BA 9266/INDUSTRIAL RELATIONS & LABOUR WELFARE

UNIT I
Indian Sugar Mills Association the Bombsy Mill Owners Association, and the
Indian Paper Mills Association, The general labour unions,The friendly
societies and Combination of intellectual labour like (the All-India Teachers
Association; the All-India Bank Employees Association; the All-India Medical
Doctors Association; the Railway mens Federation; National Federation of
Posts and Telegraphs Workers; the All-India Mine Workers Federation etc.)

Lab our unions are relatively permanent association of workers and are not
temporary or casual: They persist throughout the years and conceive of their
purpose as on which is not merely immediate but continues.

In other words it is essentially a cooperative labour marketing association.

Its purpose is to secure control of the supply of labour in one or more
markets and to maintain that control as a means of fixing the price of labour
as well as the conditions under which it works. But this does not mean that
the advancement of the economic interests of its members is the sole
purpose of a trade union.

15. State the Characteristics of Trade Unions.

It is economically oriented
It is an instrument of defense.
It implies class distinction
It is an outcome of an individualistic society.

16. State the functions of Trade Unions.

The functions of modern trade unions are wide and more comprehensive
than those of their forerunners. Generally speaking, these functions have been
termed as (i) militant of protection functions, and (ii) fraternal, ministrant of
positive functions. The former functions aim at securing better conditions of work
and employment for members through militant activities such as strikes, gherao,
etc. if there is failure of collective bargaining.
The latter functions provide benefits to their members and support to them during
strikes/lockouts or during periods so temporary unemployment by giving them
financial support out of the funds raised with their contributions.

17. State the Rights for Registration of Trade Unions?

Registrar of Trade Unions.

Registration of Trade union.
Power to Call for additional Particulars of registration
Certificate of registration.
 Who Can become members of a trade unions.
Cancellation of registration Certificate.

18. What are the Industrial relations Problems in public sector.

Wage differentials.
Industrial relations
Surplus Labour
Over centralization
Multi pricing of unions.
Political and bureaucratic influence.

19. What is the Problems of Trade union?

Small size of union.

Multiplicity of trade union
Leadership issues.
Politicization of the Unions.
Financial Weakness.
Problem of recognition of Trade union.

20. Define Employee Discipline?

Discipline is management action to encourage compliance with organization

standards. It refers to a condition in the organization where employees conduct
themselves in accordance with the organizations rules and standards of acceptable
behavior.

21. What are the types of Discipline?

Preventive Discipline.

Corrective Discipline.

22. Define Collective Bargaining?

According to Beach, It is concerned with the relations between unions representing

Employees and Employers. It involves the process of union organization of
employees, negotiation, administration, interpretation of collective agreements
covering wages, hours of work and other conditions of employment; engaging in
concerned economic action and dispute settlement procedures.

23. Write the importance of Collective Bargaining?

To Employees
To Employers
 To Society

Part-B

1) Explain the concept of Industrial Relations.

Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of
labours and harmonious relationships. Therefore, it is in the interest of all to create
and maintain good relations between employees (labour) and employers
(management).

Concept Of Industrial Relations.

The term Industrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of
individuals) is (are) engaged. By relations we mean the relationships that exist
within the industry between the employer and his workmen.
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within
the organizational settings. The field of industrial relations looks at the relationship
between management and workers, particularly groups of workers represented by a
union. Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations through
which such interactions are mediated.
The relationship between Employer and employee or trade unions is called
Industrial Relation. Harmonious relationship is necessary for both employers and
employees to safeguard the interests of the both the parties of the production.
In order to maintain good relationship with the employees, the main functions of
every organization should avoid any dispute with them or settle it as early as
possible so as to ensure industrial peace and higher productivity. Personnel
management is mainly concerned with the human relation in industry because the
main theme of personnel management is to get the work done by the human power
and it fails in its objectives if good industrial relation is maintained. In other words
good Industrial Relation means industrial peace which is necessary for better and
higher productions.

