Notes Oof IR

May 12, 2018 | Author: Sanjeev Prasad | Category:Documents
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INDUSTRIAL RELATIONS History of IR 1) Pre-independence – before 1947 2) Post independence- 1947- 1991 3) Post globalization – After 1991 Pre Independence1- 1860- Employer & workman’s dispute act ( the dispute should be resolved) 2- 1880- Factories act- Good working environment& safe machines 3- 1926- Trade union act- Double exploitation- (Influence of USSR due to communism and Marxism) 4- 1942- Indian Labor conference(ILC)- Government will also interfere between government and workers 5- 1946- Standing order- orders were made to Discipline in industry Post independence1- Dec 1947-Industrial dispute act- Socialist ideology, Mechanism was made hoe to solve the dispute During this time first five year plan was made by Pt. Nehru in 1952 Major trade unionsINTUC-1920- Indian national trade union congress AITUC- 1921-All india Trade union congress 2- 1964- 1979 a. 1979- NCL (National commission for labour) it restricts both labours and employers b. June 1975- National apex body was organized, during this time Emergency was also applied c. 1977- violence factory strike, many changes 3- 1980-91

a. 26 july 1981- ESMA- Essential service maintenance act- according to this act employees cannot do the strike in essential services like Medical, transport, electricity. b.

The rule was also passed when there are more than 300 employees to be retrenched then the employer will have to seek permission before retrenchment.

c. The independent trade unions were allowed. d. 1988- Now the limit was reduced to 100 before retrenchment Post globalization (After 1991) 1991- Liberalization, privatization, Globalization Pepsi was the first company to enter india after LPG New changes were made like VRS- voluntary retirement scheme, Progressive management, joint management; Non-privatized public sectors- Defense, railway, uranium. Online trade unions in BPO TRADE UNION Functions of trade union according to mode 1) Militant function- to fight for the rights of the workers. (strike, Negotiation, Gherao) 2) Fraternal function- Co-operative mode. (Congress, unity, negotiation) a. Intramural- welfare of workers (salary negotiation, working environment increments) b. Extramural- For welfare of workers and employers (achieving goals, increase productivity, morale, motivation) c. Politics- Serve politically to stop strike and violence Functions of trade union according to target P) Trade unions functions for the workers1- To fight for the rights of workers 2- To secure good working conditions for workers 3- To help in determining the proper wages for the workers 4- To provide the common voice/ platform for the employees

5- To secure bonus for the employees 6- To provide housing and other facilities for the employees

Q) Trade unions functions for the organisation1- Increase the productivity 2- Increase the morale 3- Help in addressing grievances 4-Making good industrial environment 5-Conflict resolution R) Functions towards the society1) Economic growth due to increase in production 2) Unions organizes the social activities at time to time 3) Stop violence by employees

Problems of trade unions 1) Outside leadership- leader is chosen who is ot the worker in the organisation 2) Scarcity of financial resources- workers are not paid much that they can contribute easily for the union 3) Politicization- when the leader is from a political party. 4) Multiplicity- when there are multiple unions so the rivalry occurs among the unions 5) Limited membership- Maximum people do not perceive the value of trade unions and they take it just for formality. 6) Uneven growth- In some sector unions are strong and growing but in some sectors it is diminishing

Employers’ federation and government’s role-

it is an organization formed by merging several groups and employers for the growth of industries. Federation- eg. State government to central government EFI- Employers’ federation of india AIOIE- All india organization for industrial employers NASSCOM- National association of commerce ASSCOM- Association of FICCI- Federation of industrial chambers of commerce of india

Functions of Employers federations a.

Making reports

b.

Advice to government in making policies

c.

Rising voice of employers

d.

Negotiation with employers

e.

Pass opinions/views

Secondary function- Act as an employers’ office

Difference between BODY and ASSOCIATION Body- it is Formal organization, eg. Parliament, it has a Permanent office. Association- People are not formed formally. It is voluntary in nature. People associate together. Hierarchy, all people are considered equal, just like people get free time and do something

Difference among wage, Salary, Compensation, remuneration, CTC WAGE- Normally it’s for blue color workers. Varies as number of days worked vary. SALARY- It is monthly basis and fixed. Incentives are not included in salary. COMPENSATION- it is all the returns offered by the company. (wage + Fooding) (Cash+ implies returns)

RENUMERATION- Whatever you get in exchange. (cash) CTC- Cost to company- it includes all the expenses done by the company for recruiting, retaining and preparing the employee.

Governments’ role and policies Role1) Peace maker 2) Parent (Authority, dominating) 3) Policy maker Policies- these are taken from the policies of ICL( India commission of labour) and ILO (International labor organization, 1920, Jenewa) Work of government1)

Passing the legislations

2)

Ensuring that the laws are well implemented

3)

Putting Penalty

Industrial conflict: Strikes& lockouts, Boycott, picketing, Gherao Strike- Cessation (stopping) of work collectively Difference between strike and Demonstration? Strike- it hits the work without violation. ? Demonstration- It is not related to work. The regular or general work is not affected. Types of strikes1) Hunger strike- the people do not take the solid fool and stop work 2) General strike- Every worker on any post in the org stops working

3) Sympathetic strike- when due to strike in one sector or industry another group of people/ sector also starts strike in sympathy. E.g when engineers joined the strike after the strike by junior doctors in AIMS. 4) Wild-Cat strike/ Lightening strike- when people suddenly stops working without the meeting or application. Eg. Strike in NDA 5) Pen/tool down strike- when people remain in the office but do not work. 6) Slow down strike- it is famous in USA and UK. When people do work but not with the full efficiency.

