Managing a Business/MS-24


Dear Sir

Pls Ans the following question. if you do this it will be great help for me.

1) Explain the historical review of industrial relations in India. Discuss the recent developments in the field of industrial relations in India with suitable examples. High light the issues and challenges for the industrial relations systems in India.

2) Explain the Origin and growth of Trade Unions in India. Describe the functions of Trade Unions in any organisation you are familiar with. What are your suggestions for strengthening the Trade Unions in India ? Briefly describe the organisation you are referring to.

Thanks in Advance


Explain the historical review of industrial relations in India. Discuss the recent developments in the field of industrial relations in India with suitable examples. High light the issues and challenges for the industrial relations system in India.


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.

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 employees 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. labor 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.
3. As the labor and management do not operate in isolations but are parts of large system, so the study of Industrial Relation also includes vital environment issues like technology of the workplace, country’s socio-economic and political environment, nation’s labor policy, attitude of trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor, managements co-operations as well as the practices and procedures required to elicit the desired co-operation from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of courts, customs and traditions, as well as policy framework laid down by the governments for eliciting co-operations between labor and management. Besides this, it makes an in-depth analysis of the interference patterns of the executive and judiciary in the regulations of labor–managements relations.

In fact the concepts of Industrial Relations are very broad-based, drawing heavily from a variety of discipline like social sciences, humanities, behavioral sciences, laws etc.

In fact, Industrial Relation encompasses all such factors that influence behavior of people at work. A few such important factors are details below:

1. Institution: It includes government, employers, trade unions, unions federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems.
2. Characters : It aims to study the role of workers unions and employers’ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.
3. Methods : Focus on collective bargaining, workers’ participation in the Industrial Relation schemes, discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.
4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such activities, regulations governing labor welfare, social security, industrial relations, issues concerning with workers’ participation in management, collective bargaining, etc.

Objectives of Industrial Relation

A. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.
B. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.
C. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.
D. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.
E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.
F. To establish government control of such plants and units as are running at a loss or in which productions has to be regulated in the public interest.
G. Improvements in the economic conditions of workers in the existing state of industrial managements and political government.
H. Control exercised by the state over industrial undertaking with a view to regulating production and promoting harmonious industrial relations.
I. Socializations or rationalization of industries by making he state itself a major employer
J. Vesting of a proprietary interest of the workers in the industries in which they are employed.

The main aspect of Industrial Relations are :-

i. Labor Relations, i.e. relations between union and management.
ii. Employer-employees relations, i.e. relations between management and employees.
iii. Group relations, i.e. relations between various groups of workmen.
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial Democracy.

Effects of poor Industrial Relations

Poor Industrial Relation produces highly disquieting effects on the economic life of the country. We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects: Modern industry and for that matter modern economy are interdependent. Hence although the direct loss caused due to industrial conflict in any one plant may not be very great, the total loss caused due to its multipliers effect on the total economy is always very great.
2. Fall in normal tempo : poor Industrial Relations adversely effect the normal tempo of work so that work far below the optimum level. Costs build up. Absenteeism and labor turnover increase. Plants discipline breaks down and both the quality and quality of production suffer.
3. Resistance of change : Dynamic industrial situation calls for change more or less continuously. Methods have to be improved. Economics have to be introduced. New products have to be designed, produced and put in the market. Each of these tasks involves a whole chain of changes and this is resisted bitterly if these are industrial conflict.
4. frustration and social cost : every man comes to the work place not only to earn a living. He wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration. They reduce cordiality and aggravate social tension.

