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Assignment 1

1) Explain any two problems of trade union.

Ans:

Some of the major problems faced by trade unions in India are as follows: 1. Small Size 2. Poor
Finance 3. Politicisation 4. Multiplicity of Unions
1. Small Size: According to the veteran trade union leader V.V. Giri, “the trade union movement in
India is plagued by the predominance of small sized unions”. To quote there were 9,023 trade
unions submitting returns during the year 1992. The total membership of these unions was 57.4
lakhs, with an average membership of 632 per union. Nearly three-fourths of the unions have a
membership of less than 500.

2. Poor Finance: Small size of unions has its direct bearing on its financial health. Total income and
total expenditure of 9,073 trade unions with a membership of 57.4 lakhs were Rs. 3,238 lakhs and
Rs. 2,532 lakhs respectively in 1992. The per member income and expenditure, thus, come to Rs.
56.4 and Rs. 44.1 respectively”. These are, by all means, very low.

2) What do you understand by Employer’s Association?


Ans:
An employers ' organization or employers ' association is a collective organization of
manufacturers, retailers, or other employers of wage labor. Employers ' organizations seek to
coordinate the behavior of their member companies during negotiations with trade unions or
government bodies.

3) What do you understand by worker’s participation in management?


Ans:
Worker’s Participation in Management means different things to different people depending upon
their objectives and expectations. Thus, WPM is an elastic concept. For example, for management
it is a joint consultation prior to decision making, for workers it means co-determination, for trade
unions It is the harbinger of a new order of social relationship and a new set of power equation
within organisations, while for government it is an association of labour with management without
the final authority or responsibility in decision making.

4) Name the Objectives of Industrial relations?


Ans: The objectives of industrial relations are: 1. Protect management and labor interests by
securing mutual relations between the two groups. 2. Avoid disputes between management and
labor, and create a harmonizing relationship between the groups so productivity can be increased.

5) Give two importance of standing order for employees.


Ans:
“Standing orders” means rules relating to matters set out in the Schedule; ‘Standing Orders’ means
rules of conduct for workmen employed in industrial establishments.

Q.2 Explain the importance of harmonious Industrial relations to Organization and Employees.

There has been a phenomenal growth in employment, wages, benefits ,working conditions ,status
of the worker .educational facilities etc, with the growth and spread of industry .Moreover ,career
patterns have also changed wi9dely by providing change for wide varieties of jobs to the working
communities .This has been possible only through fast industrial development which, in its turn
,depends on Industrial peace. There has been an acute necessity in India especially during the post-
independence period ,to industrialize her economy in order to tackle the multifarious socio-
economic problems .In the words of Pandit Jawaharlal Nehru “ The alternative (to industrialization
) is to remain in a backward .under-developed ,poverty –stricken and a weak country .We can’t
even retain our freedom without industrial growth.” Hence one of the main goals of the Five Year
Plans in India has been rapid industrialization and more employment in secondary and tertiary
industries .It is also viewed that one of the essential steps for building up an economically free and
self-sustaining India is, large scale industrialization at rapid and steady growth. With the attainment
of independence and with the launching of Planning era ,serious and earnest efforts have been
made towards rapid economic development of India .India has been … in the midst of an ambitious
and critically important effort to raise the living standards of her people by a integrated …industrial
and economic development plan.” The size of Industrial labor in India has increased remarkably
due to rapid and planned industrial development .The increase in Industrial labor led to the
formation and development of trade unions and various social groups. It has also been recognized
that management would be disorganized .ill- equipped and ineffective It is realized that the
concrete co-operation between labor and management is highly essential to fulfil the
demonstrated the fact that,” an economy organized for planned production and distribution
,aiming at the realization of social justice and the welfare of masses can function effectively only in
an atmosphere of industrial peace. All these necessitate the maintenance of harmonious industrial
relations so as to maintain higher productivity to fulfil the goals of the Five-Year Plans in India. The
investment in and the scope of industries in India have been growing plan after plan. Much of the
success or failure of Indian Five-Year Plans would be dependent on the maintenance of harmonious
employee-employer relations Frequent industrial conflicts not only affect the management and
labor but also tend to impoverish the community as a whole. They lead to wastage, formant class
hatred. embitter mutual relations and inflict damages on the progress of the nation. They affect
production and national income in an adverse manner. They also clog the progress and
development of the nation. Further, it is not an exaggeration to say that if we are successful in
industry the answers to class-antagonisms and world conflicts becomes easier.
Q.3 What is industrial Dispute? Explain the methods of dispute settlement.

