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Index
Trade Unionism ..............................................................26
CHAPTER - 1......................................................................... 7 Definitions ......................................................................26
Industrial Relation: Understanding the Dynamics Pre-Independence Period ........................................27
of Work and Employment ............................................... 7
1918-1924: The early trade union phase ...........28
Foundation of Industrial Relation ............................ 7
1925-1934: Period of left-wing trade
Definitions of Industrial Relation ............................. 7 unionism .........................................................................28
Linkage between human resource management 1935-1938 Phase .........................................................28
and industrial relations ................................................ 8
1939-1946 Phase .........................................................29
Role of State in Union-management
1947-present: Post-independence trade
Relations ........................................................................ 10
unionism .........................................................................29
Few acts that the state uses to regulate
Central trade union organisations in India ........30
union-management relations............................ 10
Indian National Trade Union Congress
Latest labour codes in India ............................... 10
(INTUC) .......................................................................30
Pre Independence days ....................................... 11
All India Trade Union Congress (AITUC) ........30
The Second Five Year Plan (1956-1961) ........ 11
Bharatiya Mazdoor Sangh (BMS) ......................30
The Sixth Five Year Plan (1980-85) .................. 12
Hind Mazdoor Sabha (HMS) ..............................30
Psychological Approach to Industrial
Centre of Indian Trade Unions (CITU) .............30
Relations ........................................................................ 13
All India United Trade Union Centre
Sociological Approach to Industrial Relations. 14
(AIUTUC) ....................................................................30
The Gandhian Approach to Industrial
The main provisions of the Trade Unions Act,
Relations ........................................................................ 14
1926 are as follows .....................................................30
The socio-ethical approach to industrial
Timeline ......................................................................32
relations.......................................................................... 15
Registration of trade union .....................................33
Industrial Relations Approach/ Dunlop’s system
Theory ............................................................................. 15 Constitution of work committee ...........................34

Oxfords approach ....................................................... 16 Recognition of negotiating trade union.............34

HR Approach to Industrial Relations ................... 16 Grievance redressal committee .............................34

Comparisons on differing Approaches .............. 17 Standing orders ...........................................................34

Political and apolitical theories of industrial Strikes and lock-outs .................................................35

relations.......................................................................... 19 Change in the conditions of service.....................35
Miller and Form’s Model ........................................ 20 Retrenchment ...............................................................35
CHAPTER – 2 ..................................................................... 26 LAY-OFF ..........................................................................36

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Closure ............................................................................ 36 Common’s Environment Theory ............................45
Exemptions.................................................................... 36 Mitchell’s Economic Protection Theory of Trade
Difference between Registered and Recognised Unionism ........................................................................45
Trade Union .................................................................. 36 Simons Theory of Monopolistic, anti-
Trade Union Recognition......................................... 37 Democratic Trade Unionism ...................................46

Recognition of the Trade Unions in the Absence Perlman’s Theory of the “Scarcity
of Law .............................................................................. 38 Consciousness” of Manual Workers.....................46

Check-off ................................................................... 38 Tannenbaum’s Theory of Man Vs. Machine......47

Secret ballot ............................................................. 38 Kerr, Dunlop, Harbison and Myers .......................47

Verification of membership through Labour Mahatma Gandhi theory ..........................................47

Department .............................................................. 39 CHAPTER – 3 ......................................................................53
Role of ILO in Recognition of Trade Unions..... 39 Industrial Disputes: Sources, Strikes and
Voluntary Recognition and Statutory Lockouts ..............................................................................53
Recognition................................................................... 40 Definition ........................................................................54
Constitution and Recognition of Trade Industrial unrest ...........................................................54
Unions ............................................................................. 40 Industrial peace............................................................55
Trade Union Rivalry ............................................... 41 Industrial Discipline ....................................................55
Craft Unions ............................................................. 41 Industrial Jurisprudence............................................56
Industrial Unions .................................................... 41 Objectives.......................................................................56
Labour Unions ......................................................... 41 The Act also lays down .........................................56
General Unions ....................................................... 42 Significance of Industrial Dispute Act, 1947 .....57
Blue-Collar Workers’ Unions .............................. 42 The Industrial Disputes Act, 1947 is significant
White-Collar Workers’ Unions........................... 42 for several reasons .................................................57
Reformist Unions.................................................... 42 Important definitions .................................................57
Friendly or Uplift Unions ..................................... 42 Wages ..............................................................................58
Closed Shop ............................................................. 43 Public utility service ....................................................58
Union Shop............................................................... 43 Machinery for settlement of industrial
Preferential Shop.................................................... 43 disputes...........................................................................59

Maintenance Shop................................................. 43 Section 2 ....................................................................60

Agency Shop ............................................................ 43 Works committees .................................................61

Open Shop................................................................ 43 Conciliation officers ...............................................61

Political Revolutionary Theory of Labour Board of conciliation .............................................61

Movement of Marx and Engels ............................. 43 Court of enquiry ......................................................62
Webb’s Theory of Industrial Democracy ........... 44 Labour Courts ..........................................................62
Cole’s Theory of Union Control of Industry...... 44 Tribunals.....................................................................62

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National tribunals Section 7B ............................ 62 Powers of the Appropriate Government to
Disqualifications for the managing refer disputes to arbitration, Section 23 ........67
workplaces of work courts, tribunals and Powers of the Appropriate Government to
national tribunals Section 7C............................. 63 make rules, Section 24 ..........................................68
Qualifications, terms and conditions of Section 25 ..................................................................68
service of Presiding Officer, Section 7D ........ 63 Penalty for illegal strikes and lock-outs,
Filling of vacancies Section, Section 8............ 63 Section 26 ..................................................................70
Finality of orders constituting Boards, etc, Penalty for instigation, etc., Section 27 ..........70
Section 9 .................................................................... 63 Penalty for giving financial aid to illegal
Notice of change, Section 9A ............................ 64 strikes and lock-outs, Section 28 ......................70
Power of Government to exempt. Section Penalty for breach of settlement or award,
9B ................................................................................. 64 Section 29 ..................................................................70
Setting up of Grievance Settlement Penalty for disclosing confidential
Authorities and reference of certain individual information, Section 30 ........................................70
disputes to such authorities, Section 9C ....... 64 Penalty for closure without notice, Section
Reference of disputes to Boards, Courts or 30A ...............................................................................70
Tribunals, Section 10............................................. 65 Penalty for other offences, Section 31............70
Voluntary reference of disputes to arbitration, Offence by companies, etc., Section 32 .........71
Section 10A .............................................................. 65
Conditions of service, etc., to remain
Section 11, 11A, 12,13, 14,15 (Explained unchanged under certain circumstances
above)......................................................................... 66 during pendency of proceedings., Section
Form of report or award, Section 16 .............. 66 33 ..................................................................................71
Publication of reports and awards, Section Cognizance of offences, Section 34.................71
17 ................................................................................. 66 Protection of persons, Section 35 ....................71
Commencement of the award, Section 17A 66 Representation of parties, Section 36 .............71
Payment of full wages to workman pending Protection of action taken under the Act,
proceedings in higher courts, Section 17B... 66 Section 37 ..................................................................71
Powers and Functions of Labor Courts, Power to make rules, Section 38 ......................71
Section 18 ................................................................. 67
Delegation of powers, Section 39 ....................72
Powers and Functions of Industrial Tribunals,
Power to amend Schedules, Section 40 .........72
Section 19 ................................................................. 67
Classification of strike ................................................73
Reference of Disputes to National Tribunals,
Section 20 ................................................................. 67 On the Basis of Consent of Union ....................73
Powers of Labor Courts, Industrial Tribunals, Types of strike on the Basis of Tactics Used to
and National Tribunals, Section 21 ................. 67 Halt Work...................................................................74
Powers of the Appropriate Government to Types of strike on the Basis of Miscellaneous
prohibit strikes and lockouts, Section 22 ...... 67 Purposes.....................................................................75
Lock out ..........................................................................76

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Industrial relations code, 2020 provisions Preparation of draft standing orders by
(CHAPTER VII: STRIKES AND LOCKOUTS) ......... 76 employer and procedure for certification..........91
Unfair Labour Practices (The second Certifying officer and appellate authority to
schedule) ........................................................................ 78 have powers of civil court ........................................92
Unfair labour practices on the part of Appeals ...........................................................................92
employers and trade unions of employers. . 78 Date of operation of standing orders and its
Unfair labor practices on the part of workmen availability ......................................................................92
and trade unions of workmen. .......................... 79 Register of standing orders .....................................92
Permanent conciliation services for particular Oral evidence in contradiction of standing
geographical areas or industries both at the orders not admissible ................................................93
central and state levels ............................................. 80
Interpretation, etc., of standing orders. ..............93
Boards of Conciliation at the central and state
Power to exempt .........................................................93
levels ................................................................................ 81
Conciliation officers ....................................................93
Courts of Enquiry at the central and state
levels ................................................................................ 81 Industrial Tribunal .......................................................93
Adjudication Authorities consisting of Tribunals Finality of constitution of Tribunal .......................95
and Labour Courts at the central and state National Industrial Tribunal .....................................95
levels ................................................................................ 82
Decision of Tribunal or National Industrial
National Tribunals at the central level: ............... 82 Tribunal ...........................................................................95
Workers’ Participation in Management ............. 82 Disqualifications for members of Tribunal and
Collective Bargaining ................................................ 82 National Industrial Tribunal .....................................96
The collective bargaining process usually Procedure and powers of arbitrator, conciliation
involves the following steps............................... 82 officer, Tribunal and National Industrial
Tribunal ...........................................................................96
Grievance Procedure ................................................. 83
Powers of Tribunal and National Industrial
Tripartite Bodies .......................................................... 83
Tribunal to give appropriate relief in case of
Code of Discipline ...................................................... 84 discharge or dismissal of worker...........................97
The code of conduct ............................................. 84 Transfer of pending cases ........................................97
Standing Orders .......................................................... 85 Adjustment of services of presiding officers
Grievance Procedure ................................................. 86 under repealed Act .....................................................98
Open door policy ................................................... 87 Conciliation and adjudication of dispute ...........98
Step ladder policy .................................................. 87 Reference to and functions of National
Grievance Procedure in India ................................. 87 Industrial Tribunal .......................................................99

Grievance Machinery ................................................. 88 Form of award, its communication and

commencement ...........................................................99
Application of this Chapter ..................................... 90
Payment of full wages to worker pending
Making of model standing orders by Central
proceedings in higher Courts .............................. 100
Government and temporary application. .......... 91

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Persons on whom settlements and awards are Features of Employee Absenteeism .................. 132
binding ......................................................................... 100 Fluctuating Rate of Absenteeism................... 132
Period of operation of settlements and Type of Shift Affects Absenteeism ................ 132
awards ........................................................................... 101
Type of Industries Affects Absenteeism ...... 132
Recovery of money due from employer .......... 101
Absenteeism according to the Months ....... 133
Commencement and conclusion of
Classification of Absenteeism .............................. 133
proceedings ................................................................ 102
Employee Absenteeism Rate and its
Certain matters to be kept confidential ........... 103
calculation ................................................................... 133
Chapter 4 .......................................................................... 108
Causes of Absenteeism .......................................... 134
Workers Participation in Management ........... 108
Maladjustment at Work Place......................... 134
Definition ..................................................................... 108
Unhealthy Working Conditions ...................... 134
Approaches to study Workers' Participation in
Social and Religious Ceremonies .................. 134
Management .............................................................. 109
Industrial Fatigue ................................................. 134
Forms ........................................................................ 110
Inadequate Welfare Facilities .......................... 135
Evolution ...................................................................... 112
Alcoholism .............................................................. 135
Works Committees (1974)..................................... 112
Inadequate Leave Facilities .............................. 135
Joint management councils (1958) .................... 113
Age ............................................................................ 135
Board-level Participation ....................................... 114
Absence of Housing and Transport
Shop Councils and Joint Councils under old 20-
Facilities ................................................................... 135
point Councils in Commercial and Service
Organizations in the Public Sector (1975) ....... 114 Management Systems ....................................... 135
Chapter-5 ......................................................................... 122 Rural Ties ................................................................ 135
Collective Bargaining ................................................ 122 Indebtedness ......................................................... 135
Definition ..................................................................... 122 Effects of Employee Absenteeism ...................... 135
Types of Bargaining/Structure of CB................. 122 Measures to Control Absenteeism .................... 136
Structure .................................................................. 122 Methods for finding Labour Turnover ............. 137
Stages of Collective Bargaining .......................... 123 Simple Labor Turnover Method ..................... 137
Conciliation ................................................................. 124 Separation Method ............................................. 137
Hindustan Lever Ltd. V Hindustan Lever Replacement Cost Method .............................. 137
Employees Union, 1999 .......................................... 126 Survival Rate Method ......................................... 137
Mrf United Workers Union V State of Tamil Effects of Labour Turnover ................................... 138
Nadu, 2009 .................................................................. 126
Types of Labour turnover ...................................... 138
P. Virudhachalam&Othrs. V The Management
Causes of Labour Turnover .................................. 139
of Lotus Mills .............................................................. 126
Avoidable Causes ................................................ 139
Chapter 6 .......................................................................... 132
Unavoidable Causes ........................................... 140
Absenteeism and Labour Turnover ................... 132

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Personal Causes .................................................... 140 Tripartism and social dialogue ............................ 152
Effects ............................................................................ 141 Main bodies................................................................ 152
Adverse Effects ...................................................... 141 Standards supervisory system ............................. 153
Positive Effects ...................................................... 141 Partnering for development................................. 153
CHAPTER 7 ....................................................................... 147 Programme and budget ........................................ 154
International Labour Organisation ................ 147 ILO Conventions ....................................................... 154
And its Functions ........................................................... 147 Sustainable enterprise ............................................ 156
TimeLine of Evolution ............................................. 147 Care economy ........................................................... 156
Strategic objectives .................................................. 148 Linking trade with labour standards ................. 157
Functions of ILO ........................................................ 148 Social dialogue .......................................................... 157
International Labour Standards........................... 149 Fair globalisation ...................................................... 158
Benefits of ILO Standards ...................................... 149 Decent work ............................................................... 158
ILO – Core Conventions ......................................... 149 Fair recruitment initiative ...................................... 159
The eight-core conventions of the ILO are ..... 149 Green Jobs .................................................................. 159
The Declaration of Philadelphia sets out four Chapter 8 ......................................................................... 165
key principles ......................................................... 150 Labour Reforms ........................................................... 165
International Labour Conference (ILC) ............. 151 Labour laws during British Period ...................... 166
Governing Body ........................................................ 151 Post-Independence labour laws ......................... 166
International Labour Office ................................... 152 Labour Reforms undertaken since 2014.......... 167

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CHAPTER- 1
Industrial Relation: Understanding the Dynamics
of Work and Employment
The Nature and Scope of Industrial Relations

Foundation of Industrial Relation

 Industrial relations is a field of study that deals with the relationship between employers and
employees in the workplace.
 The foundation of industrial relations can be traced back to the Industrial Revolution of the late 18th
and early 19th centuries. During this time, the rapid growth of industrialization led to significant
changes in the way work was organized and conducted, and this, in turn, gave rise to new forms of labor-
management conflict.
 The early history of industrial relations was marked by a series of struggles between workers and
employers, as labor sought to improve their wages, working conditions, and overall status in the
workplace. This period was also characterized by the growth of trade unions, which were formed to
represent the collective interests of workers and to negotiate with employers on their behalf.
 In the early 20th century, the field of industrial relations began to take shape as a distinct academic
discipline, with the establishment of industrial relations programs at several universities in the United
States and Europe. These programs were designed to provide a more systematic and scientific approach
to the study of labor-management relations, drawing on insights from economics, sociology, psychology,
and other social sciences.
 During the mid-20th century, industrial relations became increasingly important as a result of the growth
of large-scale organizations and the rise of the welfare state. This period was marked by the
development of new theories and models of industrial relations, such as the systems theory and the
human relations approach.

Definitions of Industrial Relation

 According to the International Labour Organization (ILO), industrial relations refers to "the
relationships between employers and workers, and their organizations, and the ways in which they are
organized and managed" (ILO, 2015). This definition emphasizes the importance of the social and
organizational context of work and employment, and the need for effective management of these
relationships.
 Another definition of industrial relations focuses on the role of conflict and negotiation in shaping the
employment relationship. According to this perspective, industrial relations refers to "the study of the
laws, institutions, and practices that govern the employment relationship and the resolution of disputes
between employers and employees" (Kochan et al., 1986). This definition highlights the importance of
collective bargaining, mediation, and other forms of conflict resolution in industrial relations.
 A third definition of industrial relations emphasizes the multidisciplinary nature of this field, drawing on
insights from economics, sociology, psychology, law, and other disciplines. According to this perspective,

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industrial relations is "a field of study that examines the processes of work and employment in their
social, political, and economic contexts, and seeks to understand and improve the relationships between
workers, employers, and other stakeholders" (Blyton and Turnbull, 2004). This definition emphasizes
the need for a holistic and integrative approach to understanding the complex dynamics of industrial
relations.

Difference between Industrial Relations and Human Relations

There are some differences between these two approaches, it's worth noting that they are not mutually exclusive,
and many scholars and practitioners draw on insights from both industrial relations and human relations to
create a more comprehensive understanding of the workplace.

Industrial Relations Human Relations

Focuses on the relationship between employers Focuses on the psychological and social aspects of work,
and employees, and the ways in which they are including motivation, communication, and group dynamics.
organized and managed.

Emphasizes the importance of conflict Emphasizes the importance of interpersonal relationships,

resolution, collective bargaining, and other trust, and mutual understanding in creating a positive work
formal mechanisms for managing the environment.
employment relationship.

Tends to have a more institutional and legalistic Tends to have a more individual and humanistic orientation,
orientation, with a focus on compliance with with a focus on the needs and feelings of employees.
labour laws and regulations.

Often associated with trade unions, which are Often associated with management theories such as the
seen as representing the collective interests of Hawthorne studies, which emphasize the importance of
workers. employee participation and involvement in decision-making.

Views the employment relationship as a source Views the employment relationship as a source of potential
of potential conflict, with the need for careful cooperation and collaboration, with the need for open
management and regulation to prevent communication and positive reinforcement to enhance
disputes and strikes. motivation and performance.

Linkage between human resource management and industrial relations

Industrial relations play a major role in human resource management. It is an important function of HRM that
focuses on maintaining good relations between the company, its employees, and its business partners. It also
deals with employee rights and workplace issues like unionization, etc.

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Participants of Industrial Relation

 Employers: Employers are the individuals or organizations that hire workers and provide them with
wages, benefits, and working conditions. Employers may be private companies, public sector
organizations, or non-profit entities.
 Employees: Employees are the individuals who work for employers, providing labour in exchange for
compensation. Employees may be organized into unions or other collective bodies to represent their
interests and negotiate with employers.
 Trade unions: Trade unions are organizations that represent the collective interests of workers, typically
by negotiating with employers over wages, benefits, and working conditions. Unions may also engage in
advocacy and lobbying efforts to promote the interests of workers more broadly.
 Employer associations: Employer associations are organizations that represent the collective interests of
employers, typically by advocating for policies and practices that support business growth and
profitability. Employer associations may also negotiate with unions on behalf of employers.
 Government: Governments play a key role in shaping industrial relations through the enactment of laws
and regulations that govern the employment relationship. Governments may also provide mediation and
dispute resolution services to help resolve conflicts between employers and employees.
 Industry regulators: Industry regulators are organizations that oversee specific industries or sectors,
such as labour market regulators or occupational health and safety agencies. These regulators may
enforce regulations related to employment practices, and may also provide guidance and support to
employers and employees
 Academics and researchers: Academics and researchers play an important role in industrial relations by
conducting research and analysis on labour market trends, organizational behaviour, and employment
law. Their insights help inform the development of policies and practices that support effective labour
management and dispute resolution.

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Objective of Industrial Relation

The objective of industrial relations is to create a sustainable employment relationship that benefits
both employers and employees, while also contributing to broader economic and social goals

 Promoting cooperation and collaboration between employers and employees, and creating a positive
work environment that enhances productivity and job satisfaction.
 Resolving conflicts and disputes that arise in the employment relationship, using a variety of
mechanisms such as collective bargaining, mediation, and arbitration.
 Protecting the rights and interests of both employers and employees, ensuring that each party is
treated fairly and equitably.
 Promoting compliance with labour laws and regulations, and ensuring that both employers and
employees understand their rights and obligations.
 Encouraging innovation and continuous improvement in employment practices, to ensure that they
remain effective and relevant in a rapidly changing business environment.

Role of State in Union-management Relations

 Enacting laws and regulations that establish the legal framework for union-management relations,
such as laws governing collective bargaining, labour disputes, and worker protections.
 Providing mechanisms for resolving labour disputes and conflicts between employers and employees,
such as through mediation, arbitration, or other forms of alternative dispute resolution.
 Monitoring and enforcing compliance with labour laws and regulations, to ensure that employers
and employees are following the rules and treating each other fairly.
 Promoting and supporting the development of effective labour-management practices, such as by
providing training and education programs for employers and employees.
 Advocating for the interests of workers and employers in national and international forums, and working
to promote policies and practices that support the growth and development of the labour market.

Few acts that the state uses to regulate union-management relations

 Industrial Disputes Act, 1947: This act provides the legal framework for resolving industrial disputes,
including strikes and lockouts, and outlines procedures for collective bargaining and negotiations.
 Trade Union Act, 1926: This act establishes the legal framework for the formation and registration of
trade unions, and outlines their rights and responsibilities.
 Minimum Wages Act, 1948: This act establishes minimum wage standards for various industries and
sectors, and outlines procedures for fixing and revising minimum wages.
 Factories Act, 1948: This act regulates working conditions and safety standards in factories, and outlines
procedures for inspections and enforcement.
 Industrial Employment (Standing Orders) Act, 1946: This act requires employers to define and publish
the terms and conditions of employment, including work hours, wages, and benefits.

Latest labour codes in India

The aim of these new labor codes is to simplify and modernize the labor laws in India, making them more
transparent and efficient. The codes provide greater flexibility to employers in terms of hiring and firing
employees, while also providing greater protection to workers' rights. They also seek to improve the ease of
doing business in India, by simplifying the regulatory framework for businesses and reducing compliance costs.

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 Code on Wages, 2019: This code consolidates the provisions related to wages and bonus payments for
all employees across all sectors.
 Industrial Relations Code, 2020: This code consolidates the provisions related to the formation of
unions, collective bargaining, and the settlement of industrial disputes.
 Occupational Safety, Health and Working Conditions Code, 2020: This code consolidates the
provisions related to the health, safety, and working conditions of employees across all sectors.
 Code on Social Security, 2020: This code consolidates the provisions related to social security benefits,
such as provident funds, pension schemes, and employee insurance, for all employees across all sectors.

Evolution of Industrial Relation in India

Pre Independence days

Indian economy was largely agrarian and dominated by British colonial rule. During this period, the British
introduced a range of laws and regulations aimed at regulating labor relations and maintaining social order.

One of the most significant pieces of legislation was the Indian Trade Unions Act of 1926, which recognized
the right of workers to form trade unions and engage in collective bargaining. This law paved the way for the
emergence of organized labor movements in India, which played a key role in the struggle for independence.

The British also introduced a range of laws and policies aimed at maintaining their control over the Indian
economy and suppressing worker unrest. For example, the Factories Act of 1881 introduced regulations
governing working conditions in factories, but these regulations were often ignored or poorly enforced.

1947: The Industrial Disputes Act was passed, which provided a legal framework for resolving industrial disputes,
including strikes and lockouts.

1950s-1960s: The Indian government adopted a socialist economic model, which led to the nationalization of
several key industries and the establishment of public sector enterprises.

In the early years after independence in 1947, the Indian government adopted a socialist economic model, which
included the nationalization of several key industries and the establishment of public sector enterprises. This
policy was driven by a desire to promote economic self-sufficiency and reduce inequality. During this period, the
government also enacted several laws and regulations aimed at protecting workers' rights and ensuring social
welfare, including the Industrial Disputes Act, the Minimum Wages Act, and the Employees' Provident Funds and
Miscellaneous Provisions Act.

The Second Five Year Plan (1956-1961)

 It recognized the importance of creating a stable and harmonious industrial environment. The plan
emphasized the need to establish a sound industrial relations system based on cooperation and mutual
trust between employers and workers.
 To achieve this goal, the plan proposed several measures aimed at improving labor-management
relations, including the establishment of industrial courts and tribunals to resolve disputes, the
promotion of collective bargaining, and the strengthening of workers' rights and welfare measures.
 The plan also recognized the importance of training and education in improving industrial relations. It
called for the establishment of training institutes for workers and managers to promote greater
understanding and cooperation between the two groups.

1965: The Industrial Employment (Standing Orders) Act was enacted, which required employers to define
and publish the terms and conditions of employment, including work hours, wages, and benefits.

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1970s: The Indian government adopted a policy of "compulsory arbitration" in industrial disputes, which
required disputes to be referred to labor courts or tribunals for resolution.

However, the Indian economy began to face significant challenges in the 1970s, including rising inflation,
a balance of payments crisis, and a growing fiscal deficit. In response, the government adopted a policy of
"compulsory arbitration" in industrial disputes, which required disputes to be referred to labor courts or tribunals
for resolution. This policy was intended to promote greater stability and reduce the incidence of strikes and
lockouts.

1980s: The Indian economy began to liberalize, with the government adopting a policy of economic reforms and
opening up to foreign investment.

The Sixth Five Year Plan (1980-85)

In the 1980s, the Indian economy began to liberalize, with the government adopting a policy of economic
reforms and opening up to foreign investment. This period saw the emergence of new industries, such as IT and
software, and the growth of the service sector. However, it also led to job losses and increased competition in
many industries, which had a significant impact on workers' rights and job security.

1991: The Indian government launched a series of economic reforms, including the liberalization of trade
and investment, privatization of state-owned enterprises, and deregulation of many industries.

1991-2010: India experienced a period of rapid economic growth, with the growth of the service sector and the
emergence of new industries such as IT and software.

Since the 1990s, India has experienced a period of rapid economic growth, driven by the growth of the service
sector and the emergence of new industries. However, this growth has been accompanied by persistent
inequality and social unrest, particularly in the informal sector, where many workers lack legal protections and
social security benefits.

The Eighth to Twelfth Five Year Plans in India (1992-2017) were a period of significant economic and social
transformation, marked by liberalization, globalization, and the rise of the services sector. During this period,
industrial relations in India underwent significant changes in response to these broader economic and social
changes.

One of the key themes of the Eighth to Twelfth Five Year Plans was the need to promote greater flexibility and
competitiveness in the Indian economy. This led to a range of policy changes aimed at reducing regulation and
promoting market forces, including labor market reforms that sought to make it easier for firms to hire and fire
workers.

These changes had a significant impact on industrial relations in India, leading to increased conflict and tension
between employers and workers. The focus on flexibility and competitiveness often came at the expense of
workers' rights and job security, leading to protests and strikes in many industries.

To address these issues, the Indian government introduced a range of measures aimed at improving industrial
relations, including the establishment of industrial dispute resolution mechanisms, the promotion of collective
bargaining, and the strengthening of workers' rights and welfare measures.

The government also recognized the importance of training and education in improving industrial relations, and
introduced a range of initiatives aimed at improving the skills and capabilities of workers and managers.

2019: The Indian government introduced the Code on Wages, which consolidates the provisions related to
wages and bonus payments for all employees across all sectors.

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2020: The Indian government introduced three more labour codes, including the Industrial Relations Code, the
Occupational Safety, Health and Working Conditions Code, and the Code on Social Security.

Industrial Relation Scenario in India

The Second National Commission on Labour (2002) highlighted some key issues related to the industrial
relations scenario in India.

 Need for greater flexibility: The commission recommended that there should be greater flexibility in
the Indian labour market to allow for more efficient allocation of resources and greater competitiveness.
This included recommendations for greater flexibility in working hours, work arrangements, and labour
contracts.
 Recognition of the informal sector: The commission noted the importance of the informal sector in the
Indian economy, and recommended that steps should be taken to recognize and formalize informal work
arrangements. This included recommendations for better access to social security, health, and other
benefits for informal workers.
 Promotion of collective bargaining: The commission recommended that collective bargaining should
be encouraged in India, and that there should be greater emphasis on voluntary agreements between
employers and workers. The commission also recommended the establishment of industrial relations
committees to facilitate communication between workers and employers.
 Need for better dispute resolution mechanisms: The commission noted the importance of effective
dispute resolution mechanisms in the Indian labor market, and recommended the establishment of a
range of dispute resolution mechanisms, including conciliation, mediation, and arbitration.
 Protection of workers' rights: The commission recommended that there should be greater protection
of workers' rights in India, including the right to join a union and the right to collective bargaining. The
commission also recommended the establishment of minimum standards for wages, working conditions,
and social security.

Approaches towards the Study of Industrial Relations

Psychological Approach to Industrial Relations

 The psychological approach to industrial relations focuses on understanding the individual and group
behavior of employees and employers within the workplace.
 This approach recognizes that the employment relationship involves human beings with emotions,
motivations, and perceptions that can influence their behavior and attitudes towards work.
 The psychological approach examines how individual differences, personality traits, and values can
affect employee behavior in the workplace. For example, studies have shown that employees with
high levels of job satisfaction and engagement are more likely to be productive and committed to their
organizations. On the other hand, employees with low levels of job satisfaction and engagement may
experience higher levels of absenteeism and turnover.
 The psychological approach also looks at group dynamics and interpersonal relationships within
the workplace.
 It recognizes that employee behavior and attitudes are influenced by their perceptions of the
employment relationship, including their expectations of fairness, justice, and trust.

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Sociological Approach to Industrial Relations

Industrial sociologists study the relationship between social structures and economic activity, with a focus on
how social factors influence industrial relations.

 Michael Burawoy: Burawoy is a prominent sociologist who has written extensively on industrial
relations. His work focuses on the relationship between capitalism, industrial production, and social
inequality. He is also known for his advocacy of "public sociology," which encourages sociologists to
engage with the wider public on social issues.
 Harry Braverman: Braverman's classic book "Labour and Monopoly Capital" has had a significant impact
on the study of industrial relations. In the book, Braverman argues that capitalism leads to the deskilling
of workers and the degradation of work. He also critiques the traditional labour-management
relationship and calls for workers to have greater control over the production process.
 Joan Acker: Acker is known for her work on gender and industrial relations. She has argued that gender
is a key factor in shaping industrial relations, with women often experiencing discrimination and
marginalization in the workplace. Her work has influenced policies and practices aimed at promoting
gender equality in the workplace.
 Richard Hyman: Hyman's work focuses on the role of trade unions in industrial relations. He has written
extensively on the history and dynamics of unionization, as well as the challenges that unions face in the
modern economy. His work has contributed to the development of theories of unionization and the role
of unions in promoting worker rights and democracy.

The Gandhian Approach to Industrial Relations

 The Gandhian approach to industrial relations is rooted in the principles of non-violence,
cooperation, and self-sufficiency.
 It emphasizes the importance of harmonious relations between workers and management, as well as
the need for workers to have a say in decision-making processes that affect their lives and livelihoods.
 Mahatma Gandhi believed that workers should be treated with dignity and respect, and that the
exploitation of workers was unacceptable. He believed that workers should have the right to organize
and bargain collectively with management, and that management had a responsibility to address
workers' concerns and needs.
 One of Gandhi's most important contributions to the field of industrial relations was his advocacy of
"satyagraha," or non-violent resistance.
 He believed that workers had the right to resist unjust treatment by management, but that this resistance
should be non-violent and based on the principles of truth, non-violence, and love.
 One example of the Gandhian approach to industrial relations can be seen in the textile workers' strike in
Ahmedabad, India in 1918. At the time, textile workers in Ahmedabad were facing poor working
conditions, low wages, and long working hours. In response, they organized a strike and demanded
better treatment from their employers.

Trusteeship is a socio-economic concept that was developed by Mahatma Gandhi as a way to address
issues of inequality and exploitation in society.

 It is based on the principle that resources and wealth should be held in trust by individuals or
organizations, who have a responsibility to use these resources for the benefit of society as a whole.
 In the context of industrial relations, trusteeship involves the idea that employers and management have
a responsibility to act as trustees or custodians of the resources and wealth that they control.

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 This includes the resources and wealth generated by the labor of workers, as well as the natural resources
and capital invested in the organization.
 Under the trusteeship system, employers and management are expected to act in the best interests of all
stakeholders, including workers, customers, and the broader community.
 They are responsible for ensuring that workers are treated with dignity and respect, and that their
interests are taken into account in decision-making processes.
 Trusteeship also involves the idea of sharing profits and resources with workers and other stakeholders.
 This can take the form of profit-sharing schemes, employee ownership programs, or other mechanisms
that give workers a stake in the success of the organization.

The socio-ethical approach to industrial relations

It emphasizes the importance of ethical considerations and social responsibility in the conduct of business and
industrial relations. It recognizes that businesses have a social responsibility to ensure that their actions benefit
society as a whole, rather than just serving the interests of shareholders or management.

The socio-ethical approach emphasizes the importance of fair and equitable treatment of workers, as well as
promoting workplace safety, health, and well-being. It also emphasizes the importance of respecting the rights
and dignity of workers, and ensuring that their voices are heard in decision-making processes that affect their
lives and livelihoods.

Industrial Relations Approach/ Dunlop’s system Theory

 This theory is based on the idea that industrial relations are a system of rules, beliefs, and practices that
govern the employment relationship.
 According to Dunlop's System Theory, industrial relations involve three key actors: workers, employers,
and the state.
 Each of these actors has their own interests and objectives, which can lead to conflicts and tensions in
the employment relationship. However, Dunlop argues that the employment relationship is also shaped
by a set of rules and institutions that have been established to govern labor-management relations.
 Dunlop's System Theory identifies four key elements that make up the industrial relations system:
actors, context, ideology, and institutions. The actors include workers, employers, and the state, while the
context includes economic, political, and social factors that affect the employment relationship.
 The ideology refers to the values and beliefs that shape the attitudes of the actors towards each other
and towards the employment relationship, while the institutions refer to the formal and informal rules
and structures that govern labor-management relations.
 Dunlop's System Theory emphasizes the importance of collective bargaining and the role of labor
unions in shaping the employment relationship. It also recognizes the importance of government
policies and regulations in establishing the rules and institutions that govern labor-management
relations.

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Oxfords approach
According to this approach, the industrial relations system is a study of institutions of job regulations and
the stress is on the substantive and procedural rules as in Dunlop’s model. Flanders, the exponent of this
approach, considers every business enterprise a social system of production and distribution, which has a
structured pattern of relationships. The “institution of job regulation” is categorised by him as internal and
external – the former being an internal part of the industrial relations system such as code of work rules,
wage structure, internal procedure of joint consultation, and grievance procedure. He views trade unions as
an external organisation and excludes collective agreements from the sphere of internal regulation.
According to him, collective bargaining is central to the industrial relations system. The “Oxford Approach”
can be expressed in the form of an equation – r = f (b) or r = f (c) where, r = the rules governing industrial
relations b = collective bargaining c = conflict resolved through collective bargaining. The “Oxford
Approach” can be criticised on the ground that it is too narrow to provide a comprehensive framework for
analysing industrial relations problems. It over emphasises the significance of the political process of
collective bargaining in and gives insufficient weight to the role of the deeper influences in the
determination of rules. Institutional and power factors are viewed as of paramount importance, while
variables such as technology, market, status of the parties, and ideology, are not given any prominence.

HR Approach to Industrial Relations

In the words of Keith Davies, human relations are “the integration of people into a work situation that motivates
them to work together productively, cooperatively and with economic, psychological and social satisfactions.”
According to him, the goals of human relations are

 to get people to produce,

 to cooperate through mutuality of interest, and
 to gain satisfaction from their relationships.

The human relations school founded by Elton Mayo and later propagated by Roethlisberger, Whitehead, W. F.
Whyte and Homans offers a coherent view of the nature of industrial conflict and harmony.

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The Human Resource (HR) approach to industrial relations emphasizes the importance of viewing employees as a
valuable asset to the organization and emphasizes the need for treating them with dignity and respect.

 Mutual gains: The HR approach emphasizes that both employers and employees can benefit from
working together to achieve mutual gains. This means that employers need to recognize and respect the
rights of their employees and work collaboratively with them to achieve common goals.
 Communication: The HR approach stresses the importance of open communication between
management and employees. This means that employers need to communicate their expectations,
policies, and decisions clearly and in a way that employees can understand. Additionally, employers need
to be open to receiving feedback from employees and responding to their concerns.
 Employee development: The HR approach recognizes that employees are valuable assets to the
organization and need to be developed and trained to reach their full potential. This means that
employers need to provide opportunities for employee development, such as training programs and
career advancement opportunities.
 Employee participation: The HR approach emphasizes the importance of involving employees in
decision-making processes that affect their work and the organization as a whole. This means that
employers need to provide opportunities for employee participation, such as involvement in work teams,
task forces, and quality circles.
 Conflict resolution: The HR approach recognizes that conflict is inevitable in any workplace and
emphasizes the importance of resolving conflicts in a constructive and respectful manner. This means
that employers need to have effective conflict resolution mechanisms in place, such as mediation or
arbitration, to address conflicts that arise.

Comparisons on differing Approaches

Approach Key Features View of Conflict Role of Collective Focus on

Bargaining

Psychological Emphasizes individual Conflict is seen as a Collective Individual-level

attitudes and behavior result of individual bargaining is a factors
differences and means of resolving
psychological factors disputes

Sociological Emphasizes broader Conflict is seen as a Collective Broader social

social and economic result of power bargaining is a and economic
factors imbalances between means of factors
employers and negotiating power
employees relationships

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Gandhian Emphasizes moral and Conflict is seen as a Collective Ethical and

ethical principles, result of greed and self- bargaining is seen moral
including trusteeship interest as a means of principles
promoting
cooperation and
mutual respect

HR Emphasizes the value of Conflict is seen as a Collective Employee

employees and the result of bargaining is a development
importance of treating misunderstandings and means of achieving and
them with dignity and miscommunication mutual gains participation
respect

Dunlop's Emphasizes the Conflict is seen as a Collective Broader

System importance of result of imbalances in bargaining is a industrial
Theory understanding the power and interests means of balancing relations
broader industrial within the system power relationships system
relations system within the system

Oxford Emphasizes the Conflict is seen as a Collective Broader social,

importance of result of power bargaining is a political, and
understanding the imbalances and cultural means of achieving economic
broader social, political, and social norms that flexibility and factors
and economic context influence behavior adaptability in
in which labor relations response to
take place changing conditions

Socio-Ethical Emphasizes the Conflict is seen as a Collective Ethical and

importance of ethical result of imbalances in bargaining is a moral
and moral principles, power and interests means of achieving principles
including justice and justice and fairness
fairness

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Theories of Industrial Relations

Political and apolitical theories of industrial relations

Both differ in their approach to understanding the relationship between employers and employees.

