficient grounds.
7. Habitual breach of any standing order or any law applicable to establishment.
8. Collection without the permission of the manager or any money within the premises
of establishment.
 9. Engaging in trade within the premises of establishment
10. Drunkenness, Riotous, Disorderly or indecent behavior on the premises of the
establishment

Steps in Grievance Handling Procedure:

At any stage of the grievance machinery, the dispute must be handled by some
members of the management. In grievance redressed, responsibility lies largely with the
management. And, grievances should be settled promptly at the first stage itself. The following
steps will provide a measure of guidance to the manager dealing with grievances.
i. Acknowledge Dissatisfaction:

Managerial/supervisory attitude to grievances is important. They should focus attention on

grievances, not turn away from them. Ignorance is not bliss, it is the bane of industrial conflict.
Condescending attitude on the part of supervisors and managers would aggravate the problem.

ii. Define the Problem:

Instead of trying to deal with a vague feeling of discontent, the problem should be defined
properly. Sometime the wrong complaint is given. By effective listening, one can make sure
that a true complaint is voiced.

iii. Get the Facts:

Facts should be separated from fiction. Though grievances result in hurt feelings, the effort
should be to get the facts behind the feelings. There is need for a proper record of each
grievance.

iv. Analyse and Decide:

Decisions on each of the grievances will have a precedent effect. While no time should be lost
in dealing with them, it is no excuse to be slip-shod about it. Grievance settlements provide
opportunities for managements to correct themselves, and thereby come closer to the
employees.
Horse-trading in grievance redressed due to union pressures may temporarily
bring union leadership closer to the management, but it will surely alienate the workforce away
from the management.

v. Follow up:
Decisions taken must be followed up earnestly. They should be promptly communicated to the
employee concerned. If a decision is favourable to the employee, his immediate boss should
have the privilege of communicating the same. ce Handling Procedure
Objectives of a Grievance Handling Procedure
1. To enable the employee to air his/her grievance.
2. To clarify the nature of the grievance.
3. To investigate the reasons for dissatisfaction.
4. To obtain, where possible, a speedy resolution to the problem.
5. To take appropriate actions and ensure that promises are kept.

Benefits of a Grievance Handling Procedure

1. It encourages employees to raise concerns without fear of reprisal.
2. It provides a fair and speedy means of dealing with complaints.
3. It prevents minor disagreements developing into more serious disputes.

4. It saves employers time and money as solutions are found for workplace problems. It helps
to build an organizational climate based on openness and trust.

Labour Turnover
Definition: Labour turnover refers to the rate at which employees leave employment. Labour
turnover can be evaluated by relating the number of employees leaving their employment
during a period of time to the total or average numbers employed in that period

Causes of labour Turnover

Avoidable causes
(i) Lower wages;
(ii) Bad working conditions;
(iii)Unsympathetic attitude of the management;
(iv)Lack of opportunities for promotion;
(v) Lack of proper training;
(vi)Improper manpower planning;
(vii) Lack of proper incentives;
(viii) Bitter relationship between management and workers;
(ix) Lack of conveyance, accommodation, medical and educational facilities and recreational
amenities etc.

Types of Labour Turnover

1. Voluntary: When a worker willingly exits the organization, i.e., the person resigns from the
job position due to any of the circumstances, it is termed as voluntary labour turnover.
2. Involuntary: In the case of involuntary labour turnover, the worker is abolished from the
duties by the management. It can be due to any of the reason like failing to comply with the
norms.

3. Functional: By saying functional, we mean to improve the organization’s efficiency, the

under-performing workers are terminated from work.
4. Dysfunctional: The dysfunctional labour turnover takes place when highly efficient and
skilled personnel leaves the job by hampering the overall functioning of the organization.

Absenteeism
Absenteeism refers to the habitual non-presence of an employee at his or her job. Habitual non-
presence extends beyond what is deemed to be within an acceptable realm of days away from
the office for legitimate causes such as scheduled vacations, occasional illness, and family
emergencies.

Possible causes of over-absenteeism include job dissatisfaction,

ongoing personal issues, and chronic medical problems. Regardless of the root cause, a worker
who exhibits a long-term pattern of being absent may tarnish his reputation, which may
consequently threaten his long-term employability. However, some forms of absence from
work are legally protected and cannot be grounds for termination.

Understanding Absenteeism
Absenteeism refers to absence from work that extends beyond what would be considered
reasonable and normal due to vacation, personal time, or occasional illness. Companies expect
their employees to miss some work each year for legitimate reasons.