Suggestions to Improve Industrial Relation :-

a. Both management and unions should develop constructive attitudes towards each other
b. All basic policies and procedures relating to Industrial Relation should be clear to everybody in the organization and to the union leader. The personnel manager must make certain that line people will understand and agree with these policies.
c. The personnel manager should remove any distrust by convincing the union of the company’s integrity and his own sincerity and honesty. Suspicious, rumors and doubts should all be put to rest.
d. The personnel manager should not vie with the union to gain workers‘loyal to both the organization. Several research studies also confirm the idea of dual allegiance. There is strong evidence to discard the belief that one can owe allegiance to one group only.
e. Management should encourage right kind of union leadership. While it is not for the management to interfere with union activities, or choose the union leadership, its action and attitude will go a long way towards developing the right kind of union leadership. “Management gets the union it deserves” is not just an empty phrase. Managements


The healthy industrial relations are key to the progress. Their significance may be discussed as under -
1. Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.
2. Reduction in Industrial Disputes – Good industrial relation reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
3. High morale – Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.
4. Mental Revolution – The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.
5. New Programmes – New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs.
6. Reduced Wastage – Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Thus, from the above discussion, it is evident that good industrial relation is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work.
An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.


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 person’s 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 worker’s 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. They must possess empathy, i.e. they should be able to perceive a problem from the opposite angle with an open mind. They should put themselves in the shoes of the other party and then diagnose the problem. Other factors which help to create mutual trust are respect for the law and breadth of the vision. Both parties should show full respect for legal and voluntary obligations and should avoid the tendency to make a mountain of a mole hill.
7. Public policy and legislation: - when Government, regulates employee relations, it becomes a third major force determining industrial relations the first two being the employer and the union. Human behavior is then further complicated as all three forces interact in a single employee relation situation. Nonetheless, government in all countries intervenes in management – union relationship by enforcing labor laws and by insisting that the goals of whole society shall take precedence over those of either of the parties. Government intervention helps in three different ways 1) it helps in catching and solving problems before they become serious. Almost every one agrees that it is better to prevent fires them to try stopping them after they start; 2) It provides a formalized means to the workers and employers to give emotional release to their dissatisfaction; and 3) It acts as a check and balance upon arbitrary and capricious management action.
8. Better education: - with rising skills and education workers’ expectations in respect of rewards increase. 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.
9. 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.


Today’s 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, programme 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 individual’s 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.


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, cafeterial programmes and social clubs.
13. Suggestion plans and their uses in labor, management and production committees.
14. Employee relations, specially 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.


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 time-keeper, 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. Hints of problem areas may be found in exit interviews, in trade union demands and in management meetings, as well as in formal social sciences research.
The organisation  I  am   referring to

The  organization, I am  familiar  with  is  a
-a  large  manufacturer/ marketer of  safety products
-the products  are  used  as  [personal  protection safety] [ industrial  safety]
-the products  are  distributed through  the distributors as well as  sold directly
-the  products  are  sold  to various  industries like  mining/fireservices/defence/
as  well  as  to  various  manufacturing  companies.
-the  company employs  about  235  people.
-the  company  has  the following  functional   departments
*finance/ administration
*human resource
*customer  service
*warehousing/  transportation

THIS  covers the development of policies and programs, as well as transparent reporting and accountability, in the following areas
-employee  relations
-rewards management
-industrial  conflicts
-work conditions
-Collective bargaining
-Efficiency wages
-Employment contract
-Indentured servant
-Labour and employment law
-Unfair labor practice
-Workplace Fairness
-Employee stock option
-Employee or Fringe benefit