Employees would be hard hit as the disputes may lead to lockouts and consequent
loss of wages and even jobs. Industrial establishments are pillars of the economy
and the economy is bound to collapse if industries are tom by industrial strife. The
cumulative effect of all these is felt by society.
Methods of Settlement of Disputes
A dispute, therefore, needs to be settled as early as possible. Various methods are available for
resolving disputes. More important of them are:

1: Collective bargaining
2: Code of discipline
3: Grievance procedure
4: Arbitration
5: Conciliation
6: Adjudication
7: Consultative machinery

1 Collective Bargaining
Collective bargaining is probably the most effective method of resolving industrial
disputes. It occurs when representatives of a labour union meet management
representatives to determine employees’ wages and benefits, to create or revise work
rules, and to resolve disputes or violations of the labour contract.

The bargaining is collective in the sense that the chosen representative of the employees
(i.e. the union) acts as a bargaining agent for all the employees in carrying out negotiations
and dealings with the management. The process may also be considered collective in the
case of the corporation in which the paid professional managers represent the interests of
the stockholders and the board of directors in bargaining with the union leaders. On the
employer side, it is also collective in those common situations in which the companies have
joined together in an employer association for purposes of bargaining with a union.

Approaches to Collective Bargaining

Collective bargaining has been viewed from three perspectives:

1. As a process of social change,


2. As a peace treaty between the conflicting parties, and
3. As a system of industrial jurisprudence

Collective bargaining benefits both employees as well as employers. This means that the
basic interests of the management are protected and also the rights of the employees. The
two sides have a responsibility towards each other. For example, unions should not expect
the management to concede on issues which would ultimately impair the company’s ability
to stay in business. Likewise, the management must recognize the rights of employees to
form unions and to argue for improved wages and working conditions.

Collective bargaining infuses democratic principles into the industrial world. Workers
participate in decisions that affect their work and work life. Thus, collective bargaining may
be viewed as a form of participative management.

2 Code Discipline
The code of discipline defines duties and responsibilities of employers and workers. The
objectives of the code are:

1. To ensure that employers and employees recognize each other’s rights and obligations
2. To promote constructive co-operation between the parties concerned at all levels;
3. To secure settlement of disputes and grievances by negotiation, conciliation and
voluntary arbitration
4. To eliminate all forms of coercion, intimidation, and violence in industrial relations;
5. To avoid work stoppages;
6. To facilitate the free growth of trade unions; and
7. To maintain discipline in industry
Assignment 2

Q. 1. Answer all the questions:

1)The main parties involved in the IR system are:

i.) Employers – They are the ones who possess the rights to hire the employees and remove them. They also
possess the rights to relocate, close or merge the business. They can opt for technological changes as and when
they see it in the interest of business.

ii.) Employees – They are actually the ones who keep the business moving. They possess the rights to voice their
opinions and feelings while striving for betterment. They usually form the unions to negotiate with the
employers.

iii.) Government – Government is the one who influences the IR system with laws, rules, agreements, awards of
court etc. They also include third parties & labour and tribunal courts to manage the IR system.

2) What is collective bargaining?

“Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between
organized body of employees and an employer or association of employees acting usually through
authorized agents. The essence of Collective Bargaining is bargaining between interested parties and not
from outside parties”.

3) Explain any one role of government in industrial relations.

The industrial relations processes, and the relationships between employees and employers, are influenced
by the government and its agencies through the government’s construction, passing and implementation
of relevant industrial relations law, policies, regulations etc.

The legal framework within which Industrial Relations must function is determined by the government
and/or its agencies, possibly in consultation with other role-players in the industrial relations processes.

These includes things such as trade union representatives, employers and select employees.

The legal framework can be the legal limitations imposed on an employer/employee relationship.

4) What will be the composition of “Work Committee” according to industrial Dispute Act
(1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been
employed on any day in the preceding twelve months, the appropriate government may by general or special order
require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of
employers and workmen engaged in the establishment, so however that the number of representatives of workmen
on the Committee shall not be less than the number of representatives of the employer. The representatives of the
workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in
consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926).

(2) It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good
relations between the employer and workmen and, to that end, to comment upon matters of their common interest
or concern and endeavour to compose any material difference of opinion in respect of such matters.

5) Name any two-employee welfare related labour law acts.

