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hi sir please give the answer atleast one question

2. With appropriate example, write an essay on Workers Participation in
Management followed in various Government, P.S.U. and Private sectors in
3. Write an essay on statutory support for Collective Bargaining in India, bringing
out clearly how much the statutory support influences the effectiveness of
Collective Bargaining.
4. Analyse the various causes of Industrial Accidents in India. What are the
necessary steps to be followed to reduce the Industrial accidents?

thanks to put time on it

2. With appropriate example, write an essay on Workers Participation in
Management followed in various Government, P.S.U. and Private sectors in
Workers’ participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves.  The main implications of workers’ participation in management as summarized by ILO:
•Workers have ideas which can be useful;
•Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere

 Three groups of managerial decisions affect the workers of any industrial establishment and hence the workers must have a say in it.
o Economic decisions – methods of manufacturing, automation, shutdown, lay-offs, mergers.
o Personnel decisions – recruitment and selection, promotions, demotions, transfers, grievance settlement, work distribution.
o Social decisions – hours of work, welfare measures, questions affecting work rules and conduct of individual worker’s safety, health, sanitation and noise control.
 Participation basically means sharing the decision-making power with the lower ranks of the organization in an appropriate manner.
 The concept of WPM is a broad and complex one.
 Depending on the socio-political environment and cultural conditions, the scope and contents of participation change.
 International Institute of Labour Studies: WPM is the participation resulting from the practices which increase the scope for employees’ share of influence in decision-making at different tiers of organizational hierarch with concomitant assumption of responsibility.
 ILO: Workers’ participation, may broadly be taken to cover all terms of association of workers and their representatives with the decision-making process, ranging from exchange of information, consultations, decisions and negotiations, to more institutionalized forms such as the presence of workers’ member on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia.
 Workers’ participation may be viewed as:

  o An instrument for increasing the efficiency of enterprises and establishing harmonious relations;
o A device for developing social education for promoting solidarity among workers and for tapping human talents;
o A means for achieving industrial peace and harmony which leads to higher productivity and increased production;
o A humanitarian act, elevating the status of a worker in the society;
o An ideological way of developing self-management and promoting industrial democracy.
 Other objectives of WPM can be cited as:
o To improve the quality of working life (QWL) by allowing the workers greater influence and involvement in work and satisfaction obtained from work; and
o To secure the mutual co-operation of employees and employers in achieving industrial peace; greater efficiency and productivity in the interest of the enterprise, the workers, the consumers and the nation.
 The main implications of workers’ participation in management as summarized by ILO:
o Workers have ideas which can be useful;
o Workers may work more intelligently if they are informed about the reasons for and the intention of decisions that are taken in a participative atmosphere.

 Unique motivational power and a great psychological value.
 Peace and harmony between workers and management.
 Workers get to see how their actions would contribute to the overall growth of the company.
 They tend to view the decisions as `their own’ and are more enthusiastic in their implementation.
 Participation makes them more responsible.
o They become more willing to take initiative and come out with cost-saving suggestions and growth-oriented ideas.

Scope and ways of participation:

   One view is that workers or the trade unions should, as equal partners, sit with the management and make joint managerial decisions.
 The other view is that workers should only be given an opportunity, through their representatives, to influence managerial decisions at various levels.
 In practice, the participation of workers can take place by one or all the methods listed below:
o Board level participation
o Ownership participation
o Complete control
o Staff or work councils
o Joint councils and committees
o Collective Bargaining
o Job enlargement and enrichment
o Suggestion schemes
o Quality circles
o Empowered teams
o Financial participation

Participation at the Board level:
 This would be the highest form of industrial democracy.
 The workers’ representative on the Board can play a useful role in safeguarding the interests of workers.
 He or she can serve as a guide and a control element.
o He or she can prevail upon top management not to take measures that would be unpopular with the employees.
o He or she can guide the Board members on matters of investment in employee benefit schemes like housing, and so forth.
 The Government of India took the initiative and appointed workers’ representatives on the Board of Hindustan Antibiotics (Pune), HMT (Bangalore), and even nationalized banks.
 The Tatas, DCM, and a few others have adopted this practice.
 Problems associated with this method:
o Focus of workers’ representatives is different from the focus of the remaining members of the Board.
o Communication and subsequently relations between the workers’ representative and the workers suffers after the former assumes directorship.
 He or she tends to become alienated from the workers.
o As a result, he or she may be less effective with the other members of the Board in dealing with employee matters.
o Because of the differences in the cultural and educational backgrounds, and differences in behaviour and manners, such an employees’ representative may feel inferior to the other members, and he or she may feel suffocated. Hence, his or her role as a director may not be satisfying for either the workers or the management.
o Such representatives of workers’ on the Board, places them in a minority. And the decisions of the Board are arrived at on the basis of the majority vote.

Participation through ownership:
 This involves making the workers’ shareholders of the company by inducing them to buy equity shares.
o In many cases, advances and financial assistance in the form of easy repayment options are extended to enable employees to buy equity shares.
 Examples of this method are available in the manufacturing as well as the service sector.
 Advantage:
o Makes the workers committed to the job and to the organization.
 Drawback:
o Effect on participation is limited because ownership and management are two different things.

Participation through complete control:
 Workers acquire complete control of the management through elected boards.
 The system of self-management in Yugoslavia is based on this concept.
 Self-management gives complete control to workers to manage directly all aspects of industries through their representatives.
 Advantages:
o Ensures identification of the workers with their organization.
o Industrial disputes disappear when workers develop loyalty to the organization.
o Trade unions welcome this type of participation.
 Conclusion: Complete control by workers is not an answer to the problem of participation because the workers do not evince interest in management decisions.

