13 – Industrial Relations

Introduction to Industrial Relations

The word “industrial relations” refers to the relationship between employees and management that results from the union-employer relationship, either directly or indirectly.

Industrial relations refer to the interactions between employees and employers within organizational settings. The study of industrial relations focuses on interactions between employers and employees, particularly those who are part of unionized groups. Industrial relations also refer to the contacts between employers, employees, and the government, as well as the institutions and groups that mediate these relationships.

The phrase “industrial relations” has broad and narrow meanings. Initially, “industrial relations” refers to the interactions and connections between employers and employees. In this context, industrial relations encompasses all facets of the working relationship, including human resource management, employee relations, and labour relations. Its meaning has narrowed and become more particular. As a result, industrial relations is concerned with collective bargaining, trade unionism, and labour-management interactions, whereas human resource management is a separate, essentially different topic concerned with non-union employment relationships and company personnel practices and policies.

‘Industrial Relations’ consists of two terms: ‘industry’ and ‘relations.’ Industry is defined as “any productive activity in which an individual (or a group of individuals) is engaged.” Relations are the relationships that exist inside the industry between the employer and his workmen.”

Industrial relations refers to both industry and relationships. Industry refers to “any organisation in which an individual is employed,” while relations refers to “industry relationships.”

According to the ILO, “Industrial relations” refers to “either the interaction between the state and employer” organisations or the relationship between occupational organisations themselves.

Harmonious labour-management interactions are vital for achieving industrial peace and increased production. Dissatisfaction builds and disputes emerge unexpectedly when the parties’ connection is not friendly. Putting out fires using the government’s existing dispute-resolution mechanism is not always possible. As a result, labour and management must value openness, trust, and collaboration in their daily interactions.

13.1 Nature

1. Employer-employee Interactions: Employer-employee interactions are the source of industrial relations. Without the basic building pieces, namely, the employer on one side and the employees on the other, these relationships would not exist. (Kumar)
2. The Interaction of Government, Industry, and Labour: Industrial relations are a ‘web of norms’ generated by the interaction of the government, industry, and labour. They include relationships between employers and employees, as well as between employers’ groups, labour unions, and the government.
3. Multidimensional: Industrial relations are multidimensional due to a complex collection of institutional, economic, and technological factors influencing them.
4. Dynamic and Changing: Industrial relations evolve, often in response to employees’ expectations, trade unions, employers’ groups, and other economic and social institutions. These societal elements and the legal framework generally impact the course of industrial relations within a country.
5. Spirit of Compromise and Accommodation: There are forces of conflict and compromise on both sides of the industrial relations system. Both the employer and the employees must put out fires cordially and get along in a spirit of compromise and accommodation in the wider interests of society. Persuasion and even force are necessary to resolve individual conflicts and differences. Conflicts must be resolved constructively by addressing the elements that cause them.
6. The Government’s Role: The government shapes and impacts labour relations through laws, rules, agreements, court rulings, and a focus on usages, customs, and traditions. It also implements its policies and is involved through the executive and judicial apparatus.
7. Broad Scope: The field of industrial relations is broad enough to encompass grievances, disciplinary actions, ethics, standing orders, collective bargaining, and participatory schemes.
8. Interactive and Consultative in Nature: Industrial relations are interactive and consultative, encompassing individual relationships and collaborative consultation between labour, management, unions, the state, and others. They emphasise the need for compromise and accommodation above conflict and controversy in resolving labour-management problems.

13.2 Importance

In a broader sense, industrial relations refer to the interaction between one employee and another employee during an industry’s demise, and they can extend to a sphere that includes quality control. The association of numerous people, including workers, management, and the employer, results in an industrial relationship. To put it another way, industrial life develops a set of social relationships that govern the interaction between workers and managers and the way they operate together.

1. The relationship between a union and management is called the labour-management relationship.
2. Employer-employee Relationship: Management-employee Relationships.
3. The relationship between various groups of workers is referred to as a group relationship.
4. Industry-society relations, often known as community or public relations,.

The final two are usually studied as part of a larger field called sociology rather than as part of industrial relations. The following are the most essential characteristics of labour relations:

1. Healthy labour-management ties should be promoted and developed.
2. Maintaining industrial peace and avoiding industrial conflict, as well as
3. Industrial democracy’s evolution.

Building Healthy Labour-Management Relationships

1. Existence of robust, well-organized, democratic, and accountable trade unions and employers’ associations. These organisations also provide vantage points for mutually beneficial negotiations, consultations, and discussions, resulting in positive labour-management relations.
2. Enthusiasm for collective bargaining and willingness to use voluntary arbitration if necessary. Collective bargaining recognises the equality of status between opposing and competing organisations. It lays the groundwork for conversations, consultations, and negotiations on issues of common interest to both industry and labour in an atmosphere of trust and goodwill.
3. Welfare work—whether statutory or non-statutory—is provided by state trade unions and employers to preserve and enhance labour-management relations in the industry and attain peace.

Preservation of Industrial Peace

The lack of industrial strife is a prerequisite for industrial peace. When the government provides the necessary facilities and bipartite and tripartite consultations are held to resolve the differences between the two competing parties, such peace can be achieved.

In the form of legislative and administrative enactments, such as the Trade Union Act, the Dispute Act, the Industrial Employment (Standing Industrial Order) Act, work committee and joint management council, action officer and board of conciliation, labour courts, industrial tribunals, nation tribunals, courts of inquiry, and provision for voluntary arbitration, machinery should be set up for the prevention and resolution of industrial disputes.

When a situation gets out of hand and the industry faces economic collapse as a result of extended strikes and lockouts, the government should have the authority to send the matter to adjudication. When there is a threat of foreign attack or manufacturing must continue uninterrupted.

The government has the authority to keep things as they are. After referring the matter to arbitration, the government can use this power if it deems that either side is extending the strike or lockout and that the strike or lockout is likely to harm community life and cause industry disruption.

Establishing bipartite and tripartite dispute-resolution forums. These forums operate under the Code of Discipline in Industry, the Code of Conduct, the Model Standing Order for Efficiency and Welfare, Grievance Procedures, and the employer’s voluntary recognition of trade unions. These non-statutory measures must satisfy both the employer and the workforce.

Development of Industrial Democracy

1. Establishing a shop council and a joint management council at the floor and plant level is needed to improve employee working and living circumstances and increase production. Encourage employee suggestions to assist in the administration of legislation and agreements, serve as a communication channel between management and employees, and instil a sense of participation in the decision-making process and a sense of belonging to the industry in employees.
2. Industrial recognition of human rights: This means that labour is not a commodity of commerce that can be bought and sold according to the whims and caprices of employees. Employees should be treated as human beings with a sense of self-respect and a better understanding of their role in the organisation.
3. Increase labour productivity: Advances in worker effort and skills, as well as improvements in the production process and material equipment gained through worker research and development, including special studies and technological development elsewhere, all contribute to higher productivity.
4. The availability of a good working environment: These surroundings stimulate, depress, improve, or degrade labour-management relations.