This is a summary of the six workplace agreements.
Individual transitional employment agreements
An Individual transitional employment agreement  is a transitional individual agreement that can be made by certain employers and employees. An individual transitional employment agreement has a nominal expiry date of no later than ........
Employee collective agreement
An employee collective agreement is made between your employer and a group of employees who will be covered by the agreement. You can appoint a bargaining agent to bargain on your behalf.
Union collective agreement
A union collective agreement is made between your employer and a union or unions that represent you. The agreement sets out the terms and conditions of employment. The union or unions will be negotiating on your behalf.
Employer greenfields agreement
An employer greenfields agreement is an agreement in relation to a new project, business or undertaking which your employer is proposing to establish. When making an employer greenfields agreement your employer must not have any employees employed in the new project, business or undertaking.
Union greenfields agreement
A union greenfields agreement is an agreement between a union and your employer in relation to a new project, business or undertaking which they are proposing to establish. The agreements are negotiated between your employer and a union on behalf of you
Multiple business agreement
A multiple business agreement is a collective agreement that enables multiple employers to make a single agreement that applies to all of their businesses. Typically, a multiple business agreement could be used in a franchise operation where there are a number of businesses carrying on the same type of business that wish to offer you the same working conditions
Disciplinary procedures  STRATEGY
The introduction of the new statutory right to be accompanied at disciplinary hearings and a revised  Code of Practice have required most employers to review their disciplinary procedures. While ensuring full compliance with the new law, a number of organisations have also taken the opportunity to have a more in-depth look at their disciplinary arrangements.
Companies are becoming increasingly comfortable sharing confidential information with employee representatives. Many are improving the quality of dialogue by devising targeted training programmes and equipping representatives with the skills to carry out their role and participate in meetings more effectively.
Grievance procedures  STRATEGY
The key stages of a formal grievance procedure:
1   setting out the grievance in writing
2   holding a formal meeting
3   hearing appeals.
   Balancing Work and Personal Life   STRATEGY
Everyone is busy today. Managing the responsibilities of work and your personal life is becoming more and more complex.
  -helps  how to bring harmony into your life with practical methods of making appropriate decisions on the roles you play, prioritizing, time management and organization.
  -helps  how to do things right and also do the right thing.
2]Explain the origin and growth of Trade Unions in India. Describe the functions of Trade Unions in any organisation you are familiar with. What are your suggestions for strengthening the Trade Unions in India? Briefly describe the organisation you are referring to.

  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
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:
  The All India Trade Union Congress,

  The Indian National Trade Union Congress,

  The Hindu Mazdoor Sangh, and

  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:
  The rural workers, who constitute about 60 per cent of the workforce.

  Organized sector, which employs 8 per cent of workforce, and

  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:
  All India Trade Union Congress (AITUC)

  Bharatiya Mazdoor Sangh (BMS)

  Centre of Indian Trade Unions (CITU)

  Hind Mazdoor Kisan Panchayat (HMKP)

  Hind Mazdoor Sabha (HMS)

  Indian Federation of Free Trade Unions (IFFTU)

  Indian National Trade Union Congress (INTUC)

  National Front of Indian Trade Unions (NFITU)

  National Labor Organization (NLO)

  Trade Unions Co-ordination Centre (TUCC)

  United Trade Union Congress (UTUC) and

  United Trade Union Congress - Lenin Sarani (UTUC - LS)
The development of industries led to large-scale production on the one hand and social evils like employment and exploitation of women and child labour and the deplorable workable conditions, the government’s attitude of complete indifference in respect of protection of labour from such evils, on the other.
The memorial demanded: i. a complete day of rest every Saturday; ii. Half an hour’s rest at noon; iii. Working hour no longer than 6.30 p.m., which should cease at sunset; iv. The payment to injured worker until they recovered together with suitable compensation, if they are permanently disabled.
According to Pandey, the important factors which have helped in the emergence and growth of the industrial labour movement are:
While the economic hardships of workers have been present as a latent force, the impetus for the growth of labour movement is provided by the major political currents, particularly movement for national independence.
The failure of workers’ initial attempts to organize led them to seek the help of philanthropists and social workers who generally came from classes higher in economic and social status.
  Early Trade Union Period (1918-1924)

The year 1918 was an important one for the Indian trade union movement.
The industrial unrest that grew up as a result of grave economic difficulties created by war. The rising cost of living prompted the workers to demand reasonable wages for which purpose they united to take resort to collective action.
The swaraj movement intensified the movement, widened the gulf between the employers and the employees and brought about a mass awakening among the workers demanding racial equality with their British employers.
The success of the Russian Revolution of 1917 created a revolutionary wave of ideas and a new self-respect and enlightenment, and added momentum to the feeling of class-consciousness among laborers.
The establishment of the I.L.O., in 1919, gave dignity to the working class and also an opportunity to send a delegation to the annual conference of this body.
Immediately after the war many Indian soldiers in the British army were demobilized and into the labour market.
The non-co-operative movement of Gandhiji during 1920-21 and his support to the demands of industrial labour also greatly influenced the working class movement.
  Left-Wing Unionism Period (1924-1934)