Other commonly referred definitions:

i. Industrial Relation is that part of management which is concerned with the
manpower of the enterprise whether machine operator, skilled worker or
manager.
ii. Industrial Relation is a relation between employer and employees, employees
and employers and employees and trade unions. - Industrial dispute Act 1947
iii. While moving from jungle of the definitions, here, Industrial Relation is viewed
as the process by which people and their organizations interact at the place of
work to Establish the terms and conditions of employment.
The Industrial Relation relations also called as labor - management, employee-
employers relations.
A few notable features pertaining to Industrial Relations are as under:
1. Industrial Relation do not emerge in vacuum they are born of employment
relationship
in an industrial setting. Without the existence of the two parties, i.e., labour and
Management, this relationship cannot exist. It is the industry, which provides the
Environment for industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is
the basis of adverse relationship. So the focus of Industrial Relations in on the
Study of the attitudes, relationships, practices and procedure developed by the
Contending parties to resolve or at least minimize conflicts.

2. Enumerate the various factors that affect industrial relation.

The term Industrial Relations is different from Human Relations. Industrial

relations refer to the relations between the employees and the employer in an
industry. Human relations refer to a personnel-management policy to be adopted in
industrial organizations to develop a sense of belongingness in the workers
improves their efficiency and treat them as human beings and make a partner in
industry.
Industrial relations cover the matters regulated by law or by collective agreement
between employees and employers. On the other hand, problems of human
relations are personal in character and are related to the behavior of worker where
morale and social elements predominated. Human relations approach is personnel
philosophy which can be applied by the management of an undertaking. The
problem of industrial relations is usually dealt with a three levels the level of
undertaking, the industry and at the national level. To sum up the term Industrial
Relations is more wide and comprehensive and the term Human Relations is a
part of it.
Determining factors of industrial relations
Good industrial relations depend on a great variety of factors. Some of the
more obvious ones are listed below:

1. History of industrial relations

No enterprise can escape its good and bad history of industrial relations. A
good history is marked by harmonious relationship between management and
workers. A bad history by contrast is characterized by militant strikes and lockouts.
Both types of history have a tendency to perpetuate themselves. Once militancy is
established as a mode of operations there is a tendency for militancy to continue.
Or once harmonious relationship is established there is a tendency for harmony to
continue.
2. Economic satisfaction of workers
 Psychologists recognize that human needs have a certain priority. Need number
one is the basic survival need. Much of men conducted are dominated by this need.
Man works because he wants to survive. This is all the more for underdeveloped
countries where workers are still living under subsistence conditions.
Hence economic satisfaction of workers is another important prerequisite for good
industrial relations.

3. Social and Psychological satisfaction

Identifying the social and psychological urges of workers is a very important steps
in the direction of building good industrial relations. A man does not live by bread
alone. He has several other needs besides his physical needs which should also be
given due attention by the employer. An organization is a joint venture involving a
climate of human and social relationships wherein each participant feels that he is
fulfilling his needs and contributing to the needs of others. This supportive climate
requires economic rewards as well as social and psychological rewards such as
workers participation in management, job enrichment, suggestion schemes,
re dressal of grievances etc.
4. Off-the-Job Conditions
An employer employs a whole person rather than certain separate characteristics. A
persons traits are all part of one system making up a whole man. His home life is
not separable from his work life and his emotional condition is not separate from his
physical condition. Hence for good industrial relations it is not enough that the
workers factory life alone should be taken care of his off-the-job conditions should
also be improved to make the industrial relations better.
5. Enlightened Trade Unions
The most important condition necessary for good industrial relations is a strong and
enlightened labor movement which may help to promote the status of labor without
harming the interests of management, Unions should talk of employee contribution
and responsibility. Unions should exhort workers to produce more, persuade
Management to pay more, mobilize public opinion on vital labor issues and help
Government to enact progressive labor laws.
6. Negotiating skills and attitudes of management and workers
Both management and workers representation in the area of industrial relations
come from a great variety of backgrounds in terms of training, education,
experience and attitudes. These varying backgrounds play a major role in shaping
the character of industrial relations. Generally speaking, well-trained and
experienced negotiators who are motivated by a desire for industrial peace create a
bargaining atmosphere conducive to the writing of a just and equitable collective
agreement. On the other hand, ignorant, inexperienced and ill-trained persons fail
because they do not recognize that collective bargaining is a difficult human activity
which deals as much in the emotions of people as in their economic interests. It
requires careful preparation and top notch executive competence. It is not usually
accomplished by some easy trick or gimmick. Parties must have trust and
confidence in each other.
7. Better education
With rising skills and workers education expectations in respect of rewards
increases. It is a common knowledge that the industrial worker in India is generally
illiterate and is misled by outside trade union leaders who have their own axe to
grind. Better workers education can be a solution to this problem. This alone can
provide worker with a proper sense of responsibility, which they owe to the
organization in particular, and to the community in general.