Participation through Staff and Works Councils:

   Staff councils or works councils are bodies on which the representation is entirely of the employees.
 There may be one council for the entire organization or a hierarchy of councils.
 The employees of the respective sections elect the members of the councils.
 Such councils play a varied role.
o Their role ranges from seeking information on the management’s intentions to a full share in decision-making.
 Such councils have not enjoyed too much of success because trade union leaders fear the erosion of their power and prestige if such workers’ bodies were to prevail.

Participation through Joint Councils and Committees:
 Joint councils are bodies comprising representatives of employers and employees.
o This method sees a very loose form of participation, as these councils are mostly consultative bodies.
 Work committees are a legal requirement in industrial establishments employing 100 or more workers.
o Such committees discuss a wide range of topics connected to labour welfare.
o Examples of such committees are welfare committee, safety committee, etc.
o Such committees have not proven to be too effective in promoting industrial democracy, increasing productivity and reducing labour unrest.

Participation through Collective Bargaining:
 Through the process of CB, management and workers may reach collective agreement regarding rules for the formulation and termination of the contract of employment, as well as conditions of service in an establishment.
 Even though these agreements are not legally binding, they do have some force.
 For CB to work, the workers’ and the employers’ representatives need to bargain in the right spirit.
 But in practice, while bargaining, each party tries to take advantage of the other.
 This process of CB cannot be called WPM in its strongest sense as in reality; CB is based on the crude concept of exercising power for the benefit of one party.
o WPM, on the other hand, brings both the parties together and develops appropriate mutual understanding and brings about a mature responsible relationship.

Participation through Job Enlargement and Job Enrichment:
 Excessive job specialization that is seen as a by-product of mass production in industries, leads to boredom and associated problems in employees.
 Two methods of job designing – job enlargement and job enrichment– are seen as methods of addressing the problems.
o Job enlargement means expanding the job content – adding task elements horizontally.
o Job enrichment means adding `motivators’ to the job to make it more rewarding.
 This is WPM in that it offers freedom and scope to the workers to use their judgment.
 But this form of participation is very basic as it provides only limited freedom to a worker concerning the method of performing his/her job.
 The worker has no say in other vital issues of concern to him – issues such as job and income security, welfare schemes and other policy decisions.

Participation through Suggestion Schemes:
 Employees’ views are invited and reward is given for the best suggestion.
 With this scheme, the employees’ interest in the problems of the organization is aroused and maintained.
 Progressive managements increasingly use the suggestion schemes.
 Suggestions can come from various levels.
 The ideas could range from changes in inspection procedures to design changes, process simplification, paper-work reduction and the like.
o Out of various suggestions, those accepted could provide marginal to substantial benefits to the company.
 The rewards given to the employees are in line with the benefits derived from the suggestions.

Participation through Quality Circles:
 Concept originated in Japan in the early 1960s and has now spread all over the world.
 A QC consists of seven to ten people from the same work area who meet regularly to define, analyze, and solve quality and related problems in their area.
 Training in problem-solving techniques is provided to the members.
 QCs are said to provide quick, concrete, and impressive results when correctly implemented.
 Advantages:
o Employees become involved in decision-making, acquire communication and analytical skills and improve efficiency of the work place.
o Organization gets to enjoy higher savings-to-cost ratios.
o Chances of QC members to get promotions are enhanced.
 The Indian Scenario:
o Tried by BHEL, Mahindra and Mahindra, Godrej and Boyce among others.
o Experienced mixed results:
 M&M (jeep division) with 76 QCs has experienced favourable results.
• Technical problems got solved.
• Workers got to get out of their daily routine and do something challenging.
 Trade unions look at it as:
• A way of overburdening workers, and
• An attempt to undermine their role.
 These circles require a lot of time and commitment on the part of members for regular meetings, analysis, brainstorming, etc.
 Most QCs have a definite life cycle – one to three years.
o Few circles survive beyond this limit either because they loose steam or they face simple problems.
 QCs can be an excellent bridge between participative and non-participative approaches.
 For QCs to succeed in the long run, the management needs to show its commitment by implementing some of the suggestions of the groups and providing feedback on the disposition of all suggestions.

Empowered Teams:
 Empowerment occurs when authority and responsibility are passed on to the employees who then experience a sense of ownership and control over their jobs.
 Employees may feel more responsible, may take initiative in their work, may get more work done, and may enjoy the work more.
 For empowerment to occur, the following approach needs to be followed as compared to the traditional approach:
Element Traditional Org. Empowered Teams
Organizational structure Layered, individual Flat, team
Job design Narrow, single task Whole process, multiple tasks
Management role Direct, control Coach, facilitate
Leadership Top-down Shared with the team
Information flow Controlled, limited Open, shared
Rewards Individual, seniority Team-based, skill-based
Job process Managers plan, control, improve Teams plan, control, improve

 Features of empowered or self-directed teams:
o Empowered to share various management and leadership functions.
o Plan, control and improve their work.
o Often create their schedules and review their performance as a group.
o May prepare their own budgets and co-ordinate their work with other departments.
o Usually order materials, keep inventories and deal with suppliers.
o Frequently responsible for acquiring any new training they might need.
o May hire their own replacement to assume responsibility for the quality of their products or services.
 Titan, Reliance, ABB, GE Plastics (India), Wipro Corporation and Wipro InfoTech are empowering employees – both frontline as well as production staff, and are enjoying positive results.

Total Quality Management:
 TQM refers to the deep commitment, almost obsession, of an organization to quality.
 Every step in company’s processes is subjected to intense and regular scrutiny for ways to improve it.
 Some traditional beliefs are discarded.
o High quality costs more.
o Quality can be improved by inspection.
o Defects cannot be completely eliminated.
o Quality in the job of the QC personnel.
 New principles of TQM are:
o Meet the customer’s requirement on time, the first time, and 100% of the time.
o Strive to do error-free work.
o Manage by prevention, not correction.
o Measure the cost of quality.
 TQM is called participative because it is a formal programme involving every employee in the organization; making each one responsible for improving quality everyday.