In 1924, a violent and long-drawn-out strike by unions led to the arrest, prosecution, conviction and imprisonment of many communist leaders. The rapid growth of the trade unionism was facilitated by several factors, such as:
The growth of anti-imperialist national movement;
The brutal violence and repressive measures let loose by the British government, particularly the Jallianwala Bagh massacre, Rowlatt Act, indiscriminate arrests and imprisonment of national leaders and Satyagrahis,
The phenomenal profits earned by the capitalists in the face of falling real wages during the post-war period
  Trade Union’s Unity Period (1935-1938)

In mid-thirties the state of divided labour movement was natural thought undesirable and soon after the first split, attempts at trade union unity began to be made through the efforts of the Roy Group on the basis of ‘a platform of unity’.
The division in the Indian labour movement was proving very costly for the Indian working class. In 1933, more than 50,000 workers in Bombay city were thrown out of employment.
The unity efforts were synchronized by a popular upheaval as evidenced by the 1937 general elections.
According to Punekar, “During the decade 1930-40 Indian trade unionism was a divided house and the average industrial worker kept himself aloof from organized action.”
  Second World War Period (1939-1945)
The Second World War, which broke out in September 1939, created new strains in the united trade union movement.
Hence, again a rift took place in 1941 and the Radicals left the AITUC with nearly 200 unions with a membership of 3, 00,000 and formed a new central federation known as the Indian Federation of Labour.
During war-time certain factors helped to enhance the status of the trade unions in the  country, namely, The government as well as employers launched a number of labour welfare measures with a view to increase production of war materials and other essential goods and maintain high profits.
Recognition to trade unions was accorded by many employers. This fact gave amoral strength to the unions.
Ban was placed on the strikes and lockouts, during war-time, under the Defence of India Rules 81-A, and all disputes had to be referred to adjudication and their awards were enforced.
A Tripartite Labour Conference was convened in 1942, for the first time, to provide a common platform for discussions and mutual understanding between the labour and the employers.
  The Post-Independence Period (From 1947 to-date)

As pointed out earlier, when attempts to restructure the AITUC failed, those believing in the aims and ideals other than those of the AITUC separated from the organization and established the Indian National Trade Union Congress (INTUC) in May, 1947.
It reads: “Congressmen in general and particularly those working in the field of labour have found it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting a course completely disregarding, or even in opposition to the declared policy and advice of the Indian National Congress.
The HMS was launched ostensibly with a view to “keep the trade union movement free from domination by government and political parties and the methods to be employed were to be peaceful, legitimate and democratic.”
In 1958, the HMS and the UTUC reached an agreement to create a joint front against the AITUC which was working inroads in their membership.
The post-war period has been made by the trade union movement in India. The most important factors being:
The constant inflow of outside and international influences;
The pressure of trade union rivalries, often based on political or ideological differences;
Government’s Industrial Relations Policy with its provision for compulsory adjudication machinery;
The enactment of labour laws conferring special privileges on registered trade unions;
Desire of workers to unite for safeguarding their interest especially to face harder conditions for labour such as retrenchment, lay-off, etc.;
Attempts made by some employers to set up unions under their influence.
  Present Scenario of the Trade Union Movement     

The Indian trade unions have come to stay now not as ad hoc bodies or strike committees but as permanent features of the industrial society.   
The unions succeeded in organizing Central Union Federations which help in the determination of principles, philosophy, ideology and  purposes of the unions and give some sense of direction to the otherwise scattered and isolated large number of unions.
The unions have achieved a remarkable status where their voices are heard by the government and the employers; they are consulted on matters pertaining to improvement in conditions of work health and safety, job security, wages, productivity, all matters concerning the interests of labour.  
The trade union rivalries have become sharper in free India. The splitting up of unions and formation of new unions having sympathies with political parties have permitted unions operating at different levels.
  The Indian National Trade Union Congress