8. Nature of industry
In those industries where the costs constitute a major proportion of the total cast,
lowering down the labor costs become important when the product is not a
necessity and therefore, there is a little possibility to pass additional costs on to
consumer. Such periods, level of employment and wages rise in decline in
employment and wages.
This makes workers unhappy and destroys good industrial relations.

3 .Explain the various approach to Industrial relations.

Todays professional industrial relations director, or by whatever title he is

designated, no longer views his job as personalizing management, or that of a
social worker in a factory, or a union buster, he looks upon his department as an
adjunct to management supervision at all levels; he keeps other executives
informed about new discoveries, program me trends and needs. At the same time,
he provides efficient service in the operation of several centralized services.
A successful industrial relations programme reflects the personnel viewpoint,
which is influenced by three main considerations:
a. Individual thinking
b. Policy awareness and
c. Expected group reaction
Individualized thinking makes if imperative for the administrator to consider the
entire situation in which the affected individual is placed. Policy awareness
underscores the idea of the consistency of treatment and the precedent value of
any decision which a management takes; while expected group reaction balances
what we know of human nature in groups against an individuals situation in the
light of the policy that has been formulated and implemented. In all these different
circumstances, reality demands that all the three aspects of the personnel
viewpoint should be considered at once in terms of the past, the present
and the future. This viewpoint is held at all the levels of management from the top
to the bottom, from the top executives and staff to the line and supervisory
personnel.
SCOPE OF INDUSTRIAL RELATIONS WORK:
The staff employed in the industrial relations department should know the
limitations within which it has to function. The industrial relations director generally
has several assistants who help him to perform his functions effectively, and he
usually reports directly to the president or chairman of the board of directors of an
organization.
The functions of the industrial relations staff are
1. Administration, including overall organization, supervision and co-ordination of
industrial relations policies and programmes.
2. Liaison with outside groups and personnel departments as well as with various
cadres of the management staff.
3. The drafting of regulations, rules, laws or orders and their construction and
interpretation.
4. Position classification, including overall direction of job analysis, salary and wage
administration, wage survey and pay schedules.
5. Recruitment and employment of workers and other staff.
6. Employment testing, including intelligence tests, mechanical aptitude tests and
achievement tests.
7. Placement, including induction and assignment.
8. Training of apprentices, production workers, foremen and executives.
9. Employee counseling on all types of personnel problems-educational, vocational,
health or behavior problems.
10. Medical and health services.
11. Safety services, including first aid training
12. Group activities, including group health insurance, housing, cafeteria
programmes and social clubs.
13. Suggestion plans and their uses in labor, management and production
committees.
14. Employee relations, especially collective bargaining with representatives and
settling grievances.
15. Public relations.
16. Research in occupational trends and employee attitudes, and analysis of labor
turnover.
17. Employee records for all purposes.
18. Control of operation surveys, fiscal research and analysis.
19. Benefit, retirement and pension programmes.

FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL

RELATIONS PROGRAMME
The basic requirements on which a successful industrial relations programme is
based are:-
a) Top Management Support:
Since industrial relations is a functional staff service, it must necessarily derive its
authority from the line organization. This is ensured by providing that the industrial
relations director should report to a top line authority to the president, chairman or
vice president of an organization.
b) Sound Personnel Policies:
These constitute the business philosophy of an organization and guide it in arriving
at its human relations decisions. The purpose of such policies is to decide, before
any emergency arises, what shall be done about the large number of problems
which crop up every day during the working of an organization. Policies can be
successful only when they are followed at all the level of an enterprise, from top to
bottom.
c) Adequate Practices should be developed by professionals:
In the field to assist in the implementation of the policies of an organization, a
system of procedures is essential if intention is to be properly translated into action.
The procedures and practices of an industrial relations department are the tool of
management which enables a supervisor to keep ahead of his job that of the
timekeeper, rate adjuster, grievance reporter and merit rater.

d) Detailed Supervisory Training:

To ensure the organizational policies and practices are properly implemented and
carried into effect by the industrial relations staff, job supervisors should be trained
thoroughly, so that they may convey to the employees the significance of those
policies and practices. They should, moreover, be trained in leadership and in
communications.

e) Follow-up of Results:
A constant review of an industrial relations programme is essential, so that existing
Practices may be properly evaluated and a check may be exercised on certain
undesirable tendencies, should they manifest themselves. A follow up of turnover,
absenteeism, departmental morale, employee grievances and suggestion; wage
administration, etc. should be supplemented by continuous research to ensure that
the policies that have been pursued are best fitted to company needs and employee
Satisfaction.

1. Explain briefly Trade union meaning, features & Reasoning?

A trade union is an organization of employees formed on a continuous

basis for the purpose of securing diverse range of benefits. It is a continuous
association of wage earners for the purpose of maintaining and improving the
conditions of their working lives.

The Trade Union Act 1926 defines a trade union as a combination, whether
temporary or permanent, formed primarily for the purpose of regulating the
relations between workmen and employers or between workmen and workmen, or
between employers and employers, or for imposing restrictive condition on the
conduct of any trade or business, and includes any federation of two or more trade
unions.

This definition is very exhaustive as it includes associations of both the workers and
employers and the federations of their associations. Here, the relationships that
have been talked about are both temporary and permanent. This means it applies
to temporary workers (or contractual employees) as well. Then this definition,
primarily, talks about three relationships. They are the relationships between the:

workmen and workmen,

workmen and employers,
employers and employers.
Thus, a trade union can be seen as a group of employees in a particular
sector, whose aim is to negotiate with employers over pay, job security,
working hours, etc, using the collective power of its members. In general, a
 union is there to represent the interests of its members, and may even
engage in political activity where legislation affects their members. Trade
unions are voluntary associations formed for the pursuit of protecting the
common interests of its members and also promote welfare. Economic,etc.

Features of trade unions:

1. It is an association either of employers or employees or of independent

workers. They may consist of :-

o Employers association (eg., Employers Federation of India, Indian

paper mill association, etc.)
o General labor unions
o Friendly societies
o Unions of intellectual labor (eg, All India Teachers Association)
2. It is formed on a continuous basis. It is a permanent body and not a casual
or temporary one. They persist throughout the year.
3. It is formed to protect and promote all kinds of interests economic, political
and social-of its members. The dominant interest with which a union is
concerned is, however, economic.
4. It achieves its objectives through collective action and group effort.
Negotiations and collective bargaining are the tools for accomplishing
objectives.
5. Trade unions have shown remarkable progress since their inception;
moreover, the character of trade unions has also been changing. In spite of
only focusing on the economic benefits of workers, the trade unions are also
working towards raising the status of labors as a part of industry.

FUNCTIONS OF TRADE UNIONS:

Trade unions perform a number of functions in order to achieve the objectives.

These functions can be broadly classified into three categories:

(i) Militant functions,

(ii) Fraternal functions

Militant Functions

One set of activities performed by trade unions leads to the betterment of the
position of their members in relation to their employment. The aim of such
activities is to ensure adequate wages, secure better conditions of work and
employment, get better treatment from employers, etc. When the unions fail to
accomplish these aims by the method of
collective bargaining and negotiations, they adopt an approach and put up a fight
with the management in the form of go-slow tactics, strike, boycott, gherao, etc.
Hence, these functions of the trade unions are known as militant or fighting
functions. Thus, the militant functions of trade unions can be summed up as:
 To achieve higher wages and better working conditions.
To raise the status of workers as a part of industry.
To protect labors against victimization and injustice.

