EMPLOYEE RELATIONS MANAGEMENT(ERM)

Employee Relationship Management (ERM) is a crucial aspect of

Human Resource Management that focuses on building and
maintaining positive relationships between employees and their
managers. Effective ERM can lead to higher employee
satisfaction, increased productivity, and reduced turnover.
Here are some key elements and benefits of ERM:
Key Elements of ERM
Communication: Open and transparent communication channels
between employees and management.
Feedback Systems: Regular feedback and recognition programs
to acknowledge employee contributions.
Professional Development: Opportunities for career growth and
skill development through training and mentorship programs.
Engagement Activities: Social events, team-building exercises,
and other activities to foster a sense of community.
Conflict Resolution: Mechanisms to address and resolve
workplace conflicts effectively.
effectively .
Employee Relationship Management (ERM) is the practice of maintaining
desired employee-employer relationships. It is a part of Human Resource
Management. The main goal of ERM is to build and maintain positive
connections among employees to ensure smooth business operations.

Benefits of ERM
Boosts Morale:
Morale: Positive relationships can enhance employee morale and
motivation.
Increases Productivity:
Productivity : Employees who feel valued and supported are often
more productive.
Reduces Turnover:
Turnover: Strong relationships can lead to higher employee retention
rates .
Encourages Leadership Development:
Development: ERM practices can help employees
develop leadership skills.

Implementing effective ERM strategies can create a more harmonious and

productive workplace
 ROLE OF HR IN ERM
Human resource management can play an important role in
building strong employee relationships. They can conduct
activities that allow employees to work with each other as
well as managers.
Between Co-workers
Peer relationships, can significantly improve your company’s
culture. When teams work together,
together, employees can learn
new skills, motivate each other and collaborate. Such a
healthy environment encourages employees to perform and
achieve their goals.
 Here’s how you can improve peer
relationships-
1. Build Cross-Functional Teams (CFT)
Cross-functional teams span across organizational boundaries. CFTs allow
employees from different departments to combine their skills and work
towards a common goal.
Building such teams can allow people from diverse departments who have never
worked together to get to know each other.

2. Encourage Social Interactions

The best way to get people to interact with each other is through food. At Vantage
Circle, we celebrate all major company milestones with mandatory team
lunches.
If you think about it, it’s extraordinary that employees come to work every
day, work at the same space but rarely talk to each other. At large corporations,
people usually keep to themselves. Even during lunch breaks, they eat at their
respective desks, scrolling through their phones, watching videos, etc.
3. Conduct Team Building Activities
The benefits of conducting team building activities are endless. It makes
communication among employees more frequent, improves problem-solving and
decision-making skills. Team building activities like a spirit week celebration can
also effectively add a pinch of fun and laughter in the workplace.
4. Equip them with Communication Tools
For relationships to form and sustain, employees need to communicate with each
other. Lack of communication can cause misunderstandings and as a result, give rise
to conflicts.

Between the Manager and the Employee

Employees often hesitate before sharing information with their managers. But
managers who can merge the gap between them and their employees without
being too friendly or too authoritative will build lasting relationships with their
employees.
1) Hold 1:1 Meetings
Different from a feedback or appraisal meeting, a 1-1 meeting is a face-to-face
interaction between the manager and the employee.

2) Conduct Surveys to Understand how Employees Feel

Surveys like engagement surveys, 360-degree surveys enable the organization to
understand the needs of the organization.
Between the Manager and the Employee
Employees often hesitate before sharing information with their managers. But managers
who can merge the gap between them and their employees without being too friendly or
too authoritative will build lasting relationships with their employees.

1) Hold 1:1 Meetings

Different from a feedback or appraisal meeting, a 1-1 meeting is a face-to-face interaction
between the manager and the employee.

2) Conduct Surveys to Understand how Employees Feel

Surveys like engagement surveys, 360-degree surveys enable the organization to understand
the needs of the organization.
3) Transparency and Involvement Must go Hand-in-Hand
Always be clear and transparent with your actions and the decisions you make. Another
very important pointer for your employee relationship management is involving employees.
 INDUSTRIAL RELATION
INTRODUCTION:-
The term industrial relations comprises two words, i.e. ‘industry’ and
‘relations’. The term ‘industry’ refers to any productive activity in the
organization in which the employees are engaged. On the other hand, the
term ‘relations’ refers to the relationship, which exists within the industry
between the management and the employees. The relationship between
management and employees within the organization within the
organizational settings is defined by industrial relations. Industrial
relations emerge directly or indirectly from management-trade union
relationships.
Characteristics of Industrial Relation

Following are the significant features of industrial relations:

1.Industrial relations are the result of employment relationships in industrial
enterprises.
2.Industrial relations introduced the concept and method of balancing and
cooperating.
3.Industrial relations formulate rules and regulations to maintain harmonious
relations.
4.The intervention of the Government to shape the industrial relation is made
through laws, agreements, rules, charters, etc.
5.Industrial relations incorporate both individual relations and collective relations.
Several parties play a role in industrial relations. The main parties are employees
and their organization, employers and their association, and government.
 Objectives of Industrial Relation
Following are the different objectives of industrial relation.

• To establish industrial peace.