The INTUC came into existence on 4th May, 1948, as a result of the resolution passed on 17th November 1947, by the Central Board of the Hindustan Mazdoor Sevak Sangh, which was a labour leader on the Gandhian Philosophy of Sarvodaya.
Objectives:   The aims of the INTUC are:
to establish an order of society which is free from hindrances to an all-round development of its individual members, which fosters the growth of human personality in all its aspects, and which goes to the utmost limit in progressively eliminating social, political or economic exploitation and inequality, the profit motive in the economic activity and organization of society and the anti-social concentration of power in any form;
to place industry under national ownership and control in a suitable form;
to secure increasing association of workers in the administration of industry and their full participation in that control;
to organize society in such a manner as to ensure full employment and the best utilization of its manpower and other resources;
to promote social, civic and political interest of the working class;
to establish just industrial relations;
to secure redressal of grievances, without stoppage of work, by means of negotiation, conciliation, and failing these, arbitration and adjudication;
to take other legislative methods, including strikes or any suitable form of satyagraha, where adjudication is not applied and settlement of  disputes within reasonable time by arbitration is not available for the redress of grievances;
to make necessary arrangement for the efficient conduct and satisfactory and speedy conclusion of authorized strikes or satyagraha;
to foster the spirit of solidarity, service, brotherhood, co-operation and mutual help among the workers;
to develop in the workers a sense of responsibility towards industry and the community;
to raise the worker’s standard of efficiency and discipline.
  All-India Trade Union Congress (AITUC)