Political theories of industrial relations emphasize the role of power in shaping the employment relationship.
They view conflict between employers and employees as an inherent aspect of the employment relationship, and
see collective bargaining as a means for employees to gain power and negotiate better wages, benefits, and
working conditions. Political theories often highlight the role of unions and other labour organizations in
advancing the interests of workers and reducing power imbalances in the employment relationship. Examples of
political theories include Marxism, feminism, and critical industrial relations theory.

In contrast, apolitical theories of industrial relations emphasize the importance of cooperation and mutual
interests between employers and employees. They view conflict as something that can be minimized or avoided
through effective communication, collaboration, and mutual problem-solving. Apolitical theories often
emphasize the role of management in creating a positive work environment and supporting employee well-
being. Examples of apolitical theories include the human relations approach, the systems theory approach, and
the socio-technical systems approach.

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Approach View of Conflict View of Collective Focus on

Bargaining

Political Conflict is seen as an inherent Collective bargaining is a Power dynamics, social inequality,
aspect of the employment means for employees to and the role of unions and labor
relationship, rooted in power gain power and negotiate organizations.
imbalances between employers better wages, benefits,
and employees. and working conditions.

Apolitical Conflict can be minimized or Collective bargaining is a Management practices, employee

avoided through effective means for employers and well-being, and creating a positive
communication, collaboration, employees to work work environment.
and mutual problem-solving. together to achieve
common goals.

It's worth noting that while there are clear differences between political and apolitical theories, there is
often overlap and blending between the two. For example, some apolitical theories may acknowledge the
role of power in shaping the employment relationship, while some political theories may recognize the
importance of communication and cooperation in reducing conflict.

Miller and Form’s Model

Miller and Form's Model of Industrial Relations is a framework for understanding the dynamics and
interactions between different actors in the industrial relations system. The model was developed in the
1960s and is still widely used today in the field of industrial relations.

The model consists of three key components

The Environment: This component includes all of the external factors that can influence industrial relations,
such as the economic, social, and political context. The environment can have a significant impact on the
behaviour of employers, employees, and unions, and can shape the bargaining power of different actors.

Actors: The actors in the industrial relations system are divided into three main groups: employers,
employees, and unions. Each group has its own interests and objectives, which can sometimes conflict with
those of other groups. The behaviour of each group is influenced by a range of factors, including the
environment, the actions of other groups, and internal factors such as leadership and organizational culture.

Processes: The processes component includes all of the mechanisms by which industrial relations are
managed and negotiated. This can include formal mechanisms such as collective bargaining, as well as
informal mechanisms such as communication and consultation between employers and employees. The
processes component is also influenced by the environment and the behaviour of the different actors.

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Question

1. Which of the following is NOT a function of Industrial Relations?

a) Collective bargaining

b) Grievance handling

c) Disciplinary action

d) Profit maximization

2. Which of the following is NOT a characteristic of Industrial Relations?

a) Conflict resolution

b) Power struggle

c) Collective bargaining

d) Individualism

3. Which of the following is NOT a method of Collective Bargaining?

a) Negotiation

b) Mediation

c) Arbitration

d) Discrimination

4. Which of the following is NOT an Industrial Relations Act in India?

a) Trade Unions Act, 1926

b) Industrial Disputes Act, 1947

c) Companies Act, 2013

d) Factories Act, 1948

5. Which of the following is NOT a type of Grievance?

a) Factual

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b) Interpretive

c) Disciplinary

d) Negative

6. Which of the following is NOT a cause of Industrial Disputes?

a) Wages and benefits

b) Working conditions

c) Technological advancements

d) Trade union activities

7. Which of the following is NOT a feature of Trade Unions?

a) Legal entity

b) Membership

c) Common interests

d) Profit motive

8. Which of the following is NOT a type of Strike?

a) General Strike

b) Slowdown Strike

c) Wildcat Strike

d) Performance Strike

9. Which of the following is NOT a method of Conciliation?

a) Mediation

b) Arbitration

c) Adjudication

d) Negotiation

10. Which of the following is NOT a feature of Workers' Participation in Management?

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a) Decentralization

b) Autonomy

c) Consultation

d) Employee involvement

11. Which of the following is NOT a role of the Labor Court?

a) Adjudication of disputes

b) Settlement of disputes

c) Investigation of disputes

d) Arbitration of disputes

12. Which of the following is NOT a type of Lockout?

a) Total Lockout

b) Partial Lockout

c) Sit-in Lockout

d) Temporary Lockout

13. Which of the following is NOT a function of the Industrial Tribunal?

a) Adjudication of disputes

b) Settlement of disputes

c) Investigation of disputes

d) Collective bargaining

14. Which of the following is NOT a type of Industrial Dispute?

a) Strike

b) Lockout

c) Picketing

d) Demonstration

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15. Which of the following is NOT a method of Redressal of Grievances?

a) Mediation

b) Arbitration

c) Adjudication

d) Cooperation

Answer Keys
1. Answer: d) Profit maximization. Industrial Relations refer to the relationship between management
and workers, and its main functions are collective bargaining, grievance handling, and disciplinary
action. Profit maximization is a business goal, not an industrial relations function.
2. Answer: d) Individualism. Industrial Relations are characterized by conflict resolution, power
struggle, and collective bargaining. Individualism is not a characteristic of Industrial Relations.
3. Answer: d) Discrimination. Collective bargaining refers to the process of negotiation between
management and workers to resolve disputes and reach an agreement on issues such as wages,
working conditions, and job security. Mediation and arbitration are two methods of collective
bargaining.
4. Answer: c) Companies Act, 2013. The Trade Unions Act, 1926, Industrial Disputes Act, 1947, and
Factories Act, 1948 are all Industrial Relations Acts in India. The Companies Act, 2013, is not an
Industrial Relations Act.
5. Answer: d) Negative. The three types of grievances are factual, interpretive, and disciplinary.
Negative is not a type of grievance.
6. Answer: c) Technological advancements. The causes of Industrial Disputes are wages and benefits,
working conditions, management policies, trade union activities, and job security. Technological
advancements do not directly cause Industrial Disputes.
7. Answer: d) Profit motive. Trade Unions are formed to represent the interests of workers and are not
driven by a profit motive.
8. Answer: d) Performance Strike. The three types of strikes are general strike, slowdown strike, and
wildcat strike. Performance Strike is not a type of strike.
9. Answer: b) Arbitration. The methods of conciliation are mediation, adjudication, and negotiation.
Arbitration is not a method of conciliation, it is a method of resolving disputes.
10. Answer: b) Autonomy. Workers' Participation in Management refers to the involvement of workers
in the decision-making process of the organization. The features of Workers' Participation in
Management are decentralization, consultation, and employee involvement. Autonomy is not a
feature of Workers' Participation in Management.
11. Answer: d) Arbitration of disputes. The Labour Court is responsible for the adjudication, settlement,
and investigation of disputes between management and workers. Arbitration of disputes is not a
role of the Labour Court.
12. Answer: c) Sit-in Lockout. The three types of lockouts are total lockout, partial lockout, and
temporary lockout. Sit-in lockout is not a type of lockout.

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13. Answer: d) Collective bargaining. The Industrial Tribunal is responsible for the adjudication,
settlement, and investigation of disputes between management and workers. Collective bargaining
is not a function of the Industrial Tribunal.
14. Answer: d) Demonstration. The three types of Industrial Disputes are strike, lockout, and picketing.
Demonstration is not a type of Industrial Dispute.
15. Answer: d) Cooperation. The methods of Redressal of Grievances are mediation, arbitration, and
adjudication. Cooperation is not a method of Redressal of Grievances.

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CHAPTER – 2
Trade Unionism
Introduction
A trade union is an organisation made up of members (a membership-based organisation) and its
membership must be made up mainly of workers.

One of a trade union's main aims is to protect and advance the interests of its members in the workplace.

Most trade unions are independent of any employer. However, trade unions try to develop close working
relationships with employers. This can sometimes take the form of a partnership agreement between the
employer and the trade union which identifies their common interests and objectives.

Trade unions

 negotiate agreements with employers on pay and conditions

 discuss major changes to the workplace such as large scale redundancy
 discuss members' concerns with employers
 accompany members in disciplinary and grievance meetings
 provide members with legal and financial advice
 provide education facilities and certain consumer benefits such as discounted insurance

Definitions
In India, the Trade Union Act of 1926 provides the following definitions of a trade union

 "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

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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."
 "A trade union shall be deemed to be registered from the date of its registration under this Act."

The Industrial Relations Code, 2020

This definition emphasizes the collective nature of a strike and the idea that it involves a concerted effort by
a group of employees to cease work or refuse to accept employment. The Industrial Relations Code, 2020,
which came into force on 28th September 2020, consolidates and replaces several labour laws related to
industrial relations, including the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act,
1946, and the Industrial Disputes Act, 1947. The code aims to promote harmonious industrial relations and
facilitate the resolution of disputes between employers and employees.

Evolution of Trade Unions in India

The development of trade unionism in India, was influenced by several factors. In other countries too, the
rise of unionism and its gradual evolution has been the result of the collective operation of various factors
to bring about the much needed improvement in the then prevalent socio-economic conditions in the
industrial world. Efforts were also made through organised action to give expression to the needs, wishes,
aspirations and expectations of the workers.

Pre-Independence Period
In the early 1850s, railway lines started spreading across India and the cotton and jute mills began were just
started. It was 1860 when the labour movement was first ever initiated in India that came to light in 1875.
SS Bengalee was the first to initiate the labour movement in India for the betterment of women and
children and this led to the enaction of the first factory act in 1881. Soon after that, in 1890, the first
organized labour union was formed in India by M N Lokhande, named Bombay Mills Hand Association.

In 1890, M.N Lokhande established Bombay Mill Hands Association. This was the first organised labour
union in India.

Following this, different organisations were established across India.

Features of the labour movements in this era:

 Leadership was provided by social reformers and not by the workers themselves.
 The movements in this era mainly concentrated on the welfare of workers rather than asserting their
rights.
 They were organised, but there was no pan India presence.
 A strong intellectual foundation or agenda was missing.
 Their demands revolved around issues like that of women and children workers.

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1918-1924: The early trade union phase

This period marked the birth of true trade union movement in India. It was organised along the lines of
unions in the industrialised world.

The deteriorated living conditions caused by the First World War and the exposure with the outside world
resulted in heightened class consciousness amongst the workers. This provided fertile ground to the
development of the movement. This period is known as the early trade union period.

Important unions: Ahmedabad Textile Labour Association (1917) led by Smt. Anasuyaben Sarabhai, All India
Postal and RMS Association, Madras Labour Union led by B.P Wadia etc.

AITUC, the oldest trade union federation in India was set up in 1920. It was founded by Lala Lajpat Rai,
Joseph Baptista, N.M Joshi and Diwan Chaman Lall. Lajpat Rai was elected the first president of AITUC.

Factors that influenced the growth of the movement:

 Spiralling prices during War and the mass entrenchment of workers that followed it led to low living
standards. Also, the wretched working conditions added to their woes. Hence, they sought collective
bargaining power through unionisation.
 Development of Home Rule, the emergence of Gandhian leadership and the socio-political
conditions led to the nationalist leadership taking interest in the worker’s plight. Workers, in turn,
was looking for professional leadership and guidance.
 Russian revolution and other international developments (like setting up of International Labour
Organisation in 1919) boosted their morale.

1925-1934: Period of left-wing trade unionism

 This era was marked by increasing militancy and a revolutionary approach. It also saw multiple split-
ups in the movement. Leaders like N.M Joshi and V.V Giri was instrumental in moderating the
movement and further integrating it with the nationalist mainstream.
 AITUC split up multiple times paving way for the formation of organisations like National Trade
Union Federation (NTUF) and All India Red Trade Union Congress (AIRTUC). However, the need for
unity was felt and they all merged with the AITUC in the next phase.
 The government was also receptive to the trade union movement. Legislations like the Trade Unions
Act, 1926 and the Trade Disputes Act, 1929 gave a fillip to its growth. It bestowed many rights to the
unions in return for certain obligations. This period was marked by the dominance of the left. Hence,
it may be referred to as the period of left-wing trade unionism.

1935-1938 Phase
 The Indian National Congress was in power in seven provinces in 1937. This injected unity in trade
unions. As a result, the All India Red Trade Union Congress itself with the AITUC in 1935. After three
years in 1938, the National Trade Union Congress (NTUC) also affiliated with the AITUC.

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 Other factors that contributed to the revival of trade unions were increasing awakening among the
workers to their rights and change in the managerial attitude towards trade unions.
 In 1938, one of the most developments took place was the enactment of the Bombay Industrial
Disputes Act, 1938.
 An important provision of the Act, inter alia, to accord compulsory recognition of unions by the
employers gave a big fillip to the growth of trade unionism in India.

1939-1946 Phase
 Like World War I, the World War II also brought chaos in industrial front of the country. Mass
retrenchment witnessed during the post-World War II led to the problem of unemployment .This
compelled workers to join unions to secure their jobs. This resulted in big spurt in the membership
of registered trade unions from 667 in 1939-40 to 1087 in 1945-46.
 Somuchso workers in the registered trade unions witnessed a phenomenal increase from 18,612 to
38,570 during the same period. The AITUC again split in 1941 when Dr. Aftab Ali, President of the
Seamen s Association, Calcutta disaffiliated his union from the Congress and formed a new
organization known as the “Indian Federation of Labour”.
 The year 1946 was also marked by two important enactments, namely, the Industrial Employment
(Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both the Acts, through
their provisions, contributed to strengthen the trade unionism in the country.

1947-present: Post-independence trade unionism

 Proliferation of trade unions in the pattern of proliferation of political parties has been a
distinguishing feature in the trade union history of India during the post-Independence period.
 In May 1947, the Indian National Trade Union Congress (INTUC) was formed by the nationalists and
moderates and was controlled by the Congress Party. Since by then, the AITUC is controlled by the
Communists.
 The Congress socialists who stayed in AITUC at the time of the formation of INTUC subsequently
formed the Hind Mazdoor Sabha (HMS) in 1948 under the banner of the Praja Socialist Party.
 Subsequently, the HMS was split up with a group of socialist and formed a separate association,
namely, “Bhartiya Mazdoor Sabha” (BMS) which is now an affiliate of the Bhartiya Janata Party (B JP).
Years after, the communist party split into various fractions forming the United Trade Union
Congress (UTUC) and the Center of Indian Trade Unions (CITU).
 Later again, a group disassociated itself from the UTUC and formed another UTUC—Lenin Sarani. Of
late, with the emergence of regional parties since 1960, most of the regional parties have shown its
inclination to a trade union wing, thus, adding to the proliferation of trade unions in the country.
 Thus, it is clear that the origin and growth of trade union movement in India is riddled with
fragmented politicization.

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Central trade union organisations in India

Indian National Trade Union Congress (INTUC)
INTUC is affiliated to the Indian National Congress and was formed in 1947. It is one of the oldest and
largest trade unions in India, with a membership of over 33 million workers. It represents workers from
various sectors, including manufacturing, construction, transport, and public services.

All India Trade Union Congress (AITUC)

AITUC is affiliated to the Communist Party of India and was formed in 1920. It is one of the oldest and most
influential trade unions in India, with a membership of around 15 million workers. It represents workers
from various sectors, including agriculture, manufacturing, and services.

Bharatiya Mazdoor Sangh (BMS)

BMS is affiliated to the Rashtriya Swayamsevak Sangh (RSS) and was formed in 1955. It is one of the largest
trade unions in India, with a membership of over 10 million workers. It represents workers from various
sectors, including manufacturing, mining, and construction.

Hind Mazdoor Sabha (HMS)

HMS was formed in 1948 and is affiliated to the Socialist Party of India. It represents workers from various
sectors, including textiles, mining, and transport. Its membership is around 1.5 million workers.

Centre of Indian Trade Unions (CITU)

CITU is affiliated to the Communist Party of India (Marxist) and was formed in 1970. It represents workers
from various sectors, including manufacturing, transport, and services. Its membership is around 6 million
workers.

All India United Trade Union Centre (AIUTUC)

AIUTUC is affiliated to the Communist Party of India (Marxist-Leninist) and was formed in 1991. It represents
workers from various sectors, including agriculture, manufacturing, and services. Its membership is around 2
million workers.

Trade Unions Act, 1926

The Trade Unions Act, 1926 is a law enacted by the Indian government to provide recognition and
protection for trade unions in the country. The act defines a trade union as any combination of workers or
employers, whether temporary or permanent, formed primarily for the purpose of regulating the relations
between workers and employers or between employers and workers.

The main provisions of the Trade Unions Act, 1926 are as follows
 Registration of trade unions: The act provides for the registration of trade unions with the
Registrar of Trade Unions. To be eligible for registration, a trade union must have at least seven
members, and its rules must comply with the provisions of the act.

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A registrar is designated for the Trade Union registration process per Section 3. If the trade union registrar
for a given state is unable to carry out his or her duties, the appropriate government may appoint a
replacement.

Section 4 of the Act states that any seven or more members of a Trade Union in compliance with the
requirements of the Act may file an application for registration of the Trade Union. Secondarily, no trade
union of workmen shall be registered unless on the date of making its application, a minimum of seven of
its members who are workmen are employed in the establishment or industry. This requirement is in
addition to the first, which states that no trade union of workmen shall be registered unless at least 10% or
100 of the workmen, whichever is less, engaged in the employment of the establishment are its members.

A trade union’s application to the registrar must include the following information in accordance with
Section 5.

 The names, occupations, and addresses of all members making the application;
 The name of the trade union and the location of its principal office; and
 The titles, names, ages, addresses, and occupations of the trade union’s office-bearers.

Section 6 of the Act states that a Trade Union is not eligible for registration under the Act if it has not
complied with the Act’s requirements and rules.

In order to determine whether or not all of the details are in conformity with sections 5 and 6 of the Act, the
registrar may, per section 7 of the Act, request more information.

According to Section 8 of the Act, the Trade Union shall be registered by the Registrar if the Registrar is
satisfied that the Trade Union has met all conditions of the Act with respect to the registration.

Section 9 of the Act mandates that the registrar will provide the trade union with a certificate of
registration.

 Rights and liabilities of registered trade unions: Registered trade unions enjoy certain rights and
privileges, such as the right to hold property, sue and be sued in their own name, and enjoy
immunity from civil and criminal liability for actions taken in furtherance of a trade dispute. They are
also liable for the tortious acts of their office bearers and members.
 Immunity for certain acts: The act provides immunity to trade unions and their members from
prosecution for certain acts, such as participating in a lawful strike, picketing, and boycotting of
goods.
 Funding of trade unions: Registered trade unions are allowed to collect membership fees and
subscriptions, but they are prohibited from receiving any financial assistance from foreign sources.
 Dissolution of trade unions: The act provides for the dissolution of a trade union in certain
circumstances, such as on the request of the majority of its members, or if it ceases to exist for any
reason.

Trade Union Movement in India

India’s labour movement and the history of trade unions in India may be broken down into the following
phases of development.

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 N.M. Lokhande, a manufacturing worker, organized a labour convention in Bombay in 1884,
one of the most significant events of the eighties
 The Second Factory Commission received a Memorandum highlighting the bad working
conditions of the employees, but no action was taken
 The outcome of this was that on April 21, 1890, 10,000 workers gathered in Bombay for a mass
gathering
 Twenty-four strikes occurred between 1882 and 1890 in Bombay and Madras

The proprietors of the textile mills decided to give their staff a weekly day off. Shri N. M. Lokhande set up
the Bombay Mill Hands Association in 1890 as a consequence of their success. In India, this was the
country’s first trade union. This was the most significant achievement in the labour movement and the
history of trade unions in India in the 19th century.

 The ILO emphasised in a 1921 decision that workers should have the ability to organise unions
 As a result, the labour union movement started in the 1920s. Regulation of trade unionism began in
1926 with the passage of the development of trade unions in India and the Trade Unions Act
 It was a basic statute that gave registered trade unions legal standing and allowed them and their
members with certain insulation from civil actions and criminal prosecutions
 The public’s perception of trade unions was enhanced due to this
 The Act proved to be beneficial to the Indian trade union movement
 To obtain recognition, existing trade unions registered under the Act
 Other than that, a slew of new unions sprung up

Timeline
 1918: The Amalgamated Society of Railway Servants of India is formed, marking the beginning of
the trade union movement in India.
 1920: The All India Trade Union Congress (AITUC) is formed, becoming the first central trade union
organization in India. AITUC focused on organizing workers in the textile and transport sectors.
 1921: The Indian Seamen's Union is formed in Calcutta, becoming the first union to organize
workers in the maritime industry.
 1924: The Madras Labour Union is formed, becoming the first union to represent workers in the
manufacturing industry.
 1925: The Workers and Peasants Party is formed in Bombay, becoming the first political party in
India to advocate for workers' rights and interests.
 1926: The Trade Unions Act is passed, providing for the registration of trade unions in India.
 1928: The Indian National Trade Union Congress (INTUC) is formed, becoming the trade union arm
of the Indian National Congress party. INTUC focused on organizing workers in the public sector
and government-owned enterprises.
 1947: India gains independence from British colonial rule, leading to the formation of a democratic
government and the adoption of labor laws to protect workers' rights.
 1950s-1960s: The labor movement in India experiences a surge in activity, with workers organizing
strikes and protests to demand better wages, working conditions, and job security.
 1970s-1980s: The labor movement becomes more fragmented as different unions emerge and
compete for workers' support. Political affiliations and ideologies also begin to play a larger role in
union activities.

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 1990s-present: The labor movement continues to evolve and adapt to changing economic and
social conditions in India, with new challenges such as globalization, outsourcing, and the rise of the
gig economy. Labor laws and regulations are periodically reviewed and updated to address
emerging issues and concerns of workers.

Rights and Privileges of Registered Trade Unions

The Trade Unions Act of 1926 provides for the registration of trade unions in India. Once registered, a trade
union in India is entitled to certain rights and privileges, including:

 Legal recognition: A registered trade union is recognized as a legal entity with the right to sue and
be sued in a court of law.
 Immunity from civil suits: A registered trade union is immune from civil suits unless it is sued in
the name of an officer of the union or a group of members.
 Immunity from criminal liability: A registered trade union and its office bearers are protected
from criminal liability for actions taken in contemplation or furtherance of a trade dispute.
 Right to collective bargaining: A registered trade union has the right to bargain collectively with
employers on behalf of its members.
 Right to strike: A registered trade union has the right to call for a strike or a lockout, subject to
certain conditions and restrictions under the Industrial Disputes Act of 1947.
 Right to inspection of books and records: Members of a registered trade union have the right to
inspect the books and records of the union, subject to certain conditions and restrictions.
 Right to hold meetings and collect funds: A registered trade union has the right to hold meetings
and collect funds from its members for the purpose of advancing the interests of the members.

Industrial Relations code 2020 regarding Trade Unions

Registration of trade union

 Any seven or more members of a trade union by subscribing to their names, apply for registration to
the Authority according to Rules of the Trade Union.

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 At least ten percent of the workers or 100 workers, whichever is less, must be the members of the
Trade Union on the date of making an application for registration.
 Registered Trade Union shall continue to have at least ten percent of the workers or one hundred
workers, whichever is less.
 If the name of the Trade Union proposed to be registered is identical with an existing registered
Trade Union, alteration of the name is required as asked by the Registrar of Trade Union.
 Registered Trade Union shall be a body incorporate by the registered name, having a common seal
and perpetual succession with the power to hold property.

Constitution of work committee

Industrial Establishment having or employed 100 or more workers during a period of 12 months, may be
required to constitute a Work Committee to promote protective measures for securing and preserving
sensible relations between the employer and workers.

Recognition of negotiating trade union

 For a Registered trade union, there shall be a negotiating union or council to negotiate with the
employer of the Industrial Establishment.
 If only one Trade Union of workers registered in an industrial establishment then the employer of
such industrial establishment shall recognize such Trade Union as the sole negotiating union of the
workers.
 If more than one Trade Union of registered workers in an Industrial Establishment then at least fifty-
one percent or more of workers on the muster roll of that Industrial Establishment will be
recognized as the sole negotiating union by the employer.

Grievance redressal committee

 Industrial Relations Code 2020 states that any industrial establishment employing more than 20
employees must have one or more complaint redressal committees for the resolution of disputes
arising from individual complaints.
 The committee should be made up of an equal number of members representing employers and
workers, and the chair should be elected, alternately, from among employees and workers, on a
rotating basis each year.
 The number of grievance redress committees cannot exceed 10 and there must be adequate
representation of female workers on the committee and must not be less than the proportion of
women employed in the industrial establishment.

Standing orders
Industrial Establishment having or employed 300 or more workers on any day of during the period of 12
months, must prepare the standing orders on the following matters:

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 Classification of workers
 Manner of intimating to workers for hours of work holidays, pay-days and wage rates
 Shift Working
 Attendance
 Conditions and procedure of leave and holidays
 Requirement to enter premises by certain gates, and liability to search.

Strikes and lock-outs

Every person employed in an Industrial Establishment is prohibited for strikes and lock-out, in breach of
contract

 without giving 60 days advance notice of strikes and lock-out to the employer
 within fourteen days of giving such notice; or
 before the expiry of the date of strikes and lock-out specified in any such notice; or
 during the pendency of any conciliation proceedings before a conciliation officer and seven days
after the conclusion of such proceedings; or
 during the pendency of arbitration proceedings before an arbitrator & 60 days after conclusion of
such proceedings

Change in the conditions of service

The employer is required to send a notice of change in the conditions of service in the following matters, to
the workers being affected

 wages, compensatory and other allowances

 contribution paid, or payable, by the employer to any provident fund or pension fund or for the
benefit of workers under any law for the time being in force
 hours of work and rest intervals
 leave with wages and holidays
 starting, alteration, or ending of shift operating otherwise than in accordance with standing orders
 classification by grades
 withdrawal of any customary concession or privilege or modification in usage
 introduction of recent provisions for discipline, or alteration of existing rules, except in so far as they
are provided in standing orders
 Rationalization, standardization, or improvement of plant or technique that is likely to lead to
retrenchment of workers any increase or reduction in the no of persons employed or to be
employed in any occupation or process or department or shift, not occasioned by circumstances
over which the employer has no control.

Retrenchment
 Provides procedures for the retrenchment of workers and the re-employment of the retrenched
worker.

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 For the retrenchment, the employer must either give three months’ notice or pay the retrenched
worker in lieu of the notice period
 Where any worker is retrenched and the employer proposes to take into his employment any person
within one year of such retrenchment, an opportunity will be given to the retrenched workers who
are citizens of India to offer themselves for re-employment.

LAY-OFF
Lay-off is the inability of an employer from giving employment to a worker due to multiple factors such as
shortage of coal, power, or breakdown of machinery. Non-seasonal industrial establishment (i.e. mines,
factories, and plantations) with 50 to 300 workers is required to

 Pay 50% of basic wages and dearness allowance to a worker who has been laid off
 Give one month’s notice or wages for the notice period to the retrenched worker.
 non-seasonal industrial establishments with at least 300 workers is required to take prior approval
from central or state government before lay-off, retrenchment or closure
 Prior approval before lay-off, retrenchment or closure is required by the non-seasonal Industrial
Establishments with at least 300 workers, from central or state government.

Closure
 Employer intending closure of an Industrial Establishment is required to serve 60 days advance
notice to the Government.
 Provision for compensation in case of Closure to those workers who are in a continuous period of
service not less than one year

Exemptions
The Code provides that the central or state government may exempt any new establishment or a class of
new establishment from all or any provisions of the Code in the public interest.

Recognition of a Trade Union

Difference between Registered and Recognised Trade Union

Basis of Registered Trade Union Recognized Trade Union

Comparison

Legal Status Registered under the Trade Registered under the Trade Unions Act, 1926 and
Unions Act, 1926 recognized by the employer or the government

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Membership At least seven members engaged At least 10% of the workers or 100 workers
Requirements in the same trade, occupation, or (whichever is less) of an establishment or industry
industry

Verification of No verification of membership is Membership verified by the employer or

Membership required government

Rights and Right to represent workers in All rights and privileges of registered trade
Privileges matters related to collective unions, as well as access to facilities and
bargaining, participation in information, participation in management
bipartite and tripartite forums, and committees, and check-off facilities for
conduct strikes and lockouts membership dues

Responsibilities Duty to promote the interests and Additional duty to work with the employer or
welfare of its members, protect government in maintaining industrial peace,
their rights, and maintain resolving disputes through conciliation and
harmonious industrial relations arbitration, and complying with the terms of any
settlement or agreement

Trade Union Recognition

Trade union recognition is the process by which an employer or government formally acknowledges a trade
union as the representative of a group of workers in a particular industry or establishment. Recognition
gives a trade union certain rights and privileges, such as the right to engage in collective bargaining, the
ability to participate in bipartite and tripartite forums, and access to facilities and information.

In India, recognition of a trade union is not mandatory under the law, and the decision to recognize a trade
union lies solely with the employer or the government. However, the Industrial Relations Code, 2020
provides for a voluntary mechanism of recognition of trade unions by employers in order to promote
harmonious industrial relations.

The Code states that a recognized trade union must have a minimum of 10% of the workers or 100 workers
(whichever is less) of an establishment or industry as its members. The employer or a trade union may
initiate the process of recognition by submitting an application to the appropriate authority.

The recognition process involves verification of the membership of the trade union by the employer or
government, and negotiations between the employer and the trade union regarding the terms and
conditions of recognition. If the parties reach an agreement on recognition, it is recorded in writing and
becomes legally binding.

Recognition of a trade union also imposes certain responsibilities on the trade union, such as the duty to
work with the employer or government in maintaining industrial peace, resolving disputes through
conciliation and arbitration, and complying with the terms of any settlement or agreement.

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Recognition of the Trade Unions in the Absence of Law

In the absence of a legal framework for trade union recognition, the recognition of a trade union by an
employer or government is purely voluntary and can vary depending on the individual circumstances and
dynamics of the workplace or industry.

In such cases, trade unions may use various methods to gain recognition, such as collective bargaining,
strikes or protests, or forming alliances with other unions or organizations. The success of these methods
often depends on the strength and bargaining power of the trade union, as well as the willingness of the
employer or government to engage in negotiations.

Check-off
 Check-off is a system used by some employers to deduct trade union membership fees or dues from
the wages of unionized employees, and remit them directly to the trade union. This system is usually
agreed upon in a collective bargaining agreement between the employer and the recognized trade
union.
 The check-off system is beneficial for both the trade union and the employer, as it ensures a steady
and reliable source of income for the union, and reduces the administrative burden of collecting and
managing union dues for the employer. It also simplifies the process for union members, who do
not have to worry about making separate payments for their union dues.
 However, there are some criticisms of the check-off system. Some argue that it may infringe upon
the individual rights of workers, who may not want to be a part of the trade union or support its
activities. Others argue that it may lead to complacency on the part of the trade union, as they are
assured of a steady income without having to actively recruit new members or engage in other
forms of fundraising.

Secret ballot
 Secret ballot is a method of conducting a vote in which each member casts their vote privately,
without revealing their choice to anyone else.
 It is often used to elect office-bearers, decide on collective bargaining agreements, and make other
important decisions in trade unions.
 The purpose of using a secret ballot is to ensure that each member can freely express their choice
without fear of coercion, pressure or intimidation from other members or union leaders.
 Secret ballot is a democratic process that helps to maintain transparency and fairness in the
decision-making process of trade unions.
 The use of secret ballot in trade unions is often mandated by law, and failure to comply with this
requirement may result in legal consequences.
 The counting of votes in a secret ballot is done by an independent third party or election
commission, which ensures that the process is fair and impartial.
 The results of the secret ballot are usually announced publicly, after the counting process is
completed.
 Secret ballot is an important tool for ensuring the legitimacy and credibility of trade union decision-
making processes, and it helps to foster trust and confidence among members.

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Verification of membership through Labour Department
Verification of membership through the Labour Department is a process by which trade unions can have
their membership verified by an independent third party, which in this case is the Labour Department. This
verification process is often used to determine the strength and legitimacy of trade unions, and it can have
important implications for collective bargaining and other aspects of industrial relations.

 Trade unions can request the Labour Department to verify their membership by submitting a list of
their members along with their signatures or thumbprints.
 The Labour Department will then conduct a verification process to ensure that the signatures or
thumbprints on the membership list match the signatures or thumbprints of the members on
record.
 The verification process is typically carried out in a systematic and transparent manner, and the
results are communicated to the trade union and other relevant parties.
 The verification of membership process can have significant implications for trade unions,
particularly in the context of collective bargaining and other forms of industrial action.
 For example, if a trade union is found to have a large and legitimate membership base, it may be
able to exert greater bargaining power and negotiate more favorable terms and conditions of
employment for its members.
 On the other hand, if a trade union is found to have a small or illegitimate membership base, it may
be less effective in bargaining with employers and may struggle to achieve its objectives.
 The verification of membership process through the Labour Department is often mandated by law,
and failure to comply with this requirement may result in legal consequences.

Role of ILO in Recognition of Trade Unions

 The ILO sets international labour standards: The ILO has developed international labour
standards that establish basic principles and rights at work, including freedom of association and the
right to collective bargaining. These standards are embodied in ILO Conventions and
Recommendations.
 Promotes the right to freedom of association: One of the core principles of the ILO is the right to
freedom of association, which includes the right to form and join trade unions. The ILO promotes
this right through its technical cooperation programs and by raising awareness of the importance of
the right to freedom of association.
 Technical assistance to governments and employers' and workers' organizations: The ILO
provides technical assistance to governments, employers' organizations, and workers' organizations
to help them implement international labour standards and promote the right to freedom of
association.
 Mediation and conciliation: The ILO provides mediation and conciliation services to help resolve
disputes between employers and workers or their organizations.
 Monitoring and reporting: The ILO monitors the situation of trade unions and workers' rights
around the world and reports on violations of these rights. It also provides recommendations on
how to address these violations and improve the situation of workers.

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 Supporting the development of national laws and policies: The ILO supports the development of
national laws and policies that protect workers' rights and promote the right to freedom of
association.

Voluntary Recognition and Statutory Recognition

Voluntary recognition and statutory recognition are two types of trade union recognition that companies
can choose to grant to a trade union.

Voluntary recognition is when a company voluntarily decides to recognize a trade union as the
representative of its employees. This recognition is based on a negotiation between the company and the
union, and is not legally binding.

On the other hand, statutory recognition is a legal requirement that companies recognize a trade union
if it meets certain criteria. This is usually based on the number of members in the union and the level of
support it has among the employees. Statutory recognition gives the trade union legal rights to bargain
with the company on behalf of its members.

In India, the Trade Union Act, 1926 provides for the registration of trade unions and the recognition of trade
unions by employers. The Industrial Relations Code, 2020 also lays down provisions for the recognition of
trade unions in the organized sector. The Code states that a trade union can be recognized if it meets
certain conditions such as having a minimum number of members, having a constitution, and not engaging
in activities that are detrimental to the national interest. If a trade union is recognized, it has the right to
bargain collectively with the employer on behalf of its members.

Constitution and Recognition of Trade Unions

The Constitution of India guarantees the right to form associations or unions under Article 19(1)(c) as a
fundamental right. The Trade Unions Act, 1926 provides for the registration of trade unions and confers
certain legal rights on registered trade unions. In order to be recognized by employers, trade unions must
follow certain procedures and meet certain criteria.

Multiplicity of Unions and Inter-Union Rivalry

The provision in the Trade Unions Act, 1926 that 7 or more workers can form a trade union has resulted in
multiplicity of trade unions at every level. Another reason behind union multiplicity is affiliation with rival
political parties. As put up by Mathur and Mathur (1957, p. 201), “The clay of unionism is possibly
effervescent industrial labourers, but the sculptors chiselling it into shape have certainly been members of
political parties.

The multiplicity of trade unions is a major problem among the trade unions. These multiple trade unionism
is seen mainly because of the political outsiders wanting to establish their unions for their own view of
increasing their political influence although in the urban areas. The existence of different conflicting or rival

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organizations, with divergent political views, is greatly responsible for inadequate and unhealthy growth of
the movement.

Within a single organization one comes across a number of groups comprising or insiders and outsiders,
new-comers, and old-timers, moderates and radicals, and high and low caste people. This develops small
size unions which are not helpful for the workers or employees and creates problems such as:

 Rivalry between the unions

 Lack of ability among the leaders and members.
 Low bargaining power.
 Lack of funds to help its members.
 Lack of unity among workers.

Trade Union Rivalry

India has the largest number of Trade Unions in the world but the rivalry between the unions or the inter-
union rivalry is a niggling problem. Inter-union and intra-union rivalry undermines the strength and
solidarity of the workers in many ways. An Inter-union rivalry is mainly because of the multiplicity of unions
which ultimately cuts at the very root of unionism, weakens the power of collective bargaining, and reduces
the effectiveness of workers in securing their legitimate rights. Therefore, there should be one union in one
Industry’. Practically in every important industry, there exists parallel and competing unions, e.g. on the
Indian Railways, there are two parallel Federations

 the Indian Railway Men’s Federation and

 Indian National Federation of Railway-men.

Various forms of Unions

Craft Unions
The membership of such unions is drawn from among workers employed in a particular craft or trade or
allied crafts or trades or occupations irrespective of the organisa-tion or the industry they belong to. Such
employees are craft conscious and usually profession-als or non-manual employees. The Ahmedabad
Weavers’ Union is an example that can be cited in this regard.

Industrial Unions
In industrial unions, membership is open to all types of workers engaged in any one industry or a group of
industries or service, that is, on industry-wise basis, for example, Rashtriya Mill Mazdoor Sangh, Mumbai.

Labour Unions
In these unions, membership is open to all workers irrespective of their occu-pation, skill or industry, the
philosophy being that all workers have common status and a common need for mutual help. Labour unions
refer to both craft and industrial unions.

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General Unions
General unions believe in the solidarity of the working class. Hence, their membership is open to workers of
different skills and trades engaged in different industries.

Blue-Collar Workers’ Unions

Blue-collar workers’ unions constitute of employees usually performing operative jobs. They usually operate
machines in the production and allied departments. Blue-collar workers constitute the bulk of membership
of trade unions in the organised sector.

White-Collar Workers’ Unions

Such unions usually comprise office staff or who work off the shop floor and perform desk jobs or provide
service over the counter or any such other job. White-collar category includes executives, managers,
professionals, administrators, supervi-sors, clerks and the like.

We come across such unions in banks, service sector, insurance companies, BPOs, software organisations,
Central and state government offices, and so on. Their members being educated and matured are aware of
the capacity to pay off their organisa-tions and, therefore, are more reasonable while they prepare their
charter of demands.

Reformist Unions
These unions may be either business unions or revolutionary unions.