• To safeguard the interests of both workers and management.
• To avoid industrial disputes.
• To raise the production capacity.
• To establish industrial democracy.
• To minimize the labor turnover rate and absenteeism.
• To safeguard the workers economic and social interests.
• To contribute to the economic development of the country through
productivity.
• To establish a full employment situation.
• To minimize strikes, lockout, Heroes, etc., by providing good working
conditions and fair wages to the workers.
 IMPORTANCE OF EMPLOYEE RELATIONS
1. Decreased employee turnover:-
When organizations make consistent efforts to improve and maintain the employer-
employee relationship, employee retention increases.
2. Improved coordination and communication:-
When there are no disputes among people, they will start to feel more comfortable
with their employers. They will feel more appreciated and positive relationships are
formed.
3. Reduces absenteeism:-
Proper communication and employee relation programs will solve the issues
employees are facing and makes sure employees start enjoying their work and
come to office again.
4. Improved employee experience:-
Employee engagement is increased when employees are serious and passionate about
their work. Increased engagement leads to satisfaction and improved productivity.
5. Creates a healthy workplace culture:-
Fewer workplace conflicts and good employee experience are the proof for a healthy
workplace culture. Employees come together to work for a common purpose and
feel secure about their work, employers, and peers.
 EMPLOYEE RELATIONS MANAGEMENT
TOOLS
1.Communication platforms:-
One of the most important tools for employee relations work is a
communication platform that allows you to communicate with your
employees in various ways, such as email, chat, video call, or group
message Some examples of communication platforms are Slack, Microsoft
Teams, Zoom, and Google Workspace.
2.Employee feedback tools
Another essential tool for employee relations work is an employee feedback
tool that allows you to collect and analyze feedback from your employees
on various aspects of their work experience, such as satisfaction,
engagement, performance, culture, and well-being. Some examples of
employee feedback tools are SurveyMonkey, Qualtrics, Culture Amp, and
15Five.
 3.Employee recognition tools

A third tool that can enhance your employee relations work is an employee
recognition tool that allows you to recognize and reward your employees for their
achievements, contributions, and behaviors. Some examples of employee recognition
tools are Bonusly, Kudos, Kazoo, and Achievers.

4.Employee learning tools

A fourth tool that can support your employee relations work is an employee learning
tool that allows you to provide your employees with learning and development
opportunities, such as courses, webinars, podcasts, or articles. Some examples of
employee learning tools are LinkedIn Learning, Udemy, Coursera, and Skillsoft.

5.Employee relations software

A fifth tool that can optimize your employee relations work is an employee relations
software that allows you to manage and track your employee relations cases, such as
complaints, investigations, disciplinary actions, or grievances. Some examples of
employee relations software are HR Acuity, ER Tracker, PeopleDoc, and Sympa HR.
 APPROACHES TO UNDERSTAND IR
The important approaches to industrial relations are as follows:-
1. Unitary Approach
2. Pluralistic Approach
3. Marxist Approach
4. Systems Approach
5. Sociology Approach
6. Gandhian Approach
7. Psychological Approach
8. V.V Giri Approach
9. Human Relations Approach
1.Unitary Approach
In this approach, the management is considered the main authority for
decision making and it is also responsible for ensuring peace and
harmony in the organization.
This theory believes that workplace conflict is temporary in nature, and is
a result of improper management in the organization.
2. Pluralistic Approach
The pluralistic approach assumes that the organization is consist of individuals who form
distinct groups with their own set of aims, objectives, leadership styles, and value
propositions and this kind of multi-distinct groups are responsible for the continuous scope
for conflict.
3. Marxist Approach
The Marxist approach is also known as the ‘Radical Perspective’, and as the name suggests it
is based on the ideas of Karl Marx.
The core of the Marxist approach is based on the idea that the economic activities of
production and manufacturing are major controlled by capitalists whose only objective is to
maximize their profit and exploit the workers.
4. Systems Approach
John T. Dunlop gave the systems theory of industrial relations in the year 1958.
According to him, human being belongs to a continuous but independent social system
culture that is responsible for shaping his or her actions, behavior, and role.
5. Sociological Approach
The sociological approach to industrial relations considers industry as an inseparable part of
society.
According to this approach, society impacts various work environment factors that are
economic, technical, and political factors of an enterprise and these determine what kind of
relationship is shared by the employer, employees, institutions, and government bodies.
6. Gandhian Approach
As the name suggests this approach was proposed by Mahatma Gandhi or Mohandas
Karamchand Gandhi.
Gandhian’s approach is focused on increasing production and gains from production
should be shared with the employees whom it has been possible.
7. Psychological Approach
As per the psychological approach, the main reason behind industrial disputes is the
different perceptions and mindsets, lack of trust, and negative feelings among the key
participants of industrial relations i.e., the employees and the management.
8. V.V. Giri’s Approach to industrial relations
This approach emphasized the importance of collective bargaining and mutual
negotiations between management and labor should be used to settle industrial
disputes.
9. Human Relations Approach to industrial relations
The human relation approach of Elton Mayo has laid considerable importance on
human behavior.
This approach analyzes the behavior of individuals and groups at the workplace and
also helps in modifying individual behavior toward the accomplishment of
organizational objectives.
 TRENDS OF INDUSTRIAL RELATIONS IN
INDIA
1. Labour Reforms:
The product market and capital market reforms has increased bargaining
power of the capital i.e. labour.
The labour reforms in the following:
i. Disinvesting instead of privatization.
ii. Liberalizing labour inspection.
iii. Amending trade union laws.
iv. Reducing interest rates on provident fund.