According to Lester, industrial relations entail attempting to reconcile conflicting objectives and values, such as profit motive versus social gain, discipline versus freedom, authority versus industrial democracy, bargaining versus cooperation, and conflicting individual, group, and community interests.

As a result, the key to advancement and success is a healthy industrial relationship. Their importance can be discussed as follows:

1. Continuous Production: The most crucial advantage of industrial relations is ensuring production continuity. This means everyone, from managers to labourers, will be employed indefinitely. The resources are used to their greatest potential, producing the highest possible output. There is a steady stream of revenue for everyone. The smooth operation of an industry is critical for various other sectors, including different industries if the products are intermediaries or inputs, exporters if these are export commodities, and consumers and workers if they are mass-market items.
2. Reduced Industrial Conflicts: Industrial disputes are reduced when good working ties exist. Disputes result from basic human drives or motivations failing to find enough fulfilment or expression, which healthy workplace relations can completely alleviate. Strikes, lockouts, go-slow tactics, gherao, and grievances are examples of industrial disturbances that do not occur in an environment of industrial peace. Good working ties aid in the promotion of collaboration and the increase of output.
3. High Morale: Employee morale is improved by good labour relations. Employees labour with considerable enthusiasm, knowing that the employer’s and employees’ interests are the same to enhance productivity. Every employee believes he is a co-owner of the company’s profits. In exchange, the employer must recognise that the benefits of industry are not solely for him but should be shared equitably and liberally with his employees. In other words, the essential achievement of industrial peace is total unity of thought and action. It elevates the status of workers in society and satisfies their ego. It naturally impacts productivity because even the most tremendous cooperative efforts are insufficient.
4. Mental Revolution: The primary goal of industrial relations is for workers and employees to undergo a thorough mental transformation. The key to achieving industrial peace is for both parties to change their mindsets. Leadership is responsible in the ranks of workers, employees, and the government to forge a new relationship based on true democracy. Both should see themselves as industrial partners, and the importance of workers in such a collaboration should be acknowledged. On the other hand, workers must respect their boss’s authority. Because they identify each other’s interests, it will inevitably impact productivity.
5. Reduced Waste: Good industrial relations are maintained via collaboration and mutual appreciation, which aids in increasing output. Wastes of manpower, materials, and machines are kept bare minimum, safeguarding the national interest.

As a result, solid industrial relations are the foundation for increased productivity at lower costs and higher profits. It also leads to enhanced labour efficiency. New and innovative projects may be implemented to benefit employees and boost workplace morale. Only in an atmosphere of industrial peace can an economy organised for planned production and distribution to achieve social justice and the welfare of the community function efficiently. If the twin goals of rapid national development and enhanced social justice are to be met, a harmonic link between the two must be established.

13.3 Collective Bargaining Agreements

Collective bargaining involves agreements between workers’ bargaining agents and their employers governing the terms and conditions of their employment. The primary goal of collective bargaining is to reach an agreement on salaries and other working conditions. Although the company and the employees may have opposing viewpoints at the start of the process, they eventually strive to find a compromise by making certain concessions. The parameters of the agreement are put into effect as soon as a compromise is achieved.

The core concept of collective bargaining is that the relationship between the employer and the employee should not be decided unilaterally or with the involvement of a third party. Both parties must voluntarily resolve their disputes through discussions, making some concessions and sacrifices. Both parties should deal from a position of strength; no attempt should be made to exploit one party’s deficiencies or vulnerability. The collective bargaining process has changed dramatically due to the global rise of unions and the formation of employer groups. To varying degrees, both parties have realised the necessity of peaceful coexistence for their mutual benefit and future advancement.

13.3.1 Features

The following are some of the most important aspects of collective bargaining:

1. Collective: There are two ways to make it collective. The first is that all workers bargain together for their shared interests and benefits. The alternative option is for workers and management to negotiate an amicable settlement together.
2. Strength: Both parties bargain from a position of equal strength across the table. Both parties have equal bargaining power in collective negotiations. At work, it’s industrial democracy.
3. Flexible: Collective bargaining is a collaborative action in which representatives from workers and management pool their resources to reach an agreement. It has enough flexibility because no one can afford to be stiff and inflexible in such a situation. The distinctive element of collective bargaining is that the parties frequently begin negotiations with completely opposing viewpoints but eventually achieve a compromise that is acceptable to both. As a result, it is a two-way street rather than a one-way street.
4. Voluntary: Both workers and management come to the bargaining table freely to have meaningful conversations about a variety of topics that bother them. They try to get a good understanding of each other’s points of view before agreeing. The procedure for implementing the agreement is also voluntary.
5. Ongoing: Collective bargaining is a never-ending process. It doesn’t start with discussions but ends with a conclusion. The agreement is simply the start of the process, which covers both the agreement’s execution and future negotiations.
6. Dynamic: Collective bargaining is a dynamic process since agreements are reached and executed, and the mental makeup of the people involved changes over time. As a result, the concept itself has become obsolete.
7. Power Relationship: Workers seek to get as much as they can from management, and management wants to get as little as possible from workers. To establish an agreement, both parties must recalibrate their positions and accept less than what is demanded while giving more than what is offered. By doing so, management strives to maintain control over the workplace, while unions try to tighten their grip on employees without sacrificing their influence.
8. Representation: The main participants do not act for themselves in collective bargaining. They represent labour and management’s claims while attempting to reach an agreement. The employer does not deal directly with workers in the collective negotiations. He negotiates with union representatives who are authorised to bargain with the company over work-related issues.
9. Bipartite Process: The concerns are immediately discussed between the employers and the employees across the table. No third party is involved.
10. Complicated: Collective bargaining is a complicated process that involves various methods, techniques, and tools, such as negotiation preparation, timing, negotiator selection, agenda, laborious negotiations, agreement construction, ratification, and enforcement.

13.2.2 The Goals

The following are the main goals of collective bargaining:

1. To resolve wage and working conditions issues and controversies.
2. To use collective action to preserve the interests of workers.
3. To settle conflicts between employees and management through voluntary dialogue.
4. To avoid third-party intrusion in employment-related concerns.