Business Unions

They are also known as ‘bread and butter unions’ and aim at securing economic interests of their members
and follow the method of collective bargaining to accomplish their objectives.

Revolutionary Unions

Revolutionary unions are opposed to the capitalistic industry and replace it by the socialistic systems
through radical means such as strikes, boycott and gheraos.

Revolutionary unions may be of any of the following forms

Anarchist Unions: These unions endeavour to destroy the existing economic system and usually use
violent means.

Predatory Unions: Initiated by Professor Hoxie, such unions believe in plundering benefits and ruthless
pursuit of the matter in hand by adopting any means irrespective of ethical, legal or moral considerations.

Political Unions

Such unions aim at snatching the power of capitalists by political action so that workers may become more
powerful.

Friendly or Uplift Unions

These unions mainly aim at improving the intellectual, moral and social life of their members. These unions
are not craft conscious. They rather focus on the interest of workers. They are idealistic in nature. Since they
are law-abiding, they believe in the institution of collective bargaining and also setting up of cooperative
enterprises, mutual insurance, profit-sharing and the like.

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Closed Shop
Where management and union agree that the union would have sole responsibility and authority for the
recruitment of workers, it is called a Closed Shop agreement. The worker joins the union to become an
employee of the shop. The Taft-Hartley Act of 1947 bans closed shop agreements in the USA, although they
still exist in the construction and printing trades. Sometimes, the closed shop is also called the ‘Hiring Hall.’

Union Shop
Where there is an agreement that all new recruits must join the union within a fixed period after
employment it is called a union shop. In the USA where some states are declared to be ‘right-to-work’.

Preferential Shop
When a Union member is given preference in filling a vacancy, such an agreement is called Preferential
Shop.

Maintenance Shop
In this type of arrangement no compulsory membership in the union before or after recruitment exists.
However, if the employee chooses to become a member after recruitment, his membership remains
compulsory right throughout his tenure of employment with that particular employer. This is called a
maintenance of membership shop or maintenance shop.

Agency Shop
In terms of the agreement between management and the union a non-union member has to pay the union
a sum equivalent to a member’s subscription in order to continue employment with the employer. This is
called an agency shop.

Open Shop
Membership in a union is in no way compulsory or obligatory either before or after recruitment. In such
organisations, sometimes there is no union at all. This is least desirable form for unions. This is referred to
as an open shop.

Theories of Trade Unionism

Political Revolutionary Theory of Labour Movement of Marx and Engels

Marx and Engels viewed the labor movement as a central force in revolutionary politics. They believed that
the capitalist system exploited workers and that the only way to achieve true equality and justice was
through a proletarian revolution.

Marx and Engels argued that the labor movement must organize itself into a political force that would
challenge the existing power structures of capitalist society. This required the development of a working-
class consciousness, where workers would recognize their common interests and unite to fight for their
rights.

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According to Marx and Engels, the labor movement had the potential to bring about a socialist revolution
by seizing control of the means of production and establishing a new social order based on common
ownership and democratic control of resources.

They believed that this revolution was not only inevitable but also necessary for the liberation of the
working class. Through the labor movement, workers could overthrow the ruling class and create a new
society where everyone had equal access to resources and power.

Webb’s Theory of Industrial Democracy

Sidney and Beatrice Webb were British socialists and writers who developed a theory of industrial
democracy in the early 20th century. Their theory aimed to improve the conditions of workers and increase
their participation in the workplace.

The Webbs believed that industrial democracy could be achieved through the creation of worker
cooperatives and the extension of democracy to the workplace. They argued that workers should have a say
in the management of their workplaces and should be able to participate in decision-making processes that
affect their lives and work.

According to their theory, industrial democracy would lead to greater job satisfaction, higher productivity,
and a more equal distribution of wealth. They believed that workers should have a say in the allocation of
profits, as well as in the setting of wages, hours, and working conditions.

The Webbs also advocated for the establishment of trade unions and the collective bargaining process as
means for workers to negotiate with their employers. They saw this as a way to balance the power between
workers and employers and ensure that workers' rights were protected.

Cole’s Theory of Union Control of Industry

G. D. H. Cole was a British political theorist and historian who developed a theory of union control of
industry in the early 20th century. His theory aimed to establish a cooperative society, where workers would
have democratic control over the economy.

Cole believed that the most effective way to achieve this was through the control of industry by trade
unions. He argued that workers should organize themselves into industrial unions, which would be
responsible for the management of their respective industries. Under this system, workers would have a say
in the allocation of profits, the setting of wages, hours, and working conditions, and the direction of
technological development.

According to Cole, union control of industry would lead to greater economic equality, increased job
security, and more fulfilling work for workers. He believed that by putting workers in control of the means
of production, a cooperative society could be established, where everyone would have equal access to
resources and power.

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Cole's theory of union control of industry was influenced by his socialist beliefs and his criticism of the
capitalist system. He saw unions as a means to challenge the power of capitalists and to create a more just
and equitable society.

Common’s Environment Theory

John R. Commons was an American economist who developed a theory of environmentalism in the early
20th century. His theory emphasized the importance of preserving the natural environment and promoting
sustainability, while also recognizing the economic and social impacts of environmental policies.

Commons believed that the natural environment was a public good that should be protected and managed
for the benefit of everyone. He argued that the depletion of natural resources and the degradation of the
environment could have negative economic and social consequences, such as unemployment, poverty, and
social unrest.

According to his theory, environmental policies should be based on scientific research and social analysis,
and should take into account the needs and interests of all stakeholders, including businesses,
governments, communities, and future generations. He believed that environmental policies should
promote sustainability, both in terms of natural resource management and economic development.

Commons also argued that environmental policies should be integrated into broader social and economic
policies, such as labor policies, trade policies, and urban planning. He believed that environmental issues
were interconnected with other social and economic issues and should be addressed through a holistic
approach.

Mitchell’s Economic Protection Theory of Trade Unionism

William Mitchell was an Australian economist and labor theorist who developed a theory of economic
protection in trade unionism in the mid-20th century. His theory aimed to protect workers' economic
interests by advocating for the establishment of strong trade unions that could negotiate with employers
for better wages, benefits, and working conditions.

Mitchell believed that trade unions played a crucial role in protecting workers from exploitation by
employers. He argued that unions should use their collective bargaining power to negotiate with employers
for fair wages and working conditions, and to promote job security for workers.

According to his theory, trade unions should also work to protect workers from the negative effects of
international trade and globalization. Mitchell believed that the liberalization of trade could lead to a race
to the bottom, where workers in different countries were pitted against each other in a competition for jobs
and wages. He argued that trade unions should advocate for policies that would protect workers from these
negative effects, such as tariffs and other forms of trade protection.

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Simons Theory of Monopolistic, anti-Democratic Trade Unionism

Erich H. Simons was a German-born American economist and labor theorist who developed a theory of
monopolistic, anti-democratic trade unionism in the mid-20th century. His theory aimed to critique the
dominant trade union model at the time, which he believed had become too focused on protecting the
interests of a small group of workers and had lost sight of broader democratic values.

Simons argued that many trade unions had become monopolistic and had created barriers to entry for new
workers and new businesses. He believed that this had created a situation where a small group of workers
were able to earn high wages and benefits, while other workers were excluded from these benefits.

According to his theory, this monopolistic trade unionism was also anti-democratic, as it concentrated
power in the hands of a few union leaders and prevented broader participation by workers in decision-
making processes. He argued that trade unions should be more democratic and should give more power to
their members to participate in decision-making processes.

Simons also believed that trade unions should focus on promoting broader social and economic goals, such
as full employment and economic growth, rather than just protecting the interests of a small group of
workers. He argued that trade unions should work with businesses and governments to promote these
broader goals, rather than just focusing on their own narrow interests.

Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers

Selig Perlman was an American labor historian and economist who developed a theory of the "scarcity
consciousness" of manual workers in the early 20th century. His theory aimed to explain the attitudes and
behavior of workers in the face of economic insecurity and scarcity.

Perlman argued that manual workers had a unique mentality that was shaped by their experiences of
economic insecurity and scarcity. He believed that workers who experienced job insecurity, low wages, and
poor working conditions developed a "scarcity consciousness" that led them to be more conservative and
risk-averse in their attitudes and behavior.

According to his theory, workers with a scarcity consciousness were more likely to support conservative
political and economic policies, such as protectionism and trade restrictions, that aimed to protect their
own jobs and industries from competition. They were also more likely to support labor unions that
advocated for job security and wage increases, rather than more radical political movements.

Perlman believed that the scarcity consciousness of manual workers was a significant factor in shaping the
economic and political landscape of the early 20th century. He argued that workers with a scarcity
consciousness were more likely to resist social and economic change, and that this resistance was a major
obstacle to the growth of the labor movement and the development of more progressive economic
policies.8. Hoxies Functional Classification of Unionism:

He classified Unionism on the basis of their functions. His classification were Business Unionism for
protecting the interest of various craftsmen, “Uplift unionism” for the purpose of contributing better life
such as association of sales engineers etc. “Revolutionary Unionism” which is eager to replace existing social
order, “Predatory Unionism” which rests on these support of others.

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Tannenbaum’s Theory of Man Vs. Machine

Warren H. Tannenbaum was an American organizational psychologist who developed a theory of man vs.
machine in the mid-20th century. His theory aimed to explain the conflict that can arise between workers
and technology in the workplace.

Tannenbaum argued that technology was often seen as a threat to the autonomy and dignity of workers, as
it could be used to replace human labor and reduce the skills required for certain jobs. He believed that this
conflict between man and machine was a significant factor in shaping the workplace and the attitudes of
workers towards technology.

According to his theory, workers often saw technology as a threat to their job security and their ability to
control their own work. They also feared that technology would reduce the social interactions and sense of
community that were an important part of many jobs.

Tannenbaum believed that the conflict between man and machine could be resolved through the
development of new technologies that were designed to enhance, rather than replace, human labor. He
also believed that workers should be involved in the design and implementation of new technologies, in
order to ensure that their concerns and perspectives were taken into account.

Kerr, Dunlop, Harbison and Myers

Kerr, Dunlop, Harbison, and Myers (KDHM) were a group of scholars who developed a theory of industrial
relations in the 1960s. Their theory aimed to explain the complex relationship between workers, managers,
and government in the workplace.

According to KDHM's theory, industrial relations were shaped by three key factors: technology, the market,
and the political and social environment. They believed that changes in technology and the market could
lead to changes in the organization of work, and that these changes could have significant implications for
workers and their relationships with management.

They also believed that government policy played a key role in shaping industrial relations, as governments
could set rules and regulations that affected the relationship between workers and management. In
particular, they argued that government policy could help to promote a more cooperative relationship
between workers and management, or it could contribute to conflict and instability in the workplace.

Mahatma Gandhi theory

Mahatma Gandhi, the Indian nationalist and leader of the Indian independence movement, did not develop
a formal theory of trade unionism. However, he did provide some insights into his views on labor relations
and workers' rights through his advocacy of non-violent resistance and his support for workers' rights.

Gandhi believed that workers should have the right to organize and collectively bargain for better wages
and working conditions. He also believed that labor should be viewed as a partnership between workers
and management, rather than a conflict between the two. He advocated for non-violent methods of protest

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and resistance, including strikes and boycotts, as a means of achieving workers' rights and improving labor
conditions.

Gandhi also emphasized the importance of self-reliance and self-sufficiency, and he believed that workers
should strive to develop their skills and knowledge in order to improve their economic and social status. He
advocated for a decentralized and community-based approach to economic development, in which workers
would have greater control over their own labor and the products they produced.

Questions

1. What is the primary objective of trade unionism?

a) To promote the welfare of the workers

b) To promote the interests of the employers

c) To promote the interests of the government

d) To promote the interests of the shareholders

2. Which of the following is NOT a function of a trade union?

a) Collective bargaining

b) Political lobbying

c) Worker education and training

d) Disciplinary action against non-union members

3. Which of the following is NOT a type of trade union?

a) Craft Union

b) Industrial Union

c) White-Collar Union

d) Red-Collar Union

4. What is the purpose of the Trade Union Act, 1926?

a) To regulate the functioning of trade unions

b) To ban the formation of trade unions

c) To promote the interests of the employers

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d) To promote the interests of the government

5. Which of the following is a recognized method of settling industrial disputes in India?

a) Strike

b) Lockout

c) Picketing

d) Conciliation

6. Which of the following is NOT a demand made by trade unions during collective bargaining?

a) Improved working conditions

b) Higher wages

c) Job security

d) Lower taxes

7. What is a "closed shop" agreement?

a) An agreement between an employer and a trade union, requiring that all employees be members of the
union

b) An agreement between an employer and a trade union, requiring that only union members can be hired

c) An agreement between an employer and a trade union, allowing non-union members to work alongside
union members

d) An agreement between an employer and a trade union, requiring that union membership be voluntary

8. Which of the following is NOT a right of a registered trade union?

a) The right to collective bargaining

b) The right to strike

c) The right to picket

d) The right to hire non-union workers

9. Which of the following is NOT a reason for the formation of a trade union?

a) To protect the rights of workers

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b) To provide job security

c) To promote the interests of the employers

d) To improve working conditions

10. Which of the following is the most effective method of preventing industrial disputes?

a) Conciliation

b) Arbitration

c) Adjudication

d) Collective bargaining

11. Which of the following is NOT a benefit of union membership?

a) Higher wages

b) Better working conditions

c) Job security

d) Increased management control

12. Which of the following is the most common form of industrial dispute in India?

a) Strike

b) Lockout

c) Picketing

d) Arbitration

13. Which of the following is NOT a factor that has contributed to the growth of trade unionism in
India?

a) The growth of industrialization

b) The increase in the number of blue-collar workers

c) The growth of the service sector

d) The implementation of labor laws

14. Which of the following is the primary objective of collective bargaining?

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a) To promote the interests of the employers

b) To promote the interests of the government

c) To promote the welfare of the workers

d) To promote the interests of the shareholders

15. What is the difference between a trade union and an employers' association?

a) A trade union represents workers, while an employers' association represents employers.

b) A trade union represents employers, while an employers' association represents workers.

c) A trade union represents workers in a specific industry, while an employers' association represents all
employers in that industry.

d) A trade union and an employers' association are the same thing.

Answer Keys
1. Answer: a) To promote the welfare of the workers. The primary objective of trade unionism is to
promote the welfare of the workers by safeguarding their interests, improving their working
conditions, and ensuring better pay and benefits.
2. Answer: d) Disciplinary action against non-union members. A trade union is responsible for
collective bargaining, political lobbying, and worker education and training. Disciplinary action
against non-union members is not a function of a trade union.
3. Answer: d) Red-Collar Union. The three types of trade unions are craft unions, industrial unions, and
white-collar unions. Red-collar union is not a type of trade union.
4. Answer: a) To regulate the functioning of trade unions. The Trade Union Act, 1926 was enacted to
provide for the registration of trade unions and to regulate their functioning.
5. Answer: d) Conciliation. Conciliation is a recognized method of settling industrial disputes in India.
Other methods include arbitration and adjudication.
6. Answer: d) Lower taxes. Trade unions usually demand better working conditions, higher wages, and
job security during collective bargaining. Lower taxes are not a demand made by trade unions
during collective bargaining.
7. Answer: a) An agreement between an employer and a trade union, requiring that all employees be
members of the union. A "closed shop" agreement is an agreement between an employer and a
trade union, requiring that all employees be members of the union as a condition of employment.
8. Answer: d) The right to hire non-union workers. A registered trade union has the right to collective
bargaining, the right to strike, and the right to picket. The right to hire non-union workers is not a
right of a registered trade union.
9. Answer: c) To promote the interests of the employers. The formation of a trade union is usually
done to protect the rights of workers, provide job security, and improve working conditions.
Promoting the interests of the employers is not a reason for the formation of a trade union.

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10. Answer: d) Collective bargaining. Collective bargaining is the most effective method of preventing
industrial disputes as it involves both employers and workers negotiating and reaching a mutually
beneficial agreement.
11. Answer: d) Increased management control. Union membership benefits workers by providing them
with higher wages, better working conditions, and job security. Increased management control is
not a benefit of union membership.
12. Answer: a) Strike. Strikes are the most common form of industrial dispute in India. It is a collective
work stoppage by employees to protest against their employer for issues such as wages, working
conditions, and other grievances.
13. Answer: c) The growth of the service sector. The growth of industrialization, the increase in the
number of blue-collar workers, and the implementation of labor laws have contributed to the
growth of trade unionism in India. The growth of the service sector has not had a significant impact
on the growth of trade unionism in India.
14. Answer: c) To promote the welfare of the workers. The primary objective of collective bargaining is
to promote the welfare of the workers by negotiating with the employer for better pay, working
conditions, and other benefits.
15. Answer: a) A trade union represents workers, while an employers' association represents employers.
A trade union represents workers and their interests, while an employers' association represents the
interests of employers in a particular industry or sector. They have different objectives and functions.

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CHAPTER – 3
Industrial Disputes: Sources, Strikes and Lockouts
Introduction
Around three centuries ago, the concept of ‘industrialisation’ came into existence, which has, in one way or
the other, transformed the lifestyle of the people and contributed to the overall economic growth and
development of society. It has simplified various works of the people, which earlier requires laborious
efforts. But in addition to these benefits, it also paves the way for industrial disputes. Generally, where there
is an industry, there has always been a conflict of interest between the management and the workers. The
management or administration focuses on profit maximisation, whereas the workers expect healthy wages,
reasonable facilities and good conditions of work. Therefore, industrial disputes are inevitable.

For the progress and development of the country, industrial peace and harmony must be restored.
Therefore, every country tries to maintain good relations between the employer and the employee. In India,
these objectives were accomplished through the provisions of the Industrial Disputes Act, 1947. This Act
provides for the investigation and settlement of industrial disputes.

As per the Industrial Relations Code 2020, Industrial Dispute means any dispute or difference
between

 Employers and employers,

 Employers and workmen, or
 Workmen and workmen,

Which is connected with the employment or non-employment, or the terms of employment or with the
conditions of labor, of any person.

The term "workmen" includes any person (including an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational, clerical, or supervisory work for hire or reward, whether the
terms of employment are express or implied.

The Industrial Relations Code 2020 is a comprehensive legislation that aims to streamline and modernize
labor laws in India. It consolidates and replaces three previous laws, including the Trade Unions Act, the
Industrial Employment (Standing Orders) Act, and the Industrial Disputes Act.

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Definition
The Industrial Relations (IR) Code 2020 is an Indian legislation that defines an industrial dispute as "any
disagreement or difference between employers and employers, or between employers and workers, or
between workers and workers, which is connected with the employment or non-employment or the terms
of employment or the conditions of work of any person."

The IR Code identifies several types of industrial disputes, which are categorized into the following sections:

 Section 2(1)(a) - Dispute between workmen and employers: This includes any dispute between an
individual workman or a group of workmen and their employer, relating to employment or non-
employment, terms of employment, or working conditions.
 Section 2(1)(b) - Dispute between workmen and workmen: This includes any dispute between two
or more workmen, relating to employment or non-employment, terms of employment, or working
conditions.
 Section 2(1)(c) - Dispute between employers and employers: This includes any dispute between
two or more employers, relating to employment or non-employment, terms of employment, or
working conditions.
 Section 2(1)(d) - Dispute between employers and workmen: This includes any dispute between an
employer or group of employers and a workman or group of workmen, relating to employment or
non-employment, terms of employment, or working conditions.

Industrial unrest
 Industrial unrest refers to the dissatisfaction, conflict, and unrest that may arise between
employers and employees, or among employees themselves, in an industrial or workplace
setting.
 It is often characterized by strikes, protests, slowdowns, work-to-rule, and other forms of
organized collective action by workers in response to various grievances or disagreements with their
employers.

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 Industrial unrest can arise due to various reasons, including disputes over wages, working
conditions, job security, employee rights, and grievances related to management practices or
policies.
 The impact of industrial unrest can be significant and may result in the disruption of production, loss
of profits, and damage to the reputation of the company, and can have wider implications for the
economy as a whole.
 Effective communication, engagement, and consultation with employees, as well as proactive
measures by management, can help prevent industrial unrest and promote positive employee
relations. Effective dispute resolution mechanisms and open channels of communication can also
help to resolve issues before they escalate into full-blown industrial disputes.

Industrial peace
 Industrial peace refers to a state of cooperative and harmonious relations between employers
and employees in the workplace. In this state, there are no labor disputes, conflicts, or grievances,
and there is mutual trust, respect, and collaboration between management and employees.
 Industrial peace is crucial for the smooth operation of any organization. It promotes stability,
productivity, and profitability, and can help to attract and retain skilled workers while improving
employee morale and the company's reputation.
 Achieving industrial peace requires both employers and employees to participate actively and
commit to creating a peaceful and productive workplace environment.
 This can be achieved by fostering effective communication, consultation, and engagement
between management and employees, as well as ensuring fair and equitable employment
practices, such as competitive wages and benefits, good working conditions, and opportunities for
career development.
 To maintain industrial peace, it is essential to establish effective conflict resolution mechanisms, such
as grievance procedures and arbitration that provide a fair and timely means for resolving disputes.

Industrial Discipline
Industrial discipline refers to the rules, policies, and procedures that govern the behavior of employees in
the workplace. It encompasses a wide range of aspects, including attendance, punctuality, safety, quality,
productivity, and adherence to company policies and procedures.

Maintaining industrial discipline is critical to the smooth functioning of any organization. It helps to ensure
that employees are working efficiently and effectively, and that they are meeting the expectations and
standards set by the company. Industrial discipline can also help to promote a safe and healthy workplace
environment, where employees are aware of their responsibilities and take steps to minimize risks and
hazards.

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Industrial Jurisprudence
Industrial jurisprudence is a branch of law that deals with the legal aspects of industrial relations and
employment practices. It encompasses the legal framework governing employer-employee relationships,
collective bargaining, dispute resolution, and the rights and obligations of employers and employees.

Industrial jurisprudence covers a wide range of legal topics, including labor laws, employment
contracts, trade union law, industrial dispute resolution, occupational health and safety,
discrimination and harassment in the workplace, and employee benefits and compensation. It is a vital
area of law as it helps to protect the interests of both employers and employees, ensuring that they operate
within a fair and equitable legal framework.

Industrial dispute act 1946

The Industrial Disputes Act, 1947 extended to the whole of India and regulated Indian labour law so far as
that concerns trade unions as well as Individual workman employed in any Industry within the territory of
Indian mainland. Enacted on 11 March 1947 and It came into force 1 April 1947. It was replaced by the
Industrial Relations Code, 2020.

Objectives
An act to make provision for the investigation and settlement of industrial disputes, and for certain other
purposes. The objective of the Industrial Disputes Act is to secure industrial peace and harmony by
providing mechanism and procedure for the investigation and settlement of industrial disputes by
conciliation, arbitration and adjudication which is provided under the statute. The main and ultimate
objective of this act is "Maintenance of Peaceful work culture in the Industry in India" which is clearly
provided under the Statement of Objects & Reasons of the statute.

The laws apply only to the organised sector. Chapter V talks about the most important and often in news
topic of 'Strikes and Lockouts'. It talks about the Regulation of strikes and lockouts and the proper
procedure which is to be followed to make it a Legal instrument of 'Economic Coercion' either by the
Employer or by the Workmen. Chapter V-B, introduced by an amendment in 1976, requires firms employing
300 or more workers to obtain government permission for layoffs, retrenchments and closures. A further
amendment in 1982 (which took effect in 1984) expanded its ambit by reducing the threshold to 100
workers.

The Act also lays down

 The provision for payment of compensation to the workman on account of closure or lay off or
retrenchment.
 The procedure for prior permission of appropriate Government for laying off or retrenching the
workers or closing down industrial establishments
 Unfair labour practices on part of an employer or a trade union or workers.

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Significance of Industrial Dispute Act, 1947

The Industrial Disputes Act, 1947 is an important piece of legislation that regulates the settlement of
industrial disputes in India. The Act was enacted to ensure peace and harmony in the workplace and to
promote healthy industrial relations between employers and employees.

The Act provides a legal framework for the prevention and settlement of industrial disputes, which includes
procedures for negotiation, conciliation, and arbitration. The Act also lays down rules for strikes and
lockouts, and sets out the rights and responsibilities of employers and employees during such actions.

The Industrial Disputes Act, 1947 is significant for several reasons

 It provides a mechanism for resolving disputes between employers and employees through peaceful
means such as negotiation, conciliation, and arbitration.
 It regulates the conduct of strikes and lockouts and sets out procedures to be followed by
employers and employees during such actions.
 It provides protection to workers against victimization by employers for participating in union
activities or for raising legitimate grievances.
 It promotes the development of healthy industrial relations by encouraging cooperation and mutual
respect between employers and employees.
 It facilitates the growth of a stable and productive workforce by promoting job security and fair
working conditions.

Important definitions
 Industry: Any business, trade, undertaking, manufacture, or calling of employers and includes any
calling, service, employment, handicraft, or industrial occupation or avocation of workmen.
 Workman: Any person, including an apprentice, employed in any industry to do any manual,
unskilled, skilled, technical, operational, clerical, or supervisory work.
 Employer: Any person who employs workmen or has the power to hire, dismiss, or otherwise
control the employment of workmen.
 Industrial dispute: Any dispute or difference between employers and employers, or between
employers and workmen, or between workmen and workmen, which is connected with the
employment or non-employment, or the terms of employment, or with the conditions of labor.
 Strike: A cessation of work by a body of workmen, acting in combination, or a concerted refusal or a
refusal under a common understanding of any number of workmen to continue to work or to accept
employment.
 Lockout: The temporary closing of a place of employment, or the suspension of work, or the refusal
by an employer to continue to employ any number of persons employed by him.
 Conciliation officer: A person appointed by the appropriate government to mediate in and
promote the settlement of an industrial dispute.
 Works committee: A committee consisting of representatives of employers and workmen,
established in every industrial establishment employing 100 or more workmen, to promote

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measures for securing and preserving amity and good relations between the employers and
workmen.
 Industrial tribunal: A body constituted by the appropriate government to adjudicate on industrial
disputes referred to it for settlement.
 Collective bargaining: The process of negotiating with a view to the settlement of any dispute
between an employer and workmen or between employers and workmen, or to improving the
conditions of the workers.

Wages
The Industrial Disputes Act, 1947 defines "wages" as all remuneration capable of being expressed in terms
of money which would, if the terms of the contract of employment, express or implied, were fulfilled, be
payable to a workman in respect of his employment or of work done in such employment.

The Act also specifies that wages can include the following elements

 Basic pay
 Dearness allowance
 House rent allowance
 Overtime pay
 Bonus
 Commission
 Any other similar allowances payable to the workman.

The Act also provides for the payment of minimum wages to workers employed in scheduled employments,
which are notified by the appropriate government from time to time. The minimum wages are fixed taking
into account factors such as the cost of living, the skill required for the work, and the prevailing rates of
wages in similar employments.

In case of any dispute between the employer and the workman regarding wages, the matter can be referred
to a labor court or an industrial tribunal for adjudication. The court or tribunal can examine the terms of the
contract of employment, the nature of the work, the prevailing rates of wages in similar employments, and
other relevant factors to determine the appropriate wages to be paid to the workman.

Public utility service

 Public utility services are those essential services that are provided to the public and are necessary
for the smooth functioning of society.
 The government plays a crucial role in the provision of public utility services such as water supply,
electricity, transportation, healthcare, and education.
 Public utility services are often provided by government agencies or by private companies under
government regulation to ensure that they are accessible, affordable, and of good quality.
 Due to their essential nature, public utility services are usually subject to greater scrutiny and
regulation than other industries to ensure that they meet the needs of the public.

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 The Industrial Disputes Act, 1947 provides additional protections for workers employed in public
utility services. For example, before a strike can be called in a public utility service, a notice of at
least six weeks must be given to the employer or the appropriate government.
 In cases where an industrial dispute arises in a public utility service, the government can take
measures to prevent the disruption of the service and can refer the dispute for adjudication to a
labor court or an industrial tribunal.
 Strikes or lockouts in public utility services can have severe consequences for the public, and
therefore, the government often takes steps to prevent such actions and ensure that the services are
provided without interruption.
 Public utility services are considered a critical part of the infrastructure of a country, and the
development and maintenance of such services are crucial for the growth and progress of the
economy.

Machinery for settlement of industrial disputes

Industrial peace is the backbone of the country’s economic system, which is disrupted by various types of
industrial disputes that occur between employers and workmen. The main aim of the Industrial Dispute Act
is to provide machinery for the settlement of these disputes.

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There are seven major types of machinery provided under the Act to settle and investigate several industrial
disputes based on their intensity or severity, which are as follows:

 Works Committee (Section 3)

 Conciliation Officer (Section 4)
 Board of Conciliation (Section 5)
 Courts of Enquiry (Section 6)
 Labour Courts (Section 7)
 Tribunal (Section 7A)
 National Tribunal (Section 7B)

Section 2
 Clause (a) defines "appropriate government" as the central government in the case of industries
falling under the authority of the central government, and the state government in the case of
industries falling under the authority of the state government.
 Clause (b) defines "arbitration" as the process of resolving a dispute by referring it to an impartial
third party for a final decision.
 Clause (bb) defines "award" as an interim or final determination of any industrial dispute by any
Labor Court, Industrial Tribunal or National Tribunal.
 Clause (c) defines "conciliation" as the process of resolving a dispute by bringing together the
disputing parties to negotiate and arrive at a settlement with the help of a conciliator.
 Clause (d) defines "conciliation officer" as a person appointed by the appropriate government to
conciliate in an industrial dispute.
 Clause (e) defines "employer" as a person or body of persons who employs workmen.
 Clause (f) defines "industrial dispute" as any dispute or difference between employers and
employers, or between employers and workmen, or between workmen and workmen which is
connected with the employment or non-employment or terms of employment or with the
conditions of labor.
 Clause (g) defines "industrial establishment" as any undertaking, including an industry, trade,
business, manufacture, or calling of employers and includes any calling, service, employment,
handicraft or industrial occupation or avocation of workmen.
 Clause (h) defines "industrial tribunal" as a tribunal constituted by the appropriate government
for the adjudication of industrial disputes.
 Clause (i) defines "lay-off" as the failure, refusal or inability of an employer on account of shortage
of coal, power or raw materials or accumulation of stocks or the break-down of machinery or natural
calamity or for any other connected reason to give employment to a workman.
 Clause (j) defines "lockout" as the temporary closing of a place of employment, or the suspension
of work, or the refusal by an employer to continue to employ any number of persons employed by
him.
 Clause (k) defines "strike" as the cessation of work by a body of persons employed in any industry
acting in combination, or a concerted refusal of any number of persons who are or have been so
employed to continue to work or to accept employment.
 Clause (l) defines "workman" as any person employed in an industry to do any skilled, semi-skilled
or unskilled manual, supervisory, technical or clerical work, including an apprentice.

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Works committees
Section 3 of the Act provides for the constitution of a works committee by the employer in the industrial
establishment consisting of 100 or more workmen. This committee will consist of representatives of the
employer and workmen, provided that the number of representatives of workmen should not be less than
the number of representatives of the employer. The main duty of the committee is to promote good
employer-employee relations and to discuss matters of common interest.

Conciliation officers
Section 4 provides for the appointment of conciliation officers by the appropriate Government either for a
specified area or industry. The main duty of the Conciliation Officer is to mediate between the two parties
and promote the settlement of the industrial dispute by conciliation or other techniques. The conciliation
officer has the power to investigate disputes and is required to submit the report to the appropriate
government in a manner or time prescribed.

Duties of conciliation officers (Sec 12)

Conciliation Officers are appointed by the government under the Industrial Disputes Act 1947.

 He has to evolve a fair and amicable settlement of the dispute. In case of public utility service, he
must hold conciliation proceedings in the prescribed manner.
 He shall send a report to the government if a dispute is settled in the course of conciliation
proceedings along with the charter of the settlement signed by the parties.
 Where no settlement is reached, conciliation officer sends a report to the government indicating the
steps taken by him for ascertaining the facts, circumstances relating to dispute and the reasons on
account of which settlement within 14 days of the commencement of the conciliation proceedings.

Board of conciliation
Section 5 of the Act provides for the constitution of the Board of Conciliation by the appropriate
Government for promoting the settlement of industrial disputes. This Board will consist of an independent
person as Chairman and 2 or 4 other members as representatives of employer and workmen. The
representatives of employers and workmen should be in equal numbers. Board also has the power to
investigate the dispute and is required to submit the report to the appropriate Government.

Duties
 The reasonable Government may as an event emerges by notice in the Official Gazette speak to a
Board of Conciliation for advancing the settlement of an industrial contest.
 A Board will incorporate an administrator and 2 or 4 unique individuals, as the Government thinks
fit.
 The administrator will be an independent individual and along these lines, different individuals will
be people delegated in equivalent numbers to speak to the party to the case and any individual
selected to speak to a gathering will be designated on the proposal of that party:

Given that, if any gathering neglects to make a suggestion as previously mentioned inside the endorsed
time, the fitting Government will select such people if it thinks they’re fit to speak to that party. A Board,
having the recommended majority, may act despite the nonattendance of the administrator or any of its
individuals or any opening in its number, given that if the appropriate Government tells the Board that the
administrations of the executive or of some other part have been stopped to be accessible, the Board will
not Act till a substitute director or part, by and large, has been designated.

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Court of enquiry
 Section 6 of the Act provides for the constitution of a court of enquiry by the appropriate
Government to enquire into matters connected with industrial disputes.
 The proper Government may as an event emerges, by notice in the official journal comprise a court
of value for enquiring into some other issue seeming, by all accounts, to be associated with or
applicable to an industrial contest.
 A court may comprise of one free individual or number of such autonomous people as suitable
Government may think fit and where a court comprises of at least two individuals, one of them will
be named as the executive chairman.
 A court, having the endorsed majority, may dispute the nonappearance of the executive chairman or
any of its individuals or any kind of vacancy in its number.

Labour Courts
 Section 7 of the Act provides for the constitution of Labour Courts by the appropriate Government.
 The proper Government may, by warning in the official journal, add to at least one industrial
councils for the settling of industrial disputes and identifying with any issue, regardless of whether
indicated in the subsequent calendar or the 3rd schedule.
 A court should comprise of just a single individual designated by the appropriate government.
 An individual will not be equipped for arrangement as the directing official of a council except if he
is, or has been a judge of the high court or has been a vice president labour commissioner (central)
or joint chief of the state work office, having a degree in law.

Tribunals
 Section 7A of the Act provides for the constitution of Labour Tribunals by the appropriate
Government, to adjudicate on the matters specified under either Schedule 2 or Schedule 3 of the
Industrial Disputes Act.
 The reasonable government may, by warning in the official newspaper, establish at least one
industrial courts for the mediation of industrial disputes identifying with any issue, regardless of
whether indicated in the subsequent calendar or the third schedule. A council will comprise of one
individual just to be selected by the corporate Government.
 An individual will not be equipped for the arrangement as the managing official of a Tribunal except
if:
 He/she has been a judge of the high court or has been one.
 a vice president work official (focal) or joint magistrate of the state work office, having a degree in
law.

National tribunals Section 7B

The government at the centre may, by warning in the official gazette comprise at least one national
industrial Tribunal for the settling of industrial disputes which, in the assessment of the government at the
centre, including inquiries of national significance or are of such a nature, that industrial foundations
arranged in more than one state are probably going to be keen on, or influenced by, such disputes.

 A national council will comprise of just a single individual that will be named by the government at
the centre.
 An individual will not be equipped for arrangement as the directing official of a national council,
except if he is or has been a judge of the High Court.

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 The government at the centre may, if it thinks so fit select two people as assessors to encourage
national council in the procedure before it.

Disqualifications for the managing workplaces of work courts, tribunals and national tribunals Section
7C
No individual will be designated to, or proceed in the workplace of the managing official of a work Court,
council or national court if

 He isn’t an autonomous individual.

 He hasn’t achieved the age of 65 years.

Qualifications, terms and conditions of service of Presiding Officer, Section 7D

Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and
allowances, resignation and removal and other terms and conditions of service of the Presiding Officer of
the Industrial Tribunal appointed by the Central Government under sub-section (1) of section 7A, shall, after
the commencement of 1[the Tribunal Reforms Act, 2021, be governed by the provisions of Chapter II of the
said Act:]

Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the
Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made
thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.]

Filling of vacancies Section, Section 8

If, for any reason a vacancy (other than a temporary absence) occurs in the office of the presiding officer of
a Labour Court, Tribunal or National Tribunal or in the office of the chairman or any other member of a
Board or Court, then, in the case of a National Tribunal, the Central Government and in any other case, the
appropriate Government, shall appoint another person in accordance with the provisions of this Act to fill
the vacancy, and the proceeding may be continued before the Labour Court, Tribunal, National Tribunal,
Board or Court, as the case may be, from the stage at which the vacancy is filled

Finality of orders constituting Boards, etc, Section 9

(1) No order of the appropriate Government or of the Central Government appointing any person as the
chairman or any other member of a Board or Court or as the presiding officer of a Labour Court, Tribunal or
National Tribunal shall be called in question in any manner; and no act or proceeding before any Board or
Court shall be called in question in any manner on the ground merely of the existence of any vacancy in, or
defect in the constitution of, such Board or Court.

(2) No settlement arrived at in the course of a conciliation proceeding shall be invalid by reason only of the
fact that such settlement was arrived at after the expiry of the period referred to in sub-section (6) of
section 12 or sub-section (5) of section 13, as the case may be.

(3) Where the report of any settlement arrived at in the course of conciliation proceeding before a Board is
signed by the chairman and all the other members of the Board, no such settlement shall be invalid by
reason only of the casual or unforeseen absence of any of the members (including the chairman) of the
Board during any stage of the proceeding.

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Notice of change, Section 9A
No employer, who proposes to effect any change in the conditions of service applicable to any workman in
respect of any matter specified in the Fourth Schedule, shall effect such change,--

a) without giving to the workmen likely to be affected by such change a notice in the prescribed
manner of the nature of the change proposed to be effected; or
b) within twenty-one days of giving such notice:

Provided that no notice shall be required for effecting any such change--

a) where the change is effected in pursuance of any 2[settlement or award]; or

b) where the workmen likely to be affected by the change are persons to whom the Fundamental and
Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services
(Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence
Services (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any
other rules or regulations that may be notified in this behalf by the appropriate Government in the
Official Gazette, apply.

Power of Government to exempt. Section 9B

Where the appropriate Government is of opinion that the application of the provisions of section 9A to any
class of industrial establishments or to any class of workmen employed in any industrial establishment
affect the employers in relation thereto so prejudicially that such application may cause serious
repercussion on the industry concerned and that public interest so requires, the appropriate Government
may, by notification in the Official Gazette, direct that the provisions of the said section shall not apply or
shall apply, subject to such conditions as may be specified in the notification, to that class of industrial
establishments or to that class of workmen employed in any industrial establishment.