Fraternal Functions

Another set of activities performed by trade unions aims at rendering help to its
members in times of need, and improving their efficiency. Trade unions try to foster
a spirit of cooperation and promote friendly industrial relations and diffuse
education and culture among their members. They take up welfare measures for
improving the morale of workers and generate self confidence among them. They
also arrange for legal assistance to its members, if necessary. Besides, these, they
undertake many welfare measures for their members, e.g., school for the education
of children, library, reading-rooms, in-door and out-door games, and other
recreational facilities. Some trade unions even undertake publication of some
magazine or journal. These activities, which may be called fraternal functions,
depend on the availability of funds, which the unions raise by subscription from
members and donations from outsiders, and also on their competent and
enlightened leadership. Thus, the fraternal functions of trade unions can be
summed up as:

To take up welfare measures for improving the morale of workers

To generate self confidence among workers
To encourage sincerity and discipline among workers
To provide opportunities for promotion and growth
To protect women workers against discrimination

IMPORTANCE OF TRADE UNION:

Trade unions help in accelerated peace of economic development in many ways as

follows:

by helping in the recruitment and selection of workers.

by inculcating discipline among the 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.
5. Explain briefly Reason for joining as a trade union:

The important forces that make the employees join a union are as follows:

1. Greater Bargaining Power

The individual employee possesses very little bargaining power as compared to that
of his employer. If he is not satisfied with the wage and other conditions of
employment, he can leave the job. It is not practicable to continually resign from
one job after another when he is dissatisfied. This imposes a great financial and
emotional burden upon the worker. The better course for him is to join a union that
can take concerted action against the employer. The threat or actuality of a strike
by a union is a powerful tool that often causes the employer to accept the demands
of the workers for better conditions of employment.

2. Minimize Discrimination
The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in
nature. The personal relationships existing between the supervisor and each of his
subordinates may influence the management. Thus, there are chances of
favoritisms and discriminations. A trade union can compel the management to
formulate personnel policies that press for equality of treatment to the workers. All
the labor decisions of the management are under close scrutiny of the labor union.
This has the effect of minimizing favoritism and discrimination.

3. Sense of Security
The employees may join the unions because of their belief that it is an effective way
to secure adequate protection from various types of hazards and income insecurity
such as accident, injury, illness, unemployment, etc. The trade union secure
retirement benefits of the workers and compel the management to invest in welfare
services for the benefit of the workers.

4. Sense of Participation
The employees can participate in management of matters affecting their interests
only if they join trade unions. They can influence the decisions that are taken as a
result of collective bargaining between the union and the management.

5. Sense of Belongingness
Many employees join a union because their co-workers are the members of the
union. At times, an employee joins a union under group pressure; if he does not, he
often has a very difficult time at work. On the other hand, those who are members
of a union feel that they gain respect in the eyes of their fellow workers. They can
also discuss their problem with the trade union leaders.

6. Platform for self expression

The desire for self-expression is a fundamental human drive for most people.
All of us wish to share our feelings, ideas and opinions with others. Similarly the
workers also want the management to listen to them. A trade union provides such a
forum where the feelings, ideas and opinions of the workers could be discussed.

It can also transmit the feelings, ideas, opinions and complaints of the workers to
the management. The collective voice of the workers is heard by the management
and give due consideration while taking policy decisions by the management.

7. Betterment of relationships
Another reason for employees joining unions is that employees feel that unions can
fulfill the important need for adequate machinery for proper maintenance of
employer-employee relations. Unions help in betterment of industrial relations
among management and workers by solving the problems peacefully.

6. Explain briefly Trade Unionism in India?

The trade unionism in India developed quite slowly as compared to the

western nations. Indian trade union movement can be divided into three
phases.