Financial Participation:

   This method involves less consultations or even joint decisions.
 Performance of the organization is linked to the performance of the employee.
 The logic behind this is that if an employee has a financial stake in the organization, he/she is likely to be more positively motivated and involved.
 Some schemes of financial participation:
o Profit-linked pay
o Profit sharing and Employees’ Stock Option schemes.
o Pension-fund participation.

Pre-requisites for successful participation:
 Management and operatives/employees should not work at cross-purposes i.e. they must have clearly defined and complementary objectives.
 Free flow of communication and information.
 Participation of outside trade union leaders to be avoided.
 Strong and effective trade unionism.
 Workers’ education and training. Trade unions and government needs to work in this area.
 Trust between both the parties.
 Workers should be associated at all levels of decision-making.
 Employees cannot spend all their time in participation to the exclusion of all other work.

Limitations of participation:

   Technology and organizations today are so complex that specialized work-roles are required.
o This means employees will not be able to participate effectively in matters beyond their particular environment.
 Everybody need not want participation.
 The role of trade unions in promoting participative management has been far from satisfactory.
 Employers are unwilling to share power with the workers’ representatives.
 Managers consider participative management a fraud.

4. Analyse the various causes of Industrial Accidents in India. What are the
necessary steps to be followed to reduce the Industrial accidents?
There are a just as many causes of industrial accidents as there are types of industrial accidents. The broad category of industrial accidents covers anything from small cuts and bruises to huge disasters that affect a large population of people. Approximately 120 million industrial accidents occur in the work place world wide each year. Approximately 210,000 of these accidents result in fatality. The industries which have the highest rate of accidents are the mining, construction, transportation, and agricultural industries. Construction accidents account for fifteen percent of all accidents and thirty percent of all fatalities in industrial work environments.
Causes of industrial accidents can be broken down into two broad categories: unsafe conditions and unsafe acts.
1.The causes of industrial accidents that pertain to unsafe conditions can include insufficient workspace lighting, excessive noise, slippery or unsafe flooring, extreme temperature exposure, inadequate protection when working with machinery or hazardous materials, unstable structures, electrical problems, machine malfunction or failure, and more.
2.The causes of industrial accidents that involve unsafe acts can include actions or failures to act which result in injury. This can be a result of employee negligence but employers, organizations, and product manufacturers can also be liable for the causes of industrial accidents.
The causes of industrial accidents can occur in the environment around the workplace or within the work environment. External causes of industrial accidents may include fires, chemical spills, toxic gas emission or radiation. The causes of industrial accidents in these cases might include organizational errors, human factors, abnormal operational conditions, natural forces, software or component failures, and outside interference. Internal causes of industrial accidents can involve equipment or other work related tangibles, harmful materials, toxic chemicals, and human error.
There are several ways that a worker can be injured in the work environment. Injuries that result from the causes of industrial accidents can include any one or combination of the following occurrences: falls, being struck by objects in motion, slides and cave ins, structure collapse, being trapped in or by an object, overexertion or strenuous physical actions, exposure to temperature extremes, electrical accidents, radiation exposure, and the inhalation, ingestion, or absorption of harmful substances. These industrial accidents can result in a number of injuries including superficial injury, fractures, sprains and strains, amputation, concussion, internal injury, poisoning, infection, and death.
The causes of industrial accidents are numerous. There are several cases where employee negligence is a factor in industrial accidents. As a general rule, worker''s compensation laws protect employers from lawsuits brought by injured employees. There are cases where an employer can be held liable for worker injuries if they had knowledge of unsafe conditions and failed to act in order to prevent injury. Injured workers may also be able to seek compensation for their injuries from the makers of faulty or dangerous industrial products. Victims of industrial accidents greatly benefit from consulting a personal injury lawyer who can advise them of their rights and options in a case.
Major accidents may generally be caused by human failures or errors, technical faults or external forces. They almost always result from a number of causes, mainly human failures, not only on the part of the operators immediately concerned, but also maintenance personnel, supervisors management, and plant and equipment designers and suppliers. Technical failures usually arise from human errors such as poor maintenance, overloading or improper use. Therefore attention should be directed more to preventing human errors and failures at all levels.
Often, one event or condition can lead to a number of faults or failures, called common cause failures. A poorly trained and instructed operator is likely to take wrong action. If a company does not have a well-organized training programme, it is probably because its management does not consider safety a first priority and does not devote adequate time and money to it. Not only operator training and instruction, but also technical safety and maintenance of the installation tend to be neglected.
The most dangerous common cause failures are of an organizational nature: in- sufficient management commitment to safety, lack of communication between departments, inadequate instruction and information to workers. The higher a common cause failure is located in the management hierarchy, the more harm it can lead to. Management should be fully committed to plant safety and its commitment made known to all personnel.
- Immediate consequences
The immediate consequences of a major accident may be many dead or injured, heavy damage to installations and buildings, and pollution and damage to the environment. Workers and the installations are mostly affected, but serious accidents can also endanger the nearby population and environment.
- Long-term consequences
A serious accident has long-term effects at three levels: the enterprise, the people living in the vicinity, and the environment.
The enterprise is affected by:
•   adverse public reaction
•   unfavourable publicity in the press, radio, and television
•   extensive repair or replacement, loss of production, interruption of supply to customers and break in relations with them
•   investigations by the judiciary, possibly generating further unfavourable publicity
•   lawsuits resulting in severe punishment of the guilty: heavy fines or prison terms
•   indemnification of the victims and their relatives
•   additional safety measures required by the competent authorities
•   increased insurance rates expenses for recruitment and training of new personnel.
As a result, the plant may have to be shut down for a long time, perhaps permanently.
People living in the vicinity of the accident may become permanently disabled or emotionally disturbed. Some chemical substances can cause illnesses that manifest themselves long after actual exposure. Besides damage to property near the plant site, the property value itself may decline as people may not want to live near a potentially unsafe area.
Hazardous substances released in the accident may be detrimental to the environment, animals, and vegetation: crops may be spoiled and water supplies polluted, land may not be suitable for cattle-grazing or crop qrowing for a long time.
Safe operation of major hazard installations
1. The primary responsibility for operating and maintaining the installation
safely should lie with works management.
2. Good operational instructions and sound procedures should be provided
and enforced by works management.
3. Works management should ensure that workers operating the installation
have been adequately trained in their duties.
4. Accidents and near misses should be investigated by works management
Emergency planning
1. Emergency planning should be regarded by works management and the
competent authorities as an essential feature of a major hazard control system.
2. The responsibility for on-site emergency planning should lie with works
management. Depending on local arrangements, the responsibility
for off site  emergency planning should lie with local authorities and works management.
3. The objectives of emergency planning should be:
(a)to localise any emergencies that may arise and if possible contain them;
(b)to minimise the harmful effects of an emergency on people, property and the
4. Separate plans should be established for possible emergencies on site and off site. These should give details of appropriate technical and organisational procedures to reduce the effects and damage:
(a)to people, property and the environment;
(b)both inside and outside the installation.
5. The emergency plans should be clear and well defined, and available for use quickly and effectively in the event of a major accident. On-site and off-site plans should be co-ordinated for maximum efficacy.
6. In industrial areas where available emergency equipment and manpower are limited, works management should attempt to make provisions for mutual assistance between the neighbouring industrial activities in the event of a major accident.