2. Judicial Trends:
From the era of ‘social justice’, ‘distributive justice’ and ‘discriminative
justice’, where the judiciary was for protecting the interest of workers.
The trend has been reversed with the advent of liberalization and
globalization, where our industries have to compete with the
multinationals.
3. Trade Unions Nexus:
The bargaining power of trade unions has been weakened earlier. IRS was mainly
concerned with trade unions, management and the government. But now the
consumers and community are also a part of dynamic Industrial Relations System (IRS).
4.Collective Bargaining:
In IRS, collective bargaining constitute one of the most important mechanism of rule-
making acceptable to both the employers as well as the workers.
5. Labor-Management Conflicts:
The globalization has brought significant changes in the labor market and the
industrial relations system. Both the actors (management and workers) have exerted
respective pressures on the government to introduce actions favoring their interests.
The government has responded to protect the dominant political interests while
announcing labor reforms.
6. Managerial Strategies:
The employers devised various managerial strategies to achieve labour flexibility,
weaken labour power, more control over production process, reduction in regular
workers via VRS, transfers, multi-tasking, freeze in employment, increased use of
contract labour, subcontracting etc., on both public as well as private enterprises.
7. Government Strategies:
In the positive direction, to boost the industrial harmony and economic activity, the
government has adopted two strategies namely disinvestment and deregulation,
which are expected to be mutually beneficial for the workers as well as the
management.
Disinvestments:
It refers to the action of an organization (or the government) selling or liquidating an
asset or subsidy.
It affects IRS in the following ways:
i. It changes ownership, which bring changes in the work organization and
employment and also in the trade union dynamics.
ii. It affects the rights of workers and trade unions by providing job security, income
security and social security.
iv. Disinvestment makes workers the owners by issue of shares.
v. It safeguards existing benefits and negotiate higher compensation for voluntary
separations.
Deregulation:
It is the process of removing or reducing state regulations. The reduction or
elimination of state regulation in a particular industry, is usually enacted to create
more competition in the industry. Deregulation is resorted to ensure similar
protection to public/government employees.
 FACTORS LEADING THE PRESENT STATE OF
IR
• Individual Behavior: This explains that every person has a different perception,
background, skills, knowledge, experience, and achievements which influences an
individual’s behavior.
• Organizational Structure: The hierarchical structure creates more formal
relationships among the employees belonging to different hierarchical levels in an
organization.
• Psychological Factors: This explains an employee’s attitude and mentality towards
the employer and the given task. And the employer’s psychology towards the
workers can be positive or negative.
• Leadership Style: Every manager possesses certain leadership traits and different
styles to function even in a formal organization to generate team spirit and
motivate the employees.
• Economic and Technical Environment: Organizations need to restructure the task
of the employees including their work duration, conditions, and wages for dealing
with the changes in the economic conditions or in their behavior, attitude,
adapting spirit, etc.
• Legal and Political Environment: The legal framework and political circumstances
influence the organization and its industrial relations contributing to the framing
of rules, rights, authority, powers, and responsibilities of all the parties of the
organization.
 IMPACT OF GLOBALIZATION ON THE
LIBERALIZED ECONOMY
Overall Impact of Globalization on India
• Globalization has brought numerous benefits to India. It has opened up
opportunities for trade and investment, leading to economic growth and
job creation.
• Indian society has experienced significant changes as traditional values
have clashed with Western influences. This cultural shift demands careful
consideration to preserve the unique identity of the nation.
• Globalization has posed environmental challenges for India. Increased
industrialization and consumption patterns have led to pollution and
depletion of natural resources. Sustainable practices must be
implemented to mitigate these adverse effects.
• To navigate the complexities of globalization effectively, it is crucial for
India to prioritize education at all levels.
• In conclusion, while globalization has undoubtedly brought progress and
opportunities for India.
 EMERGING CHALLENGES OF IR IN INDIA

1. Globalization
• Globalization has transformed the nature of work and created
new challenges for industrial and employment relations. Some
key issues include:
a)Off shoring and Outsourcing: The relocation of jobs to other
countries or the outsourcing of work raises concerns about job
security, wage differentials, and labor standards.
b)International Competition: Increased competition from global
markets puts pressure on organizations to streamline operations,
leading to potential conflicts over working conditions, wages, and
job stability.
c)Diverse Employment Practices: Harmonizing employment
practices across borders becomes challenging due to differences
in labor laws, cultural norms, and societal expectations.
2. Changing Workforce Demographics
The workforce demographics are undergoing significant shifts, presenting both opportunities
and challenges for industrial and employment relations. Some challenges include:
Generational Differences: Multiple generations, working together require strategies to address
varying work expectations, communication styles, and values.
Increasing Diversity: A diverse workforce brings together individuals from different
backgrounds, cultures, and identities, necessitating inclusive policies and practices that
embrace diversity and combat discrimination.
Skills Mismatch: Rapid technological advancements require reskilling and upskilling employees
to adapt to changing job requirements, posing challenges in talent development and managing
skill gaps.