Setting up of Grievance Settlement Authorities and reference of certain individual disputes to such
authorities, Section 9C
(1) Every industrial establishment employing twenty or more workmen shall have one or more Grievance
Redressal Committee for the resolution of disputes arising out of individual grievances.

(2) The Grievance Redressal Committee shall consist of equal number of members from the employer and
the workmen.

(3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from
among the workmen alternatively on rotation basis every year.

(4) The total number of members of the Grievance Redressal Committee shall not exceed more than six:

Provided that there shall be, as far as practicable, one woman member if the Grievance Redressal
Committee has two members and in case the number of members are more than two, the number of
women members may be increased proportionately.

(5) Notwithstanding anything contained in this section, the setting up of Grievance Redressal Committee
shall not affect the right of the workman to raise industrial dispute on the same matter under the provisions
of this Act.

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(6) The Grievance Redressal Committee may complete its proceedings within thirty days on receipt of a
written application by or on behalf of the aggrieved party.

(7) The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an
appeal to the employer against the decision of Grievance Redressal Committee and the employer shall,
within one month from the date of receipt of such appeal, dispose off the same and send a copy of his
decision to the workman concerned.

(8) Nothing contained in this section shall apply to the workmen for whom there is an established Grievance
Redressal Mechanism in the establishment.

Reference of disputes to Boards, Courts or Tribunals, Section 10

 Subsection (1): This subsection empowers the appropriate government to make a reference of an
industrial dispute to a board of arbitration, a court of inquiry, a labor court, or an industrial tribunal
for adjudication. The government can make such a reference on its own, or on the request of the
parties involved in the dispute.
 Subsection (2): This subsection outlines the matters that can be referred for arbitration. These
include any matter relating to the employment or non-employment, the terms of employment, or
the conditions of labor of any person.
 Subsection (3): This subsection sets out the time frame within which the arbitration proceedings
must be completed. The board of arbitration, court of inquiry, labor court, or industrial tribunal must
submit its report to the appropriate government within six months of the date of its appointment, or
within such shorter period as may be fixed by the government.
 Subsection (4): This subsection provides that the award or decision of the board of arbitration,
court of inquiry, labor court, or industrial tribunal shall be final and binding on the parties to the
dispute. It also empowers the government to publish the award or decision in the official gazette,
and to enforce it as if it were a decree of a civil court.

Voluntary reference of disputes to arbitration, Section 10A

Section 10A of the Industrial Disputes Act, 1947 provides for the voluntary reference of disputes to
arbitration. This section was inserted in the Act in 1956, and it aims to promote the settlement of industrial
disputes through a voluntary and mutually agreed-upon mechanism.

Under Section 10A, if the parties to an industrial dispute mutually agree to refer the dispute to arbitration,
they may do so by a written agreement. This written agreement must specify the terms of reference and the
name of the arbitrator or the panel of arbitrators, as the case may be.

It is important to note that the arbitrator or panel of arbitrators appointed under Section 10A must have the
same powers as a board of arbitration, court of inquiry, labor court, or industrial tribunal appointed under
Section 10 of the Act. This means that the decision or award of the arbitrator or panel of arbitrators will be
final and binding on the parties, and can be enforced as a decree of a civil court.

Section 10A further provides that the award or decision of the arbitrator or panel of arbitrators shall be
made within a period of four months from the date of the commencement of the arbitration proceedings,
or within such extended period as may be agreed upon by the parties in writing.

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Section 11, 11A, 12,13, 14,15 (Explained above)
Form of report or award, Section 16
(1) The report of a Board or Court shall be in writing and shall be signed by all the members of the Board or
Court, as the case may be:

Provided that nothing in this section shall be deemed to prevent any member of the Board or Court from
recording any minute of dissent from a report or from any recommendation made therein.

(2) The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by
its presiding officer.

Publication of reports and awards, Section 17

(1) Every report of a Board or Court together with any minute of dissent recorded therewith, every
arbitration award and every award of a Labour Court, Tribunal or National Tribunal shall, within a period of
thirty days from the date of its receipt by the appropriate Government, be published in such manner as the
appropriate Government thinks fit.

(2) Subject to the provisions of section 17A, the award published under sub-section (1) shall be final and
shall not be called in question by any Court in any manner whatsoever.

Commencement of the award, Section 17A

Section 17A of the Industrial Disputes Act, 1947 deals with the commencement of an award or settlement.
This section was added to the Act in 2010 and provides that an award or settlement shall come into
operation on such date as may be specified in the award or settlement, or if no date is specified, then on
the date on which the award or settlement is published.

Section 17A also provides that where an award or settlement provides for any change in the conditions of
service applicable to any employee, such change shall take effect from the date of commencement of the
award or settlement, or from such other date as may be specified in the award or settlement.

It is important to note that the date of commencement of an award or settlement is crucial because it
determines when the new terms and conditions of employment will come into effect. Employers are
required to comply with the new terms and conditions from the date of commencement, and any non-
compliance can lead to legal action by employees.

Payment of full wages to workman pending proceedings in higher courts, Section 17B
Where in any case, a Labour Court, Tribunal or National Tribunal by its award directs reinstatement of any
workman and the employer prefers any proceedings against such award in a High Court or the Supreme
Court, the employer shall be liable to pay such workman, during the period of pendency of such
proceedings in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any
maintenance allowance admissible to him under any rule if the workman had not been employed in any
establishment during such period and an affidavit by such workman had been filed to that effect in such
Court:

Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such
workman had been employed and had been receiving adequate remuneration during any such period or
part thereof, the Court shall order that no wages shall be payable under this section for such period or part,
as the case may be.

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Powers and Functions of Labor Courts, Section 18
 Labor Courts have the power to adjudicate upon industrial disputes that have been referred to them
by the appropriate government.
 They have the same powers as a civil court, and can summon and examine witnesses, receive
evidence, and compel the production of documents.
 The decision of the Labor Court is final and binding on the parties, and can be enforced as a decree
of a civil court.

Powers and Functions of Industrial Tribunals, Section 19

 Industrial Tribunals are appointed by the appropriate government to adjudicate upon industrial
disputes that have not been settled through conciliation.
 They have the same powers as a civil court, and can summon and examine witnesses, receive
evidence, and compel the production of documents.
 The decision of the Industrial Tribunal is final and binding on the parties, and can be enforced as a
decree of a civil court.

Reference of Disputes to National Tribunals, Section 20

 The appropriate government may refer an industrial dispute to a National Tribunal if it involves
questions of national importance or if it affects more than one state.
 The National Tribunal has the same powers as a civil court, and can summon and examine witnesses,
receive evidence, and compel the production of documents.
 The decision of the National Tribunal is final and binding on the parties, and can be enforced as a
decree of a civil court.

Powers of Labor Courts, Industrial Tribunals, and National Tribunals, Section 21

 Labor Courts, Industrial Tribunals, and National Tribunals have the power to make interim awards
during the pendency of any proceedings before them.
 They can also make an award directing the reinstatement of a workman, or the payment of
compensation in lieu of reinstatement.
 In addition, they have the power to regulate their own procedure in accordance with the principles
of natural justice.

Powers of the Appropriate Government to prohibit strikes and lockouts, Section 22

 The appropriate government may prohibit strikes and lockouts in any public utility service or any
other industrial establishment if it feels that such strikes or lockouts would be prejudicial to the
public interest.
 The appropriate government may also prohibit strikes or lockouts in any other industrial
establishment if it feels that such strikes or lockouts would be prejudicial to the maintenance of
public order.

Powers of the Appropriate Government to refer disputes to arbitration, Section 23

 The appropriate government may refer an industrial dispute to arbitration if it feels that such
reference would help in resolving the dispute amicably.
 The parties to the dispute can also agree to refer the dispute to arbitration.

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Powers of the Appropriate Government to make rules, Section 24
 The appropriate government may make rules for the purpose of carrying out the provisions of the
Industrial Disputes Act, 1947.
 Such rules may include provisions for the constitution of works committees, conciliation officers, and
boards of conciliation.

Section 25
Section 25A to 25S of the Industrial Disputes Act, 1947 deals with the provisions relating to layoffs,
retrenchment, and closure of industrial establishments. Below are the details of each section:

Section 25A: Layoff - This section provides for the conditions under which an employer can lay off
workmen. According to this section, an employer can lay off workmen in case of a shortage of raw
materials, power, or any other unavoidable reason. The employer is required to pay compensation to the
workmen during the period of layoff.

Section 25B: Compensation for layoff - This section provides for the payment of compensation to
workmen during the period of layoff. According to this section, the workmen are entitled to receive
compensation that is equal to 50% of their total wages during the period of layoff.

Section 25C: Retrenchment - This section provides for the conditions under which an employer can
retrench workmen. According to this section, an employer can retrench workmen only in case of surplus
staff, or for any other reason that may be prescribed by the appropriate government. The employer is
required to pay compensation to the workmen who are retrenched.

Section 25D: Procedure for retrenchment - This section provides for the procedure that an employer
must follow while retrenching workmen. The employer is required to give a notice of retrenchment to the
workmen who are to be retrenched, and also to the appropriate government. The notice should be given in
the prescribed manner and should contain all relevant details of the retrenchment.

Section 25E: Notice of retrenchment - This section provides for the period of notice that an employer
must give to workmen who are to be retrenched. According to this section, the notice period should be
equal to the period of continuous service of the workmen, subject to a maximum of 45 days.

Section 25F: Compensation for retrenchment - This section provides for the payment of compensation to
workmen who are retrenched. According to this section, the workmen are entitled to receive compensation
that is equal to 15 days' average pay for every completed year of continuous service, or any part thereof in
excess of six months.

Section 25FF: Re-employment of retrenched workmen - This section provides for the re-employment of
retrenched workmen in case of any vacancy in the establishment. According to this section, the retrenched
workmen are entitled to be given preference in the matter of re-employment.

Section 25G: Procedure for closure - This section provides for the procedure that an employer must
follow while closing down an industrial establishment. The employer is required to give notice of closure to
the appropriate government, and also to the workmen who are likely to be affected by the closure.

Section 25H: Compensation on closure - This section provides for the payment of compensation to
workmen who are affected by the closure of an industrial establishment. According to this section, the

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workmen are entitled to receive compensation that is equal to 15 days' average pay for every completed
year of continuous service, or any part thereof in excess of six months.

Section 25-I: Prohibition of closure - This section prohibits the closure of any industrial establishment
without the prior permission of the appropriate government. The purpose of this section is to protect the
interests of the workmen who may be affected by the closure of an industrial establishment.

Section 25J: Penalty for illegal strikes and lockouts-This section states that any workman who
participates in an illegal strike or any employer who declares an illegal lockout shall be punished with
imprisonment up to one month, or with a fine of up to fifty rupees, or both.

Section 25K: Penalty for instigation, etc.-Any person who instigates or incites others to participate in an
illegal strike or lockout shall be punishable with imprisonment up to six months, or with a fine of up to one
thousand rupees, or both.

Section 25L: Penalty for giving financial aid to illegal strikes and lockouts -This section provides for a
penalty of imprisonment up to six months, or a fine of up to one thousand rupees, or both for any person
who provides financial aid or assistance in any form to an illegal strike or lockout.

Section 25M: Penalty for contravention of Section 33 - Any employer who contravenes the provisions of
Section 33, which prohibits change in terms and conditions of employment during pendency of conciliation
or arbitration proceedings, shall be punishable with imprisonment up to six months, or with a fine of up to
one thousand rupees, or both.

Section 25N: Penalty for closure without notice -If an employer closes down an establishment without
giving the notice required under Section 25FF, then he shall be punishable with imprisonment up to six
months, or with a fine of up to one thousand rupees, or both.

Section 25O: Penalty for layoff and retrenchment without notice - Any employer who lays off workmen
or retrenches them without giving the notice required under Section 25F or Section 25N, respectively, shall
be punishable with imprisonment up to one month, or with a fine of up to one thousand rupees, or both.

Section 25P: Penalty for closure of undertakings during pendency of proceedings - If an employer
closes down an undertaking during the pendency of any proceedings before a Labour Court, Industrial
Tribunal, or National Tribunal, without obtaining prior permission from such authority, then he shall be
punishable with imprisonment up to six months, or with a fine of up to five thousand rupees, or both.

Section 25Q: Penalty for layoff compensation - Any employer who fails to pay the compensation due to
a workman for layoff under Section 25C shall be punishable with imprisonment up to one month, or with a
fine of up to one thousand rupees, or both.

Section 25R: Penalty for contravention of Chapter V-A - This section provides for a penalty of
imprisonment up to one year, or with a fine of up to five thousand rupees, or both, for any employer who
contravenes the provisions of Chapter V-A, which deals with provisions related to strike, lockout, and layoff
in public utility services.

Section 25S: Offences by companies -If any offence under this Act has been committed by a company,
then every person who, at the time of the offence, was in charge of and responsible to the company for the
conduct of its business shall be deemed to be guilty of the offence, and shall be liable to be proceeded
against and punished accordingly.

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Section 25T: Prohibition of unfair labour practice - No employer or workman or a trade union,
whether registered under the Trader Unions Act, 1926 (18 of 1926), or not, shall commit any unfair
labour practice.

Section 25U: Penalty for committing unfair labour practices - Any person who commits any unfair
labour practice shall be punishable with imprisonment for a term which may extend to six months or
with fine which may extend to one thousand rupees or with both.

Penalty for illegal strikes and lock-outs, Section 26

(1) Any workman who commences, continues or otherwise acts in furtherance of, a strike which is illegal
under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with
fine which may extend to fifty rupees, or with both.

(2) Any employer who commences, continues, or otherwise acts in furtherance of a lock-out which is illegal
under this Act, shall be punishable with imprisonment for a term which may extend to one month, or with
fine which may extend to one thousand rupees, or with both.

Penalty for instigation, etc., Section 27

Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike
or lock-out which is illegal under this Act, shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or with both.

Penalty for giving financial aid to illegal strikes and lock-outs, Section 28
Any person who knowingly expends or applies any money in direct furtherance or support of any illegal
strike or lock-out shall be punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with both.

Penalty for breach of settlement or award, Section 29

ny person who commits a breach of any term of any settlement or award, which is binding on him
under this Act, shall be punishable with imprisonment for a term which may extend to six months, or
with fine, or with both 2[and where the breach is a continuing one, with a further fine which may extend
to two hundred rupees for every day during which the breach continues after the conviction for the first]
and the Court trying the offence, if it fines the offender, may direct that the whole or any part of the fine
realised from him shall be paid, by way of compensation, to any person who, in its opinion, has been
injured by such breach.

Penalty for disclosing confidential information, Section 30

Any person who wilfully discloses any such information as is referred to in section 21 in contravention
of the provisions of that section shall, on complaint made by or on behalf of the trade union or
individual business affected, be punishable with imprisonment for a term which may extend to six
months, or with fine which may extend to one thousand rupees, or with both.

Penalty for closure without notice, Section 30A

Any employer who closes down any undertaking without complying with the provisions of section
25FFA shall be punishable with imprisonment for a term which may extend to six months, or with fine
which may extend to five thousand rupees, or with both

Penalty for other offences, Section 31

(1) Any employer who contravenes the provisions of section 33 shall be punishable with imprisonment for a
term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

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(2) Whoever contravenes any of the provisions of this Act or any rule made thereunder shall, if no other
penalty is elsewhere provided by or under this Act for such contravention, be punishable with fine which
may extend to one hundred rupees.

Offence by companies, etc., Section 32

 This section provides for the establishment of industrial courts by the appropriate government.
 An industrial court can be established for a specified area or for specified industries, and can be
constituted of one or more judges or persons nominated by the appropriate government.
 The industrial court has the power to adjudicate on any industrial dispute referred to it by the
appropriate government.

Conditions of service, etc., to remain unchanged under certain circumstances during pendency of
proceedings., Section 33
 This section provides for the jurisdiction of the industrial court.
 The industrial court has jurisdiction to adjudicate on any industrial dispute that has been referred to
it by the appropriate government, and any matter that is incidental to or connected with the
dispute.

Cognizance of offences, Section 34

 This section provides for the powers of the industrial court.
 The industrial court has the power to summon and enforce the attendance of witnesses, to compel
the production of documents and to issue commissions for the examination of witnesses or
documents.

Protection of persons, Section 35

 This section provides for the procedure to be followed by the industrial court.
 The industrial court has the power to follow such procedure as it deems fit, subject to the provisions
of the Act.
 The court is not bound by the procedure laid down in the Code of Civil Procedure, 1908, but is
required to follow the principles of natural justice.

Representation of parties, Section 36

 This section provides for the powers of the industrial court in relation to awards.
 The industrial court has the power to make an award in respect of any industrial dispute that is
referred to it, and the award is binding on the parties to the dispute.
 The award may include terms and conditions of employment, and may provide for the reinstatement
or re-employment of workmen who have been dismissed or discharged.

Protection of action taken under the Act, Section 37

 This section provides for the finality of awards.
 An award made by the industrial court is final and binding on the parties to the dispute, and is not
liable to be called in question in any court of law.

Power to make rules, Section 38

 This section provides for the enforcement of awards.
 Any party to an award may apply to the industrial court for the enforcement of the award, and the
court has the power to enforce the award in the same manner as a decree of a civil court.

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Delegation of powers, Section 39
 This section provides for the review of awards.
 The industrial court has the power to review an award made by it on certain specified grounds, such
as the discovery of new and important matter or evidence, or a mistake apparent on the face of the
award

Power to amend Schedules, Section 40

This section provides for the power of the appropriate government to make rules regulating the procedure
and other matters relating to the functioning of the industrial court.

Manifestation of Conflict
It refers to the various forms in which conflicts or disputes can be expressed between employers and
employees or between labour unions and management. These manifestations can be either overt or covert,
visible or invisible, and may take different forms depending on the nature and intensity of the conflict.

Some common manifestations of conflict in the workplace include

 Strikes: A strike is a collective work stoppage by employees aimed at compelling management to

meet their demands. It is the most visible and potent form of labour protest.
 Lockouts: A lockout is a temporary work stoppage or shutdown by the employer with the objective
of pressurizing employees to accept its demands.
 Slowdowns: A slowdown or work-to-rule is a form of protest by employees where they deliberately
work at a slower pace than usual or strictly adhere to work rules and procedures.
 Boycotts: A boycott is a refusal by employees to buy or use products or services of a particular
company in support of a labor dispute or protest.
 Picketing: Picketing involves workers gathering outside the workplace to demonstrate their support
for a labor dispute or protest. It is often accompanied by placards and slogans.
 Gheraos: A gherao is a form of protest where employees surround and confine their employer in
the workplace until their demands are met.
 Demonstrations: Demonstrations involve the gathering of workers or labor unions outside the
workplace to express their grievances or protest.
 Work-to-Own: Work-to-own refers to a form of protest where workers occupy their workplace or
take control of the means of production in order to pressurize management to meet their demands.
 Sabotage: Sabotage is a form of protest where workers deliberately damage or disrupt the
production process to express their grievances.

Strikes
In industrial relations, a strike is a work stoppage or collective withdrawal of labour by employees to express
their dissatisfaction with the terms and conditions of their employment or to press for certain demands. It is
a form of protest or bargaining tactic used by employees or labour unions to exert pressure on
management to meet their demands.

Strikes can have significant economic and social consequences, as they disrupt the production process and
can lead to financial losses for both employers and employees. Therefore, most countries have regulations

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and laws that govern the process of striking, including notice requirements, legal protections for striking
workers, and limitations on the duration and scope of strikes.

Effective communication and negotiation between management and labour unions can help prevent strikes
by addressing the underlying grievances and concerns of the employees. However, when all other methods
fail, a strike may be the only option for employees to make their voices heard and bring about change in
their working conditions.

Classification of strike

On the Basis of Consent of Union

Authorized Strike: An authorized strike is a strike that is initiated with the approval and consent of the
union. In an authorized strike, the union notifies the employer of the impending strike action and provides a
notice period as per the applicable laws or the collective bargaining agreement. The union may also
conduct a strike ballot to ensure that the majority of its members support the strike action.

Unauthorized Strike: An unauthorized strike, also known as a wildcat strike, is a strike that is initiated
without the approval and consent of the union. In an unauthorized strike, the workers may refuse to work or

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stop working in protest against some issue or grievance. Since the union has not authorized such a strike, it
may not provide any notice period or support to the striking workers.

Sympathy Strike: A sympathy strike, also known as a secondary strike, is a strike that is initiated in support
of another strike. In a sympathy strike, workers who are not directly involved in the dispute may refuse to
work in solidarity with the striking workers. A sympathy strike may be authorized or unauthorized
depending on whether the union has given its consent for such action. In some countries, sympathy strikes
may be illegal or restricted under certain conditions.

Types of strike on the Basis of Tactics Used to Halt Work

Sit-down Strike: In a sit-down strike, workers stop working but do not leave their workplace. Instead, they
occupy their workplace and refuse to work until their demands are met. This type of strike can be effective
as it makes it difficult for the employer to hire replacement workers or resume operations.

Work-to-Rule Strike: In a work-to-rule strike, workers follow all the rules and regulations of their
workplace, but they do so in a way that slows down production or operations. For example, they may
strictly adhere to safety regulations, which may result in a slower production rate. This type of strike can be
effective as it highlights the importance of workers' roles in the workplace.

Slowdown Strike: In a slowdown strike, workers deliberately reduce their work output, which results in a
slowdown of production or operations. This type of strike can be effective as it can put pressure on the
employer to address workers' demands to resume normal production.

Rotating Strike: In a rotating strike, different groups of workers take turns to strike in a planned and
organized manner. This type of strike can be effective as it can reduce the impact on workers' income and
avoid total shutdown of operations.

Wildcat Strike: A wildcat strike is an unauthorized strike that is initiated without the approval and consent
of the union. This type of strike can be effective in creating immediate disruption, but it can also result in
disciplinary action against the workers.

General Strike: A general strike involves workers from different industries or sectors who stop working in
support of a common cause or demand. This type of strike can be effective as it can create significant
disruption and put pressure on the government or employers to address workers' demands.

Pen down strike and tool down strike

Aspect Pen Down Strike Tool Down Strike

Definition Refusal to do any work that involves Refusal to use or operate the tools and
writing or record-keeping, such as equipment required for work
filling out forms or preparing reports

Purpose Protest against issues related to Protest against issues related to the use of tools
administrative or clerical work, such or equipment, such as safety concerns or
as working conditions, pay, or inadequate maintenance
benefits

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Impact Primarily felt in the office or Primarily felt in the production or
administrative area, as it can disrupt manufacturing area, as it can halt production or
the flow of paperwork and cause delay the completion of projects
delays in processes

Duration Short-term, usually Can last for a longer period of time, depending
on the nature of the issue and the negotiations
between the workers and the employer

Types of strike on the Basis of Miscellaneous Purposes

Sympathy Strike: A sympathy strike is a type of strike where workers in one industry or sector go on strike
in support of workers in another industry or sector who are experiencing a labour dispute. The purpose of
the strike is to demonstrate solidarity and put pressure on the employer to resolve the issue.

Political Strike: A political strike is a type of strike that is organized to protest against government policies
or decisions. The purpose of the strike is to raise awareness and put pressure on the government to address
the issue.

Hunger Strike: A hunger strike is a type of strike where workers refuse to eat or drink until their demands
are met. This type of strike is often used as a last resort and can have a significant impact on public opinion
and the media.

Sickout Strike: A sickout strike is a type of strike where workers call in sick or absent themselves from work
in large numbers as a form of protest. This type of strike can disrupt operations and put pressure on the
employer to address workers' demands.

Lightning Strike: A lightning strike is a type of strike where workers walk off the job suddenly and without
warning. This type of strike can be effective in creating immediate disruption and catching the employer off
guard.

Guerrilla Strike: A guerrilla strike is a type of strike that is organized in a covert or unconventional manner,
often involving sabotage or other disruptive tactics. This type of strike can be effective in creating
significant disruption and putting pressure on the employer to address workers' demands.

One-Day Strike: A one-day strike is a type of strike where workers walk off the job for one day as a form of
protest. This type of strike can be used to show the employer the workers' dissatisfaction without causing
significant disruption to operations.

Gherao

Gherao is a type of protest or demonstration that is commonly used in India and other South Asian
countries. It involves a group of people surrounding a person, a group of people, or a building and
preventing them from leaving or entering. The term "gherao" comes from the Hindi word "ghera," which
means to surround.

The purpose of a gherao is to put pressure on the person or group being surrounded to meet the demands
of the protesters. The protesters may be workers, students, or members of a community who are protesting

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against an injustice or demanding their rights. Gheraos can be peaceful or violent, depending on the
circumstances and the behavior of the protesters and the authorities.

In India, gheraos are often used as a form of protest by workers and labor unions. Workers may gherao
their employers to demand better working conditions, higher wages, or other benefits. Gheraos can also be
used by students to protest against educational institutions or by citizens to protest against government
policies or decisions.

While gheraos can be an effective form of protest, they can also be disruptive and sometimes violent. They
can lead to the loss of productivity, damage to property, and even physical harm to those involved.
Therefore, it is important for protesters and authorities to engage in peaceful dialogue and negotiations to
resolve the issue at hand.

Lock out
A lockout is a labour dispute tactic used by employers where they prevent workers from entering their
workplace and performing their jobs. It is the opposite of a strike, where workers refuse to work as a form
of protest. A lockout is initiated by the employer and is used as a way to pressure workers into accepting
certain conditions or terms.

The purpose of a lockout is to put pressure on workers to accept the employer's proposed changes to
working conditions, wages, benefits, or other terms of employment. The lockout can last for a short period,
such as a day, or it can continue for an extended period of time, such as weeks or months.

Lockouts can be devastating for workers, as they are prevented from earning a living and supporting their
families. They can also be damaging to the employer, as they can result in lost productivity, damage to the
company's reputation, and a strained relationship with the workers and their union.

Lockouts are typically initiated after negotiations between the employer and the union have broken down.
During the lockout, the employer may hire replacement workers or use other tactics to continue operations.
Lockouts are often subject to legal scrutiny and can be challenged in court if they are found to be illegal or
unjustified.

Industrial relations code, 2020 provisions (CHAPTER VII: STRIKES AND

LOCKOUTS)

Provision Description

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Section 61 Notice of strike or lockout: Before going on strike or declaring a lockout, the employer or
union must provide a notice of at least 14 days (for public utility services) or 60 days (for all
other industrial establishments). The notice must be given in writing to the employer or
union, as well as to the appropriate government authority. The notice must include the
reasons for the strike or lockout, the number of workers likely to participate, and the
duration of the strike or lockout.

Section 62 Prohibition of strike or lockout during pendency of conciliation proceedings: If conciliation

proceedings are pending, the union or employer cannot go on strike or declare a lockout.
The conciliation proceedings can be initiated by either party, or by the appropriate
government authority. If the conciliation proceedings fail, either party can go on strike or
declare a lockout after giving the required notice.

Section 63 Prohibition of strike or lockout during arbitration proceedings: If arbitration proceedings

are pending, the union or employer cannot go on strike or declare a lockout. The
arbitration proceedings can be initiated by either party, or by the appropriate government
authority. If the arbitration proceedings fail, either party can go on strike or declare a
lockout after giving the required notice.

Section 64 Prohibition of strike or lockout during settlement proceedings: If settlement proceedings

are pending, the union or employer cannot go on strike or declare a lockout. The
settlement proceedings can be initiated by either party, or by the appropriate government
authority. If the settlement proceedings fail, either party can go on strike or declare a
lockout after giving the required notice.

Section 65 Strike or lockout in public utility services: In case of a strike or lockout in public utility
services, the employer or union must give a notice of at least 14 days to the appropriate
government authority. Public utility services include services related to electricity, water,
and transport, among others. During the notice period, the appropriate government
authority can take measures to ensure that the services are not disrupted. If the strike or
lockout is deemed illegal, the appropriate government authority can refer the matter to a
labor court or tribunal for adjudication.

Section 66 Strike or lockout in other industrial establishments: In case of a strike or lockout in other
industrial establishments, the employer or union must give a notice of at least 60 days to
the appropriate government authority. The notice must be given in writing and must
include the reasons for the strike or lockout, the number of workers likely to participate,
and the duration of the strike or lockout. During the notice period, the appropriate
government authority can take measures to ensure that the strike or lockout does not
cause hardship to the workers or the public. If the strike or lockout is deemed illegal, the
appropriate government authority can refer the matter to a labor court or tribunal for
adjudication.

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Section 67 Right to strike or lockout: Every worker has the right to go on strike, subject to the
provisions of this code. Similarly, every employer has the right to declare a lockout, subject
to the provisions of this code. The right to strike or lockout cannot be exercised in
contravention of any law or agreement between the parties.

Section 68 Illegal strike or lockout: If a strike or lockout is declared in contravention of the provisions
of this code, it will be deemed illegal. An illegal strike or lockout can be declared by the
appropriate government authority. If a

Unfair Labour Practices (The second schedule)

Unfair labour practices on the part of employers and trade unions of employers.
1. To interfere with, restrain from, or coerce, workmen in the exercise of their rights to organize, form,
join, or assist a Trade Union or to engage in concerted activities for collective bargaining or other
mutual aid or protection, that is to say:
a) Threatening workmen with discharge or dismissal, if they join a trade union;
b) Threatening a lock-out or closure, if a trade union is organized;
c) Granting wage increases to workmen at crucial periods of the union organizations, undermines
the efforts of the trade union at the organization.
2. To dominate, interfere with or contribute support, financial, or otherwise, to any trade union, that is
to say:
a) An employer taking an active interest in organizing a trade union of his workmen; and
b) An employer showing partiality or granting favor to one of several trade unions attempting to
organize his workmen or to its members where such a trade union is not a recognized trade
union.
3. To establish employer-sponsored trade unions of workmen
4. To encourage or discourage membership in any trade union by discriminating against any workman,
that is to say:
a) Discharging or punishing a workman, because he urged other workmen to join or organize a
trade union;
b) Discharging or dismissing a workman for taking part in the strike (not being a strike which is
deemed to be an illegal strike under this act);
c) Changing seniority rating of workmen because of trade union activities;
d) Refusing to promote workmen to higher posts on account of their trade union activities;
e) Giving unmerited promotions to certain workmen to create discord amongst other workmen, or
to undermine the strength of their trade union;
f) Discharging office-bearers or active members of the trade union on account of their trade union
activities.
5. To discharge or dismiss workmen:

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a) By way of victimization;
b) Not in good faith, but the colorable exercise of the employer's rights;
c) By falsely implicating a workman in a criminal case on false evidence or concocted evidence;
d) For patently false reasons;
e) On untrue or trumped-up allegations of absence without leave;
f) In utter disregard of the principles of natural justice in the conduct of a domestic inquiry or with
undue haste;
g) For misconduct of a minor technical character, without having any regard to the nature of the
particular misconduct or the record or service of the workman, thereby leading to
disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such work to
contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct bond, as a
precondition to allowing them to resume work.
9. To show favoritism or partiality to one set of workers regardless of merit.
10. To employ workmen as "badlis", casuals or temporaries, and to continue them as such for years, with
the object of depriving them of the status and privileges of permanent workmen.
11. To discharge or discriminate against any workman for filing charges or testifying against an
employer in any inquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike that is not illegal.
13. Failure to implement award, settlement, or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognized trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.

Unfair labor practices on the part of workmen and trade unions of workmen.
1. To advise or actively support or instigate any strike deemed to be illegal under this Act.
2. To coerce workmen in the exercise of their right to self-organization or to join a trade union or
refrain from, joining any trade union, that is to say:
a) For a trade union or its members to picket in such a manner that non-striking workmen are
physically debarred from entering the workplaces;
b) To indulge in acts of force or violence or to hold out threats of intimidation in connection with a
strike against non-striking workmen or managerial staff.
3. For a recognized union to refuse to bargain collectively in good faith with the employer.
4. To indulge in coercive activities against the certification of a bargaining representative.
5. To stage, encourage, or instigate such forms of coercive actions as willful, "go-slow", squatting on
the work premises after working hours, or "gherao" of any of the members of the managerial or
other staff.
6. To stage demonstrations at the residence of the employers or the managerial staff members.
7. To incite or indulge in willful damage to employer's property connected with the industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation against any workman to
prevent him from attending work.

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Provisions of Industrial Disputes Act 1947

Obligations of Obligations of Rights of Employers Rights of Workers

Employers Workers

Maintain industrial To refrain from To run the establishment To form and join a trade
peace and harmony committing any in the manner they see fit union
illegal act

Not to lay off workers To not participate in To hire, promote, and To engage in collective
without prior any illegal strike train workers based on bargaining
permission their merits and abilities

Not to change terms To abide by the To discipline workers for To participate in trade
of employment terms of misconduct union activities
without prior notice employment

To pay workers their To not resort to To seek redressal of To participate in industrial

wages on time violence or grievances through legal action, such as strikes
intimidation means

To provide a safe and To not damage To protect their To be protected from

healthy working employer's property intellectual property victimization for
environment participating in industrial
action

To comply with To not engage in To terminate To be paid fair wages and

labour laws and any form of employment for valid benefits
regulations sabotage or reasons
slowdown

Permanent conciliation services for particular geographical areas or industries

both at the central and state levels
The Industrial Disputes Act, 1947 provides for the establishment of permanent conciliation services for
particular geographical areas or industries at both the central and state levels. This is done to ensure
effective dispute resolution and promote industrial peace.

At the central level, the Government may establish a Central Conciliation Officer, who shall be appointed by
the appropriate authority, to promote the settlement of industrial disputes. Similarly, at the state level, the
State Government may appoint a Conciliation Officer for a particular geographical area or industry.

These Conciliation Officers are responsible for the following

 Promoting the settlement of industrial disputes by conciliation

 Investigating and finding solutions to disputes between employers and workers
 Maintaining close contact with employers and workers to prevent disputes from arising
 Collecting and analyzing data on industrial disputes and related matters

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 Advising the government on matters relating to industrial relations

The permanent conciliation services established at the central and state levels provide an effective means of
dispute resolution and promote industrial peace by ensuring that disputes are resolved in a timely and
efficient manner.

Boards of Conciliation at the central and state levels

The Industrial Disputes Act, 1947 provides for the establishment of Boards of Conciliation at both the
central and state levels to assist in the settlement of industrial disputes. These Boards are composed of
representatives of employers and workers, as well as independent members appointed by the government.

At the central level, the Central Government may appoint a Board of Conciliation to inquire into and settle
industrial disputes that extend beyond one state. The Board of Conciliation at the central level consists of an
independent chairman and an equal number of representatives of employers and workers.

Similarly, at the state level, the State Government may appoint a Board of Conciliation to inquire into and
settle industrial disputes that are confined to a particular state. The Board of Conciliation at the state level
consists of an independent chairman and an equal number of representatives of employers and workers.

The functions of the Boards of Conciliation include the following

 Inquiring into industrial disputes that have been referred to them

 Investigating the causes and circumstances leading to the dispute
 Making recommendations for the settlement of the dispute
 Promoting the settlement of the dispute by conciliation

The Boards of Conciliation provide an important mechanism for resolving industrial disputes by bringing
together representatives of employers and workers to discuss the issues and find solutions. By promoting
dialogue and negotiation, the Boards of Conciliation can help to prevent the escalation of disputes and
promote industrial peace.

Courts of Enquiry at the central and state levels

The Industrial Disputes Act, 1947 provides for the establishment of Courts of Enquiry at both the central and
state levels to inquire into matters related to industrial disputes. These courts are appointed by the
government and consist of an independent chairman and two or more assessors representing employers
and workers.

At the central level, the Central Government may appoint a Court of Enquiry to inquire into any matter
connected with an industrial dispute that extends beyond one state. Similarly, at the state level, the State
Government may appoint a Court of Enquiry to inquire into any matter connected with an industrial dispute
that is confined to a particular state.

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Adjudication Authorities consisting of Tribunals and Labour Courts at the central

and state
levels
At the central level, the Central Government may constitute one or more Industrial Tribunals to adjudicate
on industrial disputes that extend beyond one state or that are of national importance. The Industrial
Tribunals consist of an independent presiding officer and two or more assessors representing employers
and workers.

Similarly, at the state level, the State Government may constitute one or more Labour Courts to adjudicate
on industrial disputes that are confined to a particular state. The Labour Courts consist of an independent
presiding officer and two or more assessors representing employers and workers.

National Tribunals at the central level:

It was formed to adjudicate disputes involving any question of national importance, or of such nature that
industrial establishments situated in more than one state are likely to be interested in or affected by them.
The adjudication award is legally binding.

Adjudication authorities have also been set up under a few state legislations.

Non-Statutory Measures of Settlement of Disputes

Workers’ Participation in Management

Workers' participation in management refers to the participation of workers in decision-making processes
that affect their working conditions and the overall functioning of the organization. The concept of workers'
participation in management has gained significant importance in industrial relations as it aims to promote
better communication, cooperation, and trust between the management and the workers.

Collective Bargaining
Collective bargaining is a process of negotiation between an employer or employers' organization and a
group of employees or their representatives, usually a trade union, with the aim of reaching an agreement
on the terms and conditions of employment. Collective bargaining is one of the key mechanisms for
regulating the employment relationship and is a fundamental right of workers recognized by the
International Labour Organization (ILO).

The collective bargaining process usually involves the following steps

 Preparation: The parties involved prepare for the negotiation by gathering information on their
respective positions, interests, and priorities. The union may conduct a survey or consult with its
members to identify the issues of concern, while the employer may gather data on the company's
financial situation and market conditions.

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 Opening: The parties present their initial proposals and discuss their respective positions on the
issues.
 Bargaining: The parties engage in a give-and-take process of bargaining to reach an agreement on
the terms and conditions of employment. The bargaining process may involve the exchange of
counter-proposals, clarification of issues, and making concessions.
 Agreement: If the parties are able to reach an agreement, it is put in writing and signed by both
parties. The agreement is usually binding on both parties and sets out the terms and conditions of
employment for the duration of the agreement.
 Implementation: Once an agreement is reached, it must be implemented by both parties. This
involves making any necessary changes to employment policies and practices, communicating the
terms of the agreement to employees, and monitoring compliance with the agreement.

Grievance Procedure
The First National Commission on Labour (1969) recommended the establishment of a grievance procedure
in all organizations with the following steps:

 Grievance presentation: The employee presents the grievance in writing to the supervisor or a
designated official. The employer is expected to provide a copy of the grievance to the union
representative if the employee is a union member.
 Acknowledgment: The employer acknowledges receipt of the grievance in writing within a
specified period.
 Examination of grievance: The supervisor or designated official investigates the grievance and
holds discussions with the employee and union representative, if any.
 Decision: The supervisor or designated official communicates the decision in writing to the
employee and union representative, if any, within a specified period.
 Appeal: If the employee is dissatisfied with the decision, they may appeal to the next higher level of
management within a specified period.
 Arbitration: If the grievance remains unresolved, it may be referred to an arbitrator for a final and
binding decision.