7. Siting and land-use planning
1. Competent authorities should make reasonable attempts to ensure that there
is appropriate separation between major hazard installations and:
(a)facilities such as airports and reservoirs;
(b)neighbouring major hazard installations;
(c)housing and other centres of population nearby.
8. Inspection of major hazard installations
1. Major hazard installations should be regularly inspected in order to ensure that the installations are operated according to the appropriate level of safety. This inspection should be carried out both by a safety team which includes workers and workers' representatives and separately by inspectors from competent authorities. Both types of inspection may be carried out in other ways where appropriate.
2. Safety personnel from the installation within this safety team should be independent of production line management and should have direct access to works management.
3. Inspectors from competent authorities should have the legal right to free access to all information available within the installation that is necessary in pursuit of their duties, and to consultation with workers' representatives.

Human and organisational errors
1. As human factors in the running of major hazard installations are of fundamental importance, both for highly automated plants and for plants requiring a great deal of manual operation, human and organisational errors and their influence on safety should be examined in detail by works management in co-operation with workers and their representatives.

2. The examination should consider such errors as:
(a)operator error (wrong button, wrong valve);
(b)disconnected safety systems because of frequent false alarms;
(c)mix-up of hazardous substances;
(d)communication errors;
(e)incorrect repair or maintenance work;
(f)unauthorised procedures, e.g. hot work, modifications.

3. This examination should also consider the reasons for human errors,
which may include:
(a)workers being unaware of the hazards;
(b)lack of or inadequate working procedures;
(c)workers being inadequately trained;
(d)inappropriate working conditions;
(e)conflicts between safety and production demands;
(f)excessive use of overtime or shift work;
(g)inappropriate work design or arrangements such as single-manned workplaces;
(h)conflicts between production and maintenance work;
(i)drug or alcohol abuse at work.

4. To reduce human and organisational errors, works management should provide workers with regular training in conjunction with clear operating instructions, as well as adapting work design and arrangements as appropriate.
3. Write an essay on statutory support for Collective Bargaining in India, bringing
out clearly how much the statutory support influences the effectiveness of
Collective Bargaining.

Dialogue with representatives of a union help striking a delicate balance in adjustments and settlement of various contentious claims and issues."  
These definitions only bring out the basic element in the concept i.e., civilized confrontation between employers and employees and the whole process is regulated by statutory provisions.