Q. 2 Explain the process of registration of trade union in India.

Ans.
The four procedure involved in registration of trade unions are as follows:

1. Appointment of Registrar

2. Mode of Registration

3. Rights and Duties of Registrar

4. Legal Status of Registered Trade Union.

1. Appointment of Registrar:

Section 3 of the Trade Union Act, 1926 empowers the appropriate Government to appoint a person to be
registrar of Trade Unions. The appropriate Government be it State or Central, as the case may be is also
empowered to appoint additional and Deputy Registrars as it thinks fit for the purpose of exercising and
discharging the powers and duties of the Registrar. However, such person will work under the
superintendence and direction of the Registrar. He may exercise such powers and functions of Registrar
with local limit as may be specified for this purpose.

2. Mode of Registration:

Any seven or more persons who want to form trade union, can apply for its registration to the Registration
of Trade Unions under Section 4 (1) of the Trade Unions Act, 1926. These applicants must be members of
a trade union.

In order to check the multiplicity of trade unions, one school of thought has proposed the number of
persons farming a trade union for the purposes of registration be reasonably increased to 10 per cent of
employees of the unit, subject to minimum of seven persons employed therein This is expected to
strengthen the trade union movement. The application for registration must be sent to the Registrar of
Trade Unions in Form “A” as required by the Trade Union Act, 1926 under Section 5. Every application must
be accompanied with the following particulars:

1. The names, occupations and addresses of the members making application.

2. The name of the trade union and the address of its head office.

3. The titles, names, ages, addresses and occupations of the office bearers of the trade union.

4 If a trade union has been in existence for more than one year prior to application of its registration, a
financial statement showing its assets and liabilities prepared in the prescribed form has also to be
submitted to the Registrar along with the applica-tion for registration.

5. Besides, every application must be accompanied with a copy of Rules of Trade union complying with the
items as specified under Section 6 of the Trade Unions Act, 1926.
3. Rights and Duties of Registrar:

Section 7 of the Act empowers the Registrar of Trade Union to make, if required so, further enquiries on
receipt of an application for registration to fully satisfy himself that the application complies with the
provisions of section 5. However, such enquiries can be made only from the application and not from any
other source.

The duties of the Registrar of Trade Unions in matters of registration of trade union are laid down under
Section 8 of the Act. On having being satisfied with the requirements for the registration of the union, the
Registrar shall register the trade union by entering in a register. The letter to this effect will be issued to
the Trade Union. In case of non-satisfaction of registrar with the compliance of require-ments, the refusal
for registration will be issued to the trade union.

The Societies of Registration Act, 1860, Co-operative Societies Act, 1912 and the Companies Act, 1956 do
not apply to trade unions and registration thereof under any of these Acts is void ab initio.

4. Legal Status of Registered Trade Union:

Upon the registration, a trade union assumes to a corporate body by the name under which it is registered.
A registered trade union shall have perpetual succession and its common seal. A regis-tered trade union is
an entity distinct from the members of which, the trade union is composed of It enjoys power to contract
and to hold property both moveable and immoveable and to sue and be sued by the name in which it is
registered.

Q.3 Explain main provision of Maternity benefit act, 1961.

Ans.

The main provisions of the Maternity Benefit Act are:

i) No employer shall knowingly employ a woman in any establishment during the six weeks immediately
following the day of her delivery or her miscarriage. Also, no woman shall work in any establishment during
the six weeks immediately following the day of her delivery or her miscarriage.

ii) Every woman shall be entitled to, and her employer shall be liable for, the payment of maternity benefit
at the rate of the average daily wage for the period of her actual absence immediately preceding and in-
cluding the day of her delivery and for the six weeks immediately following that day.

iii) No woman shall be entitled to maternity benefit unless she has actually worked in an establishment of
the employer from whom she claims maternity benefit, for a period of not less than eighty days in the
twelve months immediately preceding the date of her expected delivery.
iv) The maximum period for which any woman shall be entitled to maternity benefit shall be twelve weeks,
that is to say, six weeks up to and including the day of her delivery and six weeks immediately following
that day.

v) No deduction from the normal and usual daily wages of a woman entitled to maternity benefit shall be
made by reason only of –

(i) the nature of work assigned to her by virtue of the provisions of the Act; or

(ii) breaks for nursing the child allowed to her under the provisions of the Act.

vi) If a woman works in any establishment after she has been permitted by her employer to absent herself
for any period, during such authorized absence, she shall forfeit her claim to the maternity benefit for such
period.

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