The Commission emphasized that the grievance procedure should be simple, speedy, and accessible to all
employees. The procedure should be designed to encourage the settlement of disputes at the lowest
possible level and with the least amount of formality. The Commission also recommended that a separate
and independent grievance handling machinery should be established to deal with grievances of workers
who are not members of a union.

Tripartite Bodies
Tripartite bodies are institutions or organizations that involve representatives from three groups: employers,
workers, and the government. These bodies are established to promote dialogue and cooperation among
the three parties on matters related to labour and employment.

In India, there are several tripartite bodies at the national, state, and industry levels, including

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 National Tripartite Consultative Committee (NTCC): It is the apex tripartite body at the national
level, comprising representatives from the central government, employers, and workers. The NTCC
provides a platform for tripartite dialogue and cooperation on matters related to labour and
employment policies, legislation, and programs.
 Standing Labour Committees: They are tripartite bodies at the state level, established to promote
cooperation among the state government, employers, and workers on matters related to labour and
employment.
 Industry-level Tripartite Bodies: They are established in various industries to promote dialogue
and cooperation among employers, workers, and the government on matters related to the industry,
such as wages, working conditions, and employment policies.

Code of Discipline
The Code of Discipline is a set of guidelines and principles that provide a framework for maintaining
discipline and promoting harmonious relations between employers and workers in the workplace. It was
first introduced by the Indian government in 1958 as a voluntary measure to promote good industrial
relations and prevent industrial disputes.

The main objectives of the Code of Discipline are

 To promote constructive cooperation between employers and workers in the workplace.

 To prevent and resolve industrial disputes through peaceful means.
 To ensure compliance with labor laws, regulations, and collective agreements.
 To promote productivity and improve the quality of work life for workers.

The Code of Discipline contains the following guidelines and principles

 Respect for the law and the rights of others.

 Observance of collective agreements and grievance procedures.
 Avoidance of strikes and lockouts as a means of resolving disputes.
 Promotion of good communication and cooperation between employers and workers.
 Prevention of victimization or discrimination against workers for their union membership or
activities.
 Promotion of productivity and quality of work life for workers.
 Establishment of joint consultative machinery to promote dialogue and cooperation between
employers and workers.

The code of conduct

The Code of Conduct, evolved at Nainital in May 1958, governs inter-union relations. Its basic objective is to
reduce inter-union rivalry and achieve trade union amity.

The four central labour organisations, viz., All India Trade Union Congress (AITUC), Indian National Trade
Union Congress (INTUC), Hind Mazdoor Sabha (HMS), and United Trade Union Congress (UTUC) agreed to
follow the following principles in order to ensure harmonious inter-union relations:

 Freedom and right of an employee to join any union of his choice;

 No dual membership of the unions;

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 Respect for democratic functioning of trade unions;
 Regular and democratic elections of executive bodies and office-bearers of trade unions;
 No exploitation of backwardness and ignorance of workers; No place for casteism, communalism
and provincialism;
 No violence, coercion, intimidation or personal vilification in inter-union dealings; and all central
labour organisations shall combat the formation or continuance of company unions.

Standing Orders
Standing Orders are a set of rules and regulations that govern the conditions of employment in an
establishment. These rules are drafted by the employer and approved by the appropriate government
authority. The purpose of Standing Orders is to provide clarity on the terms and conditions of employment,
rights and obligations of employers and workers, and the disciplinary procedures that apply in case of
misconduct.

The Standing Orders Act, 1946, mandates the drafting and certification of standing orders in all
establishments that employ 100 or more workers. The Act defines the procedures for the drafting,
submission, and certification of Standing Orders. Once certified, the Standing Orders become legally
binding and must be displayed in a conspicuous place within the establishment.

CHAPTER VI of IR Code 2020: Voluntary reference of disputes to arbitration

42. (1) Where any industrial dispute exists or is apprehended and the employer and the workers agree to
refer the dispute to arbitration, they may, by a written agreement, refer the dispute to arbitration, and the
reference shall be to such person or persons as an arbitrator or arbitrators as may be specified in the
arbitration agreement.

(2) Where an arbitration agreement provides for a reference of the dispute to an even number of
arbitrators, the agreement shall provide for the appointment of another person as umpire who shall enter
upon the reference, if the arbitrators are equally divided in their opinion, and the award of the umpire shall
prevail and shall be deemed to be the arbitration award for the purposes of this Code.

(3) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be signed by the
parties thereto in such manner as may be prescribed.

(4) A copy of the arbitration agreement shall be forwarded to the appropriate Government and the
conciliation officer.

(5) Where an industrial dispute has been referred to arbitration and the appropriate Government is satisfied
that the persons making the reference represent the majority of each party, the appropriate Government
may issue a notification in such manner as may be prescribed; and when any such notification is issued, the
employers and workers who are not parties to the arbitration agreement but are concerned in the dispute,
shall be given an opportunity of presenting their case before the arbitrator or arbitrators.

Provided that

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(i) Where such industrial dispute is the industrial dispute other than the termination of individual worker by
way of discharge, dismissal, retrenchment or otherwise, the workers shall be represented before the
arbitrator,

a. Where there is negotiating union or negotiating council, by the negotiating union or

negotiating council, as the case may be; or
b. Where there is no negotiating union or negotiating council, by the Trade Union; or
c. where there is no Trade Union, by such representatives of the workers chosen in such
manner as may be prescribed;

(ii) Where such industrial dispute relates to termination of individual worker by way of discharge, dismissal,
retrenchment or otherwise, the concerned workers shall be represented in person or through a
representative authorised by him.

(6)The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate Government the
arbitration award signed by the arbitrator or all the arbitrators, as the case may be.

(7) Where an industrial dispute has been referred to arbitration and a notification has been issued under
sub-section (5), the appropriate Government may, by order, prohibit the continuance of any strike or lock-
out in connection with such dispute which may be in existence on the date of the reference.

(8) Nothing in the Arbitration and Conciliation Act, 1996, shall apply to arbitrations under this section.

Grievance and Grievance Procedure

A grievance is a sign of employee’s discontent with job and its nature. The employee has got certain
aspirations and expectations which he thinks must be fulfilled by the organisation where he is working.
When the organisation fails to satisfy the employee needs, he develops a feeling of discontent or
dissatisfaction.

According to J.M. Jucius, “A grievance is any discontent or dissatisfaction whether expressed or not, whether
valid or not, arising out of anything connected with the company which an employee thinks, believes or
even feels to be unfair, unjust or inequitable”.

Grievance Procedure
A grievance procedure is a formal process that allows employees to raise complaints or grievances with
their employer or management about any workplace-related issue. The grievance procedure is an essential
aspect of industrial relations and helps to resolve workplace disputes and conflicts.

In general, a grievance procedure consists of several stages, starting from an informal meeting with the
immediate supervisor or manager, followed by a more formal meeting with a higher-level manager, and
ultimately, a hearing with a neutral third-party mediator or arbitrator. The procedure typically involves a
written record of the grievance, the response from management, and any other relevant information, such
as witness statements and supporting documents.

The main purpose of a grievance procedure is to provide a fair and objective process for employees to raise
their concerns, receive a response from management, and resolve the issue. This helps to promote good
industrial relations, maintain employee morale and productivity, and prevent workplace conflicts from
escalating.

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In addition to the formal grievance procedure, employers and employee representatives may also engage in
collective bargaining, which is a process of negotiating the terms and conditions of employment, including
grievances and dispute resolution procedures, through a recognized union or representative body.

Grievance procedure is a Step by step process an employee must follow to get his or her complaint
addressed satisfactorily. In this process, the formal (written) complaint moves from one level of authority (of
the firm and the union) to the next higher level.

Grievance procedure is a formal communication between an employee and the management designed for
the settlement of a grievance. The grievance procedures differ from organization to organization.

 Open door policy

 Step-ladder policy

Open door policy

Under this policy, the aggrieved employee is free to meet the top executives of the organization and get his
grievances redressed. Such a policy works well only in small organizations. However, in bigger
organizations, top management executives are usually busy with other concerned matters of the company.
Moreover, it is believed that open door policy is suitable for executives; operational employees may feel shy
to go to top management.

Step ladder policy

Under this policy, the aggrieved employee has to follow a step by step procedure for getting his grievance
redressed. In this procedure, whenever an employee is confronted with a grievance, he presents his
problem to his immediate supervisor. If the employee is not satisfied with superior’s decision, then he
discusses his grievance with the departmental head. The departmental head discusses the problem with
joint grievance committees to find a solution. However, if the committee also fails to redress the grievance,
then it may be referred to chief executive. If the chief executive also fails to redress the grievance, then such
a grievance is referred to voluntary arbitration where the award of arbitrator is binding on both the parties.

Grievance Procedure in India

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established grievance
procedure for the country which would be acceptable to unions as well as to management. In the 16th
session of Indian Labor Conference, a model for grievance procedure was drawn up. This model helps in
creation of grievance machinery. According to it, workers’ representatives are to be elected for a
department or their union is to nominate them. Management has to specify the persons in each
department who are to be approached first and the departmental heads who are supposed to be
approached in the second step.

The grievance procedure in India generally involves the following steps

 Conciliation: If an industrial dispute arises, the parties must first attempt to resolve the dispute
through conciliation. The conciliation officer must complete the conciliation proceedings within 14
days of the notice of the dispute being served. If the dispute is not resolved through conciliation,
the conciliation officer must submit a report to the appropriate government within seven days of the
conclusion of the proceedings.

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 Reference to Industrial Tribunal/Labor Court: If the dispute remains unresolved after conciliation, the
appropriate government may refer the dispute to an industrial tribunal or labor court for
adjudication. The tribunal or court must make its award within three months from the date of
reference.
 Appeals: If a party is not satisfied with the award, they may file an appeal within 30 days of the date
of the award.
 Strike and lockout: If a strike or lockout takes place, the appropriate government may prohibit it
for a period of up to six weeks. After six weeks, the government may extend the prohibition for up
to six months, provided that the dispute remains unresolved.

The time frame for completing the grievance procedure in India can vary depending on the complexity of
the issue and the willingness of the parties to negotiate and resolve the dispute.

Grievance Machinery
Grievance machinery is a formal system established by an organization or employer to address employee
grievances or complaints. The objective of the grievance machinery is to provide a fair and transparent
process for employees to raise and resolve issues related to their employment.

The grievance machinery typically consists of a multi-level process, starting with an informal stage and
progressing to more formal stages as needed.

The grievance machinery is an important aspect of industrial relations as it provides employees with a
formal process to raise and resolve workplace grievances. A well-designed and effective grievance
machinery can help prevent conflicts and disputes from escalating, maintain employee morale and
productivity, and promote a positive workplace culture.

The grievance machinery is typically outlined in the employment contract or collective bargaining
agreement between the employer and employees or their representatives. It is important for employers to
establish a clear and transparent grievance machinery that is easily accessible to all employees and ensures
a fair and just resolution of their complaints or grievances.

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Grievance Redressal Committee (CHAPTER II, Industrial relations code, 2020)

4. (1) Every industrial establishment employing twenty or more workers shall have one or more Grievance
Redressal Committees for resolution of disputes arising out of individual grievances.

(2) The Grievance Redressal Committee shall consist of equal number of members representing the
employer and the workers to be chosen in such manner as may be prescribed.

(3) The chairperson of the Grievance Redressal Committee shall be selected from among persons
representing the employer and the workers alternatively on rotational basis every year.

(4) The total number of members of the Grievance Redressal Committee shall not exceed ten:

Provided that there shall be adequate representation of women workers in the Grievance Redressal
Committee and such representation shall not be less than the proportion of women workers to the total
workers employed in the industrial establishment.

(5) An application in respect of any dispute referred to in sub-section (1) may be filed before the Grievance
Redressal Committee by any aggrieved worker in such manner as may be prescribed within one year from
the date on which the cause of action of such dispute arises.

(6) The Grievance Redressal Committee may complete its proceedings within thirty days of receipt of the
application under sub-section (5).

(7) The decision of the Grievance Redressal Committee on any application filed under sub-section (5) shall
be made on the basis of majority view of the Committee, provided more than half of the members
representing the workers have agreed to such decision, otherwise it shall be deemed that no decision could
be arrived at by the Committee.

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(8) The worker who is aggrieved by the decision of the Grievance Redressal Committee or whose grievance
is not resolved in the said Committee within the period specified in sub-section (6), may, within a period of
sixty days from the date of the decision of the Grievance Redressal Committee or from the date on which
the period specified in sub-section (6) expires, as the case may be, file an application for the conciliation of
such grievance to the conciliation officer through the Trade Union, of which he is a member, in such manner
as may be prescribed.

(9) Where any employer discharges, dismisses, retrenches, or otherwise terminates the services of an
individual worker, any dispute or difference between that worker and his employer connected with, or
arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial
dispute notwithstanding that no other worker nor any Trade Union is a party to the dispute.

(10) Notwithstanding anything contained in this section or section 53, any worker as is specified in sub-
section (5) may, make an application directly to the Tribunal for adjudication of the dispute referred to
therein after the expiry of forty-five days from the date he has made the application to the conciliation
officer of the appropriate Government for conciliation of the dispute, and on receipt of such application the
Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as the Tribunal has in respect of
the application filed under sub-section (6) of section 53.

(11) The application referred to in sub-section (10) shall be made to the Tribunal before the expiry of two
years from the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in
sub-section

Standing orders (CHAPTER IV of industrial relations code, 2020)

Standing Orders are a set of rules and regulations that govern the conditions of employment of workers in
an organization. These orders are prescribed under the Industrial Employment (Standing Orders) Act, 1946,
and are applicable to organizations with 100 or more workers.

The purpose of standing orders is to regulate the relationship between employers and workers, provide
clarity on terms and conditions of employment, and establish a framework for discipline and conduct in the
workplace.

Application of this Chapter

28. (1) The provisions of this Chapter shall apply to every industrial establishment wherein three hundred or
more than three hundred workers, are employed, or were employed on any day of the preceding twelve
months.

(2) Notwithstanding anything contained in sub-section (1), the provisions of this Chapter shall not apply to
an industrial establishment in so far as the workers employed therein are persons to whom the
Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil
Services (Temporary Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence
Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other
rules or regulations that may be notified in this behalf by the appropriate Government, apply.

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Making of model standing orders by Central Government and temporary

application.
29. (1) The Central Government shall make model standing orders relating to conditions of service and
other matters incidental thereto or connected therewith.

(2) Notwithstanding anything contained in sections 30 to 36, for the period commencing on the date on
which this section becomes applicable to an industrial establishment and ending with the date on which the
standing orders as finally certified under this Code come into operation under section 33 in that
establishment, the model standing order referred to in sub-section (1) shall be deemed to be adopted in
that establishment and the provisions of sub-section (2) of section 33 and section 35 shall apply to such
model standing orders as they apply to the standing orders so certified.

Preparation of draft standing orders by employer and procedure for certification.

30. (1) The employer shall prepare draft standing orders,within a period of six months from the date of
commencement of this Code, based on the model standing orders referred to in section 29 in respect of the
matters specified in the First Schedule and on any other matter considered necessary by him for
incorporation of necessary provisions in such standing orders for his industrial establishment or
undertaking, considering the nature of activity in his industrial establishment or undertaking, provided such
provision is not inconsistent with any of the provision of this Code and covers every matters set out in the
First Schedule.

(2) The employer shall consult the Trade Unions or recognised negotiating union or members of the
negotiating council relating to the industrial establishment or undertaking, as the case may be, in respect of
the draft of the standing order and thereafter forward the draft of the standing order electronically or
otherwise to the certifying officer for certification.

(3) Where an employer adopts a model standing order of the Central Government referred to in section 29
with respect to matters relevant to his industrial establishment or undertaking, then, such model standing
order shall be deemed to have been certified under the provisions of this section and employer shall
forward the information in this regard to the concerned certifying officer in such manner as may be
prescribed: Provided that if the certifying officer has any observation, he may direct such employer to
amend the standing order so adopted within such period as may be prescribed.

(4) The employer shall prepare the draft of the modifications required in the standing order, if any, in
accordance with the provisions of this Code and forward electronically or otherwise to the certifying officer
for certification of those modifications only within a period of six months from the date, the provisions of
this Chapter becomes applicable to his industrial establishment.

(5) On receipt of the drafts referred to in sub-section (1) and sub-section (4), the certifying officer shall issue
notice to

(i) The Trade Union or negotiating union of the industrial establishment or undertaking, or members of the
negotiating council; or

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(ii) Where there is no Trade Union operating, to such representatives of the workers of the industrial
establishment or undertaking chosen in such manner as may be prescribed, for seeking their comments in
the matter and after receipt of their comments give an opportunity of being heard to the negotiating union
or negotiating council, or as the case may be, to the Trade Unions or the representatives of the workers and
decide as to whether or not any modification or addition to such draft standing order is necessary to render
the draft standing order certifiable, and shall make an order in writing in this regard.

Certifying officer and appellate authority to have powers of civil court

31. (1) Every certifying officer and the appellate authority referred to in section 32 shall have all the powers
of a civil court for the purposes of receiving evidence, administering oath, enforcing the attendance of
witnesses, and compelling the discovery and production of documents, and shall be deemed to be a civil
court within the meaning of sections 345 and 346 of the Code of Criminal Procedure, 1973.

(2) Clerical or arithmetical mistakes in any order passed by a certifying officer, or errors arising therein from
any accidental slip or omission may, at any time, be corrected by that officer or successor in office of such
officer.

Appeals
32. An employer or Trade Union or the negotiating union or negotiating council, or where there is no
negotiating union or negotiating council in an industrial establishment or undertaking any union or such
representative body of the workers of the industrial establishment or undertaking, if not satisfied with the
order of the certifying officer given under sub-section (5) of section 30, may file an appeal within sixty days
of receipt of the order of the certifying officer to the appellate authority appointed by the appropriate
Government, by notification, and such authority shall dispose of the appeal in such manner as may be
prescribed.

Date of operation of standing orders and its availability

33. (1) The standing orders or modified standing orders, as the case may be, shall, unless an appeal is
preferred under section 32, come into operation on the expiry of thirty days from the date on which
authenticated copies thereof are sent under sub-section (8) of section 30, or where an appeal as aforesaid is
preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority
are sent in such manner as may be prescribed.

(2) The text of a standing order as finally certified under this Code shall be maintained by the employer in
such language and in such manner for the information of the concerned workers as may be prescribed.

Register of standing orders

34. A copy of all standing orders as finally certified under this Code shall be filed by the certifying officer in
a register maintained for the purpose or uploaded in electronic form or such other form as may be

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prescribed, and the certifying officer shall furnish a copy thereof to any person applying therefor on
payment of such fee as may be prescribed.

Oral evidence in contradiction of standing orders not admissible

36. No oral evidence having the effect of adding to or otherwise varying or contradicting standing order as
finally certified under this Chapter shall be admitted in any Court.

Interpretation, etc., of standing orders.

37. If any question arises as to the application, or interpretation, of the standing orders certified under sub-
section (8) of section 30 or the modification made therein by an agreement entered into under sub-section
(5) of that section, the employer or any worker or workers concerned or the Trade Union in relation to the
workers employed in the industrial establishment or undertaking, wherein the question has arisen, may
apply to the Tribunal, within the local limits of whose territorial jurisdiction such establishment or the office,
section or branch of the undertaking is situated, to decide the question and such Tribunal shall, after giving
all the parties concerned a reasonable opportunity of being heard, decide the question and its decision
shall be final and binding on the concerned employer and the workers.

Power to exempt
The appropriate Government may, by notification, exempt, conditionally or unconditionally, any industrial
establishment or class of industrial establishments from all or any of the provisions of this Chapter.

CHAPTER VII: Mechanism for resolution of industrial disputes

Conciliation officers
43. (1) The appropriate Government may, by notification, appoint such number of persons, as it thinks fit to
be conciliation officers, charged with the duty of mediating in and promoting the settlement of industrial
disputes.

(2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area
or for one or more specified industries and either permanently or for a limited period.

Industrial Tribunal
44. (1) The appropriate Government may, by notification, constitute one or more Industrial Tribunals for the
adjudication of industrial disputes and for performing such other functions as may be assigned to them
under this Code and the Tribunal so constituted by the Central Government shall also exercise the

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jurisdiction, powers and authority conferred on the Tribunal, as defined in clause (m) of section 2 of the
Employees' Provident Funds and Miscellaneous Provisions Act, 1952 by or under that Act.

(2) Every Industrial Tribunal shall consist of two members to be appointed by the appropriate Government
out of whom one shall be a Judicial Member and the other, an Administrative Member.

(3) A bench of the Tribunal shall consist of a Judicial Member and an Administrative Member or single
Judicial Member or single Administrative Member.

(4) The qualifications for appointment, method of recruitment, term of office, salaries and allowances,
resignation, removal and the other terms of conditions of service of the Judicial Member and the
Administrative Member of the Tribunal constituted by the Central Government shall be in accordance with
the rules made under section 184 of the Finance Act, 2017: Provided that a person who has held a post
below the rank of Joint Secretary to the Government of India or an equivalent rank in the Central
Government or a State Government, shall not be eligible to be appointed as an Administrative Member of
the Tribunal.

(5) The term of office of the Judicial Member and the Administrative Member of a Tribunal constituted by
the State Government under sub-section (1), their salaries and allowances, resignation, removal and other
terms and conditions of service shall be such as may be prescribed by the State Government.

(6) The salary and allowances and the terms and conditions of service of the Judicial Member or
Administrative Member referred to in sub-section (2) and appointed by a State Government shall not be
varied to his disadvantage after his appointment.

(7) The procedure of the Tribunal (including distribution of cases in the benches of the Tribunal) shall be
such as may be prescribed, provided a bench consisting of a Judicial Member and an Administrative
Member shall entertain and decide the cases only relating to—

(a) The application and interpretation of standing order.

(b) Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen
dismissed;

(c) Illegality or otherwise of a strike or lockout;

(d) Retrenchment of workmen and closure of establishment; and

(e) Trade Union disputes, and the remaining cases shall be entertained and decided by the bench of
the Tribunal consisting either a Judicial Member or an Administrative Member of the Tribunal.

(8) The Judicial Member shall preside over the Tribunal where the bench of the Tribunal consists of one
Judicial Member and one Administrative Member.

(9) If, for any reason, a vacancy (other than a temporary absence) occurs in a National Industrial Tribunal or
a Tribunal, then, such vacancy shall be filled up in such manner as may be prescribed, without prejudice to
the provisions of sub-section (4), or sub-section (5), as the case may be and the proceeding shall be
continued before such National Industrial Tribunal or Tribunal, as the case may be, from the stage at which
the vacancy is filled.

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(10) The appropriate Government may provide such number of officers and other staff as it thinks fit in
consultation with the Judicial Member of the Tribunal which may be required for the due discharge of the
functioning of the Tribunal.

Finality of constitution of Tribunal

45. No notification of the appropriate Government appointing any person as a Judicial Member or an
Administrative Member of a Tribunal shall be called in question in any manner; and no act or proceeding
before the Tribunal shall be called in question in any manner on the ground mainly of the existence of any
vacancy in, or defect in the constitution of such Tribunal.

National Industrial Tribunal

46. (1) The Central Government may, by notification, constitute one or more National Industrial Tribunals for
the adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of
national importance or are of such a nature that industrial establishments situated in more than one State
are likely to be interested in, or affected by, such disputes.

(2) A National Industrial Tribunal shall consist of two members to be appointed by the Central Government
out of whom one shall be a Judicial Member and the other, an Administrative Member.

(3) A person shall not be qualified for appointment as the Judicial Member of a National Industrial Tribunal
unless he is, or has been, a Judge of a High Court.

(4) A person shall not be qualified for appointment as Administrative Member of a National Industrial
Tribunal unless, he is or has been Secretary to the Government of India or holding an equivalent rank in the
Central Government or State Government, having adequate experience of handling the labour related
matters.

(5) The Judicial Member shall preside over a National Industrial Tribunal.

(6) The procedure of selection of Judicial Member and Administrative Member of the National Industrial
Tribunal, their salaries, allowances and other terms and conditions of service shall be such as may be
prescribed.

(7) The Central Government may provide such number of officers and other staff as it thinks fit in
consultation with the Judicial Member of the National Industrial Tribunal which may be required for the due
discharge of the functioning of the National Industrial Tribunal.

Decision of Tribunal or National Industrial Tribunal

47. (1) The decision of a Tribunal or a National Industrial Tribunal, as the case may be, shall be by consensus
of the members.

(2) If the members of a Tribunal or a National Industrial Tribunal differ in opinion on any point, they shall
state the point or points on which they differ, and make a reference to the appropriate Government.

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(3) The appropriate Government shall, on receipt of a reference made under sub-section (2), appoint a
Judicial Member of other Tribunal or a National Industrial Tribunal, who shall hear the point or points
himself and such point or points shall be decided according to the majority of the members of a Tribunal or
a National Industrial Tribunal, as the case may be, who have first heard the case, including the Judicial
Member of the other Tribunal who heard the case thereafter.

Disqualifications for members of Tribunal and National Industrial Tribunal

48. No person shall be appointed to, or continue in, the office of the member of a Tribunal or National
Industrial Tribunal, respectively, if

(a) He is not an independent person; or

(b) He has attained the age of sixty-five years.

Explanation: For the purposes of this section "independent person" means a person who is unconnected
with the industrial dispute referred to a Tribunal or National Industrial Tribunal or with any industry directly
affected by such dispute.

Procedure and powers of arbitrator, conciliation officer, Tribunal and National

Industrial Tribunal
49. (1) Subject to the provisions of this Code and the rules that may be made in this behalf, an arbitrator,
conciliation officer, Tribunal or National Industrial Tribunal shall follow such procedure as the arbitrator,
conciliation officer, Tribunal or National Industrial Tribunal may deem fit.

(2) A conciliation officer or an officer authorised in this behalf by the Tribunal or National Industrial Tribunal
may, for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonable
notice, enter the premises occupied by any establishment to which the dispute relates.

(3) The conciliation officer, Tribunal and National Industrial Tribunal shall have the same powers as are
vested in a civil court under the Code of Civil Procedure,1908, when trying a suit, in respect of the following
matters, namely: — (a) enforcing the attendance of any person and examining him on oath; (b) compelling
the production of documents and material objects; (c) issuing commissions for the examination of
witnesses; (d) in respect of such other matters as may be prescribed, and every inquiry or investigation by
Tribunal or National Industrial Tribunal, shall be deemed to be a judicial proceeding within the meaning of
sections 193 and 228 of the Indian Penal Code.

(4) A conciliation officer may enforce the attendance of any person for the purpose of examination of such
person or call for and inspect any document which he has ground for considering to be relevant to the
industrial dispute or to be necessary for the purpose of verifying the implementation of any award or
carrying out any other duty imposed on him under this Code, and for the aforesaid purposes, the
conciliation officer shall have the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908, in respect of enforcing the attendance of any person and examining him or of compelling
the production of documents.

(5) The appropriate Government may, if it so thinks fit, appoint one or more persons having special
knowledge of the matter under consideration as assessors or experts to advise a Tribunal or National
Industrial Tribunal, as the case may be, in respect of any proceeding before either of the said Tribunals.

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(6) All conciliation officers and the members of a Tribunal or National Industrial Tribunal shall be deemed to
be public servants within the meaning of section 21 of the Indian Penal Code.

(7) Subject to any rules made under this Code, the costs of, and incidental to, any proceeding before a
Tribunal or National Industrial Tribunal shall be in the discretion of that Tribunal or National Industrial
Tribunal and the Tribunal or National Industrial Tribunal, as the case may be, shall have full powers to
determine by and to whom and to what extent and subject to what conditions, if any, such costs are to be
paid, and to give all necessary directions for the purposes aforesaid and such costs may, on application
made to the appropriate Government by the person entitled, be recovered by that Government in the same
manner as an arrear of land revenue.

(8) Every Tribunal or National Industrial Tribunal shall be deemed to be civil court for the purposes of
sections 345, 346, and 348 of the Code of Criminal Procedure, 1973.

(9) Every award made, order issued or settlement arrived at by or before a Tribunal or a National Industrial
Tribunal shall be executed in accordance with the procedure laid down for execution of orders and decree
of a civil court under Order XXI of the Code of Civil Procedure, 1908 and for that purpose such Tribunal or
National Industrial Tribunal shall be deemed to be a civil court.

Powers of Tribunal and National Industrial Tribunal to give appropriate relief in

case of discharge or dismissal of worker
50. (1) Where the application under sub-section (6) of section 53 relating to an industrial dispute involving
discharge or dismissal or otherwise termination of a worker has been made to a Tribunal or has been
referred to a National Industrial Tribunal for adjudication, and, in the course of adjudication proceedings,
the Tribunal or National Industrial Tribunal, as the case may be, is satisfied that the order of discharge or
dismissal or otherwise termination was not justified, it may, by its award, set aside the order of discharge or
dismissal or termination and direct reinstatement of the worker on such terms and conditions, if any, as it
thinks fit, or give such other relief to the worker including the award of any lesser punishment in lieu of
discharge or dismissal or otherwise termination, as the circumstances of the case may require.

(2) A Tribunal or National Industrial Tribunal, as the case may be, may, in the interest of justice, grant such
interim relief to the worker referred to in sub-section (1) during the pendency of the industrial dispute as
the circumstances of the case may require: Provided that in any proceeding under this sub-section the
Tribunal or National Industrial Tribunal, as the case may be, shall rely only on the materials on record and
shall not take any fresh evidence in relation to the matter.

Transfer of pending cases

51. (1) on and from the date of commencement of this Code, the cases pending immediately before such
commencement—

(a) In the Labour Court and the Tribunal constituted under the Industrial Disputes Act, 1947, shall be
transferred to the Tribunal having corresponding jurisdiction under this Code;

(b) In the National Tribunal constituted under the Industrial Disputes Act, 1947 shall be transferred to
the National Industrial Tribunal having corresponding jurisdiction under this Code.

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(2) The cases transferred under sub-section (1) to the Tribunal or the National Industrial Tribunal shall be
dealt with de novo or from the stage at which they were pending before such transfer, as it may deem fit.

Adjustment of services of presiding officers under repealed Act

52. A presiding officer of a Labour Court or Tribunal or, as the case may be, National Tribunal, constituted
under the Industrial Disputes Act, 1947, holding office as such immediately before the commencement of
this Code and is qualified to be appointed under this Code, shall be the Judicial Member of the Tribunal or,
as the case may be, the Judicial Member of the National

Conciliation and adjudication of dispute

53. (1) Where any industrial dispute exists or is apprehended or a notice under section 62 has been given,
the conciliation officer shall, hold conciliation proceedings in such manner as may be prescribed: Provided
that the conciliation officer shall not hold any such proceedings relating to the industrial dispute after two
years from the date on which such industrial dispute arose.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without
delay, investigate the dispute and all matters affecting the merits and right settlement thereof and may do
all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable
settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the
conciliation proceedings, the conciliation officer shall send a report thereof to the appropriate Government
or an officer authorised in this behalf by the appropriate Government together with a memorandum of the
settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable, after the close of
the investigation, send to the concerned parties and to the appropriate Government a full report, in the
electronic or other form as may be prescribed, setting forth the steps taken by him for ascertaining the facts
and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full
statement of such facts and circumstances, and the reasons on account of which, in his opinion, a
settlement could not be arrived at.

(5) Notwithstanding anything contained in sub-section (4), the conciliation officer shall send the report to
the concerned parties and the appropriate Government within forty-five days of the commencement of the
conciliation proceedings or within such shorter period as may be fixed by the appropriate Government:
Provided that where a conciliation officer receives notice under section 62, he shall send the report to the
concerned parties and to the appropriate Government within fourteen days of the commencement of the
conciliation proceedings: Provided further that subject to the approval of the conciliation officer, the time
may be extended by such period as may be agreed upon in writing by the concerned parties to the dispute.

(6) Any concerned party may make application in the prescribed form to the Tribunal in the matters not
settled by the conciliation officer under this section within ninety days from the date on which the report

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under sub-section (4) is received to the concerned party and the Tribunal shall decide such application in
the prescribed manner.

Reference to and functions of National Industrial Tribunal

54. (1) The Central Government may refer an industrial dispute to a National Industrial Tribunal which in the
opinion of such Government involves question of national importance or is of such a nature that industrial
establishments situated in more than one State are likely to be interested in, or affected by such industrial
dispute.

(2) Where an industrial dispute has been referred under sub-section (1) or transferred under section 92 by
the Central Government to a National Industrial Tribunal for adjudication, it shall hold its proceedings
expeditiously and shall, within the period specified in the order referring or transferring such industrial
dispute or further period extended by the Central Government, submit its award to that Government.

Form of award, its communication and commencement

55. (1) The award of

(i) A Tribunal delivered by a bench consisting of a Judicial Member and an Administrative Member or a
single Judicial Member or a single Administrative Member; or

(ii) A National Industrial Tribunal, shall be in writing and shall be signed electronically or otherwise, as
the case may be, by both the Judicial Member and the Administrative Member or either by the
Judicial Member or the Administrative Member by whom the award is delivered.

(2) Every arbitration award and every award of Tribunal or National Industrial Tribunal shall be
communicated to the parties concerned and the appropriate Government.

(3) An award made under this Code shall become enforceable on the expiry of thirty days from the date of
its communication under sub-section

(2): Provided that—

(a) if the appropriate Government is of the opinion in any case, where the award has been given by a
Tribunal in relation to an industrial dispute to which it is a party; or

(b) if the Central Government is of opinion in any case, where the award has been given by a National
Industrial Tribunal, that it will be inexpedient on public grounds affecting national economy or social
justice to give effect to the whole or any part of the award, the appropriate Government, or as the
case may be, the Central Government may, by notification, declare that the award shall not become
enforceable on the expiry of the said period of thirty days.

(4) Where any declaration has been made in relation to an award under the proviso to sub-section (3), the
appropriate Government or the Central Government, as the case may be, may, within ninety days from the
date of communication of the award under sub-section (2), make an order rejecting or modifying the
award, and shall, on the first available opportunity, lay the award together with a copy of the order before

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the Legislature of the State, if the order has been made by a State Government, or before Parliament, if the
order has been made by the Central Government. (

5) Where any award as rejected or modified by an order made under sub-section (4) is laid before the
Legislature of a State or before Parliament, such award shall become enforceable on the expiry of fifteen
days from the date on which it is so laid; and where no order under sub-section (4) is made in pursuance of
a declaration under the proviso to sub-section (3), the award shall become enforceable on the expiry of the
period of ninety days referred to in sub-section (4).

(6) Subject to the provisions of sub-section (3) and sub-section (5) regarding the enforceability of an award,
the award shall come into operation with effect from such date as may be specified therein, but where no
date is so specified, it shall come into operation on the date when the award becomes enforceable under
sub-section (3) or sub-section (5), as the case may be.

Payment of full wages to worker pending proceedings in higher Courts

56. Where in any case, a Tribunal or a National Industrial Tribunal by its award directs reinstatement of any
worker and the employer prefers any proceedings against such award in a High Court or the Supreme
Court, the employer shall be liable to pay such worker, during the period of pendency of such proceedings
in the High Court or the Supreme Court, full wages last drawn by him, inclusive of any maintenance
allowance admissible to him under any rule if the worker had not been employed in any establishment
during such period and an affidavit by such worker had been filed to that effect in such Court:

Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such
worker had been employed and had been receiving adequate remuneration during any such period or part
thereof, the Court shall order that no wages shall be payable under this section for such period or part, as
the case may be.

Persons on whom settlements and awards are binding

57. (1) A settlement arrived at by agreement between the employer and worker otherwise than in the
course of conciliation proceeding shall be binding on the parties to the agreement.

(2) Subject to the provisions of sub-section (3), an arbitration award which has become enforceable shall be
binding on the parties to the agreement who referred the dispute to arbitration.

(3) A settlement arrived at in the course of conciliation proceedings under this Code or an arbitration or an
award of a Tribunal or National Industrial Tribunal which has become enforceable shall be binding on—

(a) all parties to the industrial dispute;

(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the
arbitrator, Tribunal or National Industrial Tribunal, as the case may be, records the opinion that they
were so summoned without proper cause;

(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in
respect of the establishment to which the dispute relates;

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(d) where a party referred to in clause (a) or clause (b) is composed of workers, all persons who were
employed in the establishment or part of the establishment, as the case may be, to which the
dispute relates on the date of the dispute and all persons who subsequently become employed in
that establishment or part.

Period of operation of settlements and awards

58. (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute,
and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the
parties to the dispute.

(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period
is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed
by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period
aforesaid, until the expiry of sixty days from the date on which a notice in writing of an intention to
terminate the settlement is given by one of the parties to the other party or parties to the settlement.

(3) An award shall, subject to the provisions of this section, remain in operation for a period of one year
from the date on which the award becomes enforceable under section 55: Provided that the appropriate
Government may reduce the said period and fix such period as it thinks fit: Provided further that the
appropriate Government may, before expiry of the said period, extend the period of operation by any
period not exceeding one year at a time as it thinks fit so, however, that the total period of operation of any
award does not exceed three years from the date on which it came into operation.

(4) Where the appropriate Government, whether of its own motion or on the application of any party bound
by the award, considers that since the award was made, there has been a material change in the
circumstances on which it was based, the appropriate Government may refer the award or part of it to the
Tribunal, if the award is made by the Tribunal for decision whether the period of operation should not, by
reason of such change, be shortened and the decision of the Tribunal on such reference shall be final.

(5) Nothing contained in sub-section (3) shall apply to any award which by its nature, terms or other
circumstances does not impose, after it has been given effect to, any continuing obligation on the parties
bound by the award.

(6) Notwithstanding the expiry of the period of operation under sub-section (3), the award shall continue to
be binding on the parties until a period of sixty days has elapsed from the date on which notice is given by
any party bound by the award to the other party or parties intimating its intention to terminate the award.

(7) No notice given under sub-section (2) or sub-section (6) shall have effect, unless it is given by a party
representing the majority of persons bound by the settlement or award, as the case may be.

Recovery of money due from employer

59. (1) Where any money is due to a worker from an employer under a settlement or an award or under the
provisions of Chapter IX or Chapter X, the worker himself or any other person authorised by him in writing
in this behalf, or, in the case of the death of the worker, his assignee or heirs may, without prejudice to any

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other mode of recovery, make an application to the appropriate Government for the recovery of the money
due to him, and if the appropriate Government is satisfied that any money is so due, it shall issue a
certificate for that amount to the Collector who shall proceed to recover the same in the same manner as
an arrear of land revenue: Provided that every such application shall be made within one year from the date
on which the money became due to the worker from the employer: Provided further that any such
application may be entertained after the expiry of the said period of one year, if the appropriate
Government is satisfied that the applicant had sufficient cause for not making the application within the
said period.