Collective Bargaining machinery essentially is a reflection of a particular social and political climate. The history of the trade union movement shows that union are affiliated to one or the other political parties. As a result most of the trade unions are controlled by outsiders. Critic says that the presence of outsiders, is one of the important reasons for the failure of collective bargaining in India.6
Outsiders in the Process of Collective bargaining:-
The Trade Unions Act, 1926, permits outsiders to be the office bearers of a union to the extent of half the total number of office bearers. So, it permits one to be the leader of the union who does not actually work in the industry. Sometimes a dismissed employee working as a union leader may create difficulties in the relationship
between the union and the employer. Nevertheless, experience shows that outsiders who have little knowledge of the background of labour problems, history of labour movement, fundamentals of trade unionism and the technique of the industry and with even little general education assume the charge of labour union and become the self-appointed custodian of the welfare of workers. The employers, therefore, have been reluctant to discuss and negotiate industrial matters with outsiders, who have no personal or direct knowledge of day to day affairs of the industry.
 Accordingly employees refuse recognition to the unions which are either controlled by the politicians or affiliated to a particular political party or controlled by a particular individual. Government cannot morally compel employers to accord recognition to unions without driving out the politicians from them. The State must outright ban "outsiders" from the trade union body. Further, provision for political funds by trade unions should be eliminated, since it invariably encourages the politicians to prey upon them. The National Commission on Labour has overlooked this aspect. The Commission does not favour a legal ban on non-employees for holding the union office. It says that without creating conditions for building up the internal leadership, a complete banning of outsiders would only make unions weaker. The Commission hopes that Internal leadership would develop through their education and training. Accordingly the Commission suggests proportion of the outsiders and the workers in a union executive. On realising the problems of outsiders in the Union, the Industrial Relations Bill, 1988 proposes to reduce the number of outsiders to two only.
Politicization of Trade-Union Movement in India:-
It is well known that the trade-union movement in India is divided on political lines and exists on patronage of various political Parties. Most of the trade-union organizations have aligned themselves with a political party with whom they find themselves philosophically close. It is because of this that the Indian National Trade Union Congress is considered to be the labour wing of congress, whereas H.M.S. is considered to be the labour wing of Socialist party. Bhartiya Majdoor Sangh pledges its allegiance to B.J.P. and C.I.T.U. has the support of C.P.I. (M). It is also the case with the AITUC which had started as a national organization of workers but subsequently came to be controlled by the Communist Party of India and is now it's official labour wing. Political patronage of trade-unions has given a new direction to the movement whose centre of gravity is no longer the employees or workmen. The centre has shifted towards it leadership whose effectiveness is determined by the extent of political patronage and the consequent capacity to obtain the benefit. This shifting centre of power is the necessary consequence of political parties search for workers votes, which they seek by conferring benefits on them. Since the public sector which is really the instrumentality of the State, has emerged as the biggest employer in this country, the collective bargaining -between the union patronized by the party-in-power and the employer has become an important methodology. It is because of this process that agreements conferring benefits are signed even in those units where financial losses are mounting. It is also our experience that in spite of wage increase end improved conditions of service, there has been no corresponding improvement in production or the productivity. Also,most of the losses are being passed on to the consumers by increasing prices of the products. It is in this context that Justice Gupta has, in his, 'Our Industrial Jurisprudence" made the following observations:“If our experience is any guide, it reveals that Ievel of increase in wages etc., ( in public sector undertaking )is now decided by the Bureau of Public Enterprises which takes into consideration only the Political impact and 'Consumer resistence' as two dominant factors. This is the reason why the prices of almost all products of necessity like coal, iron and steel, cement, sugar etc. have been constantly increasing. A survey of pending and decided industrial disputes of the last 10 years reveals that there was virtually no industrial dispute regarding wage structure or bonus in any industry of some significance.
There are also not many collective bargaining agreements which have tried to link wages with productivity. Clearly,therefore, the basic idea of ‘sharing the prosperity' which developed because of our commitment to the cause of 'social justice' is no longer current and the expected end product of the process of ' social justice ' is no longer expected. "7
The process of collective bargaining is not likely to succeed unless the threat of strike/lockout is there in the back-ground. Strike and lock-out are the weapons used by both the parties daring the collective bargaining process. Without having these weapons at hands, neither of the party to the dispute can defeat the claim of the other. The peculiar feature of our country while compared to the advanced nations of the world is that the economic conditions of the workers is very poor and as a result they can not afford a long-standing strike.
Critical Evaluation:-
In Indian labour arena we see, multiplicity of unions and Inter-union rivalry. Statutory provisions for recognizing unions as bargaining agents are absent. It is believed that the institution of collective bargaining is still in its preliminary and organisational stage. State, therefore, must play a progressive and positive role in removing the pitfalls which have stood in the way of mutual, amicable and voluntary settlement of labour disputes. The labour policy must reflect a new approach.Hitherto the State has been playing a dominant role in controlling and guiding labour-management relation through its lopsided adjudication machinery. The role of the industrial adjudicator virtually differs from that of a judge of ordinary civil court. The judge of a civil court has to apply the law to the case before him and decide rights and liabilities according to its established laws, whereas industrial adjudicator has to adjust and reconcile the conflicting claims of disputants and evolve “socially desirable" rights and obligations of the disputants. In deciding  industrial disputes the adjudicator is free to apply the principle of equity and good conscience.
However, it is said that the impact of the romantic attitude of the judiciary towards workers has not proved conducive to the peaceful industrial relations. It is accepted that the end of judicial proceeding is pain and penalties. It cannot solve the problems of industries.Accordingly it is said that,"While statutes, rules, regulations, pains and penaltieshave their place in the ordering of industry, they do not touch the core of the problems of industrial relations."8
Moreover, advocates of adjudication contend that as the collective bargaining procedure might end in a strike or lockout, which implies a great loss to the parties concerned and the country, so for the sake of industrial peace, the adjudication becomes necessary.
Industrial peace can be established by the adjudication for the time being. But the conflicts are driven deeper and it will retard industrial production. In the absence of effective collective bargaining the anti–productivity tendencies are bound to appear.
For an effective Collective Bargaining in India the following suggestions are made :
Ø Recognition of trade union has to be determined through verification of fee membership method. The union having more membership should be recognised as the effective bargaining agent.
Ø The State should enact suitable legislation providing for compulsory recognition of trade union by employers.
Ø Section 22 of the Trade Unions Act, 1926 should be amended.
Ø The provision for political fund by trade unions has to be done away with-since it unvariably encourages the politicians to prey upon the union.
Ø State has to play a progressive role in removing the pitfalls which stand in the way of mutual, amicable and voluntary settlement of labour disputes.
Origin & Development – Since Collective Bargaining is the off-shoot of Trade Union activity, it is
worthwhile to trace the origin of Trade Union first. The credit for organised labour movement in India goes to N.M. Lokhande, who was a factory worker himself. In 1884, he organised an agitation in Bombay and prepared a memorandum demanding limitation of working hours, a weekly rest day,
compensation for injuries etc. and in response of these demands a weekly holidays was actually granted by the mill owners of Bombay. In fact, in 1890, the Bombay Mill hands’ Association was organised with Lokhande as chairman and workers newspaper “Deenabandhu” was started36. The
trade union movement got its momentum at the close of the World War I and the period of 1918-21
was an epoch-making period in the history of Indian labour movement. The Madras Labour Union
(1918) founded by P.P. Wadia was the first India’s Trade Union37. By the year 1920 the Trade
Union had emerged on the Indian Scene in almost all the sector to protect the legitimate interests of
the working classes. Collective Bargaining formally started in 1920s in the textile industry in
Ahmedabad at the time when Mahatma Gandhi was introducing the concept of arbitration.
Collective Bargaining started because of failure of arbitration 38 . Thereafter, lots of collective
bargaining agreements were executed especially after Independence39. But there was little support
30 Id.
31 Supra Note 18
32 In Indian context, the relevant establishments for corporate level bargaining are BHEL, HMT, ONGC, IPCL, and Oil
India. (Id).
33 Id.
34 Id.
35 Id.