13.3.3 The Collective Bargaining Process

In the collective bargaining process, the following steps are involved:

1. Problem Identification: The nature of the problem has an impact on the entire process. It also impacts the number of representatives chosen, their size, the length of discussions, and the time it takes to reach a final agreement. As a result, all parties must be clear on the issue before beginning negotiations.
2. Data Collection: Both labour and management collect data on grievances, disciplinary actions, transfers and promotions, layoffs, overtime, previous agreements covering wages, benefits, and working conditions (internal sources), current economic forecasts, cost of living trends, wage rates in various occupations, competitive terms offered by rivals in the field, and so on.
3. Negotiator Selection: The skills and knowledge of the negotiators determine whether collective bargaining is successful. As a result, a significant amount of time should be spent selecting negotiators with the necessary qualifications. They must be able to listen, speak, stand their ground, surrender, horse-trade, and offer counter-proposals as necessary. The importance of timing cannot be overstated. Effective public speaking and debating abilities are required.
4. Negotiation Climate: Both parties must decide on a reasonable time and create a conducive environment for first conversations. The parties must decide whether the tone of the negotiations will be one of confidence with “nothing under our sleeves,” suspicion with a lot of distortion and deception, or hate with a lot of name-calling and accusations at this stage.
5. Tactics and Strategies for Bargaining: The strategy is the plan and policies that will be pursued at the negotiation table. The specific action plans developed during the bargaining sessions are known as tactics. Writing down your plan and tactics in black and white is critical.
6. Formalizing the Agreement: When a solution is reached through ‘good faith bargaining,’ in which both parties make every reasonable effort to reach an agreement and proposals are matched with counter-proposals, a formal document must be prepared that expresses everything in a simple, clear, and concise manner.
7. Enforcing the Agreement: Collective bargaining does not cease when the agreement is signed. Both parties must comply to the agreed-upon terms and implement everything meticulously for the agreement to be relevant and practical.

13.4 IR Approaches

Several socioeconomic, psychological, and political elements influence labour relations. As a result, a variety of techniques have been employed to explain the multifaceted nature of industrial relations:

1. Psychological Methodology: According to psychologists, differences in labour and management views are to blame for difficulties in industrial relations. Both sides look at things that influence their relationships differently, such as pay, benefits, working conditions, etc. Workers dissatisfied with their pay, perks, services, or working conditions become enraged and resort to strikes, gheraos, and other forms of protest. When employers perceive the legislative framework to be restrictive, workers to be overly demanding, and market pressures to be unmanageable, they take stiff postures and close their doors. Apart from economic considerations, motivations such as the desire for prestige, power, position, and recognition push people to move in different directions, often at the expense of the organization’s overall interests.
2. Sociological Perspective: The relationship between labour and management is influenced by various sociological elements, such as the value system, customs, and traditions. Urban congestion, a persistent shortage of affordable housing units, a convenient transit system, pollution, the breakdown of the joint family system, and other issues make workers’ lives more difficult. In such a scenario, accepted societal conventions, traditions, and practices are thrown out the window. Culture pollution begins to take hold, rubbing employees the wrong way. Such sociocultural changes profoundly impact business life, pushing parties to constantly review, analyse, and find solutions to conflicting situations.
3. Human Relations Approach: According to the human relations approach, numerous social and psychological factors influence motivation in addition to money. Feelings, sentiments, and attitudes have an impact on human behaviour. Informal work groups play a significant role in shaping individual workers’ attitudes and performance—the idea of being handled like a machine is unpopular. Managers must have strong social skills to reduce workplace friction and conflict. They must explain why a particular job is vital, allow workers to participate in work processes fully, promote the growth of work groups, and do all possible to keep employees pleased. From time to time, economic and non-economic rewards must be used to address workers’ physiological and psychological needs. To avoid conflict and controversy in the workplace, every effort should be made to combine individual and general organisational goals.
4. Giri Methodology: According to former Indian President V.V. Giri, collective bargaining and cooperative talks should resolve labour-management problems. While resolving conflicts between the parties, outside interference must be avoided. Trade unions should employ voluntary arbitration rather than mandatory adjudication to resolve disagreements. ‘Every industry and every unit of industry should have a bipartite machinery to settle disagreements from time to time with active government assistance,’ Giri said. Industrial harmony should not be jeopardised by outside intervention.’
5. Gandhian Approach: Gandhi ji recognised the right of workers to strike, but he emphasised that this right should only be exercised for a good reason and in a peaceful, nonviolent manner. He promotes the trusteeship theory, emphasising that wealth belongs to society rather than business owners. Owners are there to serve society’s interests. Workers must appeal to their conscience if employers fail to pay minimum wages. They should resort to nonviolent non-cooperation if this does not yield results (Satyagraha). Before implementing this technique, workers must believe in their collective might and recognise that capitalists cannot achieve outcomes without their active involvement. The capitalist must hold the industry in trust for society in his self-interest, treating employees as partners and co-trustees in a progressive venture.
6. HRD Methodology: Human Resource Development, as Ishwar Dayal correctly points out, entails (i) techniques to better adapt an individual to his job and environment, (ii) the employee’s most profound participation in many elements of his work, and (iii) the most excellent care for increasing the individual’s skills. Employees are seen as the most valuable assets in a company, and HRD thinks they can be developed to their full potential with the right incentives, environment, and treatment. Human needs can be integrated with organisational requirements. Employees are willing to contribute their best to the organisation if the manager has a caring, helping attitude toward them and promotes a good work environment (openness, enthusiasm, trust, mutuality, and collaboration). As a result, managers must create a compelling environment in their self-interest for staff to commit to assigned responsibilities fully.

In the HRD approach, the manager wears multiple hats, including those of a developer, counsellor, coach, mentor, and problem solver. He strives to integrate work, trains and educates employees, acts as a change agent, and provides a safe and healthy working environment. Traditional positions such as police officer, supervisor, appraiser, legal advisor, and firefighter, as seen in organisations with strained labour relations, undergo a fundamental metamorphosis in which labour-management ties are based on mutual trust, understanding, and cooperation.

Work redesign and job enrichment are two HRD interventions that could be effectively utilized to make occupations more engaging for employees. Role analysis and a clear description of the task the employee is to perform could help to prevent role conflicts. Team-building exercises could be used to foster cooperation among employees and between labour and management. Counselling and coaching sessions could be scheduled from time to time to deal with troublemakers. An atmosphere of open, transparent communication would make it much easier to put out flames. Many additional industrial relations issues could be solved more easily with training and feedback sessions. To tackle some of the troubling IR challenges, managers should focus on:

1. Define your objectives.
2. Empower individuals at all levels by rewarding performance.
3. Treat others with respect.
4. Make use of communication channels that are both one-way and two-way.
5. Resolve disagreements in an atmosphere of mutual respect and understanding.

13.5 Labour Union

All organisations of employees, both salaried and professional workers and manual wage earners, that are known to include among their tasks the negotiation with their employees to control working conditions” are known as trade unions. The Ministry of Labour in the United Kingdom.

Dale Yoder defines a trade union as “a continuous and long-term workers organisation dedicated to achieving a defined goal of protecting the interests of its members and improving labour relations.”

A trade union is a group of employees who band together to promote the welfare of their members’ social, economic, and potential interests, as well as to keep them safe and enhance them.” —Edwin B.Flippo

13.5.1 Trade Union Nature and Characteristics

1. A trade union is a long-standing organisation of workers. Trade unions aren’t one-time or causal relationships.
2. A trade union might be made up of either employees or self-employed workers.
3. In essence, the union is a “cooperative labour marketing association.” It is a group of workers that are attempting to secure financial gain (sometimes social, political and cultural benefits) for their members).