However, missing work becomes a problem for the company when the
employee is absent repeatedly and/or unexpectedly, especially if that employee must be paid
while he or she is absent. Absenteeism is also a particular problem if an employee is missing
in action during busy times of year, or during times when deadlines for major projects are
approaching.
While disability leave, jury duty obligations, and the observance of
religious holidays are all legally protected reasons for an employee to miss work, some workers
abuse these laws, saddling their employers with unfair costs in the process.

Top reasons absenteeism may occur:

 Burnout. Overworked employees with high-stake roles sometimes call in sick due to
high stress and lack of appreciation for their contributions.
 Harassment. Employees who are habitually picked on—either by senior management
personnel or fellow staffers are apt to ditch work, in order to escape the relentless
unpleasantness.
 Childcare and eldercare. Employees might have to miss extensive days of work if
they are charged with watching loved ones when regular hired caregivers or babysitters
become sick and are temporarily unable to fulfill their obligations.
  Mental illness. Depression is the main cause of American absenteeism, according to
statistics from the National Institute of Mental Health. This condition often leads
individuals to abuse drugs and booze, which in turn causes further missed days of work.
 Disengagement. Employees who feel dispassionate about their jobs are likely to blow
off work, simply due to the lack of motivation.
 Injuries or illnesses. Illness, injuries, and doctor's appointments are the main reported
reasons employees don't come into work. The number of absentee cases dramatically
rises during flu season.

How to Deal with Employee Absenteeism

1. Create an employee attendance policy
2. Enforce your attendance policy consistently
3. Keep track of employee absences

4. Address unscheduled absences and no-show immediately

5. Don’t just treat the symptoms, discover the cause.
6. Don’t forget to reward good behaviour

Workers’ participation in management.

According to Keith Davis, “Workers’ participation refers to the mental and emotional
involve-ment of a person in a group situation which encourages him to contribute to group
goals and share in responsibility of achieving them”.

In the words of Mehtras “Applied to industry, the concept of participation means sharing the
decision-making power by the rank and file of an industrial organisation through their
representa-tives, at all the appropriate levels of management in the entire range of managerial
action”.

Workers participation in management refers to the participation of non-managerial employees

in the decision-making process of the organisation. Workers participation gives employees the
mental and psychological satisfaction and thereby increase their involvement in the affairs of
the organization.

The following are the main objectives of workers’ participation in management:

1. To raise productivity, production and efficiency of workers.
2. To improve morale of workers.
3. To satisfy the desire of workers for self- expression.
4. To promote industrial peace in the concern.
5. To have better industrial relations and establish harmonious relations between the
workers and management.
6. To Retain the Best Talent
7. To Maintain a Proper Flow of Communication
8. Help handle resistance to change

Levels of Participation:
Having known the objectives of WPM, the question then is to what extent workers can
participate in decision-making process. In other words, it is important to know the
extents/levels of co-determination in an organisation.

1. Informative Participation:
This refers to management’s information sharing with workers on such items
those are concerned with workers. Balance Sheet, production, economic
conditions of the plant etc., are the examples of such items. It is important to
note that here workers have no right of close scrutiny of the information
provided and management has its prerogative to make decisions on issues
concerned with workers.

2. Consultative Participation:
In this type of participation, workers are consulted in those matters which relate
to them. Here, the role of workers is restricted to give their views only. However
the acceptance and non-acceptance of these views depends on management.
Nonetheless, it provides an opportunity to the workers to express their views on
matters involving their interest.

3. Associative Participation:
Here, the role of the workers’ council is not just advisory unlike consultative
participation. In a way, this is an advanced and improved form of consultative
participa-tion. Now, the management is under a moral obligation to
acknowledge, accept and implement the unanimous decision of the council.

4. Administrative Participation:
In the administrative participation, decisions already taken are implemented by
the workers. Compared to the former three levels of participation, the degree of
sharing authority and responsibility by the workers is definitely more in this
participation.

5. Decisive Participation:
Here, the decisions are taken jointly by the management and the workers of an
organisation. In fact, this is the ultimate level of workers’ participation in
management.
Characteristics:

The following are the main characteristics of WPM:

1. Participation implies practices which increase the scope for employees’ share
of influence in decision-making process with the assumption of responsibility.

2. Participation presupposes willing acceptance of responsibility by workers.

3. Workers participate in management not as individuals but as a group through

their representatives.

4. Worker’s participation in management differs from collective bargaining in

the sense that while the former is based on mutual trust, information sharing and
mutual problem solving; the latter is essentially based on power play, pressure
tactics, and negotiations.

5. The basic rationale tor worker’s participation in management is that workers

invest their Iabour and their fates to their place of work. Thus, they contribute
to the outcomes of organization. Hence, they have a legitimate right to share in
decision-making activities of organisation.