36 During this period, other associations were established which were not Trade Unions in the real sense of the term but
the establishment of such organizations germinated the seed of consciousness among the working class to fight for their
legitimate rights by constitutional method and leaders were either philanthropists or intellectuals. These organizations
were Amalgamated Society of Railway Servants of India and Burma (1897), Printers Union (1904), The Bombay Postal
Union (1907), The Kamgar Hitwardhak Sabha (1909), The Social Service League (1910) and The Press Employees

37 S.K. Puri, Labour & Industrial Law, 8th Ed. 2004 (Reprint), Allahabad Law Agency
38 The Royal Commission observed in 1931 that the Ahmedabad experiment was the only instance of collective
bargaining in India.
39 Some of the notable agreements include agreements signed by Ahmedabad Mill Owners Association and the
Ahmedabad Textile Labour Association, T.I.S.C.O, India Aluminium Company and Bata Shoe Company 1948, the
T.I.S.C.O and Tata Workers Union in 1956 etc. The National Joint Consultative Committee for the steel industry also
arrived at a number of agreements covering the wages structure and allied matters for different categories of employees.
for the growth of this practice, since neither British India nor Independent India made legal
provisions for collective bargaining 40 . Nevertheless, like many other countries, collective
bargaining in India got some impetus from various statutory provisions. The Trade Union Act, 1929,
the Bombay Industrial Relations Act, 1946, the Industrial Disputes Act, 1947, and the Madhya
Pradesh Industrial Relations Act, 1960 provided a machinery for consultation and paved the way for
Collective bargaining.
Validity & Recognition – The analysis of the following documents along with the decisions of the
Court justifies the legality and recognition of collective bargaining in India.
1. Industrial Disputes Act, 1947 – The Act is basically enacted for providing the mechanism for the
settlement of disputes41. According to Section 18 of the Act, “A settlement arrived at by agreement
between the employer and workman otherwise than in the course of conciliation proceeding shall be
binding on the parties to the agreement ….” Thus, settlement other than conciliation which may
take place by a binding agreement between the employer and the employee is nothing but an
implication of the collective bargaining agreement. In other words, Section 18 recognises collective
bargaining. In fact, the definition of settlement under the Act itself contains the element of
collective bargaining42.
In the case of Workmen of Dimakuchi Tea Estate vs. The Management of Dimakuchi Tea Estate43,
the examination of the salient provisions of the Act shows that the principal objects of the Act are –
“(1) the promotion of measures for securing and preserving amity and good relations between the
employer and workmen; (2) an investigation and settlement of industrial disputes, between
employers and employers, employers and workmen, or workmen and workmen, with a right of
representation by a registered trade union or federation of trade unions or association of employers
or a federation of associations of employers;….and (5) collective bargaining”.
Further, in Karnal Leather Karamchari Sanghatan (Regd.) vs. Respondent:Liberty Footwear
Company (Regd.) and Ors44, the Court laid down that the Act (Industrial Disputes Act, 1947) seeks
to achieve social justice on the basis of collective bargaining. The voluntary arbitration is a part of
infrastructure of dispensation of justice in the industrial adjudication. The arbitrator thus falls within
the rainbow of statutory tribunals. When a dispute is referred to arbitration, it is therefore, necessary
that the workers must be made aware of the dispute as well as the arbitrator whose award ultimately
would bind them. They must know what is referred to arbitration, who is their arbitrator and what is
in store for them. They must have an opportunity to share their views with each other and if
necessary to place the same before the arbitrator. This is the need for collective bargaining and there
cannot be collective bargaining without involving the workers. The Union only helps the workers in
resolving their disputes with management but ultimately it would be for the workers to take
Similar such agreement also exists for the coal mining industry.
40 Supra Note 13 (The National Commission on Labour (1969) remarked in 1969 that in the absence of arrangements
for statutory recognition of unions, except in some states, and provisions which require employers and workers to
bargain in good faith, it is no surprise that reaching of collective bargaining agreements has not made much headway in
our country).
41 The Preamble of the Act state as follows : “An Act to make provisions for the investigation and settlement of
industrial disputes and for certain other purposes”.
42 "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written agreement
between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent
to an officer authorised in this behalf by the appropriate Government and the conciliation officer” (Section 2(p))
43 AIR 1958 SC 353
44 Supra Note 10
decision and suggest remedies. It seems to us therefore, that the arbitration agreement must be
published before the arbitrator considers the merits of the dispute. Non-compliance of this
requirement would be fatal to the arbitral award.
In the case of Amalgamated Coffee Estates Ltd. vs. Workmen45, the Apex Court held that the
process of negotiated settlements is at the heart of the solution of the collective disputes. Unlike a
settlement in the course of conciliation proceedings, a bipartite settlement with a majority union is
equally binding if it is held to be fair and reasonable. Likewise, Central Provinces Transport
Services vs. Patwardhan46, the Court held that the Industrial Disputes Act essentially deals with
collective disputes.
2. Trade Union Act, 1926 – The Act provides for the registration of trade union and determines the
rights, liabilities and immunities of the union47. The primary purpose for the formation of the trade
union is to regulate the relations between the employer and employee or among themselves48 and it
is well established that collective bargaining is one of the means of regulating such a relation. In the
case of D.N. Banerjee vs. P.R. Mukherjee49, the court recognises collective bargaining. Justice
Chandra Shekhar Aiyer observed that “having regard to the modern condition of society where
capital and labour have organised themselves into groups for the purpose of fighting their disputes