13.5.2 Trade Union Objectives, Function, and Role

1. To better living and working conditions.
2. To provide responsive cooperation in improving production and productivity, as well as discipline and a high-quality standard.
3. To ensure that workers are paid fairly.
4. Increase possibilities for advancement and training.
5. To foster the workers’ sense of belonging to their industry.
6. To collaborate and assist technological advancement by widening workers’ understanding of the challenges that underpin it.
7. To promote personal and collective well-being.
8. To provide educational, cultural, and recreational opportunities
9. To ensure tenure security and improve working conditions.
10. Instilling in its members a sense of industry and community duty.
11. Unions must also undertake some social responsibilities, such as promoting national integration.
12. Having a general impact on the community’s socioeconomic policies by actively participating in their creation at various levels.

13.5.3 Trade Union Benefits and Importance

Labour, the industrialist society, and the country all benefit from trade unions. The presence of those groups benefits every group. The following are the benefits to various groups:

Labour’s Advantages

Trade unions provide the following benefits to labour:

1. Lessening the likelihood of labour exploitation.
2. It brings the labour force together.
3. Open the overall door.
4. Workers are given the option to take part in management.
5. Increased efficiency as a result of the better working environment.
6. Labour receives economic and recreational benefits.

Employers and Industrialists Benefits

Industrialists benefit from trade unions in the following ways:

1. Collective bargaining and collective negotiations can help to avoid conflict.
2. During times of industrial conflict, the union can assist in resolving the dispute.
3. Unions foster feelings of solidarity, cooperation, and fraternity, all of which lead to the collaboration in work.
4. Unions educate, train, and entertain workers, resulting in a trained, conscious, and successful workforce for the industry.

Benefits to Society and the Country

Labour unions are the representatives of labour who bring the issue of labour’s views, feelings, and welfare to the attention of the government. In this approach, society and the country have a better understanding of the country’s manpower, allowing the government to enact labour policies and regulations that are consistent with the country’s manpower conservation and prosperity. In a nutshell, unions encourage productivity, labour cooperation, and other factors to provide a solid foundation for the concept of a permanent and conscious labour force for the country’s overall growth.

13.5.4 Trade Union Weaknesses

1. The majority of trade unions are small and have a modest membership. As a result, they are unable to enlist the support of exporters to counsel, guide, and assist them in dealing with the challenges that employers pose.
2. Politicians have gained influence over labour union activities. As a result, labour unions are weaker than they should be.
3. Rather than focusing on workers’ welfare, trade unions have become the focal point of political activity.
4. Small unions have a weak financial bargaining position and are unable to have a significant impact.
5. The government’s support for weak and reliant labour unions.
6. Slow-growing trade unions have not transformed into voluntary groups due to:

• Moral idealism regarding aims and hope about attaining them.
• The government’s support for weak and reliant labour unions.
• The government’s unrealistic labour policies.

7. Union rivalry and political engagement by union leaders have weakened the trade union movement.

8. Trade union activity is primarily in metropolitan areas with large-scale manufacturing.

13.5.5 Reasons for India’s Slow Trade Union Progress

The National Commission on Labour has made the following recommendations to improve trade union functioning, namely, enhancing union negotiating power. The following factors have been highlighted as contributing to India’s slow growth of trade unions:

1. Rivalries: The commission has advised that the central organisation settle intra-union rivalries as far as possible to prevent conflicts originating from multiple unions.
2. Political Influences: The commission believed that internal leadership within the union should be built from within the rank and file and given a more responsible role Initiative should come from workers themselves through the launch of a programme for workers’ education to eliminate politics and outsiders.
3. Registration: According to the commission, registration should be cancelled if membership falls below the minimal threshold or if unions fail to file returns promptly.
4. Financial Crisis: To improve the union’s financial situation, the commission proposed increasing membership costs to one per month.

13.5.6 India’s Trade Union Movement’s Weaknesses

In India, the first union (named the Bombay Mills Hands Association) was founded in Bombay in 1890. Workers needed a way to protect and defend themselves from encroaching injustice and wrongdoing, so trade unions were formed. In India, there are currently about 43,000 registered workers’ unions and ten central labour organisations. The purposes and roles of trade unions have evolved, particularly after independence. Today, more than 60 lakh people are members of central unions. The functions of a trade union include not just the protection and improvement of pay and working conditions, but also the consideration of all issues that may affect workers. Despite its social and legal relevance, trade unionism has been plagued by a variety of issues for a long time and continues to do so to some degree, including:

1. Many unions have congregated in urban areas, which are home to large-scale enterprises.
2. The amorphous and loose structure of trade union organisations, as well as casteism, regionalism, and lingualism, have dangerously separated employees into many diverse groupings, leading to intra-union disputes and hostile attitudes toward employers.
3. Unions have grown extremely political as a result of historical and institutional circumstances, as well as developments in the socioeconomic and political fields. It has severely undermined the labour movement as a whole.
4. Trade unions have become unproductive and redundant as a result of low membership and failed strikes.
5. The employer’s attitude toward trade unions is negative. Employers have intimidated and victimised labour leaders for decades, establishing rival unions, bribing union officials, and exploiting them to take advantage of communal issues.

13.6 Industrial Conflicts

Industrial conflict is a broad term that refers to a variety of situations. It becomes an industrial conflict when it takes on certain dimensions. In different nations, words like “industrial conflict,” “labour dispute,” and “trade dispute” are used to distinguish between employers and workers.

“Industrial dispute” is defined as “any dispute or difference between workmen relating to the employment, non-employment, term of employment, or conditions of labour of any individual,” according to Section 2(k) of the Industrial Dispute Act of 1947.

To constitute an industrial dispute, a disagreement must meet the following criteria:

1. There must be a disagreement or conflict (a) between employers (b) between employers and employees (c) between employers and employees.
2. It has to do with employment or non-employment, terms of employment, or working conditions of any kind, or it has to do with any industrial concern.
3. A worker does not earn more than $1,600 per month.
4. A contract with the actual employees should result in a working relationship between the employer and the employees.
5. There should be an industry, as well as an employer and employees. A “collective will” of a significant number of workers must take up the aggrieved workers’ cause. It must first be discussed with management and rejected, i.e., the employer must be able to resolve the issue.

Every company, on the other hand, would prefer to avoid any form of confrontation for as long as feasible. It is essential for a business’s smooth and peaceful operation that it does not encounter any conflicts. There is no place, however, where there are no misunderstandings or misalignments of different people’s perspectives. When there are a large number of people present, conflict is inevitable. As a result, managers and other relevant authorities must focus on lowering the likelihood of disagreements emerging. There are a variety of approaches that can be used to avoid conflicts. However, despite implementing all possible preventive steps, disputes sometimes happen, and it is then necessary to have effective settlement processes in place to resolve the issues. A brief review of the preventive and settlement techniques commonly used by different firms in addressing conflicts is presented below.