(2) Where any worker is entitled to receive from the employer any money or any benefit which is capable of
being computed in terms of money and if any question arises as to the amount of money due or as to the
amount at which such benefit should be computed, then the question may, subject to any rules that may be
made under this Code, be decided by such Tribunal as may be specified in this behalf by the appropriate
Government within a period not exceeding three months: Provided that where the Tribunal considers it
necessary or expedient so to do, it may, for reasons to be recorded in writing, extend such period by such
further period as it may think fit.

(3) For the purposes of computing the money value of a benefit referred to in sub-section (2), the Tribunal
may, if it so thinks fit, appoint a Commissioner who shall, after taking such evidence as may be necessary,
submit a report to the Tribunal and the Tribunal shall determine the amount after considering the report of
the Commissioner and other circumstances of the case.

(4) The decision of the Tribunal shall be forwarded by it to the appropriate Government and any amount
found due by the Tribunal may be recovered in the manner provided for in sub-section (1).

(5) Where workers employed under the same employer are entitled to receive from him any money or any
benefit capable of being computed in terms of money, then, subject to such rules as may be made in this
behalf, a single application for the recovery of the amount due may be made on behalf of or in respect of
any number of such workers.

Commencement and conclusion of proceedings

60. (1) A conciliation proceeding shall be deemed to have commenced on the date on which the first
meeting is held by the conciliation officer in an industrial dispute after the receipt of the notice of strike or
lock-out by the conciliation officer.

(2) A conciliation proceeding shall be deemed to have concluded—

(a) Where a settlement is arrived at, when a memorandum of the settlement is signed by the parties to
the dispute;

(b) Where no settlement is arrived at, and failure of conciliation is recorded by the conciliation officer;
or

(c) When a reference is made to a National Industrial Tribunal, under this Code, during the pendency of
conciliation proceedings.

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(3) Proceedings before an arbitrator or a Tribunal or a National Industrial Tribunal under this Code shall be
deemed to have commenced on the date of filing application or appeal or on the date of reference of the
dispute for arbitration or adjudication, as the case may be, and such proceedings shall be deemed to have
concluded on the date on which the award becomes enforceable.

Certain matters to be kept confidential

61. There shall not be included in any report or award under this Code, any information obtained by a
conciliation officer, arbitrator, Tribunal or National Industrial Tribunal, in the course of any investigation or
inquiry as to a Trade Union or as to any individual business (whether carried on by a person, firm or
company) which is not available otherwise than through the evidence given before such conciliation officer,
arbitrator, Tribunal, or National Industrial Tribunal, if the Trade Union, person, firm or company, in question
has made a request in writing to the conciliation officer, arbitrator, Tribunal or National Industrial Tribunal,
as the case may be, that such information shall be treated as confidential; nor shall such conciliation officer,
or the arbitrator, or the presiding officer of a Tribunal or a National Industrial Tribunal or any person
present at or concerned in the proceedings disclose any such information without the consent in writing of
the secretary of the Trade Union or the person, firm or company in question, as the case may be:

Provided that nothing contained in this section shall apply to a disclosure of any such information for the
purposes of a prosecution under section 193 of the Indian Penal Code.

Questions

1. Which of the following is NOT a cause of industrial dispute?

a) Low wages

b) Poor working conditions

c) Inadequate employee benefits

d) Adequate safety measures

2. What is the legal definition of an industrial dispute?

a) A disagreement between employees and their employers over working conditions

b) A disagreement between trade unions and their members

c) A disagreement between workers and their supervisors

d) A disagreement between workers and their employers

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3. Which of the following is NOT a form of industrial dispute resolution?

a) Collective bargaining

b) Conciliation

c) Arbitration

d) Strike

4. Which of the following is NOT a type of industrial dispute?

a) Interest disputes

b) Rights disputes

c) Leadership disputes

d) Grievance disputes

5. Which of the following is the most common type of industrial dispute in India?

a) Strike

b) Lockout

c) Picketing

d) Collective bargaining

6. What is the role of a conciliator in an industrial dispute?

a) To make a final and binding decision on the dispute

b) To facilitate negotiations between the parties

c) To provide legal advice to the parties

d) To represent one of the parties in the dispute

7. Which of the following is NOT a method of resolving an industrial dispute?

a) Strike

b) Lockout

c) Arbitration

d) Collective bargaining

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8. What is the role of an arbitrator in an industrial dispute?

a) To make a final and binding decision on the dispute

b) To facilitate negotiations between the parties

c) To provide legal advice to the parties

d) To represent one of the parties in the dispute

9. Which of the following is NOT a benefit of using arbitration to resolve an industrial dispute?

a) Itis less time-consuming than going to court

b) The decision is final and binding

c) The parties have more control over the outcome

d) It is less expensive than going to court

10. What is the purpose of collective bargaining in an industrial dispute?

a) To resolve the dispute through negotiation and compromise

b) To make a final and binding decision on the dispute

c) To provide legal advice to the parties

d) To represent one of the parties in the dispute

11. Which of the following is NOT a factor that affects the likelihood of an industrial dispute?

a) The size of the company

b) The nature of the industry

c) The level of unionization

d) The number of management personnel

12. Which of the following is a common method of strike action?

a) Picketing

b) Arbitration

c) Collective bargaining

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d) Conciliation

13. Which of the following is a common method of lockout action?

a) Collective bargaining

b) Conciliation

c) Arbitration

d) Shutdown of the workplace

14. Which of the following is NOT a factor that affects the success of collective bargaining?

a) The level of trust between the parties

b) The bargaining power of each party

c) The degree of unionization

d) The level of education of the employees

15. What is the purpose of mediation in an industrial dispute?

a) To make a final and binding decision on the dispute

b) To facilitate negotiations between the parties

c) To provide legal advice to the parties

d) To represent one of the parties in the dispute

Answer Keys
1. Answer: d) Adequate safety measures. Adequate safety measures are unlikely to cause an industrial
dispute, whereas low wages, poor working conditions, and inadequate employee benefits are
common causes of industrial disputes.
2. Answer: d) A disagreement between workers and their employers. An industrial dispute is a
disagreement between workers and their employers, usually related to working conditions, pay, or
employment terms and conditions.
3. Answer: d) Strike. A strike is not a form of industrial dispute resolution, but rather a tactic used by
workers during an industrial dispute to protest against their employer.
4. Answer: c) Leadership disputes. Leadership disputes are not a type of industrial dispute. Interest
disputes are related to disagreements over pay, benefits, and working conditions. Rights disputes
relate to breaches of employment contracts or violations of employment laws. Grievance disputes

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relate to the interpretation or application of collective agreements or individual employment
contracts.
5. Answer: a) Strike. Strikes are the most common form of industrial dispute in India. It is a collective
work stoppage by employees to protest against their employer for issues such as wages, working
conditions, and other grievances.
6. Answer: b) To facilitate negotiations between the parties. A conciliator's role is to facilitate
negotiations between the parties in an industrial dispute and help them reach an agreement. The
conciliator does not make a final and binding decision on the dispute, provide legal advice, or
represent one of the parties in the dispute.
7. Answer: a) Strike. A strike is not a method of resolving an industrial dispute, but rather a tactic used
by workers during an industrial dispute to protest against their employer.
8. Answer: a) To make a final and binding decision on the dispute. An arbitrator's role is to make a
final and binding decision on the dispute, usually after hearing evidence and arguments from both
parties. The arbitrator does not facilitate negotiations between the parties, provide legal advice, or
represent one of the parties in the dispute.
9. Answer: c) The parties have more control over the outcome. One of the disadvantages of using
arbitration to resolve an industrial dispute is that the parties have less control over the outcome
than they would in collective bargaining. The decision is final and binding, it is less time-consuming
and less expensive than going to court.
10. Answer: a) To resolve the dispute through negotiation and compromise. The purpose of collective
bargaining is to negotiate an agreement between the parties that resolves the dispute through
mutual compromise.
11. Answer: d) The number of management personnel. The number of management personnel is not
a significant factor that affects the likelihood of an industrial dispute. The size of the company, the
nature of the industry, and the level of unionization are more relevant factors.
12. Answer: a) Picketing. Picketing is a common method of strike action, where workers gather
outside the employer's premises to protest against the employer.
13. Answer: d) Shutdown of the workplace. A lockout is a common method of employer action, where
the employer shuts down the workplace to prevent employees from working and to put pressure
on them to accept the employer's terms.
14. Answer: d) The level of education of the employees. The level of education of the employees is
not a significant factor that affects the success of collective bargaining. The level of trust between
the parties, the bargaining power of each party, and the degree of unionization are more relevant
factors.
15. Answer: b) To facilitate negotiations between the parties. The purpose of mediation is to facilitate
negotiations between the parties in an industrial dispute and help them reach an agreement. The
mediator does not make a final and binding decision on the dispute, provide legal advice, or
represent one of the parties in the dispute.

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Chapter 4
Workers Participation in Management
Workers' Participation in Management (WPM) refers to a system or process where workers are given a say
in the decision-making process of an organization, especially in matters that directly affect their interests. It
involves a collaborative approach to decision-making, where the management and workers work together
to achieve common goals and objectives.

The main objective of Workers' Participation in Management is to create a democratic and participatory
work environment that empowers workers and improves productivity, efficiency, and job satisfaction. It is
believed that when workers are involved in decision-making, they feel more invested in the organization
and are more likely to contribute to its success.

Definition
International Labour Organization (ILO): "Workers' participation in management is the participation of
workers in decision-making, problem-solving, and planning at the workplace, in order to improve their
working conditions and promote their well-being and that of the enterprise."

Indian Labour Conference (ILC): "Workers' participation in management is a process by which employees
have a say in the decision-making process of an organization, either directly or through their
representatives, in matters related to their interests."

V.V. Giri National Labour Institute: "Workers' participation in management is a process of communication
and consultation between workers and management, aimed at promoting greater understanding,
cooperation, and trust between the two."

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Approaches to study Workers' Participation in Management

Descriptive approach: This approach involves describing the various forms of WPM and their
implementation in different organizations. It provides an overview of the extent and nature of WPM and
highlights the factors that influence its adoption and effectiveness.

Historical approach: This approach examines the evolution of WPM over time and the factors that led to
its emergence. It explores the different models of WPM that have been proposed and implemented in
various countries and industries.

Comparative approach: This approach compares the different models of WPM across different
organizations and industries, highlighting their strengths and weaknesses. It explores the factors that
influence the effectiveness of WPM and the conditions under which it is most successful.

Participatory action research approach: This approach involves engaging workers and management in a
collaborative research process aimed at identifying and addressing workplace issues. It promotes joint
problem-solving and decision-making and helps to build trust and cooperation between workers and
management.

Critical approach: This approach views WPM as a means of empowering workers and challenging existing
power structures within the workplace. It explores the political and ideological dimensions of WPM and
examines the extent to which it promotes worker democracy and social justice.

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Degrees and Forms of Participative Management

 Informative Participation: In this type of participation, members are entitled to receive

information, discuss and offer suggestions or express their views on various issues of general
economic importance.
 Consultative Participation: As the name suggests, the organization’s management consults with
the workers on various matters of employee welfare like working conditions, safety and health.
However, it is the company’s top-level management who makes the decisions. Further, the
employee’s opinions and views are taken into account while deciding on the matter. This means that
it is up to the discretion of the management to accept or reject the suggestions.
 Associative Participation: It is the extended form of consultative participation. In such
participation, the company management has the moral obligation to adopt and execute the
unanimous decisions and suggestions of the workers. And so, the management and workers of the
organization participate in the decision jointly.
 Administrative Participation: The level of authority sharing is higher in administrative participation.
It facilities freedom for the employees in exercising administrative and supervisory powers.
 Decisive Participation: It implies the greatest level of participation, which involves complete sharing
of decision-making, and the delegation of authority is maximum at this stage. Therefore, joint
decision-making is there, where workers actively participate.

Forms
 Collective Bargaining: It is carried out at periodic intervals or continuously amidst management
and representatives of employees on different pressing issues. These are the issues over which the
interest of the parties are competitive.
 Work Committees: Establishments with more than 100 employees must create a works committee.
So, this committee has an equal number of representatives of employers and employees.

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 Joint Management Councils: Joint bodies that comprise representatives of management and
employees. They not just help the management in decision-making but also provide advice as
consultative bodies.
 Board Level: The primary function of the board is to increase the wealth of the enterprise. When
there is a worker’s representative on the board, the formation of capital and growth will be
secondary. This is because he will give preference to negotiating the interest with other board
members.
 Worker’s Ownership in Enterprise: This system prevails in countries like Yugoslavia. In this,
different groups of people perform managerial and operative functions.
 Suggestive Scheme: In this, the workers are called for and encouraged to give suggestions for
improving the firm’s working. For this, a suggestion box is fitted at the commonplace so that the
workers can write directly to the management.

Structure/Levels of Participation
The three levels of workers' participation in management that are commonly recognized are:

Shop-floor level: This level involves workers' participation in decision-making that takes place on the shop
floor, such as work allocation, quality control, and safety procedures. Workers at this level have direct
experience with the production process and can provide valuable insights into how to improve productivity,
reduce waste, and enhance the quality of products or services.

Plant level: This level involves workers' participation in decisions that affect the functioning of the entire
plant, such as production planning, maintenance scheduling, and inventory management. Workers at this
level can contribute their ideas and expertise to help managers develop and implement strategies that can
increase efficiency, reduce costs, and improve quality.

Enterprise level: This level involves workers' participation in decisions that affect the overall functioning of
the entire enterprise, such as strategic planning, resource allocation, and performance evaluation. Workers
at this level can provide valuable input to help managers develop a vision for the future and make strategic
decisions that can ensure the long-term success of the company.

Workers' participation in management and India

Workers' participation in management has been a topic of interest in India since the 1950s. The Indian
Constitution recognizes the importance of workers' participation in management and provides for the same
under Article 43A, which was inserted by the 42nd Amendment Act of 1976.

In India, workers' participation in management takes place through various channels such as Joint
Management Councils (JMCs), Works Committees, and Shop Councils. The Industrial Disputes Act, 1947,
provides for the constitution of Works Committees in industrial establishments employing 100 or more
workers. The purpose of the Works Committee is to promote harmonious relations between workers and
management and to discuss various welfare measures for the workers.

Joint Management Councils (JMCs) are set up in organizations where there is a significant level of
unionization. JMCs are forums where representatives of the management and workers can discuss issues
related to production, productivity, quality, safety, and welfare.

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In recent years, the Indian government has been promoting the concept of employee participation in
management through various initiatives such as the National Renewal Fund, which aims to encourage
workers' participation in management and improve their skills through training and development programs.

Evolution
The concept of workers' participation in management (WPM) in India dates back to the early 20th century
when the labor movement was gaining momentum. In 1919, the Indian Factory Act was amended to
provide for the constitution of Works Committees in certain industrial establishments.

The First Five-Year Plan (1951-1956) recognized the importance of WPM as a means of improving
industrial relations and increasing productivity. The Indian government set up several committees and
commissions to study the issue and make recommendations. One of the key recommendations made by
the National Commission on Labour in 1969 was the establishment of Joint Management Councils (JMCs) in
industrial establishments where workers were unionized.

The Industrial Disputes Act, 1947, was amended in 1976 to provide for the constitution of Works
Committees in industrial establishments employing 100 or more workers. The purpose of the Works
Committee was to promote harmonious relations between workers and management and to discuss various
welfare measures for the workers.

In the 1980s and 1990s, the Indian government launched several initiatives to promote WPM, such as the
National Renewal Fund, which aimed to encourage workers' participation in management and improve their
skills through training and development programs.

In recent years, there has been a growing recognition of the importance of workers' participation in
management in the context of economic liberalization and globalization. The Indian government has taken
several measures to promote WPM, including the establishment of industrial democracy cells, the
introduction of participatory management schemes, and the promotion of cooperative ventures.

Schemes of WPM

Works Committees (1974)

Works Committees were first introduced in India in 1946, under the Industrial Disputes Act, 1947. The aim
was to establish a forum where workers and management could discuss issues related to the workplace and
resolve them through mutual agreement. The 1974 amendment to the Industrial Disputes Act further
strengthened the provisions related to Works Committees. Here are the key points of Works Committees as
per the 1974 amendment:

Composition: A Works Committee shall consist of representatives of employers and employees.

Number of members: The number of members on a Works Committee shall not exceed 20, with an equal
number of representatives from both sides.

Term of office: The term of office of a Works Committee shall be one year, but it may be extended by
mutual agreement of both parties.

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Functions: The functions of a Works Committee are as follows:

 Promote measures for securing and preserving amity and good relations between the employer
and employees.
 Discuss matters of common interest or concern and make recommendations to the employer and
employees.
 Help in promoting safety, health, and welfare measures for the workers.
 Consider suggestions made by the employer or employees for improving the working conditions
and productivity of the establishment.
 Encourage settlement of disputes between the employer and employees.

Meeting: The Works Committee shall meet at least once a quarter or more frequently as required.

Expenses: The employer shall bear the expenses of the Works Committee.

Recognition: The Works Committee shall be recognized by the employer.

Dissolution: The employer may dissolve the Works Committee if it is satisfied that the Committee is not
functioning properly.

Joint management councils (1958)

The Joint Management Councils (JMCs) were introduced in India in 1958 under the Industrial Policy
Resolution, 1956. The JMCs were established to promote harmonious relations between workers and
management, increase productivity, and improve the quality of products. Here are the key points of JMCs:

Composition: A JMC shall consist of an equal number of representatives of employers and employees.

Number of members: The number of members on a JMC shall not exceed 20.

Functions: The functions of a JMC are as follows:

 To discuss matters of common interest or concern and make recommendations to the employer
and employees.
 To help in promoting safety, health, and welfare measures for the workers.
 To consider suggestions made by the employer or employees for improving the working
conditions and productivity of the establishment.
 To encourage settlement of disputes between the employer and employees.
 To promote measures for securing and preserving amity and good relations between the
employer and employees.

Meeting: The JMC shall meet at least once a month or more frequently as required.

Expenses: The employer shall bear the expenses of the JMC.

Recognition: The JMC shall be recognized by the employer.

Dissolution: The JMC may be dissolved if it is not functioning properly.

Scope: The JMCs can be established in any establishment engaged in production, manufacturing, mining,
or plantations.

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Board-level Participation
Board-level participation refers to the participation of workers' representatives in the decision-making
process of a company at the board level. The concept of board-level participation is based on the principle
of industrial democracy, which emphasizes the participation of workers in the management of an enterprise.

Here are some key points

Composition: The board of directors of a company includes representatives of shareholders, but in the case
of board-level participation, it also includes representatives of workers.

Number of members: The number of worker representatives on the board may vary, depending on the
size of the company and the legal framework in the country.

Functions: The worker representatives on the board participate in the decision-making process of the
company, which includes issues related to production, finance, marketing, and human resource
management. They represent the interests of workers and contribute to the development of the company's
policies and strategies.

Benefits: Board-level participation can lead to a better understanding between workers and management,
improve communication, and enhance the overall performance of the company. It can also help to promote
a more equitable distribution of wealth and reduce conflicts between workers and management.

Legal Framework: The legal framework for board-level participation varies across countries. In some
countries, such as Germany and Sweden, board-level participation is mandatory for large companies. In
other countries, it is optional or not allowed.

Shop Councils and Joint Councils under old 20-point Councils in Commercial and
Service Organizations in the Public Sector (1975)
The scheme applies to the units of manufacturing and mining industries in the public, private
and cooperative sectors, as well as to those run departmentally, employing 500 or more workers.
The scheme provides for the establishment of Shop Councils at the shop/departmental level and
Joint Councils at the enterprise level.

Constitutional and Legal Framework of WPM

The Constitutional and Legal Framework of WPM (Worker Participation in Management) in India has
evolved over time. Here are the key points related to the Constitutional and Legal Framework of WPM

 The Constitution of India: The Constitution of India provides for the right to form associations and
unions under Article 19(1)(c) and the right to collective bargaining under Article 23.

 The Industrial Disputes Act, 1947: The Industrial Disputes Act, 1947 provides for the settlement of
industrial disputes through conciliation, arbitration, and adjudication. It also provides for the
recognition of trade unions and workers' participation in the management of an enterprise.

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 The Companies Act, 2013: The Companies Act, 2013 provides for the appointment of independent
directors on the board of directors of a company. It also provides for the appointment of women
directors and the mandatory disclosure of the remuneration of directors and top management
personnel.

 The Factories Act, 1948: The Factories Act, 1948 provides for the health, safety, and welfare of
workers in factories. It also provides for the appointment of safety officers and the constitution of
safety committees in factories.

 The Mines Act, 1952: The Mines Act, 1952 provides for the health, safety, and welfare of workers in
mines. It also provides for the appointment of safety officers and the constitution of safety
committees in mines.

 The Trade Unions Act, 1926: The Trade Unions Act, 1926 provides for the registration of trade
unions and the protection of the rights of workers to form and join trade unions.

 The Industrial Employment (Standing Orders) Act, 1946: The Industrial Employment (Standing
Orders) Act, 1946 provides for the establishment of standing orders in an enterprise. Standing
orders define the terms and conditions of employment and the rights and duties of workers and
management.

 The Industrial Relations Act, 2010: The Industrial Relations Act, 2010 provides for the
establishment of Joint Consultative Committees (JCC) in enterprises employing 100 or more workers.
The JCCs consist of representatives of workers and management and aim to promote
communication and resolve issues through mutual agreement.

 The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain
Establishments) Act, 1988: The Labour Laws (Exemption from Furnishing Returns and Maintaining
Registers by Certain Establishments) Act, 1988 provides for the exemption of certain small
establishments from the provisions of various labour laws.

Industrial democracy
Industrial democracy refers to the application of democratic principles and values in the workplace, giving
workers a voice in the decision-making process of an enterprise. It is based on the principles of
participation, empowerment, and shared responsibility. Here are the key points related to industrial
democracy:

Worker participation in decision-making: Industrial democracy involves giving workers a say in the
decision-making process of an enterprise. This can be achieved through various mechanisms such as works
councils, joint committees, and employee representation on the board of directors.

Decentralization of power: Industrial democracy involves the decentralization of power from the top
management to the workers. This means that workers are given more autonomy and control over their
work, which can lead to increased motivation and productivity.

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Empowerment of workers: Industrial democracy involves empowering workers to make decisions and take
responsibility for their work. This can be achieved by providing training and development opportunities,
promoting a culture of trust and collaboration, and giving workers access to information and resources.

Conflict resolution: Industrial democracy involves establishing mechanisms for the resolution of conflicts
and disputes between workers and management. This can be achieved through the establishment of
grievance redressal mechanisms, mediation, and arbitration.

Equality and fairness: Industrial democracy involves promoting equality and fairness in the workplace. This
means that all workers are treated with dignity and respect, regardless of their position in the organization.

Social responsibility: Industrial democracy involves recognizing the social responsibility of the enterprise
towards the wider community. This means that the enterprise should take into account the interests of
stakeholders, such as customers, suppliers, and the environment, when making decisions.

Collective bargaining: Industrial democracy involves promoting collective bargaining between workers
and management. This means that workers are represented by trade unions or other worker organizations,
which negotiate with management on their behalf to improve wages, working conditions, and other
benefits.

Questions

1. What is the main objective of workers' participation in management?

a) To provide job security to workers

b) To increase worker productivity

c) To involve workers in decision-making

d) To reduce labor costs

2. Which of the following is NOT a form of workers' participation in management?

a) Joint consultation

b) Collective bargaining

c) Employee ownership

d) Unionization

3. What is the significance of workers' participation in management?

a) It ensures job security for workers

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b) It increases worker productivity

c) It promotes harmony between workers and management

d) It improves the overall efficiency of the organization

4. What is the role of joint consultative committees in workers' participation in management?

a) To resolve disputes between workers and management

b) To involve workers in decision-making related to the organization's policies, procedures, and practices

c) To represent workers' interests in collective bargaining

d) To provide legal advice to workers

5. What is the role of employee representatives in workers' participation in management?

a) To provide legal advice to workers

b) To promote workers' interests in collective bargaining

c) To involve workers in decision-making related to the organization's policies, procedures, and practices

d) To resolve disputes between workers and management

6. What is the significance of employee ownership in workers' participation in management?

a) It ensures job security for workers

b) It increases worker productivity

c) It promotes worker commitment and motivation

d) It reduces labor costs

7. What is the role of collective bargaining in workers' participation in management?

a) To involve workers in decision-making related to the organization's policies, procedures, and practices

b) To resolve disputes between workers and management

c) To promote worker ownership in the organization

d) To provide legal advice to workers

8. What is the significance of training and education in workers' participation in management?

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a) It ensures job security for workers

b) Itimproves worker productivity

c) It promotes worker commitment and motivation

d) It reduces labor costs

9. What is the role of works councils in workers' participation in management?

a) To involve workers in decision-making related to the organization's policies, procedures, and practices

b) To represent workers' interests in collective bargaining

c) To provide legal advice to workers

d) To resolve disputes between workers and management

10. What is the role of quality circles in workers' participation in management?

a) To involve workers in decision-making related to the organization's policies, procedures, and practices

b) To promote worker ownership in the organization

c) To provide legal advice to workers

d) To increase worker productivity

11. What is the significance of grievance handling in workers' participation in management?

a) It ensures job security for workers

b) It promotes worker ownership in the organization

c) It promotes worker commitment and motivation

d) It resolves disputes between workers and management

12. What is the role of suggestion schemes in workers' participation in management?

a) To promote worker ownership in the organization

b) To involve workers in decision-making related to the organization's policies, procedures, and practices

c) To provide legal advice to workers

d) To resolve disputes between workers and management

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13. What is the role of profit sharing in workers' participation in management?

a) To promote worker ownership in the organization

b) To involve workers in decision-making related to the organization's policies, procedures, and practices

c) To provide legal advice to workers

d) To provide financial rewards to workers based on the organization's profitability

14. What is the significance of job enrichment in workers' participation in management?

a) It ensures job security for workers

b) It increases worker productivity

c) It promotes worker ownership in the organization

d) It involves workers in decision-making related to the organization's policies, procedures, and practices

15. What is the significance of employee representation on boards of directors in workers'

participation in management?

a) It ensures job security for workers

b) It increases worker productivity

c) It provides a forum for workers to voice their concerns at the highest level of decision-making in the
organization

d) It provides legal advice to workers

Answer Keys

1. Answer: c) To involve workers in decision-making. The main objective of workers' participation in

management is to involve workers in decision-making related to the organization's policies,
procedures, and practices.
2. Answer: d) Unionization. While unionization can be a means of promoting workers' interests, it is
not a form of workers' participation in management. Joint consultation, collective bargaining, and
employee ownership are forms of workers' participation in management.
3. Answer: d) It improves the overall efficiency of the organization. Workers' participation in
management helps in improving the overall efficiency of the organization by involving workers in
decision-making, which leads to better decision-making, increased commitment, and motivation
among workers.
4. Answer: b) To involve workers in decision-making related to the organization's policies, procedures,
and practices. Joint consultative committees are formed to provide a forum for management and

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workers to meet and discuss matters related to the organization's policies, procedures, and
practices. The committees help to promote workers' participation in management.
5. Answer: c) To involve workers in decision-making related to the organization's policies, procedures,
and practices. Employee representatives are appointed to represent the workers in the joint
consultative committees and to ensure that the workers' views and concerns are taken into account
in decision-making related to the organization's policies, procedures, and practices.
6. Answer: c) It promotes worker commitment and motivation. Employee ownership is a form of
workers' participation in management where the workers own a share of the organization. This
promotes worker commitment and motivation, as the workers have a stake in the organization's
success.
7. Answer: b) To resolve disputes between workers and management. Collective bargaining is a form
of workers' participation in management where workers negotiate with management to resolve
disputes related to their terms and conditions of employment.
8. Answer: c) It promotes worker commitment and motivation. Training and education programs can
help workers develop the skills and knowledge necessary to participate effectively in decision-
making related to the organization's policies, procedures, and practices. This can promote worker
commitment and motivation, as workers feel valued and invested in the organization's success.
9. Answer: a) To involve workers in decision-making related to the organization's policies, procedures,
and practices. Works councils are a form of workers' participation in management where a council of
elected workers represents the workers in discussions with management regarding the
organization's policies, procedures, and practices.
10. Answer: d) To increase worker productivity. Quality circles are a form of workers' participation in
management where workers meet regularly to identify and solve problems related to their work
processes. This can lead to increased worker productivity and efficiency.
11. Answer: d) It resolves disputes between workers and management. Grievance handling is a process
used to resolve disputes between workers and management related to their terms and conditions of
employment. Effective grievance handling can help to promote workers' participation in
management by providing a forum for workers to voice their concerns and for management to
address them.
12. Answer: b) To involve workers in decision-making related to the organization's policies, procedures,
and practices. Suggestion schemes are a form of workers' participation in management where
workers are encouraged to make suggestions regarding improvements to the organization's
policies, procedures, and practices. This can help to involve workers in decision-making and
promote their commitment to the organization.
13. Answer: d) To provide financial rewards to workers based on the organization's profitability. Profit
sharing is a form of workers' participation in management where workers receive a share of the
organization's profits as a financial reward for their contributions to the organization's success.
14. Answer: d) It involves workers in decision-making related to the organization's policies, procedures,
and practices. Job enrichment is a process of enhancing the content and responsibilities of a
worker's job to increase their level of autonomy, skill variety, and task identity. This can provide
workers with a greater sense of ownership and involvement in their work and can lead to increased
participation in decision-making related to the organization's policies, procedures, and practices.
15. Answer: c) It provides a forum for workers to voice their concerns at the highest level of decision-
making in the organization. Employee representation on boards of directors is a form of workers'

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participation in management where a representative of the workers is appointed to serve on the
organization's board of directors. This provides a forum for workers to voice their concerns and
influence decisions at the highest level of decision-making in the organization.

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Chapter-5
Collective Bargaining
 Collective bargaining is the process of negotiating the employment terms between an employer and
a group of workers.
 The process takes place between company management and a labor union.
 Concerns and issues that may come up during collective bargaining include working conditions,
salaries and compensation, working hours, and benefits.
 The goal of collective bargaining is to come up with a collective bargaining agreement or contract.
 There are several types of collective bargaining, including composite concessionary, distributive,
integrative, and productivity bargaining.
 In the 2022 midterm elections, voters in Illinois and Tennessee took opposite positions: either
enshrining collective bargaining rights in their state constitution or restricting union powers.

Definition
Collective bargaining is a process of negotiation between employers or their representatives and workers or
their representatives, usually trade unions or other worker organizations, to determine the terms and
conditions of employment. The International Labour Organization (ILO), a specialized agency of the United
Nations, defines collective bargaining as "negotiations between an employer or a group of employers and
one or more workers' organizations, with a view to reaching agreement on working conditions and terms of
employment".

Types of Bargaining/Structure of CB
Structure
National-Level Bargaining

This bargaining usually takes place with the Management and the National level union. The major
advantage at this level of bargaining is that issues are acknowledged by all industries and all industrial
employees when negotiation takes place at the national level. The benefits of negotiation at this level are
that salaries and wage structures are uniform and standardised. It avoids disputes and disparities.

Industry-Level Bargaining

On an industry-by-industry basis, these unions are structured as industry federations. Basic pay, allowances,
production capacity, production rules, and working conditions relating to that industry are all part of the
talks and negotiating. In one industry, bargaining at the industry level ensures homogeneity in labour costs
and working conditions. Bargaining at the industry level might also take the form of a mix of industry and
region-based bargaining.

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Because of the varying levels of performance, technology, and productivity, industry-level negotiating has
grown less successful over time, and standard pay and allowances are not conceivable as concerns at
industry-level negotiation.

Corporate-Level Bargaining

When the management of a multi-plant firm negotiates a single agreement with numerous unions for all of
its factories, this is referred to as corporate collective bargaining. Corporate management frequently
conducts collective bargaining with representatives from several factories. The benefit of corporate level
negotiating is that it ensures consistency across all of the company's locations and prevents conflicts that
emerge from disparities.

When collective bargaining takes place at the corporate level, with its multi-plant structure, it's easy to
overlook concerns that are critical at the plant level.

Furthermore, when this is done for huge public sector organisations such as HMT, ONGC, or BHEL, the
management is limited in their ability to bargain, particularly in the Indian context, due to political
involvement. The Ministry of Public Enterprises (MoPE) and the Bureau of Public Enterprises (BPE) both have
guidelines. Corporate management is unable to engage in serious negotiations, and many issues pertinent
to various plants may be overlooked.

Plant-Level Bargaining

The majority of India's private sector firms engage in plant-level collective bargaining. Plant-level collective
bargaining takes place between the management of a certain plant or industrial site. The problems are
specific to particular facility or firm. Performance-related or pay productivity-related discussions are the
cornerstone and foundation of such agreements. Another advantage of plant-level negotiating is that it
allows for separate discussions. These discussions can take advantage of the differences in cost of living
from one location to the next, providing a realistic negotiating ground.

Stages of Collective Bargaining

Forming A Union

The minimum number of employees required to form a trade union is seven, according to Section 9A of the
Trade Unions Act of 1926. Though joining a union is not required, it does have its benefits, such as
providing proper representation for employees, the ability to use funds for certain objectives, and immunity
from civil claims, among others.

Charter of Demands

At this point, either the union or the company can start the collective bargaining process. After that, the
labour union writes a charter of demands through a series of meetings with all of its members.

Negotiation

The negotiating process begins with the filing of a demand charter. In most cases, the union is the one who
offers official requests for revisions to current labour agreements during the first meeting. The management
is then given the opportunity to make counter-proposals. This will continue until they reach an accord.

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Strikes

In the event that negotiations fail, the union may call a strike. Employees in the public utility industry must
provide six weeks' notice of a strike and may strike fourteen days after giving such notice, according to
Section 22 of the Industrial Disputes Act. Management and the union are not allowed to take any industrial
action while the conciliation is in progress, and not until seven days after the conciliation processes are
completed, or two months after the legal proceedings are completed.

Conciliation
When the conciliation officer gets a notice of strike, the process begins. This phase allows you to choose
between two options. The state government may appoint a conciliation officer to investigate, mediate, and
promote settlement during the cooling-off period, according to Section 4 of the Act.

The second option, according to Section 5 of the Act, is for the state government to form a Board of
Conciliation, which would consist of a chairperson and two or four members. According to Sections 22 and
23 of the Act, strikes are not permitted during the conciliation procedure. This process finishes with a
settlement or a referral to an industrial tribunal or labour court, according to Section 20 of the Act.

Types of Collective Bargaining

Not all types of collective bargaining are the same. In fact, collective bargaining can be divided into several
categories.

Composite Bargaining

Composite bargaining has nothing to do with compensation. Instead, it focuses on other issues, such as
working conditions, job security, and other corporate policies. These may include hiring and firing practices
as well as workplace discipline. The goal of composite bargaining is to come up with a suitable agreement
leading to a lasting and harmonious relationship between employers and their employees.

Concessionary Bargaining

As its name implies, concessionary bargaining focuses on union leaders making concessions in exchange for
job security. This is common during an economic downturn or a recession. Union leaders may agree to give
up certain benefits to guarantee the survival of the employee pool and, ultimately, of the business.

Distributive Bargaining

This process is characterized as benefiting one party financially at the expense of the other. This can come
through increased bonuses, salaries, or any other financial benefits. Distributive bargaining normally favors
workers over employers.

Unions must have a higher degree of power for distributive bargaining to work. Higher membership means
more power. If an employer refuses to accept a union’s demands, it can call a strike.

Integrative Bargaining

Each party tries to benefit through integrative bargaining, which is why it’s often referred to as a form of
win-win bargaining. Each side tries to consider the other’s position and bring issues to the table that aim to

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benefit both parties. As such, employees and employers both stand to lose and gain with integrative
bargaining.

Productivity Bargaining

This type of bargaining revolves around compensation and the productivity of employees. Labor union
leaders often use higher salaries and compensation as a way to boost employee productivity, which leads to
higher profits and value for the employer. For this kind of bargaining to work, both parties need to agree to
financial terms in order to increase productivity.

Legal Boundaries for Collective Bargaining In India

The IDA oversees the rights of employers and employees in the investigation and settlement of industrial
disputes, which includes trade unions.

It allows for collective bargaining through discussion and mediation, or, if that fails, voluntary arbitration or
compulsory adjudication with trade union involvement. A settlement reached through collective bargaining
is legally binding, according to the IDA, there are two types of settlements recognised: those agreed via
conciliation processes before the authority, which bind members of the signatory union as well as non-
members and all current and future management workers. The second type of settlement is one achieved
outside of conciliation but signed independently by the parties to the agreement - such agreements bind
just the parties to the agreement.

Even after all the indirect provisions for collective bargaining are there, the workers or the trae union still
faces backlash. There are some legal boundaries which causes this.

Some of them are

 There is no ratification of ILO Convention, C-98 and C-87.

 There is a very limited scope collective bargaining under the ambit of Trade Union Act and Industrial
Dispute Act. Both statutes are silent on the recognition of trade unions, which has serious
implications for workers' rights.
 One of the major backlashes is that the right to strike is a legal right controlled by the Industrial
Dispute Act of 1947, rather than a fundamental right. Strikes or lockouts can be prohibited under
Section 10K of Industrial Disputes Act.
 Section 22 of the IDA states that there must be at least 6 weeks' notice before a strike in public
utility services.
 Strikes are prohibited during the pendency of conciliation, arbitration, and judicial processes under
Section 23 of the IDA.
 The CRPC does not apply to trade union activity, although it does in the case of illegal strikes.

Perspective from Industrial Relation Code, 2020 on Collective Bargaining

The notion of unequal negotiating partners, which arises from the class connection between employers and
employees, lies at the foundation of labour law. In the case of Central Inland Water Transportation
Corporaton V Brojo Nath, Justice DinshaPiroshaMadon expressly recognised this principle, "Trade unions

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play a central role through collective bargaining in unequal relationships, where workers are at a constant
risk of unemployment especially when employers are a large corporation".

According to the Industrial Relations Code, an employer cannot discriminate between fixed-term and
permanent employees. A fixed-term employee's working hours, salary, allowances, and other perks cannot
be less than those of a permanent worker doing the same or equivalent work. However, with the
acceptance of fixed-term contracts and individual settlements, even permanent workers' service terms will
be determined on an individual basis.

In effect, trade unions' role in determining wages and service conditions through collective bargaining
would be eliminated. Individual settlements are now included in the definition of "settlement" in the statute,
which goes against the basic principle of collective bargaining.

Case Laws Related To Collective Bargaining

Hindustan Lever Ltd. V Hindustan Lever Employees Union, 1999

This position, which has been reaffirmed by the Court in numerous subsequent cases, recognises the
importance of collective bargaining between workers and employers in modern economic life. It is generally
known that prior to the advent of collective bargaining, labour faced significant difficulties in securing
appropriate conditions for service contracts from his employer. As the country's trade unions grew and
collective bargaining became the norm, employers found it necessary and convenient to deal with workers'
representatives rather than individual workers, not only when making or amending contracts, but also when
taking disciplinary action against one or more workers, and in all other disputes.