and settling them on the basis of the theory that Union is Strength, collective bargaining has come
to stay”.
Further, in Tamil Nadu Electricity Workers Federation vs. Madras State Electricity Board50, the
Madras High Court observed that the whole theory of organised labour and its statutory recognition
in industrial legislation, is based upon the unequal bargaining power that prevails as between the
capital employer and in individual workman, or disunited workman. Collective bargaining is the
foundation of this movement, and it is in the interest of labour that statutory recognition has been
accorded to Trade Unions and their capacity to represent workmen, who are members of such
3. The Industrial Employment (Standing Orders) Act, 1946 – Standing Order is drafted by the
employer which contains the conditions of employment51. As per Section 3 of the Act, initially, the
employer needs to submit the draft standing order to the Certifying Officer which should be in
conformity to the model standing order as far as possible52. Thereafter, the said Officer forward the
45 1965 II LLJ 110 SC.
46 (1956) SCR 956.
47 The Preamble of the Act state as follows : “An Act to provide for the registration of Trade Unions and in certain
respects to define the law relating to registered Trade Unions”
48 “Trade Union” means for the combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workmen and employers or between workmen and workmen and or between employers
and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any
federation of two or more Trade Unions….” {Section 2(h)}
49 1 L.L.J. 1951 (SC)
50 AIR, 1965 Mad. 111
51 The Preamble of the Act state as follows : “An Act to require employers in industrial establishments formally to
define conditions of employment under them”
52 Submission of draft standing orders
“(1) Within six months from the date on which this Act becomes applicable to an industrial establishment, the employer
shall submit to the Certifying Officer five copies of the draft standing orders proposed by him for adoption in his
industrial establishment.
(2) Provision shall be made in such draft for every matter set out in the Schedule which may be applicable to the
industrial establishment, and where model standing orders have been prescribed, shall be, so far as is practicable, in
conformity with such model.
(3) The draft standing orders submitted under this section shall be accompanied by a statement giving prescribed
particulars of the workmen employed in the industrial establishment including the name of the trade union, if any, to
which they belong.
copy of the draft to the trade union or to the workmen, if there is no trade union for seeking
objections (if any) and after giving both the parties an opportunity of being heard, the Officer shall
certify the standing order with necessary modifications (if required) and shall send it copies to both
the parties53.
Thus, the process of framing of standing order clearly suggest that both the employer and the
employee takes part in it rather than it being in the hands and whims of either of them, though with
the help of the Certifying Officer who acts as a negotiator. In other words, framing of standing
order is a kind of negotiation with the help of the third person (Certifying Officer) which implies
the process of collective bargaining. In the case of Glaxo Laboratories vs. Labour Court54, Justice
Desai assesses the imminent need for the Act in his inimitable style: “In the days of Laissez-faire
when industrial relation was governed by the harsh and weighted law of hire and fire the
management was the supreme master, the relationship being referable to contract between unequals
and the action of the management treated almost sacrosanct. The Act, as its long title shows,
required the employers in industrial establishments to define with sufficient precision the conditions
of employment under them and to make the said conditions known to the workmen employed by
them. The contract was not left to be negotiated by two unequal persons but statutorily imposed”
4. The Constitution of India – The Constitution of India in the Chapters on Fundamental Rights and
Directive Principles of State Policy justify the legality of collective bargaining. In this context,
Article 19 permits to form association 55 which implicates the validity of trade union and as
mentioned above that one of the main purposes of trade union is collective bargaining. Further,
several Directives Principles56 also justifies the provisions for improving the conditions of the
labour in general and Article 43-A in particular provides that State shall ensure the participation of
workers in the management57. Although the said Directives are not directly enforceable in the court
of law, still its binding nature can by established with the help of some decisions of the Apex Court
of India. In Re Kerala Education Bill case58, the Supreme Court observed that though the directives
principles cannot override the fundamental rights, nevertheless, in determining the scope and ambit
of fundamental rights the court may not entirely ignore the directive principles but should adopt
(4) Subject to such conditions as may be prescribed, a group of employers in similar industrial establishments may
submit a joint draft of standing orders under this section” (Sec. 3)
53 Certification of standing orders
“(1) On receipt of the draft under section 3, the Certifying Officer shall forward a copy thereof to the trade union, if any,
of the workmen, or where there is no such trade union, to the workmen in such manner as may be prescribed, together
with a notice in the prescribed form requiring objections, if any, which the workmen may desire to make to the draft
standing orders to be submitted to him within fifteen days from the receipt of the notice.
(2) After giving the employer and the trade union or such other representatives of the workmen as may be prescribed an
opportunity of being heard, the Certifying Officer shall decide whether or not any modification of or addition to the
draft submitted by the employer is necessary to render the draft standing orders certifiable under this Act, and shall
make an order in writing accordingly.
(3) The Certifying Officer shall thereupon certify the draft standing orders, after making any modifications therein
which his order under sub-section (2) may require, and shall within seven days thereafter send copies of the certified
standing orders authenticated in the prescribed manner and of his order under sub-section (2) to the employer and to the
trade union or other prescribed representatives of the workmen”