13.6.1 Disputes in the Workplace

The numerous types of labour disputes can be summarised as follows:

Strikes

A strike is a temporary and coordinated absence of labour from production. It is a collective work stoppage by a group of employees to persuade their bosses to accept particular requests. The Industrial Disputes Act of 1947 defines a strike as “a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment by a body of persons” employed in an industry acting in concert, or a concerted refusal or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment. There are numerous sorts of strikes:

1. Sympathetic Strike: A sympathetic strike is one in which workers go on strike to show solidarity with workers in other industries.
2. General Strike: A general strike is when all or most of the unions in a particular industry or region go on strike.
3. Unofficial Strike: This is a strike carried out without the permission of the unions.
4. Sectional Strike: A section of a specific class of workers refuses to execute their regular duties.
5. Bumper Strike: This is a strike in which the unions prepare to shut down the industry one by one, in the order that the union chooses. Contributions from those who are still working support strikes.
6. Sit-down Strike (also known as a stay-in, tool-down, or pen-down strike): This is a strike in which workers stop working but do not leave the workplace.
7. Slowdown Strike: Also known as a ‘go-slow’ strategy, workers do not stop working but disrupt the normal flow of events.
8. Lightning Strike: If provoked, workers may go on strike without warning or extremely short notice. Wildcat strikes have an element of surprise about them.
9. Hunger Strike: To elicit public sympathy and the attention of the employer, workers may decide to go without meals for a set amount of time. Small groups of employees could potentially engage in a relay hunger strike. Nonviolent protests like these usually put moral pressure on companies to resolve labour disputes swiftly.

Lock-outs

The opposite of a strike is a lockout. It is the employer’s weapon for shutting down production until the workers agree to resume work under the employer’s conditions. “The shutting of a place of employment, or the suspension of work, or the refusal of an employer to continue to employ any number of employees hired by him,” according to the 1947 Industrial Disputes Act. Employers may choose to lock out workers if they are unable to meet their expectations. An employer may also close the shutters to put psychological pressure on employees to accept their terms or face the unit being closed down.

Gherao

Gherao is a word that means “to encircle.” In this strategy, a group of workers organises a collective action to keep management members from leaving the workplace. This can also happen outside of the factory. Gheraos are not permitted to move for an extended period, sometimes even without food or water. While refusing to acknowledge it as a form of industrial protest, the National Commission on Labour believes that gheraos inflict physical hardship (rather than economic pressure) on those affected, endangering not just industrial harmony but also creating law and order issues.

Boycotting and Picketing

Workers often carry/display signs, banners, and placards (related to the dispute) while picketing, preventing others from entering the workplace and persuading others to join the strike. Boycotting is a strategy for causing an organization’s routine operations to be disrupted. Striking employees use forceful appeals and unpleasant behaviour to dissuade others from accessing the workplace and urge them not to cooperate with the company.

13.6.2 Causes of Industrial Conflicts

The following are some of the most common reasons of labour disputes:

1. Employment: This category includes conflicts over wages, allowances, bonuses, benefits, working conditions, wrongful dismissals, worker retrenchment, job evaluation methods, changes in production methods, non-implementation of tribunal rulings, and so on. “Though the majority of industrial conflicts were based on claims about terms and circumstances of employment, sometimes economic concerns of a general character dominated and, on occasions, solely economic issues predominate,” the National Commission on Labour observed.
2. Nationalization: Fearing large-scale retrenchment, workers rebelled against the introduction of rationalisation, automation, and computerization (e.g., Bank unions resist this approach even now).
3. Administrative Causes: These include mistreatment, unjust punishment, verbal abuse, and physical attacks, among other things.
4. Employers’ failure to recognise a union as a bargaining representative resulted in disputes.
5. Sympathetic Strikes: Workers in one plant or industry went on strike to show sympathy with striking workers in another plant or industry.
6. Psychological/social causes: On occasion, employees were prompted to take to the streets by family, friends, community, environmental pressures, and worries.
7. Institutional Causes: Disputes developed due to institutional issues such as union recognition, membership, collective bargaining scope, and unfair practices.
8. Political Motives: On some occasions, political leaders have utilised unions as effective weapons to inflame tensions within a plant/industry to achieve their own goals, particularly in unionised areas such as Mumbai, Ahmedabad, Kanpur, and Calcutta.

13.7 Preventive Dispute Resolution Equipment

The measures employed to prevent disagreements in any industry are as follows:

13.7.1 Tripartite Bodies

The Whitley Commission suggested in 1931 that workers be consulted on labour issues based on the I.L.O.’s trends. It envisioned a statutory organisation that would be large enough to ensure adequate representation of the diverse interests concerned, but not so huge that members would be unable to contribute individually to the talks. Employer, labour, and government representatives should convene at a conference regularly. The group also proposed that registered trade unions elect labour members while employer representatives be elected by their respective organisations. However, the recommendation was not followed through on, and nothing could be done until the start of World War II, which forced the necessity for industrial peace.

The Fourth Labour Conference, convened in August 1942, established a permanent tripartite collaboration apparatus and established a preliminary labour conference (later renamed the Indian Labour Conference-ILC) and a standing Labour Advisory Committee (later dropped). The obtaining in the ILC dictated the pattern of representation. It ensured:

1. Equal representation for government and non-government representatives;
2. Parity between employers and employees;
3. Nomination of representatives of organised employers and labourers was left to the appropriate organizations and
4. Ad hoc representation of specific interests through government nomination. Delegates have the option of bringing one official and one non-official advisor.

The Indian Labour Conference, the Standing Labour Committee, and the Conventions Committee are all part of the Indian Labour Conference.

I.L.C. and S.L.C. are both essential components of tripartite bodies. They have a significant impact on the country’s tax system. The following are brief descriptions of these bodies:

Indian Labour Conference (ILC)

The ILC’s mission is to “advise the Government of India on any topic presented to it for guidance, taking into account suggestions made by provincial governments, states, and representatives of workers’ and employers’ organisations.” The Central Government, in cooperation with all India workers’ and employers’ groups, nominated representatives of employees and employers to these boards.

The ILC’s goals are to:

1. promote uniformity in labour policy;
2. establish a system for resolving industrial disputes and
3. discuss all problems of national concern involving employers and employees.

The Indian tripartite consultative machinery’s norms and processes are substantially in line with the recommendations of the ILO Committee on Consultation and Cooperation. The following guidelines have been proposed in this regard:

1. Use of flexible procedures;
2. Calling meetings only, when necessary, with adequate notice of the meeting and the agenda;
3. Referring certain items to working groups if necessary;
4. Avoiding voting procedures in reaching conclusions to facilitate consultation;
5. Keeping detailed records of discussions and circulating the conclusion reached to all participants;
6. Documentation of reference; and
7. Provide an effective secretariat and a modest representative steering grant in the case of more formal consultative machinery.