3. Technological Advancements
Technological advancements bring opportunities for efficiency and productivity but also raise
concerns for industrial and employment relations. Some challenges include:
Automation and Job Displacement: The automation of tasks and the use of artificial
intelligence can lead to job displacement, requiring organizations to manage workforce
transitions and provide support for displaced workers.
Work-Life Balance: The constant connectivity enabled by technology blurs the boundaries
between work and personal life, resulting in challenges related to work-life balance and
employee well-being.
Privacy and Data Security: The collection and use of employee data raise concerns about
privacy, data protection, and potential misuse, necessitating robust policies and safeguards.
4 . Balancing Employee Rights and Organizational Interests
Striking a balance between protecting employee rights and addressing
organizational interests is an ongoing challenge. Some issues include:
Collective Bargaining and Labor-Management Relations: Negotiating fair
collective agreements while considering the financial viability and
competitiveness of organizations can lead to conflicts between labor
unions and management.
Employee Voice and Participation: Encouraging employee voice,
involvement, and representation without compromising organizational
decision-making processes can be challenging.
Job Security and Flexibility: Balancing the need for job security with the
demand for workplace flexibility and adaptability in the face of changing
market conditions poses challenges for both employers and employees.
 Linking IR with economic growth of a country

1.Continuous production
The greatest advantage of Industrial Relations is that they ensure
production continuity. This means everyone, from the manager to
employees, gets continuous employment. Utilizing all available
resources results in the highest possible output, meaning there is
a constant flow of income for everyone in the industry.
2.Reduce industrial conflicts
Good Industrial Relations increase employee harmony. Strikes,
lockouts, go-slow tactics and grievances are a few manifestations
of industrial disturbances that restrict the environment of
industrial peace. Good Industrial Relations prevent such
disturbances and help foster cooperation and increase output.
3.Save resources
Cooperation and mutual respect are the foundations for maintaining good Industrial
Relations. It is the basis of increased production with lower costs and higher profits. It
also results in improved employee productivity. Healthy Industrial Relations help
conserve resources, including Human Resources, materials and machines while
protecting the national interest.
4. Optimize the thought process
The primary purpose of Industrial Relations is to revolutionize the thought processes
of employees and employers. Both parties can view themselves as industry partners
and the role of employees in such a partnership can get recognition. This can help
employees respect their employer's authority and eventually help increase production
as they recognize each other's interests.
5.Improve morale
Positive Industrial Relations improve employee morale. Employees generally work with
enthusiasm when they believe that increasing production is in the employer's and
employee's best interests.
6.Economic
6. Economic Growth And Development: Good and harmonious industrial relations
result in increased efficiency and hence prosperity, which in turn minimize turnover
and other tangible benefits to the organization. This promotes economic growth and
development.
 TRADE UNIONISM
Meaning:
The trade union is an association, either of employees or employers or of
independent workers. It is a relatively permanent combination of workers
and is not temporary or casual.
It is an association of workers engaged in securing economic benefits for its
member’s Trade union formed in accordance with the law of their country
shall have the privileges given by the law of trade union.
Definition:
1.According to Webbs, a trade union is a continuous association of wage-
earners for the purpose of maintaining and improving the conditions of their
working lives.
2.Under the Trade Union Act of 1926, the term is defined as any combination,
whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workers and employers or for imposing
restrictive conditions on any trade or business and includes any federation of
two or more unions.
 FUNCTIONS OF TRADE UNION
• Militant or Protective or Intra-mutual functions: These functions include
defending the workers’ interests, i.e., hike in wages, providing more
benefits, job security, etc., through the means of collective bargaining and
direct action such as strikes, gheraos, etc.
• Fraternal or extramural functions: These functions include ensuring the
financial and non financial assistance available to workers during the
periods of strikes and lock-outs, extension of medical facilities during
slackness and casualties, provision of education, recreation, recreational
and housing facilities, provision of social and religious benefits, etc.
• Political functions: These functions include affiliating the union to a
political party, assisting the political party in enrolling members, amassing
donations, seeking the help of political parties during the periods of
strikes and lock-outs.
• Social functions: These functions include getting involved in social service
activities, discharging social responsibilities through various sections of
the society like educating the customers etc.
 TYPES OF TRADE UNIONS
Different types of trade unions include:
include:
• Craft Unions:
Unions: Membership is drawn from workers employed in a
particular craft or trade.
• Industrial Unions:
Unions: Workers form a union based on the same industry.
• Labor Unions:
Unions: General unions that do not have any compulsions to
become a member.
• General Unions:
Unions: Open to all workers.
• Blue-Collar Workers’ Unions:
Unions : Representing workers in manual or
industrial jobs.
• White-Collar Workers’ Unions:
Unions: Representing office or professional
workers.
• Reformist Unions:
Unions: Focused on improving working conditions.
• Friendly or Uplift Unions:
Unions: Aimed at social welfare and upliftment.
 Development of Trade Union
• The growth and development of labor movement and that of trade
unions in India can be studied under the following stages:
(1) Period up to First World War (from 1875 to 1918):
• Due to the development of large scale industries, many social evils like
employment and exploitation of woman and child labor erupted in India
who work in the deplorable conditions, more likely worse than the
conditions of labor in England.
• The first concerted action was taken in 1875 under the leadership of
Sorabji Shaparji to draw the attention of the Government to the
deplorable conditions of woman and child labor in Indian industries.
Strikes were not absent even in the 19th century. In 1877, workers of
The Empress Mills at Nagpur observed a strike over wage rates.
• One of the important incidents in the eighties was the holding of the
labor conference in 1884 in Bombay under the leadership of N.M.
Lokhande who was a factory worker. As a result, a mass meeting was
organized in Bombay on April 21, 1890 which was attended by about
10,000 workers.
(2) 1918 and ahead:-
ahead:-
The first organized trade union in India the Madras Labor union was
established in 1918.
Followed the organizational principles of the industrialized world.
Recognized as the early phase of labor unionism.
All India Trade union Congress is the oldest trade union federation,
founded in 1920, under the leadership of Lala Lajpat Rai, Joseph
Baptista, N.M. Joshi and Diwan Chaman Lall.
Lala Lajpat Rai was the first president.