Mrf United Workers Union V State of Tamil Nadu, 2009

Two criteria should be utilised to assess if an organisation has the competence to be the sole signatory to
collective agreements: representativeness and independence.

The decision of whether organisations fit these requirements should be carried out by a body that provides
every assurance of objectivity and independence.

As a result, it was argued on their behalf that it was an international standard that the trade union serving
as the sole collective bargaining agent must be representative and independent.

P. Virudhachalam&Othrs. V The Management of Lotus Mills

It is important to remember that the Act is built on the notion of collective bargaining for the purpose of
settling industrial disputes and sustaining industrial peace. Individual workers must inevitably fade into the
background in all collective bargaining negotiations. The union that represents such workers takes up the
reins of negotiating on his behalf. On behalf of all of its members, unions advocate for a shared cause.

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As a result, any agreement they reach with management will bind at least their members, and if it is reached
through conciliation processes, it will bind even non-members. As a result, settlements are the Act's live
wires for guaranteeing industrial peace and prosperity.

Emerging Issues in Collective Bargaining

Collective bargaining is a dynamic process that is influenced by a range of emerging issues in the workplace
and the broader socio-economic environment. Here are some of the key emerging issues in collective
bargaining:

Digitalization and automation: The rise of digitalization and automation is transforming the workplace
and changing the nature of work. This has implications for the terms and conditions of employment, such
as job security, skills development, and work-life balance. Collective bargaining needs to address these
issues and ensure that workers are protected and supported in the transition to the digital economy.

Diversity and inclusion: The increasing diversity of the workforce, including gender, race, ethnicity, and
sexuality, requires collective bargaining to address issues of discrimination and inequality. This includes
promoting diversity and inclusion in the workplace, ensuring equal pay for equal work, and addressing
harassment and bullying.

Environmental sustainability: The growing awareness of the environmental impact of economic activities
requires collective bargaining to address issues of environmental sustainability. This includes promoting
green jobs, reducing carbon emissions, and promoting sustainable production and consumption patterns.

Globalization and international trade: The globalization of the economy and the increasing importance
of international trade requires collective bargaining to address issues of labour standards, social protection,
and human rights. This includes promoting fair trade, protecting workers' rights in global supply chains, and
addressing the impact of trade agreements on employment and working conditions.

Gig economy and non-standard work: The growth of the gig economy and non-standard forms of work
requires collective bargaining to address issues of job security, benefits, and social protection. This includes
promoting decent work for all, ensuring access to social security and health care, and addressing the
challenges of informal and precarious work.

Integrative Bargaining Vs Distributive Bargaining

Integrative Bargaining Distributive Bargaining

Definition A collaborative negotiation process A competitive negotiation process where

where both parties work together to both parties try to maximize their own
create a mutually beneficial outcome. interests.

Focus Win-win outcomes where both Win-lose outcomes where one party gains at
parties can gain value. the expense of the other.

Goal To create a solution that meets the To get the best possible deal for one's own
needs of both parties. party.

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Information Both parties share information openly Information may be withheld or manipulated
sharing and honestly to find a solution that to gain an advantage over the other party.
works for both.

Relationship The relationship between the parties The relationship between the parties may be
is emphasized and preserved. less important than achieving the desired
outcome.

Communication Communication is open and Communication may be more guarded or

collaborative, with an emphasis on strategic, with an emphasis on persuasion
finding common ground. and argumentation.

Outcome The outcome is typically a creative The outcome is typically a compromise or

and innovative solution that benefits concession that benefits one party more than
both parties. the other.

Timeframe Integrative bargaining may take Distributive bargaining may result in a

longer to reach a solution as both quicker resolution as parties focus on their
parties work to find common ground. individual positions.

Questions

1. Which of the following is the best definition of collective bargaining?

a) The process of resolving individual grievances with management

b) The process of negotiating pay and benefits for individual workers

c) The process of negotiating employment terms and conditions between employers and employees

d) The process of negotiating job duties and responsibilities for individual workers

2. Which of the following is a typical item negotiated during collective bargaining?

a) Employee discipline policies

b) Job assignments for individual workers

c) Employee attendance policies

d) Employee parking policies

3. Which of the following is a requirement for collective bargaining to take place?

a) Both parties must have equal bargaining power

b) The employer must agree to the process

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c) The employees must be represented by a union or other representative

d) The employees must have a certain level of education and training

4. What is the role of a mediator in collective bargaining?

a) To represent the employer in negotiations

b) To represent the employees in negotiations

c) To act as a neutral third party to help resolve disputes

d) To set the terms and conditions of employment

5. What is the difference between distributive bargaining and integrative bargaining?

a) Distributive bargaining is focused on reaching a mutually beneficial outcome, while integrative

bargaining is focused on dividing a fixed amount of resources.

b) Distributive bargaining is focused on dividing a fixed amount of resources, while integrative bargaining is
focused on reaching a mutually beneficial outcome.

c) Distributive bargaining involves a win-win outcome, while integrative bargaining involves a win-lose
outcome.

d) Distributive bargaining is used in labor disputes, while integrative bargaining is used in business
negotiations.

6. Which of the following is a benefit of collective bargaining for employers?

a) Increased employee turnover

b) Reduced profitability

c) Improved labor relations

d) Increased labor costs

7. Which of the following is a benefit of collective bargaining for employees?

a) Increased job security

b) Reduced pay and benefits

c) Increased workload

d) Reduced opportunities for career advancement

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8. Which of the following is an example of an unfair labor practice by an employer during collective
bargaining?

a) Refusing to negotiate in good faith with the employee representatives

b) Offering a generous benefits package to employees

c) Encouraging employees to participate in the collective bargaining process

d) Offering employees incentives to vote against union representation

9. What is a strike?

a) A work stoppage initiated by the employer

b) A work stoppage initiated by the employees

c) A legal action initiated by the employer

d) A legal action initiated by the employees

10. What is a lockout?

a) A work stoppage initiated by the employer

b) A work stoppage initiated by the employees

c) A legal action initiated by the employer

d) A legal action initiated by the employees

Answer Keys

1. Answer: c) The process of negotiating employment terms and conditions between employers and
employees. Collective bargaining is a process of negotiation between employers and employees, or
their representatives, aimed at reaching an agreement on employment terms and conditions. The
goal of collective bargaining is to ensure that the terms and conditions of employment are fair and
equitable for both the employer and the employees.
2. Answer: a) Employee discipline policies. Collective bargaining typically covers a wide range of
employment terms and conditions, including wages, benefits, working hours, safety conditions, and
employee discipline policies. These policies are negotiated between the employer and the employee
representatives during the collective bargaining process.
3. Answer: c) The employees must be represented by a union or other representative. Collective
bargaining typically involves negotiations between an employer and a union or other representative

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of the employees. This representative is chosen by the employees and has the authority to negotiate
on their behalf.
4. Answer: c) To act as a neutral third party to help resolve disputes. A mediator is a neutral third party
who helps facilitate negotiations between the employer and the employees during collective
bargaining. The mediator does not represent either party, but rather helps both parties come to an
agreement by offering suggestions and helping to clarify issues.
5. Answer: b) Distributive bargaining is focused on dividing a fixed amount of resources, while
integrative bargaining is focused on reaching a mutually beneficial outcome. Distributive bargaining
is a negotiation strategy where the goal is to divide a fixed amount of resources, such as money or
benefits, between the employer and the employees. Integrative bargaining, on the other hand, is a
negotiation strategy where the goal is to create a mutually beneficial outcome for both parties.
6. Answer: c) Improved labour relations. Collective bargaining can help improve labour relations by
creating a more open and transparent dialogue between employers and employees. This can help
build trust and increase job satisfaction, which can lead to improved productivity and performance.
7. Answer: a) Increased job security. Collective bargaining can help increase job security for
employees by negotiating provisions such as grievance and arbitration procedures, which can
protect employees from arbitrary disciplinary action or termination. Additionally, collective
bargaining can negotiate provisions such as seniority, which can provide job security for long-term
employees.
8. Answer: d) Offering employees incentives to vote against union representation. An unfair labour
practice is any action by an employer that interferes with the employees' right to organize, bargain
collectively, or engage in other concerted activities for mutual aid or protection. Offering employees
incentives to vote against union representation is a classic example of an unfair labour practice by
an employer.
9. Answer: b) A work stoppage initiated by the employees. A strike is a work stoppage initiated by the
employees to protest against unfair labour practices or to negotiate better terms and conditions of
employment. Strikes can be legal or illegal, depending on the specific circumstances and the
relevant labour laws.
10. Answer: a) A work stoppage initiated by the employer. A lockout is a work stoppage initiated by the
employer, usually in response to a strike by the employees. The purpose of a lockout is to put
pressure on the employees to accept the employer's proposed terms and conditions of
employment. Like strikes, lockouts can be legal or illegal, depending on the specific circumstances
and the relevant labour laws.

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Chapter 6
Absenteeism and Labour Turnover
Employee Absenteeism
The co-operaton of workers is essential for the good health of any organisation. Sometimes labour turnover
and absenteeism become a major problem for the management. The exit of workers or their absence from
work disrupts production schedules. Any make shift arrangement for absent workers will be a costly affair
for the enterprise.

According to Websters’ Dictionary, “absenteeism is the practice or habit of being in ‘absence’, and an
‘absenter’ is one who habitually stays away”. As per Labour Bureau, Simla, “absenteeism is the total man-
shifts lost because of absence as a percentage of the total number of man-shifts scheduled to work”.

It denotes the absence of an employee when he is scheduled to work. An employee is considered

‘scheduled to work’ when the employer has kept the work ready for him and the worker is aware of it but
still does not report for duty. A leave taken by an employee is not absenteeism.

Absenteeism is not the problem of underdeveloped countries only but it is a universal phenomenon. It
varies from 7 percent to 30 percent, but in extreme cases it goes upto even 40 percent.

The degree of absenteeism may differ from place to place, occupation to occupation and industry to
industry. It may be high in some occupations and industries as compared to others. Even in a particular
industry, the degree of absenteeism may vary in different departments.

Features of Employee Absenteeism

Fluctuating Rate of Absenteeism
 The rate of absenteeism is the lowest on payday; it increases considerably on the days following the
payment of wages to bonuses.
 The level of absenteeism is comparatively high immediately after payday; when workers either feel
like spending a good time or in some other cases return home to their village to make purchases for
the family or to meet them.
 The incidence of absenteeism, both before and after any holiday, has also been found to be higher
than that on normal days.

Type of Shift Affects Absenteeism

The percent of absenteeism is generally higher in the night shifts than in the day shifts. This is so because
workers in the night shift experience greater discomfort to uneasiness in the course of their work then they
do during day time.

Type of Industries Affects Absenteeism

The percentage of absenteeism is much higher in the coal and mining industries than in organized
corporate industries. This high per-centage of absenteeism in the former industries is due to the

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engagement of laborers in their fields, or festivals, which together are estimated to account for about 75%
of the cases of with-drawals, relaxation, or sickness.

Absenteeism according to the Months

Absenteeism in India is seasonal. It is the highest during March-April-May when the land has to be
prepared for monsoon sowing and also in the harvest season (Sept.-Oct.) when the rate goes as high as 40
percent.

Classification of Absenteeism
 Excused Absenteeism: This type of absenteeism occurs when an employee is absent from work
with a valid reason, such as illness, injury, or a family emergency. In these cases, the employer may
offer paid time off or sick leave.
 Unexcused Absenteeism: This type of absenteeism occurs when an employee is absent from work
without a valid reason or permission from the employer. Unexcused absenteeism may result in
disciplinary action, including warnings or termination.
 Lateness: Lateness refers to when an employee arrives late to work or returns from breaks later than
the designated time. While lateness is not technically absenteeism, it can still impact productivity
and disrupt the work environment.
 Presenteeism: Presenteeism occurs when an employee is physically present at work but is not fully
engaged or productive due to illness, stress, or other factors. This can lead to reduced productivity
and may impact the overall performance of the company.
 Chronic Absenteeism: Chronic absenteeism refers to employees who are frequently absent from
work, often without a valid reason. This type of absenteeism can be a sign of underlying issues, such
as job dissatisfaction or personal problems, and may require intervention from the employer to
address.
 Seasonal Absenteeism: Seasonal absenteeism occurs when employees are absent from work
during certain times of the year, such as holidays or busy periods. This type of absenteeism may be
anticipated and planned for by the employer, but can still impact productivity and staffing levels.

Employee Absenteeism Rate and its calculation

The employee absenteeism rate is a measure of the percentage of scheduled work days that employees
have missed due to absence. It is calculated by dividing the total number of days absent by the total
number of scheduled work days in a given period, then multiplying the result by 100 to get a percentage.

The formula for calculating employee absenteeism rate is:

Absenteeism Rate = (Number of Days absent / Total Scheduled Work Days) x 100

For example, let's say an employee was scheduled to work 20 days in a month but was absent for 3 days.
The absenteeism rate for that employee would be:

Absenteeism Rate = (3 / 20) x 100 = 15%

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To calculate the absenteeism rate for a group of employees or for an entire organization, simply add up the
total number of days absent for all employees and divide by the total number of scheduled work days. For
instance, if an organization has 100 employees who were scheduled to work a total of 2,000 days in a given
month and they were absent for a total of 150 days, then the absenteeism rate would be:

Absenteeism Rate = (150 / 2,000) x 100 = 7.5%

The severity rate is a measure of the seriousness of workplace injuries and illnesses. It calculates the number
of days lost per 100 full-time workers due to work-related injuries or illnesses. The formula for calculating
the severity rate is:

Severity Rate = (Number of Days Lost due to Work-Related Injuries and Illnesses / Total Number of
Hours Worked by all Employees in the Period) x 200,000

The total number of hours worked by all employees in the period is multiplied by 200,000 to standardize
the rate per 100 full-time workers.

For example, let's say a company had 1,000 employees who worked a total of 2,000,000 hours in a given
year. During that year, there were 10 work-related injuries or illnesses that resulted in a total of 500 days
lost. The severity rate for the year would be:

Severity Rate = (500 / 2,000,000) x 200,000 = 5.0

This means that for every 100 full-time workers, there were 5 days lost due to work-related injuries or
illnesses. A high severity rate indicates a higher frequency or seriousness of workplace injuries and illnesses,
which can be a sign of safety issues that need to be addressed.

Causes of Absenteeism
Maladjustment at Work Place
Workers, sometimes, do not adjust to the situation prevailing at work place. Workers coming from rural to
urban areas do not adjust at those places. The congestion, insanitation, fast life at urban areas is not to the
liking of village folk. They frequently go back to villages after absenting from work.

Unhealthy Working Conditions

If working conditions are not good then workers frequently absent themselves from work. Heat, moisture,
noise, bad lighting, dust, over-crowding affect workers’ health causing them to remain absent for longer
periods.

Social and Religious Ceremonies

Social and religious ceremonies are a major cause for absenteeism. These functions divert the attention of
workers and they spend too much time on these activities. Some studies have shown that rate of
absenteeism has been higher during festival periods as compared to other periods.

Industrial Fatigue
Fatigue is also an important cause of absenteeism. To earn more wages, workers may do overtime or may
work at a higher speed under incentive plans and start feeling tired for the next day. Low wage rates also

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compel them to do some part time work after working hours. They may not be able to face additional
burden and thus fall ill leading to long absenteeism.

Inadequate Welfare Facilities

Inadequate welfare facilities also lead to absenteeism. There may be inadequate facilities for drinking water,
sanitation, canteen, rest rooms, crèches etc. Workers feel inconvenience at work. They go back to their
homes for having some rest.

Alcoholism
The habit of alcoholism is very common among workers. They want to forget their domestic worries by
drinking alcohol. Drinking becomes their habit and its hangover on the next day compels them to absent
from work. Workers indulge in more drinking after getting their wages and more absenteeism is reported in
these days.

Inadequate Leave Facilities

The workers do not get proper facilities for attending to family work. Since they are entitled for limited
number of leaves, they do not go to work whenever they have to attend to family needs.

Age
Absenteeism is higher among teenagers and old persons. Teenagers are casual in their work and old people
exhaust after continuous work.

Absence of Housing and Transport Facilities

Housing is a major problem in cities and in the absence of company houses, workers either stay alone or at
far off places. Thus, quite often they have to travel long distances to reach of the work place. Without
company transport, they are often unable to reach in time. Thus, housing and transport problems result in
absenteeism.

Management Systems
When the managers treat workers as mere tools, the rate of absenteeism is likely to be high. In the absence
of proper management control, workloads, shift arrangements and personnel policies may be unbalanced
causing absenteeism.

Rural Ties
Most of the factory workers come from villages. They leave behind their families and relatives while coming
to cities for employment. They go to their villages often for festivals, religious and social ceremonies,
sowing and harvesting of crops etc. This leads to high rate of absenteeism.

Indebtedness
Most of the workers suffer from a high degree of indebtedness. Some workers absent themselves or even
resign to escape the usurious money lenders. As a result, absenteeism is high.

Effects of Employee Absenteeism

 Regular flow of work in the factory/office is disturbed.
 Production schedules are delayed, so the orders cannot be executed in time.
 Overall production declines.

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 Overtime bill increases considerably.
 Quality of work suffers because the casual workers employed to maintain work schedules are not
properly trained.
 Work pressure on available and present employee’s increases.
 Repairs and maintenance costs increase due to frequent breakdown of machinery by inexperienced
workers.
 Incidence of industrial accidents increase.
 Workers lose wages for unauthorised absence from duty.
 Reduction in earnings increases indebtedness of workers which is further a cause of absenteeism.
 Workers who are habitually absent may be removed from service causing hardships to them and
their family members.

Measures to Control Absenteeism

 Selecting the employees by testing them thoroughly regarding their aspiration, value systems,
responsibility and sensitiveness
 Adopting a humanistic approach in dealing with the personal problems of employees
 Following a proactive approach in identifying and redressing employee grievances
 Providing hygienic working conditions
 Providing safety and health measures
 Educating the workers
 Providing cordial human relation and industrial relation
 Offering attendance bonus and inducements
 Improving the communication networks, particularly the upward communication

Employee turnover
Employee turnover refers to the rate at which employees leave a company and are replaced by new hires. It
is usually calculated as a percentage of the total number of employees in a given period of time, such as a
year.

Employee turnover can be voluntary or involuntary. Voluntary turnover occurs when employees choose to
leave a company for personal reasons, such as seeking better pay, work-life balance, or career growth
opportunities. Involuntary turnover occurs when employees are terminated or laid off due to performance
issues, company restructuring, or other reasons.

High employee turnover can be costly for a company, as it can lead to increased recruitment and training
costs, reduced productivity, and decreased morale among remaining employees. Therefore, it is important
for companies to track and manage employee turnover by implementing strategies such as offering
competitive compensation and benefits, providing career development opportunities, and creating a
positive work environment.

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Methods for finding Labour Turnover

There are several methods for finding labor turnover, each with its own strengths and weaknesses. Here are
some common methods for calculating labor turnover:

Simple Labor Turnover Method

This method calculates labor turnover as the percentage of employees leaving the organization during a
given period (usually a year) divided by the average number of employees during that period. The formula
for this method is:

Labor Turnover = (Number of Employees Leaving / Average Number of Employees) x 100

This method is simple and easy to calculate, but it does not take into account the time employees spend
with the company, so it may not accurately reflect the true turnover rate.

Separation Method
This method calculates labor turnover by tracking the number of employees who leave the company and
their reasons for leaving, such as voluntary resignation, retirement, termination, or death. The formula for
this method is:

Labor Turnover = (Number of Employees Leaving / Average Number of Employees) x 100

This method provides more detailed information about why employees are leaving, which can help
employers identify and address underlying issues that may be contributing to turnover.

Replacement Cost Method

This method calculates labor turnover by estimating the cost of replacing employees who have left the
organization, including recruitment, training, and lost productivity costs. The formula for this method is:

Labor Turnover = (Replacement Cost / Total Employee Costs) x 100

This method provides a more comprehensive view of the cost of turnover to the organization, but it may be
more difficult to calculate and may not provide as much information about why employees are leaving.

Survival Rate Method

This method calculates labor turnover by tracking the percentage of employees who remain with the
company over a given period of time, such as one year. The formula for this method is:

Survival Rate = (Number of Employees Remaining / Number of Employees at Beginning of Period) x

100

Labor Turnover = 100 - Survival Rate

This method provides a different perspective on turnover, as it focuses on the percentage of employees
who are retained rather than those who leave. However, it may not provide as much information about the
reasons for turnover.

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Effects of Labour Turnover

There must be some labour turnover due to personal and unavoidable causes. It has been observed by
employers that a normal labour turnover, which is between 3% and 5%, need not cause much anxiety. But a
high labour turnover is always detrimental to the organisation. The effect of excessive labour turnover is low
labour productivity and increased cost of production.

This is due to the following reasons:

 Frequent changes in the labour force give rise to interruption in the continuous flow of
production with result that overall production is reduced.
 New workers take time to become efficient. Hence lower efficiency of new workers increases the
cost of production.
 Selection and training costs of new workers recruited to replace the workers who have left
increase the cost of production.
 New workers being unfamiliar with the work give more scrap, rejects and defective work which
increase the cost of production.
 New workers being inexperienced workers cause more depreciation of tools and machinery. Due
to faulty handling of new workers, breakdown of tools and machinery may also occur very often
and hamper production.
 New workers being inexperienced workers are more prone to accidents. Consequently, all costs
associated with accidents such as loss on account of output lost, compensation for the injured
workers, damage of materials and equipment due to accidents etc. increase the cost of
production.

Types of Labour turnover

The labour turnover can be distinguished based on the employees’ spontaneity and the effect it has on the
organization. Given below are its four basic types:Types of Labour Turnover

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Voluntary: When a worker willingly exits the organization, i.e., the person resigns from the job position due
to any of the circumstances, it is termed as voluntary labour turnover.

Involuntary: In the case of involuntary labour turnover, the worker is abolished from the duties by the
management. It can be due to any of the reason like failing to comply with the norms.

Functional: By saying functional, we mean to improve the organization’s efficiency, the under-performing
workers are terminated from work.

Dysfunctional: The dysfunctional labour turnover takes place when highly efficient and skilled personnel
leaves the job by hampering the overall functioning of the organization.

Causes of Labour Turnover

Avoidable Causes
The factors that are related to the organizational facilities and working conditions, the ones which the
management could modify to retain the workforce are considered as preventable causes.

Some of the significant issues are related to improper wages, lack of healthcare facilities, inappropriate
fringe benefits, cold relations with the management and many others as listed below:

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Unavoidable Causes
The workers are sometimes compelled to depart from the organization, for the inevitable reasons. Neither
the organization nor the employee can take any step to avoid such circumstances.

Some of these causes include death, severe accident, marriage or retirement of the personnel. The various
others are mentioned in the given image

Personal Causes
Workers may leave the organisation purely on personal grounds, e.g.

 Domestic troubles and family responsibilities.

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 Retirement due to old age.
 Accident making workers permanently incapable of doing work.
 Women workers may leave after marriage in order to take up household duties.
 Dislike for the job or place.
 Death.
 Workers finding better jobs at some other places.
 Workers may leave just because of their roving nature.
 Cases involving moral turpitude.

In all such cases, labour turnover is unavoidable and the employer can practically do nothing to reduce the
labour turnover.

Effects
Adverse Effects
Hampers Productivity: When a worker quits the job, the production is temporarily ceased or slowed down
until the new hire joins the organization.

Decreases Morale: The co-workers feel demotivated when they notice that the exiting employee is moving
out for a better opportunity.

Hikes Production Cost: The training or learning phase of the new worker, increases expense due to slower
productivity and high wastage.

Training Expense: The wages paid to the trainee or new hire as well as the mentor for that unproductive
training period, is a considerable cost for the organization.

Replacement Cost: To fill the position of the exiting worker, recruitment of a new staff involves advertising,
hiring and training expenses.

Positive Effects
Improves Organizational Culture: Labour turnover means the entry of new people with different values,
mindsets and beliefs to enrich the organizational culture.

More Talented Personnel: New hires can be more efficient, knowledgeable, sharp and active than the
existing workforce.

Less Expensive Resource: With constant hikes and promotion, the existing workers cost more in
comparison to the inexpensive trainees who replace them.

Infusion of Fresh Ideas: The new resources bring with them innovative thoughts and ways of doing things,
which is quite beneficial for organizations.

Better Skills and Qualification: With evolving courses and skills training, the organization can get fresh
graduates possessing better competence.

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Burnout
Burnout is a state of physical, emotional, and mental exhaustion caused by prolonged and excessive stress.
It can occur in any area of life, including work, family, and social life. Burnout can cause a range of physical
and emotional symptoms, including:

 Emotional exhaustion: Feeling emotionally drained and overwhelmed, lacking motivation and
energy, and feeling detached or disconnected from others.
 Depersonalization: Developing a cynical or negative attitude towards others, feeling resentful, and
becoming emotionally distant.
 Reduced personal accomplishment: Feeling ineffective or inadequate, and experiencing a sense of
failure or loss of productivity.

Some common causes of burnout at work include heavy workloads, long hours, lack of autonomy or control
over work tasks, conflicts with co-workers or supervisors, and inadequate support or recognition from
management. Burnout can have a significant impact on an individual's personal and professional life, and it
can lead to increased absenteeism, decreased productivity, and even physical health problems.

To prevent or manage burnout, individuals can take steps such as setting realistic goals, prioritizing self-
care and taking breaks, seeking support from others, and establishing healthy boundaries. Employers can
also take steps to create a supportive work environment that encourages work-life balance, provides
opportunities for professional development and growth, and recognizes and rewards employees for their
contributions.

Difference between Stress and Burnout

Stress Burnout

Definition A state of mental or emotional A state of physical, emotional, and mental

strain caused by adverse or exhaustion caused by prolonged and excessive
demanding circumstances or stress.
events.

Cause Immediate pressures and Prolonged and chronic stress

demands

Duration Short-term Long-term

Symptoms Anxiety, irritability, physical Emotional exhaustion, depersonalization, reduced

tension, fatigue personal accomplishment

Response "Fight or flight" response Disengagement and feelings of hopelessness and

helplessness

Impact Can be positive or negative Almost always negative, affecting physical and
depending on level and duration mental health, as well as work performance

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Management Managing stressors, developing Taking time off, seeking professional help,
coping strategies, seeking changing work environment or tasks, practicing
support self-care

Prevention Recognizing and managing Creating a supportive work environment, providing

stressors, promoting healthy resources and support for stress management,
habits and self-care, building addressing underlying issues causing burnout
resilience

Attrition Rate
Attrition rate refers to the rate at which employees leave a company over a period of time, usually
measured as a percentage of the total workforce. Attrition can occur for various reasons, such as retirement,
resignation, termination, or death.

To calculate the attrition rate, you would typically divide the number of employees who left the company
during a given time period by the average total number of employees during that same period. For
example, if 100 employees left a company during a year, and the average total number of employees during
that year was 1,000, then the attrition rate for that year would be 10% (100/1000 x 100).

The attrition rate can be an important metric for companies to track, as high rates of employee turnover can
be costly and disruptive to business operations. It can also provide insights into potential issues within the
company, such as a lack of employee engagement or dissatisfaction with the work environment.

Companies can work to reduce their attrition rate by implementing strategies such as offering competitive
compensation and benefits packages, providing opportunities for career development and advancement,
creating a positive and supportive work environment, and addressing any issues or concerns raised by
employees.

Questions

1. Which of the following is the most common cause of absenteeism among employees?

a) Illness

b) Low job satisfaction

c) Family responsibilities

d) Transportation issues

2. What is labor turnover?

a) The number of employees who leave a company and are replaced within a certain period of time

b) The number of employees who are absent from work within a certain period of time

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c) The number of employees who are promoted within a certain period of time

d) The number of employees who receive pay raises within a certain period of time

3. Which of the following is a consequence of high labor turnover?

a) Lower recruitment costs

b) Increased productivity

c) Reduced morale

d) Improved organizational stability

4. What is a common strategy for reducing absenteeism among employees?

a) Disciplinary action

b) Increased workload

c) Employee engagement programs

d) Decreased pay and benefits

5. What is a common strategy for reducing labor turnover?

a) Increasing pay and benefits

b) Decreasing job security

c) Reducing employee engagement programs

d) Increasing workload

6. Which of the following is a consequence of high absenteeism?

a) Increased productivity

b) Increased profitability

c) Increased labor costs

d) Improved morale

7. Which of the following is a factor that can contribute to high labor turnover?

a) Strong organizational culture

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b) Competitive pay and benefits

c) Limited opportunities for career advancement

d) Positive work-life balance

8. Which of the following is a consequence of low labor turnover?

a) Decreased productivity

b) Increased recruitment costs

c) Decreased employee morale

d) Improved organizational stability

9. What is the difference between voluntary and involuntary turnover?

a) Voluntary turnover occurs when employees are terminated, while involuntary turnover occurs when
employees leave on their own.

b) Voluntary turnover occurs when employees leave on their own, while involuntary turnover occurs when
employees are terminated.

c) Voluntary turnover occurs when employees take extended leave, while involuntary turnover occurs when
employees leave on their own.

d) Voluntary turnover occurs when employees are promoted, while involuntary turnover occurs when
employees are demoted.

Answer Keys

1. Answer: a) Illness. Illness is the most common cause of absenteeism among employees. Other
factors such as low job satisfaction, family responsibilities, and transportation issues can also
contribute to absenteeism.
2. Answer: a) The number of employees who leave a company and are replaced within a certain
period of time. Labor turnover is a measure of the rate at which employees leave a company and are
replaced within a certain period of time. High labor turnover can indicate problems with recruitment,
retention, job satisfaction, and organizational culture.
3. Answer: c) Reduced morale. High labor turnover can have negative consequences on employee
morale and job satisfaction, as well as organizational stability. Additionally, high labor turnover can
lead to increased recruitment costs, training costs, and lost productivity.
4. Answer: c) Employee engagement programs. Employee engagement programs, such as wellness
initiatives and recognition programs, can help reduce absenteeism among employees by promoting
a positive work culture and improving job satisfaction.

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5. Answer: a) Increasing pay and benefits. Increasing pay and benefits is a common strategy for
reducing labor turnover by improving employee retention and job satisfaction.
6. Answer: c) Increased labor costs. High absenteeism can lead to increased labor costs due to lost
productivity and the need for replacement staff. Additionally, high absenteeism can lead to
decreased morale and reduced organizational stability.
7. Answer: c) Limited opportunities for career advancement. Limited opportunities for career
advancement can contribute to high labor turnover by reducing employee motivation and job
satisfaction. Additionally, a weak organizational culture, inadequate pay and benefits, and poor
work-life balance can also contribute to high labor turnover.
8. Answer: d) Improved organizational stability. Low labor turnover can indicate organizational
stability and a positive work culture. Additionally, low labor turnover can lead to reduced
recruitment and training costs and improved productivity.
9. Answer: b) Voluntary turnover occurs when employees leave on their own, while involuntary
turnover occurs when employees are terminated. Voluntary turnover is typically the result of
employees leaving a company voluntarily, such as for personal reasons or to pursue other
opportunities. Involuntary turnover occurs when employees are terminated by the company, such as
for performance or disciplinary reasons.

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CHAPTER 7
International Labour Organisation
And its Functions
Historical Evolution of ILO
The Organization has played a role at key historical junctures – the Great Depression, decolonization, the
creation of Solidarność in Poland, the victory over apartheid in South Africa – and today in the building of
an ethical and productive framework for a fair globalization.

It was created in 1919, as part of the Treaty of Versailles that ended World War I, to reflect the belief that
universal and lasting peace can be accomplished only if it is based on social justice.

The Constitution of the ILO was drafted in early 1919 by the Labour Commission, chaired by Samuel
Gompers, head of the American Federation of Labour (AFL) in the United States.

It was composed of representatives from nine countries: Belgium, Cuba, Czechoslovakia, France,
Italy, Japan, Poland, the United Kingdom and the United States.

The process resulted in a tripartite organization, the only one of its kind, bringing together representatives
of governments, employers and workers in its executive bodies.

The driving forces for the ILO's creation arose from security, humanitarian, political and economic
considerations.

The founders of the ILO recognized the importance of social justice in securing peace, against a background
of the exploitation of workers in the industrializing nations of that time. There was also increasing
understanding of the world's economic interdependence and the need for cooperation to obtain similarity
of working conditions in countries competing for markets.

Reflecting these ideas, the Preamble of the ILO Constitution states:

 Whereas universal and lasting peace can be established only if it is based upon social justice;
 And whereas conditions of labour exist involving such injustice, hardship and privation to large
numbers of people as to produce unrest so great that the peace and harmony of the world are
imperilled; and an improvement of those conditions is urgently required;
 Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the
way of other nations which desire to improve the conditions in their own countries.

TimeLine of Evolution
 1919 - The ILO is established as an agency of the League of Nations with the goal of promoting
social justice and improving working conditions around the world.

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 1926 - The ILO adopts the Forced Labour Convention, which calls for the abolition of all forms of
forced labor.
 1944 - The ILO becomes a specialized agency of the United Nations, with the aim of promoting
social justice and decent working conditions for all.
 1948 - The ILO adopts the Declaration of Philadelphia, which outlines the fundamental principles
and rights of workers.
 1969 - The ILO adopts the Occupational Safety and Health Convention, which sets out standards for
ensuring safe and healthy working conditions.
 1998 - The ILO adopts the Declaration on Fundamental Principles and Rights at Work, which
establishes four core labor standards: freedom of association and the right to collective bargaining,
the elimination of forced labor, the abolition of child labor, and the elimination of discrimination in
the workplace.
 2019 - The ILO celebrates its 100th anniversary and launches the Global Commission on the Future
of Work, which aims to identify the key challenges facing the world of work in the 21st century.
 2021 - The ILO adopts a new Convention on Violence and Harassment in the World of Work, which
sets out standards for preventing and addressing violence and harassment in the workplace.

Principles and functions of ILO

At the time of its founding, the ILO outlined a few key principles. The Charter of Freedom of Labour
contains these ideas, with the following standing out as the most important:

 Labour is not a commodity

 Freedom of expression and of association are essential to sustained progress
 Poverty anywhere constitutes danger to prosperity everywhere
 The war against want requires to be carried on with unrelenting vigour within each nation by
continuance and concerted international effort in which the representatives of workers and
employers, enjoying equal status with those of the governments, join with them in free discussion
and democratic decision with a view to the promotion of common welfare.

Strategic objectives
 Set and promote standards and fundamental principles and rights at work.
 Create greater opportunities for women and men to decent employment and income.
 Enhance the coverage and effectiveness of social protection for all.
 Strengthen tripartism and social dialogue.

Functions of ILO
 Creation of global policies and initiatives to advance fundamental human rights, increase
 living and working conditions, and expand employment opportunities
 The development of international labour standards.
 To assist nations in effectively implementing these policies.
 Activities in training, education, and research to advance each of these initiatives.

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International Labour Standards

 International labour standards are legal instruments drawn up by the ILO's constituents
(governments, employers and workers) and setting out basic principles and rights at work.
 They are either Conventions (or Protocols), which are legally binding international treaties that may
be ratified by member states.
 A Recommendation, on the other hand, is not an instrument of obligation. It is intended to serve as
a guide to the member states in respect of the minimum labour standards, concerning the subject
matter of the Recommendation.

Benefits of ILO Standards

 A way to ensure everyone has access to fair and productive employment
 A plea for a stable and inclusive globalisation
 A level playing field
 A strategy for reducing poverty
 Economic performance improvement through inclusion and training
 A safety net in times of economic crisis

ILO – Core Conventions

The adoption of the eight fundamental agreements is a crucial component of the UN Human Rights
Framework and demonstrates the support for human rights among member states. All eight foundational
conventions have been ratified by 135 member states in total.

The eight-core conventions of the ILO are

 Forced Labour Convention (No. 29)
 Abolition of Forced Labour Convention (No.105)
 Equal Remuneration Convention (No.100)
 Discrimination (Employment Occupation) Convention (No.111)
 Minimum Age Convention (No.138)
 Worst forms of Child Labour Convention (No.182)
 Freedom of Association and Protection of Right to Organised Convention (No.87)
 Right to Organise and Collective Bargaining Convention (No.98)
 The conventions are highly relevant due to the economic challenges faced by workers all around the
world.

The Philadelphia Charter

The Philadelphia Charter, also known as the Declaration of Philadelphia, is a historic document adopted by
the International Labour Organization (ILO) in 1944. It outlines the fundamental principles and rights of

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workers, as well as the responsibilities of employers and governments in promoting social justice and
decent working conditions.

The Declaration of Philadelphia sets out four key principles

 Freedom of association and the right to collective bargaining: Workers should have the right to form
and join trade unions, and to bargain collectively with employers.
 The elimination of forced labor: All forms of forced labor, including slavery and debt bondage,
should be abolished.
 The abolition of child labor: Children should not be employed in work that is likely to harm their
health, safety, or morals.
 The elimination of discrimination in the workplace: All workers should be treated equally, regardless
of their race, gender, religion, or other characteristics.

The Philadelphia Charter also emphasizes the importance of full employment and social welfare policies,
and calls for the establishment of international labor standards to ensure that these principles are upheld
around the world.

The Declaration of Philadelphia has been recognized as a landmark document in the history of labor rights
and has influenced the development of labor laws and policies in many countries. It continues to be a
guiding

The organizational structure

The ILO headquarters are located in Geneva, where the ILO’s Member States government, employer and
worker representatives meet three times a year at the ILO’s Governing Body and annually at the
International Labour Conference (ILC).

Under the leadership of the Director-General, the ILO has approximately 3,500 officials who work on its
agreed programmes and activities as set out in the Programme and Budget, across 107 countries in five
regions: Africa, the Americas, the Arab States, Asia and the Pacific, Europe and Central Asia each with
a Regional Director.

ILO’s work is organized around four clusters, each overseen by an Assistant Director-General:

 Governance, Rights and Dialogue

 Jobs and Protection
 External and Corporate Relations
 Corporate Services

Research, statistics, publication, and training activities, as well as four Priority Action Programmes are led by
a Deputy Director-General:

 Transition from the informal to the formal economy

 Just transitions towards environmentally sustainable economies and societies
 Decent work outcomes in supply chains
 Decent work in crisis and post-crisis situations.

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International Labour Conference (ILC)

This is the Apex body of ILO which makes labour policies for international labour. The ILC holds its sessions
at a frequency not less than once in a year. The delegates from three group’s viz. the government, the
employers’ and the workers attend ILC sessions in the ratio of 2:1:1 respectively. Each representative has a
vote. The representatives from the Government are mostly ministers, diplomats or officials.