55 “All persons shall have the right… form associations and unions……….”{Article 19(1)(c)}
56 See Articles 39, 41, 42 and 43 of the Constitution
57 Article 43-A inserted by 42nd Amendment to the Constitution provides that the State shall take steps by suitable
legislation or in any other way, to secure the participation of workers in the management of undertakings,
establishments or other organisations
engaged in any industry.
58 AIR 1957 SC 956.
“the principles of harmonious construction and should attempt to give effect to both as much as
Recognition – The willingness of an employer or of an employers’ association to bargain with a
particular union is known as the “recognition” of the union60. Thus, recognition is the process
through which management acknowledge and accept a trade union as representative of some or all
of the workers in an establishment or industry and with which it is willing to conduct discussions on
all issues concerning those workers. When this acceptance also includes the willingness of the
management to bargain with that union or unions, they may be termed as bargaining agent or
agents61. The National Commission on Labour attached considerable importance to the matter of
recognition of unions. The Commission stated that the provision for union recognition has been
realised is evident from the…Bombay Industrial Relations Act, 1946 and certain other state Acts
(Madhya Pradesh and Rajasthan), the amendments incorporated (but not enforced) in the Trade
Union Act62 and the Code of Discipline63, as also the fact that it was included in the Second Plan.
The Commission suggested a compulsory recognition of the union under a Central Law in all
undertaking employing 100 or more workers or where the capital invested is above a stipulated
size64. The Commission also recommended the rights of the recognised unions65. Nevertheless,
there is no law at the national level for recognition of trade unions. However, some States such as
Maharashtra66, Andhra Pradesh67, Madhya Pradesh68, West Bengal69 and Orissa have enacted the
legal provisions for the recognition. Thus, it is evident that in spite of absence of expressly centrally
enacted provisions on collective bargaining in India, there are enough protections for the relevance
of collective bargaining in India.
59 See Ranjan Dwivedi vs. Union of India (AIR 1983, SC 624), Kesavananda Bharti vs. State of Kerala (AIR 1978 SC
1461), Unni Krishnan vs. State of A.P. (1993) 1 SCC 645.
60 Supra Note 13
61 Supra Note 22
62 The Amendment Bill of 1947 provided that if a union was registered, held executive meetings at least once in six
months, had members from one establishment, then the employer would have to recognise through a registered
agreement. (Ibid).
63 See Annexure A of 16th Indian Labour Conference, (1958)
64 National Commission on Labour (NCL), Report of 1969, Ministry of Labour, Govt. of India. – The Commission also
recommended that a trade union seeking recognition should have at least 30% membership of the workers of an
establishment or 25% for an industry in a local area.
65 The rights in the Commission’s opinion includes the following :
1) The right to raise issues with the management,
2) Right to collect membership fees within the premises of the organisation,
3) Ability to demand check-off facility,
4) Ability to put up a notice board on the premises for union announcements,
5) Ability to hold discussions with employees at a suitable place within the premises,
6) Right to discuss members’ grievances with employer,
7) Ability to inspect beforehand a place of employment or work of its members and
8) Nomination of its representatives on committees formed by the management for industrial relations purposes as well
as in statutory bipartite committees.
66 The Bombay Industrial Relations Act, 1946 was the first Act for recognition of unions in specified industries like
textiles, sugar, transport, silk, banking. The Maharashtra Recognition of Trade Union and Prevention of Unfair Labour
Practices Act, 1972 provides for recognition in other industries if a union has 25% of the employees as members. (Supra
Note 22)
67 Andhra Pradesh was one of the first states to introduce secret ballot as a method of determining union membership,
through rules to Industrial Disputes Act. (Ibid)
68 Madhya Pradesh Industrial Relations Act, 1960, provides that a union should have 25% membership in an industry in
a local area for recognition, provided the union fulfils certain basic conditions.
69 The West Bengal (Trade Unions) Amendment Act, 1993, provides for the determination of bargaining agents and
their status through secret ballot to be conducted by the Registrar of Trade Unions
Collective Bargaining is the process of joint decision making and basically represents a democratic
way of life in industry. For the success of collective bargaining the process must begin with
proposals rather than demands and the parties should be ready and willing to compromise otherwise
the whole idea of collective bargaining would be frustrated70. In Indian context, the problem lies in
the fact that in the absence of any statutory provisions at Central Level for the recognition of a
representative trade union by an employer affects the bargaining power of the trade union. In
addition, besides, unorganised labour being a hurdle, the unions are generally weak. Rivalry on the
basis of caste, creed, and religion is another characteristic of Indian Trade Unions which come in
the way of successful collective bargaining. Further, division of union on the basis of political
ideologies and weak financial position retards the growth of Trade Unions71.
Therefore, it is recommended that India should provides for a recognition of the Trade Union at the
central level, so that peace and harmony with the management and workers can be maintained,
which in turn can provide better service to the community and hence lead to the growth and
development of the economy. In fact, India is under international obligations to provide effective
mechanism for collective bargaining72. In this regard, it is also recommended that India can ratify
ILO Conventions No. 87 of 1948 and No. 98 of 1949 – both of these conventions assure the right to
effective collective bargaining. In short, we may say that the time has come for repeating the history.
As per Sir Henry Maine, the progressive society move from status to contract. However, given the
necessity of collective bargaining as an effective tool for the settlement of industrial dispute, the
progressive society has to move otherwise i.e; from contract to status rather than from status to
70 Steps to improve the process of collective bargaining are:
1. Begin the process of negotiations with proposals, not demands.
2. Avoid taking public positions for or against certain proposals in advance of negotiations.
3. Avoid taking strike votes before the process of negotiation begins.
4. Give negotiation proper authority to bargain.
5. Avoid unnecessary delays in beginning negotiations and in conducting them.
6. Insist on offering facts and arguments.
7. Make plenty of proposals to enhance the opportunities to find compromises.
8. Be prepared to compromise.
9. Be prepared to get results gradually.
10. Preserve good manners and keep discussion focused on relevant issues.
11. Be prepared to stand for a long and hard strike or lock out (as the case may be) in order to force a settlement
justified by facts and arguments.
71 S.C. Srivastava, Industrial Relations and Labour Laws, 4th Ed., Reprint, 2002, Vikas Publishing House Pvt. Ltd., New
72 Article 8 of the International Covenant on Economic, Social and Cultural Rights (which India has ratified) laid down
that “the State Parties to the Covenant undertake to ensure the right of everyone to form trade unions and join the trade
union of his choice, subject only to the rules of the organization concerned, for the promotion and protection of his
economic and social interest. No restrictions may be placed on the exercise of this right other than those prescribed by
law and which are necessary in a democratic society in the interests of national security or public order or for protection
of the rights and freedoms of others……”



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