(3)Emerging Phases-Post 1925 era:-

Witnessed increase in militancy and revolutionary activities.
Emergence of leadership like VV Giri, NM Joshi to moderate the
movement.
Legislative measures such as Trade Unions Act,1926 and the Trade
Disputes Act,1929 propelled the growth of trade union associations.
(4)Post 1935 era:-

Enhanced unity among different trade unions.

Political influence and leverage of the Indian National Congress across different states led to
growth and emergence of multiple organizations in this sphere.
Legislative measures were adopted to confer power and recognition to different trade unions.
The government of the day strived to promote industry on one hand while protecting the
interest of the workers.
Focus on securing wage and improved living conditions.
This era is also marked by resentment among unions for suppression of their protests as a law
and order issue by the state machinery, instead of reconciliation and workable resolution.

(5)World war – II and a new era in Labor Movement:-

Movement:-

The World War-2 further deteriorated the standard of living , coupled with skyrocketing
inflation of common commodities
Communists and the Congress witnessed a rift on the question of the War.
Movement came out stronger as this War affected the common populace very adversely.
Introduction of Industrial Employment Act, 1946 and Bombay Industrial Relations Act, 1946
marked an emergence and further strengthening of the Trade union movements.
The movements also lent their voice to the national struggle and identified themselves as a
crucial player in the national Struggle.
 (6)The Age of Post Independence-

• In the Post independence the Trade unions were more influenced by regional or
national political affiliations, thereby blurring their own position with respect to
the primary concerns of the workers.
• Witnessed rapid increase in numbers of trade Unions formed.
• Indian National Trade Union Congress was formed in 1947.
• Post liberalization the influence has attenuated to certain extent, coupled with
privatization of the economy.
• Labor code and minimum wage are still some demands remaining as contentious
issues to be addressed.
• Hind Mazdoor Sabha was formed in 1948.
• Bharatiya Mazdoor Sangh was founded in 1955.
• Although the four decades post independence has witnessed some prominent
labor union protests, post liberalization has somewhat seemingly affected its
acceptance among the common public.
• Further increase in unorganized sectors of the Economy due to various reasons
has led to increase in the membership base of the unions.
 STRUCTURE OF TRADE UNION

The main instruments of the trade union movement in India consist of

primary unions and of the large central organizations of trade unions(for e.
g. AITUC). In between these there are two types of organizations namely
industrial federations of unions(at the regional and the national
levels)and the state branches of central organizations.
Primary Unions:-
Primary unions are the basic units of the Indian trade unions. They recruit
their members, run the local offices and conduct industrial disputes. They
have made a broad classification of primary unions in India into following
three categories:-
1.Primary unions of industrial type;
2.Primary unions of general type; and
3.Primary unions of the craft type.
 Primary Unions of Industrial Type

On the basis of their units of organization, the primary unions are again
classified into:
a)plant level industrial unions/establishment-level Unions and
b) region-cum-industry level industrial unions
a) Plant-Level Industrial Unions /Establishment-Level Unions-This type of
union are most common in India. They cover a single plant and the
membership of these unions is open to all categories of workers of the
plant. They are some establishments which do not come under the
purview of the word 'industry'. Examples are: shops, agriculture.
personal services etc. The unions that form these establishments,
covering all categories of workers employed in them are therefore called
as Establishment-Level Unions.
b) Region-cum-Industry Level Industrial Unions -This type of unions cover
all categories of employees of a particular industry (irrespective of the
number of plants or the employers) located in a particular city/ region.
Examples are: Rashtriya Mill Mazdoor Sangh and Girni Kamgar Union
located in Mumbai.
 ii) Primary Unions of the General Type

The primary unions of the general type may be further classified

into two types;
• a) Employer-cum-local level general unions; and
• b) local-level general unions.
A union that is formed for all the categories of workers employed in a
variety of industries that are located in the same place and are
owned by a single employer is called as an employer-cum-local
level general union. Example: Rohtas Workers' Union of the Rohtas
Industries (covering such industries such as cement, sugar, paper,
chemicals. asbestos) located in Dalmianagar.
On the other hand, a union that is formed for all categories of
workers employed in a variety of industries that are located in the
same place, but are owned by different employers, is known as a
local- level general union. Example: Jamshedpur Labor Union.
 iii) Primary Unions of the Craft Type
Primary Unions that are organized at a local level or
regional level or national level on the basis of a
particular craft of a particular industry come under
this category of unions. In India, this type of unions
have come up in the coal, textile, port and dock,
railway, air transport, and Posts & Telegraphs
industries. In the coal industry, for example, the
Indian National Mines Over men, Surveyors, Sardars
Association is a prominent craft union operating at
the national level. However, the number of craft
unions prevailing in the country is quite insignificant.
 Industrial Federations
Workers belonging to a particular industry have certain
problems in common, which can at best be settled at the
industrial level. Some examples of the national level
industrial federations are: All India Coal Workers' Federation,
All India Bank Employees' Federation, National Federation of
Posts and Telegraph Employees, and All India Railway Men's
Federation. Industrial federations at the national level are
also existing in cotton textiles, sugar, chemicals, insurance,
engineering, iron and steel, and oil-refining industries.
 Central Federations
The central federations of trade unions are at the apex of the
trade union structure in India.
At present, there are 12 central trade union organizations/
federations in India. They are;-AITUC , INTUC, HMS, UTUC,
CITU, BMS, National Federations of Indian Trade Unions
(NFITU), Trade Union Coordination Committee (TUCC),
National Labor Organization (NLO), Hindu Mazdoor Kisan
Panchayat (HMKP), and Indian Federation of Free Trade
Unions (IFFTU). Out of these, the following 5 are
considered major: INTUC, BMS, HMS, AITUC, and CITU.
 Why employees join Trade unions?
Human beings are rational creature. They usually act upon
rationally in different spheres of their lives. Similarly, workers
join a union with a rationale approach whether joining a
union will be beneficial or not. Researchers have devoted a
great deal of time and effort to study “why do employees
choose to join a union.”