The conference is empowered to appoint committees to deal with different matters relating to labour
during each session. Examples of such committees are the selection committee, The Credential Committee,
The Resolution Committee, The Drafting Committee, The Finance Committee, etc. All committees except
Finance Committee are tripartite in nature.

The functions performed by the ILC are to

 Formulate international labour standards.

 Fix the amount of contribution to be paid by the member states.
 Decide budget and submit the same to the Governing Body.
 Study the labour problems submitted by the Director General and assist in their solutions.
 Appoint committees to deal with different problems during its sessions.
 Elect the president.
 Select members of the Governing Body.
 Develop policies and procedures.
 Seek advisory opinion from International Committee of Justice.
 Confirm the powers, functions and procedure of Regional Conference.

Governing Body
It is also a tripartite body. It implements decisions of the ILC with the help of the International Labour
Organisation. It consists of 56 members in the same ratio of 2:1:1, i.e. 28 representatives of the Government,
14 of the employers and 14 of the workers. Of the 28 representatives of the Government, 10 are appointed
by the members of the States of Chief Industrial Importance and remaining 18 are delegates of the other
governments.

Industrial population is the criteria for chief Industrial Importance. India is one of the ten states of chief
Industrial Importance. The tenure of the office of this body is 3 years. It meets frequently in a year to take
decisions on the programmes of the ILO.

The functions of the Governing Body are to

 Co-ordinate work between the ILC and ILO.

 Prepare agenda for each session of the ILC.
 Appoint the Director General of the office.
 Scrutinize the budget.
 Follow up with member states in regard to implementation of the conventions and
recommendations adopted by the ILC.
 Fix the date, duration, schedule and agenda for the Regional Conferences

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 Seek as and when required, advisory opinion from the International Court of Justice with the
consent of the ILC.

International Labour Office

This is the secretariat of the ILO in Geneva and is the third major organ of the ILO. The Director General
(DG) of the ILO is the Chief Executive Officer of the Secretariat appointed by the Governing Body. He also
serves as the Secretary General of the ILC. His tenure is for 10 years and extendable by the Governing Body.

The Director General is assisted by two Deputy Director Generals, six Assistant Director Generals, one
Director of the International Institute of Labour Studies, and one Director of the International Centre for
Advanced Technical and Vocational Training, Advisors, Chief of Divisions from 100 nations.

Following are the main functions of this office

 Prepare briefs and documents for agenda of ILC.

 Assist the Governments of the States to form labour legislation based on recommendations of the
ILC.
 Bring out publications relating to industrial labour problems of international nature and interest.
 Carry out functions related to the observance of the conventions.
 Collect and distribute information on international labour and social problems.

How the ILO works

Tripartism and social dialogue

Underlying the ILO’s work is the importance of cooperation between governments and employers’ and
workers’ organizations in fostering social and economic progress.

The ILO aims to ensure that it serves the needs of working women and men by bringing together
governments, employers and workers to set labour standards, develop policies and devise programmes.
The very structure of the ILO, where workers and employers together have an equal voice with governments
in its deliberations, shows social dialogue in action. It ensures that the views of the social partners are
closely reflected in ILO labour standards, policies and programmes.

The ILO encourages this tripartism within its constituents - employers, workers and member States, by
promoting a social dialogue between trade unions and employers in formulating, and where appropriate,
implementing national policy on social, economic, and many other issues.

Main bodies
The ILO accomplishes its work through three main bodies which comprise governments', employers' and
workers' representatives:

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 The International labour Conference sets the International labour standards and the broad policies
of the ILO. It meets annually in Geneva. Often called an international parliament of labour, the
Conference is also a forum for discussion of key social and labour questions.
 The Governing body is the executive council of the ILO. It meets three times a year in Geneva. It
takes decisions on ILO policy and establishes the programme and the budget, which it then submits
to the Conference for adoption.
 The International Labour Office is the permanent secretariat of the International Labour
Organization. It is the focal point for International Labour Organization's overall activities, which it
prepares under the scrutiny of the Governing Body and under the leadership of the Director-
General.

The work of the Governing Body and of the Office is aided by tripartite committees covering major
industries. It is also supported by committees of experts on such matters as vocational training,
management development, occupational safety and health, industrial relations, workers’ education, and
special problems of women and young workers.

 Regional meetings of the ILO member States are held periodically to examine matters of special
interest to the regions concerned.

Standards supervisory system

International labour standards are backed by a supervisory system that is unique at the international level
and that helps to ensure that countries implement the conventions they ratify. The ILO regularly examines
the application of standards in member states and points out areas where they could be better applied. If
there are any problems in the application of standards, the ILO seeks to assist countries through social
dialogue and technical assistance.

The ILO has developed various means of supervising the application of Conventions and Recommendations
in law and practice following their adoption by the International Labour Conference and their ratification by
States. There are two kinds of supervisory mechanism

Partnering for development

Since the early 1950s, the ILO has been providing technical cooperation to countries on all continents and
at all stages of economic development. Projects are implemented through close cooperation between
recipient countries, donors, and the ILO, which maintains a network of country offices worldwide.

Development cooperation builds bridges between the ILO’s standard-setting role and women and men
everywhere. It is essential to give people decent work opportunities and an important means of assisting
our constituents – workers, employers and governments – in making the Decent Work Agenda a reality.
Simply put, development cooperation supports the technical, organizational and institutional capacities of
ILO constituents for them to put in place meaningful and coherent social policy and ensure sustainable
development.

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With over 50 years of experience in development cooperation on all continents and at all stages of
development, the ILO today has over 600 programmes and projects in more than 100 countries – with the
support of 120 development partners.

Programme and budget

The Programme and Budget of the Organization which sets out the strategic objectives and expected
outcomes for the Organization’s work is approved every two years by the International Labour Conference.

International Labour Code

The ILO is the source of international labour law that is embodied in its Conventions and Recommendations
and the documents that emanate from the supervisory mechanism responsible for the application of those
international labour standards. The ILO's Conventions are international treaties, subject to ratification by ILO
member States. Its Recommendations are non-binding instruments -- typically dealing with the same
subjects as Conventions.

ILO Conventions
Conventions are instruments designed to create international obligations for the states which ratify them. In
addition to its Conventions, the ILO has adopted a number of Recommendations, which are different from
the point of view of their legal character. Recommendations do not create obligations, but rather provide
guidelines for action.

Conventions have a number of specific features, which can be grouped under four main ideas:

 Conventions are adopted within an institutional framework. Thus, the adoption of Conventions does
not follow the type of diplomatic negotiation which is usual in the case of treaties. They are rather
prepared in discussions in an assembly that has many points in common with parliamentary
assemblies. This also partly explains the fact that unanimity is not necessary for the adoption of
Conventions. For the same reason, only the International Court of Justice can interpret the
Conventions. The revision of Conventions is made only by the General Conference, which is the
legislative body of the Organization. (See overview of supervisory system)
 The International Labour Conference, which adopts Conventions, is constituted by representatives of
governments, employers and workers, each delegate being entitled to vote individually.
 A two-thirds majority is sufficient for the adoption of a Convention, and governments should submit
the Convention to their competent authorities for ratification, i.e. as a rule to their parliaments. Also,
the governments have the obligation, when requested, to supply reports on various issues related to
Conventions. (See overview of supervisory system)
 Some Conventions include flexibility clauses, because they are generally directed towards countries
with very different economic, social and political conditions, as well as different constitutional and
legal systems. The flexibility clauses comprise options regarding the following:

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 Obligations: possibility of choosing, at the time of ratification, by means of formal
declaration, the extent of the obligations undertaken. (f.ex. Social Security Convention, No.
102)
 Scope: Governments may decide for themselves, subject to certain consultations, what the
scope of the Convention shall be (f.ex. Conventions of minimum wage fixing machinery, Nos.
26 and 29), or they may be permitted to exclude certain categories of persons or
undertakings (f.ex. Conventions on night work, Nos.41 and 89), or the definitions of persons
covered may be based on a specified percentage of the wage earners or population of the
country concerned (f.ex. many social security Conventions), or exceptions are allowed for a
certain part of the country (Various types of Conventions, f.ex. Nos. 24, 25, 62, 63, 77, 78, 81,
88, 94, 95, 96 etc.), or governments may themselves define a certain branch, industry or
sector (f.ex. Weekly rest Convention, No. 106)
 Methods: State which ratifies a Convention shall take such action as may be necessary to
make effective the provisions of such Convention, custom, administrative measures or, in
certain circumstances, collective agreements.

International Labour Organisation and India

India is a founder member of the International Labour Organization, which came into existence in 1919. At
present the ILO has 187 Members.

The first ILO Office in India was inaugurated in 1928.

India has ratified six fundamental conventions

 Forced Labour Convention (No. 29)

 Abolition of Forced Labour Convention (No.105)
 Equal Remuneration Convention (No.100)
 Discrimination (Employment Occupation) Convention (No.111)
 Minimum Age Convention (No.138)
 Worst forms of Child Labour Convention (No.182)
 Freedom of Association and Protection of the Right to Organise Convention, 1948 (No.87)
 Right to Organise and Collective Bargaining Convention, 1949 (No. 98)

The main reason for non-ratification of ILO conventions No.87 & 98 is due to certain restrictions imposed
on the government servants.

The ratification of these conventions would involve granting of certain rights that are prohibited under the
statutory rules, for the government employees, namely, the right to strike, to openly criticize government
policies, to freely accept a financial contribution, to freely join foreign organizations etc.

Important Topics of ILO

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Sustainable enterprise
Sustainable enterprise refers to a business model that aims to create long-term value while also promoting
social and environmental sustainability. This approach involves balancing economic growth with the need to
protect natural resources, respect human rights, and address social issues such as inequality and poverty.

Sustainable enterprises typically operate with the following principles in mind:

 Economic sustainability: Generating profits while ensuring that economic growth does not harm
the environment or compromise social well-being.
 Environmental sustainability: Minimizing the use of natural resources, reducing carbon emissions,
and implementing sustainable production and distribution practices.
 Social sustainability: Promoting social justice and equity, respecting human rights, and
contributing to the well-being of local communities.
 Governance sustainability: Ensuring transparency, accountability, and ethical practices in all
aspects of the business.

Sustainable enterprises may take various forms, including social enterprises, green businesses, and circular
economy models. They may also adopt specific strategies, such as implementing sustainable supply chain
practices, reducing waste and pollution, and promoting social and environmental innovation.

Care economy
The care economy refers to the economic activities related to the provision of care, both paid and unpaid,
for children, the elderly, and people with disabilities or illnesses. These activities include caregiving,
education, health services, and other forms of support that are essential for human well-being and
development.

The care economy is an important and growing sector of the global economy. According to the
International Labour Organization (ILO), women make up the majority of workers in the care economy, and
their work often goes unrecognized and undervalued.

In recent years, there has been growing recognition of the importance of the care economy and the need to
address the challenges faced by caregivers, particularly women. These challenges include low wages, poor
working conditions, and a lack of access to social protection and benefits.

The COVID-19 pandemic has highlighted the critical role of caregivers and the need to invest in the care
economy. The pandemic has also exposed the vulnerabilities of the care workforce, many of whom have
been at high risk of infection and have faced additional burdens due to school closures and other
disruptions.

Investing in the care economy has the potential to create new jobs, reduce gender inequalities, and
promote economic growth and social development. This may involve measures such as increasing public
funding for care services, promoting decent work and living wages for care workers, and recognizing and
valuing the unpaid care work performed by women in households and communities.

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Linking trade with labour standards

Linking trade with labour standards refers to the idea of incorporating labour standards and rights into
international trade agreements, to ensure that trade benefits workers and promotes social justice. The goal
is to prevent the exploitation of workers and to promote decent working conditions, while also promoting
economic growth and development.

The International Labour Organization (ILO) has developed a set of core labour standards that are
considered fundamental rights of workers. These include freedom of association and the right to collective
bargaining, the elimination of forced labour, the abolition of child labour, and the elimination of
discrimination in employment and occupation.

International trade agreements such as the World Trade Organization (WTO) and regional trade agreements
have increasingly incorporated labour standards into their provisions, recognizing the importance of
protecting workers' rights in the global economy. These agreements typically include provisions that require
signatories to respect and enforce labour standards and rights, and may include penalties for violations.

Critics of linking trade with labour standards argue that such measures may be used as a form of
protectionism or may result in higher costs for exporters. However, proponents argue that linking trade with
labour standards can promote sustainable development and create a level playing field for workers around
the world.

Overall, linking trade with labour standards represents a growing recognition of the need to ensure that
economic growth is inclusive and promotes social justice. While there may be challenges in implementing
such measures, they have the potential to create a more equitable and sustainable global economy.

Social dialogue
Social dialogue refers to the process of negotiation and communication between workers, employers, and
governments, with the goal of reaching agreements that promote social and economic progress. The
process is typically facilitated by trade unions, employers' organizations, and other representative bodies.

Social dialogue can take many forms, including collective bargaining, consultations, and tripartite
discussions between workers, employers, and governments. It is an important mechanism for resolving
disputes, improving working conditions, and promoting social justice.

The International Labour Organization (ILO) promotes social dialogue as a means of advancing its core
values, which include promoting decent work, eliminating child labour, and ending discrimination. The ILO
provides guidance and support to its member states to help them establish effective social dialogue
mechanisms.

Effective social dialogue can have a number of positive outcomes. For workers, it can lead to higher wages,
better working conditions, and greater job security. For employers, it can lead to increased productivity,
better labour-management relations, and improved competitiveness. For governments, it can lead to
improved social protection, reduced poverty, and greater political stability.

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Social dialogue is particularly important in times of economic crisis, as it can help to mitigate the negative
impact of economic downturns on workers and promote a more equitable distribution of the benefits of
economic growth.

Fair globalisation
Fair globalization refers to the idea of creating a global economic system that promotes social justice,
respects human rights, and ensures sustainable development. The concept recognizes that globalization has
the potential to bring significant economic benefits, but also acknowledges the negative social and
environmental impacts that can result if globalization is not managed in a fair and inclusive manner.

The International Labour Organization (ILO) has played a leading role in promoting the concept of fair
globalization. The ILO argues that a fair globalization agenda should prioritize the following objectives:

Decent work: Promoting opportunities for productive and decent employment for all, with respect for
workers' rights and dignity.

Social protection: Ensuring that all individuals and communities have access to social protection, including
health care, education, and social security.

Social dialogue: Fostering effective social dialogue between workers, employers, and governments, and
promoting collective bargaining as a means of achieving social justice.

Fundamental principles and rights at work: Ensuring that all workers enjoy fundamental rights such as
freedom of association and the right to collective bargaining, and eliminating child labour, forced labour,
and discrimination.

Sustainable development: Promoting sustainable development through the use of environmentally

friendly production methods and technologies, and ensuring that economic growth is inclusive and benefits
all members of society.

Decent work
Decent work is a concept developed by the International Labour Organization (ILO) that encompasses the
social and economic dimensions of work. It refers to work that is productive, provides fair income, provides
social protection, and respects fundamental rights.

The ILO defines decent work as having the following four components:

 Employment: Access to employment opportunities that are secure and provide adequate earnings.
 Rights at work: Respect for fundamental rights such as freedom of association, collective
bargaining, and the elimination of forced labour and child labour.
 Social protection: Access to social protection measures such as health care, pensions, and income
support in case of unemployment.
 Social dialogue: Effective dialogue between workers, employers, and governments to promote
social justice and resolve labour disputes.

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The concept of decent work is grounded in the idea that work is central to human well-being and dignity. It
recognizes that work should not only provide income but also provide a sense of purpose and contribute to
social and economic development.

The promotion of decent work is a key element of the United Nations' Sustainable Development Goals
(SDGs), which call for the creation of inclusive and sustainable economic growth that benefits all members
of society. The ILO works to promote decent work by developing and promoting international labour
standards, providing technical assistance to member states, and conducting research on labour issues.

Fair recruitment initiative

The Fair Recruitment Initiative is a global initiative aimed at promoting fair recruitment practices for migrant
workers. The initiative was launched in 2014 by the International Labour Organization (ILO), the
International Organization for Migration (IOM), and other partners.

The initiative aims to address the problem of forced labour and human trafficking, which is often linked to
the recruitment process of migrant workers. Many migrant workers are recruited through deceptive
practices, such as fraudulent job offers, false promises of high wages, and hidden fees that leave them in
debt bondage. This can lead to exploitation and forced labour.

The Fair Recruitment Initiative seeks to promote fair recruitment practices that are based on transparency,
non-discrimination, and respect for the rights of workers. This includes measures such as:

 Regulation of recruitment agencies: Ensuring that recruitment agencies are licensed and
regulated to prevent abuse and exploitation.
 Transparency in recruitment: Providing migrant workers with clear and accurate information about
job opportunities, wages, and working conditions before they leave their home countries.
 Protection of workers' rights: Ensuring that workers' rights are protected throughout the
recruitment process, including the right to fair wages, safe working conditions, and freedom of
association.
 Monitoring and enforcement: Monitoring recruitment practices and enforcing compliance with
international labour standards and national laws.

The Fair Recruitment Initiative works with governments, employers, trade unions, and civil society
organizations to promote fair recruitment practices and raise awareness about the risks of forced labour
and human trafficking. The initiative also provides technical assistance and capacity building to support the
implementation of fair recruitment policies and practices.

Green Jobs
Green jobs refer to jobs that contribute to environmental sustainability, such as jobs in renewable energy,
energy efficiency, sustainable agriculture, and waste management. These jobs aim to promote economic
growth while reducing the negative impact on the environment, including reducing greenhouse gas
emissions and conserving natural resources.

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The International Labour Organization (ILO) defines green jobs as "jobs that reduce negative environmental
impacts, ultimately leading to environmentally, economically and socially sustainable enterprises and
economies."

Green jobs represent a growing area of employment opportunities in a range of sectors, including
manufacturing, construction, and service industries. According to the ILO, the transition to a green economy
could create up to 24 million new jobs globally by 2030.

In addition to promoting environmental sustainability, green jobs can also provide social benefits, such as
improving working conditions, promoting social inclusion, and supporting the development of new skills
and technologies.

However, the transition to a green economy also presents challenges, such as ensuring that workers in
traditional industries are not left behind and have opportunities to retrain for green jobs. The ILO has
emphasized the importance of social dialogue and tripartite cooperation among governments, employers,
and workers' organizations to ensure a just transition to a green economy.

2030 Agenda for Sustainable Development

The 2030 Agenda for Sustainable Development is a global plan of action adopted by the United Nations
(UN) in September 2015, which aims to eradicate poverty, promote economic prosperity and social
inclusion, and protect the planet. The agenda consists of 17 Sustainable Development Goals (SDGs) and 169
targets, which aim to guide countries in their efforts to achieve sustainable development by 2030.

The 17 SDGs are

 No Poverty
 Zero Hunger
 Good Health and Well-being
 Quality Education
 Gender Equality
 Clean Water and Sanitation
 Affordable and Clean Energy
 Decent Work and Economic Growth
 Industry, Innovation and Infrastructure
 Reduced Inequalities
 Sustainable Cities and Communities
 Responsible Consumption and Production
 Climate Action
 Life Below Water
 Life On Land
 Peace, Justice and Strong Institutions
 Partnerships for the Goals

The SDGs are interconnected and aim to address the economic, social, and environmental dimensions of
sustainable development. The 2030 Agenda recognizes that sustainable development cannot be achieved
by any one country or stakeholder group alone and calls for a global partnership to achieve the SDGs. This

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includes partnerships between governments, the private sector, civil society, and international
organizations.

The 2030 Agenda also emphasizes the importance of leaving no one behind and reaching the most
vulnerable populations. It acknowledges that achieving sustainable development requires addressing
inequalities, promoting social inclusion, and ensuring access to basic services such as health care, education,
and clean water and sanitation.

Questions

1. When was the International Labour Organization (ILO) established?

a) 1919

b) 1929

c) 1939

d) 1949

2. What is the mission of the International Labour Organization?

a) To promote gender equality in the workplace

b) To protect workers' rights and promote decent work around the world

c) To provide vocational training to workers in developing countries

d) To encourage multinational corporations to invest in socially responsible projects

3. Which of the following is NOT one of the ILO's core principles?

a) Freedom of association

b) Right to collective bargaining

c) Forced labor

d) Child labor

4. Which of the following is an example of an ILO convention?

a) The Universal Declaration of Human Rights

b) The United Nations Convention on the Rights of the Child

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c) The Convention on the Rights of Persons with Disabilities

d) The Convention concerning Forced or Compulsory Labour

5. Which of the following is NOT a function of the ILO?

a) Research and data collection

b) Policy development and advocacy

c) Enforcement of international labor laws

d) Technical cooperation and assistance

6. Which of the following is an example of an ILO program?

a) The World Health Organization

b) The International Program on the Elimination of Child Labour

c) The International Atomic Energy Agency

d) The United Nations Educational, Scientific and Cultural Organization

7. How many member states does the ILO have?

a) 100

b) 150

c) 187

d) 193

8. What is the Tripartite Declaration of Principles concerning Multinational Enterprises and Social
Policy?

a) An ILO convention on the rights of migrant workers

b) A document outlining the responsibilities of multinational corporations with regard to human rights and
labor standards

c) A program that provides technical assistance to small businesses in developing countries

d) An initiative to promote workplace safety in the construction industry

9. What is the role of employers' organizations in the ILO?

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a) To represent the interests of employers and provide input into policy and program development

b) To represent the interests of workers and negotiate with employers

c) To regulate labor standards and enforce compliance

d) To provide technical assistance to developing countries

10. What is the role of workers' organizations in the ILO?

a) To represent the interests of workers and negotiate with employers

b) To represent the interests of employers and provide input into policy and program development

c) To regulate labor standards and enforce compliance

d) To provide technical assistance to developing countries

Answer Keys

1. Answer: a) 1919. The ILO was established as a specialized agency of the United Nations in 1919, in
the aftermath of World War I.
2. Answer: b) To protect workers' rights and promote decent work around the world. The ILO's
mission is to promote social justice and promote decent working conditions for all women and men
around the world.
3. Answer: c) Forced labor. The ILO's core principles are based on four fundamental rights: freedom of
association, the right to collective bargaining, the elimination of forced labor, and the abolition of
child labor.
4. Answer: d) The Convention concerning Forced or Compulsory Labour. The ILO has developed over
190 international labor standards, including conventions and recommendations, on various topics
related to the world of work.
5. Answer: c) Enforcement of international labor laws. While the ILO does promote international labor
laws, it is not a regulatory body and does not have the authority to enforce laws or punish violators.
6. Answer: b) The International Program on the Elimination of Child Labour. The ILO has various
programs and initiatives that focus on specific issues related to the world of work, such as child
labor, gender equality, and social protection.
7. Answer: c) 187. The ILO has 187 member states, including governments, employers' organizations,
and workers' organizations.
8. Answer: b) A document outlining the responsibilities of multinational corporations with regard to
human rights and labor standards. The Tripartite Declaration of Principles concerning Multinational
Enterprises and Social Policy is a non-binding document that outlines principles and guidelines for
multinational corporations on labor practices, human rights, and environmental policies.
9. Answer: a) To represent the interests of employers and provide input into policy and program
development. Employers' organizations are one of the three groups represented in the ILO, along

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with governments and workers' organizations. They play an important role in shaping the ILO's
policies and programs related to labor and employment.
10. Answer: a) To represent the interests of workers and negotiate with employers. Workers'
organizations, including trade unions and labor federations, play a crucial role in the ILO's work by
representing the interests of workers and negotiating with employers and governments on issues
related to labor and employment.

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Chapter 8
Labour Reforms
Labour Laws
Labour laws are a set of legal provisions and regulations that govern the rights and obligations of workers,
employers, and trade unions in the workplace. The purpose of labour laws is to protect workers' rights and
ensure a fair and safe working environment.

Labour laws cover a wide range of issues related to employment, including:

 Employment contracts: Labour laws regulate the terms and conditions of employment contracts,
including minimum wages, working hours, and leave entitlements.
 Health and safety: Labour laws require employers to provide a safe and healthy working
environment for their employees, including appropriate safety equipment, training, and protective
measures.
 Discrimination and harassment: Labour laws prohibit discrimination and harassment in the
workplace based on factors such as race, gender, age, disability, and sexual orientation.
 Workers' rights: Labour laws protect workers' rights to freedom of association, collective
bargaining, and the right to strike.
 Termination of employment: Labour laws regulate the procedures and grounds for termination of
employment, including notice periods, severance pay, and unfair dismissal.
 Social security and benefits: Labour laws provide for social security benefits such as health
insurance, pension schemes, and unemployment benefits.

Labour laws vary from country to country, and may be influenced by factors such as political, economic, and
cultural contexts. In many countries, labour laws are enforced by labour inspection agencies, and disputes
between employers and workers may be resolved through labour tribunals or arbitration.

Labour and the Constitutional Rights in India

In India, the Constitution guarantees a range of labour rights and protections for workers, including both
fundamental and statutory rights.

Some of the fundamental labour rights guaranteed by the Indian Constitution include:

 Right to equality: Article 14 of the Constitution guarantees the right to equality before the law and
prohibits discrimination based on caste, race, religion, sex, or place of birth.
 Right to freedom: Articles 19 and 21 of the Constitution guarantee the right to freedom of speech,
expression, and assembly, as well as the right to life and personal liberty.
 Right against exploitation: Articles 23 and 24 of the Constitution prohibit trafficking, forced
labour, and child labour.
 Right to constitutional remedies: Article 32 of the Constitution provides for the right to approach
the Supreme Court for the enforcement of fundamental rights.

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Labour laws during British Period

During British rule in India, the legal framework governing labour relations was primarily designed to meet
the interests of the British colonial government and the Indian capitalists, and did not give adequate
protection to workers' rights.

The first major labour law enacted during the British period was the Factories Act of 1881, which regulated
working conditions in factories. However, the act only applied to textile mills and did not cover other
industries. Subsequently, a number of other labour laws were enacted to regulate working conditions in
different sectors, including mining, plantations, and railways.

Some of the key labour laws introduced during the British period in India include

 Trade Union Act, 1926: This act legalized trade unions and gave them the right to organize and
engage in collective bargaining. However, the act also imposed several restrictions on the formation
and functioning of trade unions.
 Workmen's Compensation Act, 1923: This act provided for compensation to workers in case of
injury or death during the course of employment.
 Industrial Disputes Act, 1947: This act provided for the settlement of industrial disputes through
conciliation, arbitration, and adjudication. However, the act did not give workers the right to strike.
 Minimum Wages Act, 1948: This act provided for fixing of minimum wages for certain categories
of workers.

Despite the introduction of these laws, the working conditions of Indian workers during the British period
were often harsh and exploitative, and workers had limited legal protections. Workers were often subjected
to long working hours, low wages, and hazardous working conditions. The colonial government and the
Indian capitalists often worked together to suppress workers' movements and trade unions.

It was only after India gained independence in 1947 that the Indian government began to introduce more
comprehensive labour laws and policies aimed at protecting workers' rights and promoting social justice.

Post-Independence labour laws

Post-independence labour laws refer to the laws and regulations that were enacted in India after gaining
independence from British rule in 1947, with the primary aim of protecting the rights of workers and
regulating their working conditions. Some of the key post-independence labour laws in India are:

 The Industrial Disputes Act, 1947: This law provides for the settlement of industrial disputes and
lays down the procedures for conducting conciliation and arbitration proceedings.
 The Minimum Wages Act, 1948: This law mandates employers to pay their workers minimum
wages that are fixed by the government.
 The Payment of Bonus Act, 1965: This law requires employers to pay a bonus to their workers
based on the profits earned by the company.
 The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: This law provides for
the establishment of a provident fund scheme, which is a retirement benefits scheme for workers.

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 The Trade Unions Act, 1926: This law provides for the registration of trade unions and lays down
the rules for their functioning.
 The Factories Act, 1948: This law regulates the working conditions in factories, such as working
hours, safety, and health measures.
 The Maternity Benefit Act, 1961: This law provides for maternity benefits such as paid leave for
pregnant workers and the provision of medical facilities.

Labour Reforms undertaken since 2014

The central government proposes to replace 29 existing labour laws with four Codes. The objective is to
simplify and modernise labour regulation.

The major challenge in labour reforms is to facilitate employment growth while protecting workers’ rights.
Key debates relate to the coverage of small firms, deciding thresholds for prior permission for
retrenchment, strengthening labour enforcement, allowing flexible forms of labour, and promoting
collective bargaining.

Further, with the passage of time, labour laws need an overhaul to ensure simplification and updation,
along with provisions which can capture the needs of emerging forms of labour (e.g., gig work). This note
discusses these challenges and the approaches taken by the four Codes.

 Coverage: Most labour laws apply to establishments over a certain size (typically 10 or above).
Size-based thresholds may help firms in reducing compliance burden. However, one could argue
that basic protections related to wages, social security, and working conditions should apply to all
establishments. Certain Codes retain such size-based thresholds.
 Retrenchment: Establishments hiring 100 or more workers need government permission for
closure, layoffs or retrenchments. It has been argued that this has created an exit barrier for firms
and affected their ability to adjust workforce to production demands. The Industrial Relations Code
raises this to 300, and allows the government to further increase this limit by notification.
 Labour enforcement: Multiplicity of labour laws has resulted in distinct compliances, increasing the
compliance burden on firms. On the other hand, the labour enforcement machinery has been
ineffective because of poor enforcement, inadequate penalties and rent-seeking behaviour of
inspectors. The Codes address some of these aspects.
 Contract labour: Labour compliances and economic considerations have resulted in increased use
of contract labour. However, contract labour have been denied basic protections such as assured
wages. The Codes do not address these concerns fully. However, the Industrial Relations Code
introduces a new form of short-term labour – fixed term employment.
 Trade Unions: There are several registered trade unions but no criteria to ‘recognise’ unions which
can formally negotiate with employers. The Industrial Relations Code creates provisions for
recognition of unions.
 Simplification and updation: The Codes simplify labour laws to a large extent but fall short in
some respects. Further, the Code on Social Security creates enabling provisions to notify schemes
for ‘gig’ and ‘platform’ workers; however, there is a lack of clarity in these definitions.

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 Delegated Legislation: The Codes leave several key aspects, such as the applicability of social
security schemes, and health and safety standards, to rule-making. The question is whether these
questions should be determined by the legislature or be delegated to the government.

DETAILS OF LABOUR LAWS

The Bill replace the following 29 central Acts. Table 3 lists the Acts which are being subsumed by the four
labour codes. Table 4 lists some Acts which regulate some aspects of labour but have not been subsumed by
the Codes.

Table 3: Details of Acts which are being subsumed by the four labour codes

Labour Codes Acts being subsumed

Code on Wages, 2019  Payment of Wages Act, 1936;
 Minimum Wages Act, 1948;
 Payment of Bonus Act, 1965; and
 Equal Remuneration Act, 1976
Occupational Safety,  Factories Act, 1948;
Health and Working  Mines Act, 1952;
Conditions Code,  Dock Workers (Safety, Health and Welfare) Act, 1986;
2019  Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996;
 Plantations Labour Act, 1951;
 Contract Labour (Regulation and Abolition) Act, 1970;
 Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979;
 Working Journalist and other Newspaper Employees (Conditions
of Service and Miscellaneous Provision) Act, 1955;
 Working Journalist (Fixation of Rates of Wages) Act, 1958;
 Motor Transport Workers Act, 1961;
 Sales Promotion Employees (Condition of Service) Act, 1976;
 Beedi and Cigar Workers (Conditions of Employment) Act, 1966;
and
 Cine-Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
Industrial Relations  Trade Unions Act, 1926;
Code, 2019  Industrial Employment (Standing Orders) Act, 1946, and
 Industrial Disputes Act, 1947
Code on Social  Employees’ Provident Funds and Miscellaneous Provisions Act,
Security, 2019 1952;
 Employees’ State Insurance Act, 1948;
 Employees’ Compensation Act, 1923;
 Employment Exchanges (Compulsory Notification of Vacancies)
Act, 1959;
 Maternity Benefit Act, 1961;
 Payment of Gratuity Act, 1972;

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 Cine-workers Welfare Fund Act, 1981;
 Building and Other Construction Workers’ Welfare Cess Act, 1996;
and
 Unorganised Workers Social Security Act, 2008

Minimum Wages Code

4 out of the 29 labour codes which exist have been blended under this code in order to provide the
workforce the right to receive minimum wages.

 The highlights of the Minimum Wages Code are as follows:

 Minimum wages must be reviewed after every five years
 Wages must be paid to all the workers on time
 Equal wages must be paid to the female and the male workers
 Provisions of minimum wage abolishes the regional inequality in the minimum wage
 Minimum wages to be decided on the basis of the geographical location and skill level
 Payment of the Wages Act has raised the ceiling of the wages from ₹18,000 to a whopping ₹24,000
 Wage, health, and social security to be provided to more than 50 Crore workforce in the organised
and unorganised sectors

Occupational, Safety, Health and Working Conditions Code

The aim of the OSH Code is to offer the workers safe working conditions. It consolidates the 13 labour
codes in order to ensure the occupational safety and health of the workers at the workplace.

 The workers who migrate from one state to another can register on the online national portal and
create a legal identity for themselves. This will enable them to avail of social benefits, schemes, and
security.
 Employers to sponsor free and mandatory annual health checkups for the employees.
 Employers to sponsor the annual travelling allowances for workers who migrate from one state to
another.
 The construction and building workers who migrate from one state to another to receive an
advantage from the cess funds of the workers.
 The migrant labourers in a particular state as well as their dependents in another state receive the
ration facilities as per the scheme ‘One Nation-One Ration Card’.
 A dedicated helpline number or service for migrant workers to provide them a space to express their
concerns or grievances.
 Creation of a database for the national inter-state migrant labourers.
 One-day leave to be given for every twenty working days.
 Female workers must be allowed to work at every organisation.
 Women workers are free to work at night. However, the employers must make the necessary safety
arrangements, if required.
 Organisations with more than 50 women have to set up a creche facility.
 Maternity leave which is paid for female workers has been raised from 12 weeks to 26 weeks.

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Industrial Relations Code

The IT Code of 2020 colligates the three labour codes and protects the interests of the trade workers and
unions. It also makes sure that no issues arise between the industrial units and the workers in the future.

 Workers who get fired from their job to receive an allowance as per the Atal Bimit Vyakti Kalyan
Yojna
 Workers who belong to the organised sectors and have lost their jobs to receive the unemployment
allowance as per the Atal Bimit Vyakti Kalyan Yojna
 Retrenched workers to get the wages of their 15 days’ work credited to their bank accounts for
working on their skills development
 Speedy settlement of the disputes of the workers and justice to be carried out by a board
 An industrial tribunal with two members to be appointed for the speedy disposal of cases and
disputes
 Trade unions who receive 51% votes should be the workers’ negotiation party
 A trade union council to be formed in order to carry out the negotiations with the employers if every
trade union achieves less than 51% votes

Social Security Code

Nine of the older labour laws have been blended in order to form the Social Security Code of 2020. This
labour code shall offer access to several security schemes such as maternity benefit, pension, insurance,
gratuity, and more

 Hospitals, branches, and ESIC dispensaries to be available for all the 740 Indian districts
 Establishments which are engaged in dangerous work to mandatorily register under ESIC
 Plantation workforce to receive the ESIC benefits
 Employees’ Provident Fund Organisation (EPFO) scheme to be extended to workers and self-
employed workers in both, unorganised as well as organised sectors.
 Workers from every sector to receive access to the ESIC hospitals
 Employers with more than 20 workers to report the vacancies on an online platform
 Workers’ national databases to be created in the unorganised sector by registering on the online
portal of e-shram
 Workers of the unorganised sectors to receive the universal account number (UAN) based on their
aadhar for PF and ESIC scheme benefit
 Gig and platform workers in the tech industry must receive ESIC access
 ESIC benefits to be provided to the workers who are engaged in work which can be hazardous
 Free treatment must be provided at the hospitals and dispensaries, run by the Employees’ State
Insurance Corporation (ESIC), through a minimal contribution
 Minimum service clause to be removed for the gratuity’s payment to the employees who are hired
on a contractual basis

Questions

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1. Which of the following labor reforms was introduced in India in 2016 to streamline labor
inspections and promote ease of doing business?

a) Industrial Relations Code

b) Code on Social Security

c) Occupational Safety, Health and Working Conditions Code

d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules

2. Which of the following labor reforms was introduced in India in 2019 to consolidate and
rationalize multiple labor laws?

a) Industrial Relations Code

b) Code on Social Security

c) Occupational Safety, Health and Working Conditions Code

d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules

3. Which of the following labor reforms was introduced in India in 2020 to extend social security
benefits to gig workers and platform workers?

a) Industrial Relations Code

b) Code on Social Security

c) Occupational Safety, Health and Working Conditions Code

d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules

4. Which of the following labor reforms was introduced in India in 2020 to provide a safe and
healthy working environment for workers?

a) Industrial Relations Code

b) Code on Social Security

c) Occupational Safety, Health and Working Conditions Code

d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules

5. Which of the following labor reforms was introduced in India in 2020 to promote ease of doing
business by reducing the compliance burden on businesses?

a) Industrial Relations Code

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b) Code on Social Security

c) Occupational Safety, Health and Working Conditions Code

d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules

6. Which of the following labor reforms was introduced in India in 2017 to increase the minimum
wage for workers?

a) The Payment of Wages (Amendment) Act

b) The Maternity Benefit (Amendment) Act

c) The Employees' Provident Funds and Miscellaneous Provisions (Amendment) Act

d) The Child Labour (Prohibition and Regulation) Amendment Act

Answer Keys

1. Answer: d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules. This
reform was introduced in March 2016 and aimed to simplify the compliance burden on businesses
by consolidating 13 registers required to be maintained under various labor laws into a single
unified register.
2. Answer: a) Industrial Relations Code. This code, which was introduced in November 2019, aims to
consolidate and streamline three key labor laws related to industrial relations, namely the Trade
Unions Act, the Industrial Employment (Standing Orders) Act, and the Industrial Disputes Act.
3. Answer: b) Code on Social Security. This code, which was introduced in September 2020, aims to
consolidate and rationalize the existing social security laws and extend social security benefits to a
wider range of workers, including gig workers and platform workers.
4. Answer: c) Occupational Safety, Health and Working Conditions Code. This code, which was
introduced in September 2020, aims to consolidate and rationalize the existing laws related to
occupational safety, health, and working conditions, and provide a safe and healthy working
environment for workers.
5. Answer: d) The Ease of Compliance to Maintain Registers under various Labour Laws Rules. This
reform, which was introduced in March 2020, aims to simplify the compliance burden on businesses
by consolidating 12 registers required to be maintained under various labor laws into a single
unified register.
6. Answer: a) The Payment of Wages (Amendment) Act. This act, which was introduced in April 2017,
aimed to increase the minimum wage for workers and make it mandatory for employers to pay
wages through electronic means.

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