Standing Labour Committee

The Plenary Conference or the Central Government may present matters to the Standing Labour Committee, and its primary responsibility is to “study and examine such matters and to offer advice taking into account suggestions made by various governments, workers, and employers.”

The Labour Ministry decided on the agenda for ILC/SLC meetings after considering the ideas it received from member groups. These two bodies functioned with the bare minimum of procedural norms to allow for more open and in-depth talks among their members. The ILC meets once a year, while the SLC meets on a need-to-know basis.

Conventions Committee

In 1954, a three-man tripartite committee was formed. The goals were to:

1. Analyse ILO conventions and recommendations that India has not yet ratified, and
2. Offer recommendations for a phased and rapid implementation of ILO standards.

Industrial Committees

The ILC’s eighth session (1947) agreed to establish Industrial Committees “to address various specialised problems unique to the industries they serve and provide their report to the conference, which would coordinate their work.” These are tripartite bodies in which the number of workers’ representatives equals the number of employers’ representatives. They don’t convene regularly; sessions are rethought each time a session is called.

These committees provide a venue for discussing proposed legislation and other subjects relating to labour policy and administration before they are presented to the legislature, allowing for easier passage of the law.

In 1947, the first Industrial Committee was formed. Plantations, cotton textiles, jute, coal mining, non-coal mines, cement, tanneries and leather goods manufacture, iron and steel, building and construction industry, chemical industries, road transport, engineering industries, metal trades, electricity, gas and power, and banking mainly were represented on these committees.

Committees with a Tripartite Structure

Aside from numerous committees, there are a few more tripartite bodies that play an important role:

1. Wage Steering Committee
2. Implementation and Evaluation Mechanisms at a Central Level
3. Workers’ Education Central Boards
4. National Productivity Council (NPC)

13.7.2 Bipartite Bodies

The works committees and joint management councils are two significant components of the bipartite consultative apparatus. These are not negotiating bodies, but rather consultative ones. This consultative joint machinery, which includes equal representation from employers and labour, was created to deal with plant and machinery conflicts.

The value of bipartite consultative machinery was first recognised in 1920 when the Indian government established a few joint committees as part of a controlled procedure.

Later, in 1922, the Buckingham and Carnatic Mills in Madras established a workers’ welfare committee to maintain constant contact with the workers. A handful were also started in private and government-owned businesses.

However, the outcomes were, on the whole, fairly unsatisfactory. The First-Five-Year Plan emphasised the necessity of bipartite dialogue even more. The following are the two main components of tripartite consultative machinery:

Committees of Work

These committees have been hailed as the most effective social institution of industrial democracy, as well as a formal body established within industrial units with representatives from management and workers for preventing and resolving industrial conflicts at the unit level. Any company with 100 or more employees can form a works committee. Its goals are to:

1. Eliminate sources of friction in the workplace by providing an effective grievance-resolution mechanism;
2. Encourage measures that ensure good relationships.
3. To be a useful adjunct in developing a long-term bargaining relationship;
4. To strengthen the spirit of voluntary settlement, reducing the need for conciliation, arbitration, and adjudication.

These are attained by commenting on topics of concern or attempting to compose any material differences of opinion on such issues.

Committee on Works Composition

A works committee comprises representatives from the company and the workers on the job. The number of workmen’s representatives must not be smaller than the number of employer’s representatives. The composition committee is set up in such a way that the various categories, groups, and classes of workers, as well as the sections, shops, or departments of the enterprises, are represented. There must be a maximum of 20 participants in the group. The employer’s representatives should all be from the technical, managerial, or supervisory categories, and should be familiar with the operation of the establishment. Workers’ representatives will be chosen from among themselves.

The Committee will meet.

The committee may meet as needed, but not less than once every three months. The group will establish its protocol during its first meeting. It will convene regularly during the establishment’s operating hours.

The Works Committee’s Responsibilities

The works committees, according to Section 3(1)(2) of the Industrial Disputes Act, “promote measures for securing and preserving amity and good relations between the employer and the workmen; and, to that end, comment on matters of common interest or concern and endeavour to compose any material difference of opinion in respect of such matters.”

In July 1959, the 17th session of the Indian Labour Conference in Madras put up an alternative list of issues that the works committee might deal with and a list of items that they should not deal with, to remove the ambiguity in the actual scope and tasks of the works committee.

Wages and allowances; bonus and profit-sharing, bonus, rationalisation; fixation of work-load; pay scales, retrenchment and layoff, victimisation for trade union activities, leave and holidays; incentive schemes; housing and transportation; provident fund, gratuity, and other retirement benefits were among the latter, which were beyond the scope of the works committees and were reserved for the collective bargaining process.

So, what was discussed were working conditions, such as lighting, ventilation, temperature, sanitation, and amenities, such as drinking water, restrooms, medical and health services, and safe working conditions; welfare fund administration; educational and recreational activities; and encouragement of thrift and saving, among others.

These communities deal with day-to-day issues that management and employees are interested in.

Joint Management Council

These communities increase labour involvement and foster collaboration between the two sides without infringing on other people’s spheres of influence or rights prerogatives. These communities also strive to make employees’ wishes effective in management, ensure that private-owned businesses operate by national interests, and establish a popular agency to oversee the management of nationalised enterprises.

The Council’s Functions

After studying the report of a study team on workers’ engagement abroad, the Indian Labour Conference accepted in principle the notion of establishing JMCs in India at its 15th session in July 1957.

1. Workers and management have equal representation.
2. The authority of the council.
3. To be consulted on specific concerns such as standing order administration and revisions as needed, retrenchment, rationalisation, closure, and decreasing or suspending operations.
4. To receive information, discuss, and make recommendations on a variety of topics, including the company’s overall economic status, the state of the market, production and sales plans, and manufacturing and work practices.
5. To be charged with administrative responsibility for the administration and supervision of welfare, safety, vocation training, and apprenticeship programmes, as well as the supply of work schedules, breaks, and holidays, among other things.

All items subject to collective bargaining will be kept fully outside the management council’s jurisdiction. The formation of new rights between employers and workers, which is a matter of negotiation, is to be kept entirely outside the management council’s authority.

13.8 Dispute Resolution and Settlement Mechanisms

The following are the various types of settlement machinery involved:

13.8.1 Conciliation

Conciliation is the process of using the services of a neutral third party in a dispute to assist the disputants in narrowing their differences and reaching an agreeable settlement or agreement. It is a method for the parties to disagree and address their differences in a rational and orderly manner under the supervision of a mediator.

It is a method of bringing representatives of employees and employers together in front of a third person or group of people to persuade them to reach an agreement through mutual dialogue.

Conciliation aims to resolve a disagreement quickly without resorting to strike or lockout and to hasten the end of work stoppages when they occur in industrial relations peace-making. Its goal is to help the parties reach a mutually satisfactory compromise or solution.