It was established in 1920 as result of a resolution passed by the organized workers of Bombay and the delegates which met I a conference on 31st October, 1920.
Objectives: The basic objectives of the AITUC are:
to establish a socialist state in India;
to socialize and nationalize means of production, distribution and exchange;
to ameliorate the economic and social conditions of the working class;
to watch, promote, and further the interests, rights, and privileges of the workers in all matters relating to their employment;
to secure and maintain for the workers the freedom of speech, freedom of press, freedom of association freedom of assembly, the right to strike, and the right to work and maintenance;
to co-ordinate the activities of the labour unions affiliated to the AITUC;
to abolish political or economic advantage based on caste, creed, community, race or religion;
to secure and maintain for the workers the right to strike.
  United Trade Union Congress (UTUC)
Some trade union leaders of the socialist bent met together December 1948 to form a new central organization of labour, called Hind Mazdoor Sabha.
The objectives of the UTUC are:
to establish a socialist society in India;
to establish a workers’ and peasants’ state in India;
to nationalize and socialize the means of production, distribution and exchange;
to safeguard and promote the interests, rights, and privileges to the workers in all matters, social, cultural, economic and political;
to secure and maintain workers’ freedom of speech, freedom of press, freedom of association, freedom of assembly, right to strike, right to work or maintenance and the right to social security;
to bring about unity in the trade union movement.
  Bhartiya Mazdoor Sangh (BMS)
This union has been the outcome of decision taken by the Jana Sangh in its Convention at Bhopal on 23rd July, 1954.
to establish the Bhartiya order of classless society in which there shall be secured full employment;
to assist workers in organizing themselves in trade unions as medium of service to the motherland irrespective of faiths and political affinities;
the right to strike;
to inculcate in the minds of the workers the spirit of service, co-operation and dutifulness and develop in them a sense of responsibility towards the nation in general and the industry in particular.
The BMS is a productivity-oriented non-political trade union. Its ideological basis is the triple formula:
nationalize the labour;
labourise the industry;
industrialise the nation;
  National Front of Indian Trade Unions (NFITU)
This union was founded in 1967, with the claim that “this trade union of India is not controlled by any of the political party, employers or government.”
to organize and unite trade unions with the object of building up a National Central Organisation of trade unions, independent of political parties, employers and the government, to further the cause of labour and that of national solidarity security and defence of India, and to  make the working people conscious of their right as well as of obligations in all spheres of life;
to secure to members of trade unions full facilities of recognition and effective representation of interests of workers and to ensure for the working people fair conditions of life and service and progressively to raise their social, economic and cultural state and conditions;
to help in every possible way member trade unions in their fight to raise real wages of the workers;
to endeavour to secure for members of affiliated trade unions adoption of progressive legislation for their welfare and to ensure the effective environment of the rights and interests of members of affiliated trade unions and for the working people in general.
  Centre of Indian Trade Union (CITU)
This union was formed in 1970 when as a result of the rift in the AITUC, some members of the Communist party seceded. About the objectives of the CITU, its constitution says:
The CITU believes that the exploitation of the working class can be ended only by socializing all means of production, distribution and exchange and establishing a socialist state, that is, it stands for the complete emancipation of the society from all exploitation.
The CITU fights against all encroachments on the economic  and social rights of the workers and the enlargement of their rights and liberties including the right to strike, for winning, defending and extending the freedom of the democratic trade union movement.
In the fight for the immediate interest of the working class the CITU demands: (a) nationalization of all foreign monopoly concerns who barbarously exploit the working class; (b) nationalization of all concerns owned by Indian monopolists and big industry who garner huge profits at the expenses of the workers, who exploit the people by pegging prices at a high level and who dictate the anti-labour and anti-people policies of the government.
The CITU fights against the repressive policy of  the government towards the democratic and trade union movement;
  Comparative Study of Four Original Central Organizations
Although there are as many as nine central labour organizations in the country, only four are of great importance: the INTUC, the AITUC, the BMS and the UTUC.
The INTUC aims at the Sarvodaya ideal and stands for gradual transformation of the existing social order.
The AITUC aims at socializing and nationalizing all means of production, distribution and exchange as far as possible.
The INTUC, too, aims at placing industry under national ownership and control in a suitable form in order to reaslise the desired order of society.
The securing and maintenance or workers’ freedom of speech, freedom of association, freedom of assembly, freedom of the press etc., has been mentioned in the constitutions of all organizations except the INTUC.
Organizational Machinery
The machinery for organization of labour is practically the same under all the four organizations.
The Central Organisation itself is generally composed of a Delegates’ Assembly, a General Council, and a Working Committee, with a division of responsibilities among them which is more or less the same in the case of all four organizations.
Methods Used
As regards the methods of attaining the desired objectives there are some valid differences.
To achieve the objectives, the INTUC urges the placing of industry under national ownership and control in suitable form and the full participation in its control.
On the other hand, the AITUC also strives for socialization and nationalization of the means of production, distribution and exchange, but by more radical and violent means.
The UTUC, which was created with the avowed purpose of liberating the labour movement of its political affiliations, is radical in nature, non-communist and anti-INTUC.
  Political Affiliations
As regards leadership, all the four organizations have their political affiliations, and the leadership, therefore, lies in the hands of the politicians, and not in those of the working class, which is yet illiterate and backward to wield any influence.
The AITUC is pro-communist. It is led by the Right CPI. Its attitude towards the government is not entirely hostile, but of course highly critical of the government.
The UTUC is radical, non-communist and anti-INTUC. It is led by some independent trade union leaders, the Forward Block and the Revolutionary Socialist Party.
On the international level, the INTUC is affiliated to the International Confederation of Free Trade Unions (ICFTU) – an organization mainly supported by the Anglo American block; while the AITUC is affiliated to the World Federation of Trade Unions (WFTU), supported by the Communist block.
  The organisation  I  am   referring to
  The  organization, I am  familiar  with  is  a
  -a  large  manufacturer/ marketer of  safety products
  -the products  are  used  as  [personal  protection safety] [ industrial  safety]
  -the products  are  distributed through  the distributors as well as  sold directly
  -the  products  are  sold  to various  industries like  mining/fireservices/defence/
  as  well  as  to  various  manufacturing  companies.
  -the  company employs  about  235  people.
  -the  company  has  the following  functional   departments
  *finance/ administration
  *human resource
  *customer  service
  *warehousing/  transportation
  IN this  organization,  the  management  works  closely
  with  the  union  and  covers the development of policies and programs,
  as well as transparent reporting and accountability, in the following areas
  -employee  relations
  -rewards management
  -industrial  conflicts
  -work conditions
  -staff  benefits
  -safety  and  health
  -Collective bargaining
  -Employment contract
  -Labour and employment law
  -Unfair labor practice
  -Workplace Fairness

Managing a Business

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Leo Lingham


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