The first phase (1850 to1900)

During this phase the inception of trade unions took place. During this
period, the working and living conditions of the labor were poor and their
working hours were long. Capitalists were only interested in their productivity
and profitability. In addition, the wages were also low and general economic
conditions were poor in industries. In order to regulate the working hours
and other service conditions of the Indian textile laborers, the Indian
Factories Act was enacted in 1881. As a result, employment of child labor
was prohibited.

The growth of trade union movement was slow in this phase and later on the Indian
Factory Act of 1881 was amended in 1891. Many strikes took place in the two
decades following 1880 in all industrial cities. These strikes taught workers to
understand the power of united action even though there was no union in real
terms. Small associations like Bombay Mill-Hands Association came up by this time.

The second phase (1900 to 1946)

This phase was characterized by the development of organized trade unions and
political movements of the working class. Between 1918 and 1923, many unions
came into existence in the country. At Ahmedabad, under the guidance of Mahatma
Gandhi, occupational unions like spinners unions and weavers unions were formed.
A strike was launched by these unions under the leadership of Mahatma Gandhi
who turned it into a satyagrah. These unions federated into industrial union known
as Textile Labor Association in 1920.In 1920, the First National Trade union
organization (The All India Trade Union Congress (AITUC)) was established. Many
of the leaders of this organization were leaders of the national Movement. In 1926,
Trade union law came up with the efforts of Mr. N N Joshi that became operative
from 1927. During 1928, All India Trade Union Federation (AITUF) was formed.

The third phase began with the emergence of independent India (in 1947). The
partition of country affected the trade union movement particularly Bengal and
Punjab. By 1949, four central trade union organizations were functioning in the
country:

1. The All India Trade Union Congress,

2. The Indian National Trade Union Congress,
3. The Hindu Mazdoor Sangh, and
4. The United Trade Union Congress

The working class movement was also politicized along the lines of political parties.
For instance Indian national trade Union Congress (INTUC) is the trade union arm
of the Congress Party. The AITUC is the trade union arm of the Communist Party of
India. Besides workers, white-collar employees, supervisors and managers are also
organized by the trade unions, as for example in the Banking, Insurance and
Petroleum industries.

Trade unions in India

the Indian workforce consists of 430 million workers, growing 2% annually. The
Indian labor markets consist of three sectors:

1. The rural workers, who constitute about 60 per cent of the workforce.
2. Organized sector, which employs 8 per cent of workforce, and
3. The urban informal sector (which includes the growing software industry and
other services, not included in the formal sector) which constitutes the rest
32 per cent of the workforce.

At present there are twelve Central Trade Union Organizations in India:

1. All India Trade Union Congress (AITUC)

 2. Bharatiya Mazdoor Sangh (BMS)
3. Centre of Indian Trade Unions (CITU)
4. Hind Mazdoor Kisan Panchayat (HMKP)
5. Hind Mazdoor Sabha (HMS)
6. Indian Federation of Free Trade Unions (IFFTU)
7. Indian National Trade Union Congress (INTUC)
8. National Front of Indian Trade Unions (NFITU)
9. National Labor Organization (NLO)
10.Trade Unions Co-ordination Centre (TUCC)
11.United Trade Union Congress (UTUC) and
12.United Trade Union Congress - Lenin Sarani (UTUC - LS)

FIGURES REGARDING TRADE UNIONS

Table Showing Growth Of Trade Unions and Membership is following below

Growth of trade unions and membership

7. What are the Industrial relations Problems in public sector.

Wage differentials.
It is an area where comparison between the public and private sectors is
becoming common.
Industrial relations
Mandays lost due to strikes, lockouts etc,may not be a good index of
labour relations in Public sectors units.
Surplus Labour
This problem is the outcome of indiscriminate recruitment on account of
political pressures, reduction of activities, structural changes and
improvement in technology.
Over centralization
Management decision taken at local shop level is turned down by the
higher authorities.
Multi pricing of unions.
As in Private enterprises the existence of multiple unions has brought the
evils of inter union rivalries,at times the recognition of the union has also
been a problem to the management.
Political and bureaucratic influence.
Public enterprises are highly prone to be influenced by political and
bureaucratic set up. Generally political people influenced decision making
process.

