Labour Environment

Module-4
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LABOUR ENVIRONMENT
• The term "labour legislation" or "labour laws" is
used to denote that body of laws which deal with
employment and non-employment wages,
working conditions, industrial relations, social
security and labour welfare of industrially
employed persons.
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INDUSTRIAL DISPUTES
• The new industrial set up has given birth to the
capitalistic economy which divided the industrial
society into groups of labour and capitalists.
• Capitalists own resources and have possession
over means of production on the other hand;
labour sells services which cannot be stored. The
interests of the two groups are not common.
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• One strive for higher wages and congenial

working conditions whereas the other takes
advantage of workers’ poor bargaining power
and deny them their due rights.
• Besides, the employers want higher productivity.
When these two conflicting interests clash,
industrial disputes arise.
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CAUSES OF INDUSTRIAL DISPUTES

• (a) Wages:
• The demand for wage increase is the prime-most
cause of the industrial disputes. A large number
of strikes are being organized to raise a voice
against the rise in prices and cost of living.
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• b) Dearness Allowance and Bonus:

• Increase in cost of living was the main cause of
the demand of dearness allowance by the
workers to equate their wages with the rise in
prices.
• Bonus also plays an important role as a cause of
industrial dispute. It is interesting to note that in
1966, 49 percent of the disputes were related to
wages and bonus.
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• c) Working Condition and Working

Hours:
• The working conditions in Indian industries are
not hygienic. There is not ample provision of
water, heating, lighting, safety etc. Working
hours are also greater. The demand of palatable
working conditions and shorter hours of work
are also responsible for labour disputes.
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• (d) Modernization and Automation of

Plant and Machinery:
• The attempt at modernization and introduction
of automatic machinery to replace labour has
been the major cause of disputes in India.
Workers go on strike, off and on, to resist
rationalization and automation.
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• (e) High Industrial Profits:

• During and after the world wars, prices of the
commodities went up and the industrialists
earned huge profits. In order to get share in the
prosperity of the industry, it naturally led to the
resentment on their part.
• The increased profits also led to the demands of
higher wages and bonus. Now in the changing
world, concept of labour has changed
considerably. They think themselves as a partner
of the industry and demand their share in the
profits.
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SETTLEMENT MACHINERIES
• If industrial peace is the backbone of a nation,
strikes and lockouts are cancer for the same as
they effect production and peace in the factories.
• In the socioeconomic development of any
country cordial and harmonious industrial
relations have a very important and significant
role to play.
• Industry belongs to the society and therefore
good industrial relations are important form
society’s point of view.
The following is the machinery for
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prevention and settlement of industrial

disputes:
• 1. Works committees:
This committee represents workers and
employers. Under the Industrial Disputes Act
1947, works committees exist in industrial
establishments in which one hundred or more
workmen are employed during the previous
year.
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• It is the duty of the works Committee to promote

measures for securing and preserving amity and
good relations between the employers and
workers.
• It also deals with certain matters viz. Condition
of work, amenities, safety and accident
prevention, educational and recreational
facilities.
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• 2. Conciliation officers:
Conciliation Officers are appointed by the
government under the Industrial Disputes Act,
1947.
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• The duties of conciliation officer are given

below:
• (i) He has to evolve a fair and amicable
settlement of the dispute. In case of public utility
service, he must hold conciliation proceedings in
the prescribed manner.
• (ii) He shall send a report to the government if a
dispute is settled in the course of conciliation
proceedings along with the charter of the
settlement signed by the parties.
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• 3. Boards of conciliation:
• The government can also appoint a Board of
Conciliation for promoting settlement of
Industrial Disputes. The chairman of the board
is an independent person and other members
(may be two or four) are to be equally
represented by the parties to the disputes.
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• The duties of the board include:

• (a) To investigate the dispute and all matters
affecting the merits and do everything fit for the
purpose of inducing the parties to reach a fair
and amicable settlement.
• (b) A report has to be sent to the government by
the board if a dispute has been settled or not
within two months of the date on which the
disputes were referred to it.
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• 4. Court of enquiry:
• The government may appoint a Court of enquiry
for enquiring into any industrial dispute. A court
may consist of one person or more that one
person and in that case one of the persons will
be the chairman.
• The Court shall be required to enquire into the
matter and submit its report to the government
within a period of six months.
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• 5. Labour courts:

• (i) The propriety or legality of an order passed by

an employer under the standing orders.
• (ii) The application and interpretation of
standing orders passed.
• (iii Discharge or dismissal of workmen including
reinstatement, grant of relief to workers who are
wrongfully dismissed.
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• (iv) Withdrawal of any customary concession of

privilege
• (v) Illegality or otherwise of a strike or lockout,
and all other matters not specified in the third
schedule.
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International Labour Organisation (ILO)

• The International Labour Organization (ILO)
was created in 1919. Since 1946 the ILO is a
specialized agency of the UN. The Organization
aims at promoting social and economic progress
and improving labour conditions.
Objectives..

• Provide social justice to workers.

• Avoid injustice, depravation and exploitation of labour.

• Build up human working conditions to the labour

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Functions of ILO
• Creation of coordinated policies and programs
directed at solving social and labour issues;

• Adoption of international labour standards in

the form of conventions and recommendations
and control over their implementation;
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• Assistance to member-states in solving social and

labour problems;
• Human rights protection (the right to work, freedom of
association, collective negotiations, protection against
forced labour, protection against discrimination, etc.);
• Research and publication of works on social and labour
issues.
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TRADE UNIONS
• A Trade Union has been defined as a continuous
association of workers formed for the purpose of
maintaining and improving their conditions of
employment.
• Their aim is not merely to fight against the wage-
cuts but also to fight for higher wages. A
temporary organization or a mere strike
committee cannot be considered a trade union.
It must be a continuous association.
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Functions of Trade Unions

• i. Increasing Co-operation and Well-being
among Workers:
• The trade unions come into the picture and they
promote friendliness and unity among the
workers. Besides this, the trade unions also
discuss the problems, which are common to all
the workers. It is a platform where workers come
together and know each other.
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• ii. Securing Facilities for Workers:

Most of the industrialists are not very keen on
providing the facilities and proper working
conditions to the workers. They are more
interested in getting their work done to the
maximum extent.
• In such con­ditions, trade unions fight on behalf
of the workers and see that the facilities have
been provided by the management.
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iii. Establishing Contacts between the

Workers and the Employers:
• The trade unions play an important role in
bringing to the notice of the employers the diffi­
culties and grievances of the employees.
• They try to arrange face-to-face meetings and
thus try to establish contacts between the
employees and the employers.
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• iv. Trade Unions working for the Progress

of the Employees:
The trade unions try to improve the economic
conditions of the workers by representing their
cases to the employers and try to get adequate
bonus to the workers.
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• v. Safeguarding the Interests of the

Workers:
Most of the industries try to exploit the workers
to the maximum. They do not provide any
benefits such as increas­ing their wages, granting
sick leaves, giving compensation in case of
accidents, etc.
• The workers are not made permanent even after
many years of service and in some cases they are
removed from service summarily.
• The trade unions provide security to the
employees in such situations.
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• vi. Provision of Labor Welfare:

• The economic conditions of the industrial

workers in India are very poor. The standard of
living is very low. A majority of industrial
workers in India are illiterate or semi-literate.
• It is the responsibility of the trade unions to get
them proper housing facilities and promote the
socio-economic welfare of the laborers. The
trade unions also try to arrange educational
facilities for the children of the workers.
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Trade union Benefits

• (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.
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• (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.