Conciliation Types

The following are the two sorts of conciliations:

1. Voluntary Conciliation: In voluntary conciliation, both parties bring their disagreements to the conciliation officer or board of mediation of their own free will; they want their conflict to be resolved by an outsider, but they can accept or reject the judgement.
2. Compulsory Conciliation: In compulsory conciliation, disputes are referred to a conciliation board, and the procedure is made mandatory by provisions requiring the parties’ attendance at conciliation proceedings or empowering the conciliation authority to compel their attendance at such proceedings, as well as prohibitions on strike and lockout without first resorting to conciliation.

13.8.2 Arbitration

Arbitration is a method of obtaining a decision on a contentious problem using a third party. It is a procedure in which a disagreement is presented to a neutral third party who renders a judgment usually binding on both parties. It is a procedure in which a person or persons chosen by the parties in dispute are heard, and a cause is determined by a person or persons appointed under a statutory provision. The parties submit their disagreements/issues to an arbitrator and are bound by the arbitrator’s decision.

Arbitration differs from conciliation in that its conclusion is binding on the parties, takes a different approach, and has a different spirit. Because the primary goal of arbitration is adjudication, there is no room for compromise in judgments, but the parties are free to do so. Mediation and arbitration are not the same thing. Because the arbitrator is based on equity and justice, there is no room for compromise, which is the whole heart of mediation. Arbitration frequently results in the resolution of the issue. It is ideally suited for resolving contractual disputes.

Arbitration Processes

 ‘Voluntary’ vs. ‘Obligatory’

When two disputing parties are unable to resolve their differences on their own or with the assistance of a mediator or conciliator, they agree to submit the conflict/dispute to an impartial authority, whose decision they are willing to accept. In other words, under voluntary arbitration, the parties to a disagreement can send a dispute to arbitration before it is referred to adjudication. This is referred to as a ‘voluntary reference,’ because the parties voluntarily agree to resolve their dispute through arbitration.

The following are the fundamental aspects of voluntary arbitration:

1. The voluntary submission of a dispute to an arbitrator;
2. The subsequent attendance of witnesses and inquiries
3. The enforcement of an award may or may not be necessary and binding due to the lack of compulsion. However, accepting arbitration normally entails accepting the arbitrator’s ruling, whether favourable or unfavourable, and
4. Voluntary arbitration may be particularly necessary for disputes originating under agreements.

Conversely, compulsory arbitration is one in which the parties are compelled to accept arbitration regardless of their willingness. When one of the parties to an industrial dispute feels aggrieved by the other’s actions, the aggrieved party may request that the dispute be referred to adjudication machinery through the appropriate government. Because references in such circumstances do not rely on the goodwill of both contending parties or any party to the conflict, they are characterised as ‘compulsory’ or ‘involuntary’ referrals.

Strikes and lockouts are outlawed by mandatory arbitration, which deprives both parties of crucial and fundamental rights.

Arbitration’s Benefits

The following are the pro-arbitration arguments:

1. Arbitration has the distinct benefit of bringing the dispute resolution method down to the level of the disputants themselves because the parties themselves establish it. Workers and management have a higher level of trust and confidence in settlement machinery that is essentially their own.
2. Arbitration is more flexible than other procedures since it is established by agreement and can be tailored to the parties’ ideas, desires, experiences, and circumstances prevailing in the endeavour or industry.
3. This system, which operates at a lower level than most courts or tribunals, has the advantage of allowing arbitrators to have a far greater familiarity with the features of the particular industry or endeavour.
4. The procedure is relatively quick compared to ordinary courts or labour tribunals. It reduces the time it takes to settle a dispute and speeds up the process.

Arbitration’s Drawbacks

The following are some of the counter-arguments to arbitration:

1. It takes away the right to strike because many agreements include a clause stating that trade unions and workers will refrain from striking while the agreements are in effect.
2. Judgment is sometimes arbitrary and ill-advised because the arbitrators are not well-versed in the industry’s economic and technical aspects.
3. Arbitrators are frequently predisposed against labour, and their decisions are typically not in their favour.
4. Delays in reaching a decision and settling a disagreement are common, and members’ morale suffers as a result.

13.8.3 Adjudication

The ultimate legal recourse for resolving an unresolved industrial dispute is to refer it to government adjudication. Adjudication entails the government appointing a third party to intervene in the conflict to determine the nature of the eventual settlement.

The government must decide whether to adjudicate the issue after receiving a report of the failure of conciliation. This is justified because developing countries cannot afford to lose production due to long-term strikes and lockouts. Furthermore, the trade union movement is not yet powerful and mature enough to adopt and rely solely on collective bargaining or worker protection. As a result, intervention is required.

Adjudication Types

When the government receives notification of the failure of conciliation proceedings, it must decide whether to refer the matter to arbitration. The government has sole authority over whether or not to refer a matter to adjudication.

When both parties agree to send the matter to adjudication on their initiative, the government must make a referral. Voluntary Adjudication occurs when the parties voluntarily resort to adjudication.

Compulsory Adjudication, on the other hand, occurs when a disagreement is referred to the government for adjudication without the consent of one or both parties to the dispute.

Adjudication System with Three Levels

The Industrial Disputes Act of 1947 establishes a three-tiered adjudication system:

• Employment Courts
• Industrial Courts
• National Courts

These adjudicating bodies decide and pass awards on disputes presented to them by the proper authorities.

Labour Courts

These courts hear the cases listed in Schedule II of the Act. The competent government may establish one or more labour tribunals to adjudicate on industrial issues.

The labour court has no authority except for those powers that may be traced back to a statute, statutory rule, or statutory instrument. It has no provisional authority and can’t function as an industrial establishment’s guardian.

Furthermore, while the labour court does not have jurisdiction over the matters listed in the third schedule, the appropriate government may, if it sees fit, refer the dispute to a labour court if the dispute involves any of the items listed in the third schedule and is not likely to affect more than 100 workers.

Jurisdiction

The following conflicts relating to matters stated in the second schedule are subject to the jurisdiction of labour courts.

1. The property or legality of a Standing Orders order issued by an employer.
2. The use of Standing Orders and their interpretation.
3. Worker discharge or dismissal, including reinstatement or remedy for wrongly fired workers.
4. Any customary concession or privilege is revoked.
5. Whether or not a strike or lockout is legal.
6. All items not explicitly mentioned in the act’s third schedule.

Tribunals for Workers’ Compensation

It decides on disputes specified in the Act’s Schedules II and III. The competent government may appoint one or more industrial tribunals to adjudicate industrial disputes relating to any topic. An Industrial Tribunal is frequently referred to for matters that take the shape of new demands and result in industrial disputes that impact a company’s or industry’s operations. The Industrial Tribunal may be appointed for a specific amount of time, on an ad hoc basis, or indefinitely.

The Industrial Tribunal must conduct judicial processes as quickly as possible and send its award to the appropriate authorities as soon as the proceedings are completed. There are 12 central government Industrial Tribunals/Labour Courts in the country.