8. Explain the concept of Collective Bargaining and Characteristics?

Collective bargaining is process of joint decision making and basically represents a

democratic way of life in industry. It is the process of negotiation between firms
and workers representatives for the purpose of establishing mutually agreeable
conditions of employment. It is a technique adopted by two parties to reach an
understanding acceptable to both through the process of discussion and
negotiation.

ILO has defined collective bargaining as, negotiation about working conditions and
terms of employment between an employer and a group of employees or one or
more employee, organization with a view to reaching an agreement wherein the
terms serve as a code of defining the rights and obligations of each party in their
employment/industrial relations with one another.

Collective bargaining involves discussions and negotiations between two groups as

to the terms and conditions of employment. It is called collective because both the
employer and the employee act as a group rather than as individuals. It is known
as bargaining because the method of reaching an agreement involves proposals
and counter proposals, offers and counter offers and other negotiations.

Thus collective bargaining:

is a collective process in which representatives of both the management and

employees participate.
is a continuous process which aims at establishing stable relationships
between the parties involved.
not only involves the bargaining agreement, but also involves the
implementation of such an agreement.
attempts in achieving discipline in the industry
is a flexible approach, as the parties involved have to adopt a flexible
attitude towards negotiations.

CHARACTERISTIC OF C.B

It is a group process, wherein one group, representing the employers, and

the other, representing the employees, sit together to negotiate terms of
employment.

Negotiations form an important aspect of the process of collective

bargaining i.e., there is considerable scope for discussion, compromise or mutual
give and take in collective bargaining.

Collective bargaining is a formalized process by which employers and

independent trade unions negotiate terms and conditions of employment and the
ways in which certain employment-related issues are to be regulated at national,
organizational and workplace levels.

Collective bargaining is a process in the sense that it consists of a number of

steps. It begins with the presentation of the charter of demands and ends
with reaching an agreement, which would serve as the basic law governing
labor management relations over a period of time in an enterprise. Moreover,
it is flexible process and not fixed or static. Mutual trust and understanding
serve as the by products of harmonious relations between the two parties.
It a bipartite process. This means there are always two parties involved in
the process of collective bargaining. The negotiations generally take place
between the employees and the management. It is a form of participation.
Collective bargaining is a complementary process i.e. each party needs
something that the other party has; labor can increase productivity and
management can pay better for their efforts.
Collective bargaining tends to improve the relations between workers and the
union on the one hand and the employer on the other.
 Collective Bargaining is continuous process. It enables industrial democracy
to be effective. It uses cooperation and consensus for settling disputes rather
than conflict and confrontation.
Collective bargaining takes into account day to day changes, policies,
potentialities, capacities and interests.
It is a political activity frequently undertaken by professional negotiators.

9. Explain the concept of Collective Bargaining Process and levels.

Collective bargaining generally includes negotiations between the two parties

(employees representatives and employers representatives). Collective bargaining
consists of negotiations between an employer and a group of employees that
determine the conditions of employment. Often employees are represented in the
bargaining by a union or other labor organization. The result of collective bargaining
procedure is called the collective bargaining agreement (CBA). Collective
agreements may be in the form of procedural agreements or substantive
agreements. Procedural agreements deal with the relationship between workers
and management and the procedures to be adopted for resolving individual or
group disputes.

This will normally include procedures in respect of individual grievances, disputes

and discipline. Frequently, procedural agreements are put into the company rule
book which provides information on the overall terms and conditions of employment
and codes of behavior. A substantive agreement deals with specific issues, such as
basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of
work, etc. In many companies, agreements have a fixed time scale and a collective
bargaining process will review the procedural agreement when negotiations take
place on pay and conditions of employment.