Boycott- the attitude that I will not come to work, let them work. It means it is done by few people in the organization. Boycott is of two types. 1- Primary boycott- It includes not only to stop the work as well as to stop using the facilities offered by the company. 2- Secondary boycott- When employees urge to public that the company is exploiting the employees so they should not purchase the products offered by the company. Picketing- when certain employees do not let others go inside the premises/factory. Gherao- this is violent and illegal. This is non-democratic in nature. When employees make hostage to the members of the administration/ management.

Employers’ tool to show dissatisfactionLock-outs- When the employers close the factory so that the employees cannot enter into the premises/ factory. (In all the cases the employees/employers will have to give notice 1 week to 1 month in advance in writing otherwise the movement will be considered illegal)

Collective BargainingNegotiation becomes the part of bargaining.

Negotiation- when two equal level of the parties comes together to discuss on the certain issue. Bargaining- when two unequal level of the parties comes together to discuss on the certain issue. Types of collective bargaining1- Bipartile 2- Settling

3- Judiciary

Process of collective bargaining1- Registration and Recognition- there should be at least 7 people to make the union. For process of bargaining the union should be recognized/ affiliated by the management. 2- Preparation- the minimum limit of compromise, extent of flexibility is decided by meeting of both the parties separately. 3- Negotiationa. Preliminary round- in this round, the issues which are to be discussed is decided. (Agenda is made) b. Actual negotiation- in this round each party put his views and discussion takes place. c. Winding up- we make the conclusions (which parts come to the results) we make the list what were the results came out. 4- Contract Administration- the resolutions are implemented and the Agreement is carried out.

Management of disciplineTypes of disciplines 1- Positive discipline- when positive measurements are taken to discipline. E.g. reward system Here positive behavior is rewarded but the negative behavior is not punished. 2- Negative discipline- when negative measurements are taken to discipline. E.g. fine system

Here negative behavior is punished but the positive behavior is not rewarded. 3- Self discipline- when employees are aware about the value of discipline and the monitor themselves for the discipline. 4- Progressive discipline- it is the combination of positive and negative discipline. As things progress the decisions are taken according to situation.

Standing order act 1946, Code of discipline 1958 Why discipline is failed A- Lack of proper leadership B- Attitude C- Personal choice How to put disciplineWhen an employee is found to be guilty of discipline then we first give him 1- Oral warning, 2- Written warning, 3- Action against the guilty (demotion, termination) How to terminate the employee 1- Take away all the works 2- Decrease the wages 3- Demotion 4- Enquiry 5- Suspension for the certain time period 6- With hold all the increments 7- Stop the promotion

Red Hot Stove rule by Douglas McGregor- this theory is based on the characteristics of the red hot stove. 1- Burns immediately- the actions should be taken immediately sothat it should not be repeated.

2- Everyone can see the flame- All the employees should know the consequences of the indiscipline and guidelines 3- Impersonal- Everybody at any post will be punished. 4- Consistent- the consequences of the indiscipline should be applied every time.

Acts of indiscipline by the employees in the organization 1- Unnecessary strike 2- Violence 3- Sexual harassment 4- Improper behavior 5- Theft 6- Fraud 7- Whistle blowing 8- Drunken behavior

Process of management of discipline According to standing order 1946, when we find the event/complaint of indiscipline by an employee then we follow the following process to deal with such event. This process starts when the complaint against the employee is reported. Step1- Issue a charge sheet of the complaints against the accused employee. Charge sheet is a list of all complaints/ charges against the employee. Eg. It is found a complaint against Mr. XYZ for stealing of A equipment on 4 April 2009. Step2- Call the employee to explain by issuing a charge sheet against him. For relevant explanation the employee should be given the time of 1 week to 15 weeks. Step3- The explanation should be considered. Step 4- if the explanation is satisfying then the case will be resolved. If not satisfactory then an enquiry should be ordered. It should be in the form of interview.

Step5- If there is a big pending in the enquiry then the employee should be suspended. During the suspension ½ of the wages should be paid. After 3 months ¾ of the wages should be paid. Step6- If enquiry finds him guilty of the misdeed then according to the degree of the misbehavior a notice is given to the employee then the proper action is taken against the employee.

Indian workers Types of Indian workersa. Unorganized workers- 92.9%, 369 mn b. Organized workers- 7.1%, 31 mn Age- 18 to 60 Profile- Migrants, wealth problem, high turn over Trade Union 1926Atleast 7 people are required to form a union. Union is a representative of workers who work in the office, business. The body should be reorganized and recognized by the both employers and the employees. Trade unions are of three typesA- Craft unions- It is based on the kind of Manual work. B- Industry Unions- It is based upon the Industry. C- General unions- It is for all the workers in the country. Every worker can join it.

Closed Union- the workers only participate in formation of the union. A worker first joins the union then further he takes some responsibility/ post/ task. Shop Union- In shop unions, the employers play an active role in formation and distribution of the responsibilities/ posts/ roles. Online Unions- It is the combination of the trade unions and the technology. The technology can be used of telecom or computer.

Role of negotiation between employer and employees. From employees point of viewA- It brings stability in negotiation. B- It brings healthy working environment. From employers point of view1) It brings the goodwill for the company in terms of the virtuous cycle(virtuous cycle- one thing that leads to the another good thing)(vicious cycle- one bad thing that leads to another bad event) 2) It improves the production and the productivity 3) The events of accidents and the number of rejected output are also decreased. From society point of view a) It increases the peace and the feeling of security in the society.

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