Major reasons among them are the following:

1. Job Security:
Employees need to have a sense of job security and want
to be sure that management will not make unfair and
arbitrary decisions about their employment.
2.Wages and Benefits:
The employees may think that the union, with its united strength, will ensure fair
wages at par with those of other workers in the community, benefits such as
medical facility, pensions, paid sick leave, vacations and holidays for them.
3.Working Conditions:
Employees like to work in a healthy and safe environment. Although there are
statutory provisions for providing employees a safe work environment employees
still feel more secured knowing that trade union is directly involved in safety and
health issues relating to them.
4.Fair and Just Supervision:
Trade unions that brought about a change or shift in leadership styles from
autocratic to democratic, or say, people oriented to ensure that the managers treat
their employees fairly, justly, and respectfully.
5.Powerlessness:
Employees individually often feel voiceless or powerless to bring about changes that
will benefit them’. But, it is union that provides them a powerful, collective voice to
communicate to management their dissatisfaction and frustration. This is based on
labor philosophy ‘unity is the strength”.
6.Need to Belong:
Man is a social animal. Hence, need to belong is strong in
both his personal and work lives. The union, from this point of
view, provides a mechanism for bringing people together not
only to promote common job-related interests but also to
organize programmes, functions, and social events from time
to time, to create a strong bond among the union members’.

To conclude, the management’s failure in ensuring job

security, fair remuneration, safe and healthy working
conditions, fair supervision, involvement in decision making,
sense of belonging etc., to employees motivates them to join
a union.
 Trade Unions in the Eyes of
Management
From the perspective of management, trade unions are viewed
with a mixture of cooperation, caution and sometimes
resistance, depending on the company’s context and labor
relations strategy. Here are some common views held by
management:
1.Negotiating partner:-
Some managers see trade unions as legitimate representatives
of the workforce. They view them as a structured way to
handle labor negotiations, such as wages, working conditions
and benefits.
2.Source of conflict or Tension:-
In some cases, management sees unions as adverse, especially if they believe the
unions demands are excessive or threaten the company’s profitability. They may
worry about strikes, work stoppages, or other forms of industrial action that
unions can initiate, which can disrupt business operations.
3.Cost impact:-
Unions push for higher wages, better benefits, and more comprehensive worker
protections. Some managers worry that unionized environments could impose
rigid rules that limit flexibility in managing employees, hiring or assigning tasks,
affecting overall productivity.
4.Collaboration and problem solving:-
Some companies work closely with unions, seeing them as partners in improving
conditions, increasing productivity and addressing employee concerns.
5.Regulatory Compliance:-
Trade unions also play a role in ensuring that management complies with labor
laws and regulations. While this can be seen as beneficial in preventing legal
disputes, it can also be viewed as a constraint on managerial autonomy.
 POLITICS AND TRADE UNIONS
• In India the association between trade unions and political
parties is so intimate that the cleavages in the labor
movement have also been considered as a function of the
unions ideological commitments. Trade union leaders and
political parties leaders should also take active steps to ensure
that workers are weaned away from disruptive political
leanings, so that genuine trade unionism may grow in country.
• In a democracy where decisions which are of vital concern to
labor are made according to the legislature. It is only through
political participation that labor can influence the larger
political and economic issues.
 Outside Leadership of Trade Unions problems

The nature of leadership significantly influences the union-management relations

as the leadership is the lynch-pin of the management of trade unions. The
leadership of most of the trade unions in India has been outside leadership
mainly drawn from political parties.
Reasons for emergence of outside leadership:
• Outside leadership has been playing a pivotal role in Indian Trade Union
Movement due to the inability of insiders to lead their movement. In view of
low education standards and poor command over English language which is still
the principal language of labor legislation and negotiations, low level of
knowledge about labor legislation, unsound financial position, fear of
victimization by the employer and lack of leadership qualities-outside leaders
have come to stay. The main reason for this trend is that the Trade Unions Act,
1926,[India] itself provided the scope for outside leadership.
• Section 22 of the Act requires that ordinarily not less than half of the officers of
the re-registered union shall be actively engaged or employed in an industry to
which the union relates. Thus, this provision provides the scope for outsiders to
the tune of 50% of the office bearers.
Measures to minimize the evil effects of outside leadership:

In view of the limitations of outside leadership, it is desirable to

replace the outside leaders progressively by the internal leaders. The
National Commission on Labor, 1969, also stated that outsiders in the
Trade Unions should be made redundant by forces from within rather
than by legal means. Both the management and trade unions should
take steps in this direction. The steps may be:
1. Management should assure that the victimization will be at zero
level, even if the
2. trade unions are led by insiders;
3. Extensive training facilities in the areas of leadership skills,
management
4. techniques and programmes should be provided to the workers;
5. Special leave should be sanctioned to the office bearers.
 THE TRADE UNIONS ACT,1926
According to the Trade Unions Act, 1926,
1926, ‘trade union’ means “ any
combination, whether temporary or permanent, formed primarily
for the purpose of regulating the relations between workmen and
employers or between workmen and workmen or between
employers and employers, or for imposing restrictive conditions on
the conduct of any trade or business, and includes any federation
of two or more trade unions”
unions”
In March, 1921, Mr.N.M.Joshi, the then General Secretary of the all
India Trade Union Congress successfully moved a resolution in the
Central Legislative Assembly that Government should introduce
legislation for registration and protection of trade unions. But
opposition from employers to adoption of such measure was so
great that it was only in 1926 that Trade Union Act was passed.
 Object of Trade Unions Act
The object of passing the Act was to make necessary
provisions in regard to the registration of Trade Unions and
to define the law relating to registered Trade Unions.
Registration of Trade Union
• Appointment of Registrars(Section
Registrars(Section 3)
• Mode of registration of trade union
• Application for Registration (Section 5)
• Rules for Registration of Trade Union (Section 6)
• Registration
• Certificate of Registration (Section 9)
• Advantages of Registration
• Cancellation of Registration (Section 10)
• Appeal (Section 11)
• Body Corporate (Section 13)
• The Objects on which General Funds may be spent (Section
15)
• Penalties and Procedure
 Appointment of Registrars(SEC-3)
As regards registration of a trade union, the Act empowers the appropriate Government
to appoint a person to be the Registrar of Trade Union for each state. The appropriate
Government may appoint as many additional and deputy registrar’s trade unions as it
think fit.
They shall work under the superintendence and direction of the Registrar. The
appropriate Government shall specify and define the local limits within which any
additional and Deputy Registrar shall exercise and discharge his powers and functions.
Mode of registration of trade union
The registration of a trade union can be made under this Section 4 of the Indian Trade
Unions Act, 1926 Act which says that any seven or more members of a trade union may
by subscribing by their names to the rules of trade union and by otherwise complying
with the provision of this Act with respect to registration, apply for registration of the
trade union.
Application for Registration(SEC-5)
For registration of a trade union, seven or more members of the union can submit their
application in the prescribed form to the Registrar of trade unions.
The application shall be accompanied by a copy of the ‘rules of the trade union’ and a
statement giving the following particulars:
• Names, occupations and addresses of the members making the application;
• The name of the trade union and the address of its head office;
• The titles, names, ages, addresses and occupations of the office bearers of the trade
union as per the format given in the Trade Unions Act 1926.
Registration(SEC-8)
The Section 8 of the Indian Trade Unions Act, 1926 prescribes a duty on the Registrar to
register the trade union if all the requirements of the Act with regard to registration have
been complied with. The Registrar will, in such a case enter the particulars relating to the
trade union in a register maintained in the prescribed form.
The Registrar has the powers to examine whether the Union is to be registered or not and
after fulfilling the conditions prescribed in the Act and the Registrar will have to make the
registration of the trade union.

Certificate of Registration(SEC-9)
The Registrar, on registering a Trade Union, shall issue a certificate of registration which
shall be conclusive evidence that the Trade Union has been duly registered under the Act.
It is obligatory on the part of the Registrar to register a Trade Union provided the
provisions of the Act are complied with. He is not entitled to question whether the Union
is lawful or unlawful.

Appeal(SEC-11)
Section 11 of the Act gives a limited right of appeal from the decisions of the Registrar.
Any person who is aggrieved by the refusal of the Registrar to register a Trade Union or
the withdrawal or cancellation of certificate of registration is given the right of appeal.
The appeal must be within 60 days of the date of which Registrar passed the order
against which appeal is made.
 Trade Union Amendment Bill,2019
The Trade Unions (Amendment) Bill, 2019 was introduced in Lok Sabha on January 9. The
Bill amends the Trade Unions Act, 1926, which provides for the registration and regulation
of trade unions.

Recognition of Trade Unions

The Bill seeks to provide for recognition of trade unions or a federation of trade unions at
the central and state level by the central and state government, respectively.
Such trade unions or the federation of trade unions will be recognized as Central Trade
Unions or State Trade Unions, as the case may be.

Objectives of Trade Union

The major objectives of trade union are the following:
• Better wages & working conditions and promotion of Industrial peace.
• Protection against Exploitation and Victimization.
• Representation (Workers’ Interests).
• Negotiation (Collective Bargaining).
• Voice in decisions (Lay off, Retrenchment) affecting workers.
• Member Service (Education, Training, Welfare, Discounts, Loans).
 Registration of a Trade Union
Registration of a Trade Union is compulsory but desirable since a registered trade union
enjoys certain rights and privileges under the act.