The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The

negotiation team should consist of representatives of both the parties with
adequate knowledge and skills for negotiation. In this phase both the
employers representatives and the union examine their own situation in
order to develop the issues that they believe will be most important. The first
thing to be done is to determine whether there is actually any reason to
negotiate at all. A correct understanding of the main issues to be covered
and intimate knowledge of operations, working conditions, production norms
and other relevant conditions is required.
2. Discuss: Here, the parties decide the ground rules that will guide the
negotiations. A process well begun is half done and this is no less true in
case of collective bargaining. An environment of mutual trust and
understanding is also created so that the collective bargaining agreement
would be reached.
 3. Propose: This phase involves the initial opening statements and the possible
options that exist to resolve them. In a word, this phase could be described
as brainstorming. The exchange of messages takes place and opinion of
both the parties is sought.
4. Bargain: negotiations are easy if a problem solving attitude is adopted. This
stage comprises the time when what ifs and supposals are set forth and
the drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a
consensual agreement is reached upon wherein both the parties agree to a common
decision regarding the problem or the issue. This stage is described as consisting of
effective joint implementation of the agreement through shared visions, strategic
planning and negotiated change.

IMPORTANCE OF C.B:

Collective bargaining includes not only negotiations between the employers and
unions but also includes the process of resolving labor-management conflicts. Thus,
collective bargaining is, essentially, a recognized way of creating a system of
industrial jurisprudence. It acts as a method of introducing civil rights in the
industry, that is, the management should be conducted by rules rather than
arbitrary decision making. It establishes rules which define and restrict the
traditional authority exercised by the management.

Importance to employees:

Collective bargaining develops a sense of self respect and responsibility

among the employees.

It increases the strength of the workforce, thereby, increasing their

bargaining capacity as a group.
 Collective bargaining increases the morale and productivity of employees.
It restricts managements freedom for arbitrary action against the
employees. Moreover, unilateral actions by the employer are also
discouraged.
Effective collective bargaining machinery strengthens the trade unions
movement. The workers feel motivated as they can approach the
management on various matters and bargain for higher benefits.
It helps in securing a prompt and fair settlement of grievances. It provides a
flexible means for the adjustment of wages and employment conditions to
economic and technological changes in the industry, as a result of which the
chances for conflicts are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the bargaining

level rather than taking up complaints of individual workers.
2. Collective bargaining tends to promote a sense of job security among
employees and thereby tends to reduce the cost of labor turnover to
management.
3. Collective bargaining opens up the channel of communication between the
workers and the management and increases worker participation in decision
making.
4. Collective bargaining plays a vital role in settling and preventing industrial
disputes.

Importance to society

1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which supports
which helps the pace of a nations efforts towards economic and social
development since the obstacles to such a development can be reduced
considerably.
3. The discrimination and exploitation of workers is constantly being checked.
4. It provides a method or the regulation of the conditions of employment of
those who are directly concerned about them.

LEVELS OF C.B:

Collective bargaining operates at three levels:

1. National level
2. Sector or industry level
3. Company/enterprise level

Economy-wide (national) bargaining is a bipartite or tripartite form of

negotiation between union confederations, central employer associations and
government agencies. It aims at providing a floor for lower-level bargaining on the
terms of employment, often taking into account macroeconomic goals.
 Sectoral bargaining, which aims at the standardization of the terms of
employment in one industry, includes a range of
bargaining patterns. Bargaining may be either broadly or narrowly defined in terms
of the industrial activities covered and may be either split up according to territorial
subunits or conducted nationally
.

Company/enterprise level:
The third bargaining level involves the company and/or establishment. As a
supplementary type of bargaining, it emphasizes the point that bargaining
levels need not be mutually exclusive.

10. Write the Code of Conduct/Discipline?

The Code of Discipline was approved by all central organizations of workers and
employers at the sixteenth session of the Indian labour Conference in June 1958, at
the initiative of the Union lab our Minister G.L.Nanda. It is set of rules outline the
responsibilities of proper practice for an individual or Organizational

The three disciplines in Code of conduct?

Management and Unions Agrees.

Management Agrees.
Unions agree.