Section 4 of the act provides provisions for modes of registration. This section stipulates
that for the purpose of registering a trade union, there should be a minimum of seven
members. In order to summarize, Section 4 of the Act talks about two conditions
required to fulfill the registration of a trade union, which are as follows:
• The requirement of seven or more members as signatories connected therewith
• Provided that there are 100 or 10%, whichever is less, employed in the industry or
establishment.
Notably, section 4(2) of the Act provides that the application for registration may
become invalid if more than half of the applicants have ceased to be members of the
trade union or have dissociated themselves from the application. The provision affects
the application as invalid at any stage but before the registration of the Trade Union.
 INDUSTRIAL DEMOCRACY
Industrial democracy is a model of organizational design that features the direct or
indirect participation of workers in the decision-making process of an
organization’s operations. This concept extends democracy from the political
sphere into the workplace, advocating for employee involvement in decisions that
affect their working conditions, including health and safety measures, work
schedules, and organizational policies.
Industrial democracy plays a crucial role in fostering a sense of belonging and
ownership among employees towards their workplace. By involving employees in
decision-making processes, organizations can benefit from diverse perspectives
and ideas, leading to innovative solutions and improvements in workplace
conditions. This participatory model also enhances job satisfaction, boosts morale,
and can lead to greater productivity and efficiency. Furthermore, industrial
democracy can lead to better labor-management relations by addressing
grievances and conflicts through constructive dialogue and cooperation, rather
than confrontation.
 Participative management
Participative management is a management style that aims to
involve employees in the decision-making process. It is based on
the principle that employees who are directly involved in the work
processes are best suited to make decisions that affect their work.
Participative management recognizes that employees have a
wealth of knowledge and experience that can be tapped
to improve organizational performance. By involving employees in
decision-making, organizations can harness the creativity and
innovative potential of their employees.
 CASE STUDIES
THE CHANGING ROLES OF TRADE UNIONS IN INDIA: A CASE STUDY OF
NATIONAL THERMAL POWER CORPORATION (NTPC), UNCHAHAR
ABSTRACT:- Trade unions are a major component of the system of modern
industrial relations in any nation, each having, in their constitution, their
own set of objectives or goals to achieve. Change in the political, social and
educational environment has seen them rechristened as a forum that
protects and furthers workers' interests and improves the quality of life of
workers, enlarging their traditional roles of establishing terms and
conditions of employment. This paper focuses on plant level trade unions,
particularly those of the National Thermal Power Corporation (NTPC)
Unchahar plant, one of the largest and best Public Sector Undertakings of
India. This exploratory study of the different trade unions operational at
the Unchahar plant will also highlight their ideologies, objectives and
structures. We aim to capture the changing paradigms in the roles of plant-
level unions: from maintaining good industrial relations, once considered
their primary role, they now work actively to improve the quality of life of
workers, a role earlier considered to be secondary.
TRADE UNIONS AT NTPC
There are around 1200 employees at Unchahar Power Station (hereafter also
referred to as the Plant or Power Station), of which 693 are of workman grade.
Since a majority of workers is striving towards efficient and effective running of
the Plant, it has become essential to develop a healthy work environment
through cordial relations between workers and management.
At the national level, union-management relations at NTPC are governed through
the National Bipartite Committee (NBC), consisting of four CTUO nominees: the
All India Trade Union Congress (AITUC), Bhartiya Mazdoor Sangh (BMS), the
Centre of Indian Trade Unions (CITU) and the Indian National Trade Union
Congress (INTUC), with representatives of unions from various union stations
from one side, and management representatives on the other.
Major Unions at NTPC, Unchahar
There are four major unions at the Unchahar Power Station: NTPC Power
Karamchari Sangh, NTPC Employees' Union, NTPC Mazdoor Sangh and NTPC
Electric Employees union.
NTPC Power Karamchari Sangh
Presently the NTPC Power Karamchari Sangh is the representative union in the
NBC, as per the last elections held. Earlier it was called 'NTPC Pravidhik
Karamchari Sangh'. Affiliated with the Centre of indian trade union(CITU) and
inspired by the CPI(marxist).
NTPC Employees Union
This union is affiliated with the INTUC and has adopted the ideologies of the Congress
party.. It began its operations on 28 April 2000. The Employees Union negotiates with
management at the plant level. It has 140 members as of the last elections.

NTPC Mazdoor Sangh

Before NTPC took over the Unchahar Station, this Union was regarded as UP Vidyut
Mazdoor Sangh. Subsequently, in the year 2001, NTPC Mazdoor Sangh became affiliated
with the Bhartiya Mazdoor Sangh, and has adopted the principles of Bhartiya Janta Party
(BJP). It also negotiates with management at the plant level. There are 138 members of
this union.

NTPC Electric Employees Union (EEU)

Before the takeover of the Plant by NTPC, this union was known as NTPC Hydro Electric
Employees Union (HEEU). It came into operation at NTPC Unchahar on 28 April 2000, and
became affiliated with INTUC in 2005. The EEU has adopted its constitution from the
philosophies of the Congress Party. As of the 2007–2008 elections, there were 185
members in the Union. It is in the minority since it receives less than 10% of the vote in
the last election, and hen
Other Unions at NTPC, Unchahar Other recognized unions of NTPC, Unchahar include
Feroze Gandhi Urja Thermal Power Plant (FGUTPP) Pariyojna Karamchari Sangh
(independent), FGUTPP Pravidhik Karamchari Sangh (independent), UP Vidyut Mazdoor
Sangh (affiliated to Bhartiya Mazdoor Sangh) and NTPC Shramik Sangh (affiliated to
UTUC). Unions that are not recognized include the UP Vidyut Panchayat and NTPC
Workers Association.