Jurisdiction

Industrial Tribunals have the following jurisdiction:

1. Wages, including the length of time and method of payment
2. Reimbursement and other benefits
3. Working hours and relaxation periods
4. Leave with pay and vacations
5. Bonuses, profit sharing, provident funds, and gratuities are all options.
6. Working a shift in a way that isn’t in conformity with the Standing Orders
7. Grades classification
8. Discipline rules
9. Rationalization
10. Worker retrenchment and establishment closure
11. Any other issue that may be required.

Tribunals at the national level

The Central Government may establish one or more National Tribunals for the adjudication of industrial disputes that, in the opinion of the central government, involve questions of national importance or are of such nature that industrial establishments in more than one state are likely to be interested in or affected by such dispute, by publishing a notification in the official gazette.

Finally, we concluded that prevention and settlement machinery are critical to preserving industrial peace and harmony. These also ensure proactive management prepared to respond to any dangers or challenges that may arise within its working environment, minimising any potential losses resulting from such action.

13.9 Labour Legislation of India

After the 1950s, rising industrialisation and the rapid expansion of the service sector led to a surge in labour demand. Human resource management, human resource development, and the birth of the notion of human relations all led to the growing importance of labour. The labour force has been becoming increasingly diverse. This necessitates a special focus on equitable employment opportunity. There are also other issues to consider. These challenges are addressed by labour laws.

13.9.1 Different Labour Legislation Objectives in India

In India, labour legislation aimed to achieve the following goals:

1. Establishment of social, political, and economic fairness.
2. Providing opportunities for all workers to develop their personalities, regardless of caste, creed, religion, or beliefs.
3. The protection of the community’s weaker members.
4. The preservation of industrial peace.
5. Establishing favourable conditions for economic growth.
6. Labour standards are being protected and improved.
7. Prevent workers from being exploited.
8. Workmen’s right to form associations and unions is guaranteed.
9. Ensure that workers can bargain collectively for better working conditions.
10. Rather than being a bystander, the state should intervene as a social well-being defender.
11. Protect human rights and dignity.

Properly regulating the employee-employer relationship is a prerequisite for any society’s planned, progressive, and purposeful development. Labour legislation’s goals are a work in progress that necessitates constant efforts to attain them.

The Supreme Court of India made a crucial statement in its landmark judgement in Hindustan Antibiotics vs. The Workmen (A.I.R. 1967, S.C. 948; (1967) 1, Lab.L.J.114). The goal of industrial law, according to the Court, was to enhance the working circumstances of industrial workers by providing them with the necessities of life, resulting in industrial peace. This would hasten the nation’s productive activities, bringing prosperity to all and further improving labour conditions.

13.9.2 Workplace Legislation Classification

The labour legislation can be grouped into the following groups based on the specific goals that they have aimed to achieve:

1. Regulative
2. Protective
3. Wage-Related
4. The Social Security Administration
5. Employee and non-employee health and safety

Legislation that governs the labour market

The main goal of the regulatory legislation is to regulate employee-employer relationships and establish methods and procedures for resolving labour disputes. These laws also govern the connection between workers and their trade unions, as well as the rights and obligations of employers and workers’ organisations, as well as their reciprocal relationships.

The Trade Unions Act of 1926 was enacted to protect workers’ rights.

The primary purpose of trade unions is to control the relationship between employees and employers. Upon registration, trade unions are afforded various legal protections and benefits. Furthermore, the Act allows for the imposition of limits on the conduct of any trade or company. A registered trade union is a legal entity that exists in perpetuity and has a common seal.

The 1947 Industrial Disputes Act

The Industrial Disputes Act of 1947 primarily governs industrial relations in India. The Act establishes a mechanism and procedure for resolving industrial disputes through dialogue rather than strikes and lockouts. The Act applies to any industrial institution in India that engages in any business or trade, regardless of the number of people employed. A preliminary list of the disputes that this Act covers is as follows:

1. The validity or appropriateness of standing orders
2. Dismissal or discharge
3. Matters relating to unlawful dismissal and reinstatement or redress
4. Issues relating to the revocation of any concession or privilege
5. Issues relating to a strike or lockout
6. Wage payment, including the frequency and form of payment
7. Time off and working hours
8. Holidays
9. Bonuses and Benefits of Retirement
10. Discipline
11. Failure to carry out an award, etc.

Act of 1946 on Industrial Employment (Standing Orders)

This Act compels businesses to clarify employment terms so that their employees (employees) understand the standards of behaviour on working hours, holidays, attendance, leave, termination of employment, suspension or dismissal, misconduct, and other issues. The Act applies to industrial establishments with 100 or more employees. Employers must submit a draft of standing orders to the certifying authority for certification under this Act.

Protective Labour Legislations

Legislation that have the protection of labour standards and the improvement of working conditions as their major goals fall under this category. This category includes laws establishing minimum labour standards in factories, mines, plantations, transportation, stores, and other facilities regarding hours of work, supply, and employment of minors and women, among other things. The following are a few of them:

1948 Factories Act

This Act is broken into twelve chapters that include 141 sections, with three additional schedules. The first Act was passed in 1881 to control factory working conditions, particularly for women and children, and to provide them with health and safety protections. The 1948 Act superseded the previous one, and via a series of revisions made over time, the Act has become increasingly comprehensive, covering all aspects of labour conditions.

The Acts on Shops and Establishments

In essence, the Act is state legislation. It aims to control workers’ working conditions in the unorganised sector, which includes shops and establishments not covered by the Factories Act Regulations.

Wage-related labour legislation

Legislations that establish the means and manner of wage payment, as well as minimum wages, fall under this heading:

The Wage Payment Act of 1936

The Act aims to ensure that salaries are paid in a specific format at regular intervals without any unauthorised deductions. It applies to employees who earn less than $1,600 per month. Employers are responsible for paying wages to employees by the Act, which includes establishing wage periods (which should not exceed one month) and determining the time of payment by the norms (which require payment within seven days of the wage period’s expiration).

The 1948 Minimum Wage Act

For scheduled employment, the Act establishes minimum statutory wages. In addition, the Act establishes maximum daily working hours, weekly rest, and overtime pay. The Act gives the state government the authority to set minimum salaries, failing which they lose the right to hire workers and manage businesses.

The Bonus Payment Act of 1965

The Payment of Bonus Act of 1965 requires employers (covered by the Act) to pay bonuses to employees based on a formula linking the bonus to profits or productivity.

Legislation on Social Security and Labour

They cover laws that aim to provide workers with social security benefits during specified life and work occurrences.

The 1923 Workmen’s Compensation Act

This Act covers factories and establishments not covered by the Employees State Insurance Act to offer assistance to workers and their dependents in the event of incidents arising out of and in the course of employment that result in the death or disablement of workers. The Workmen’s Compensation (Amendment) Act of 2000, which went into effect on December 8, 2000, included all workers, regardless of occupation.

Employees’ Pension Fund and Other Provisions Act of 1952

The Act establishes a mandatory social security contribution fund for employees and their dependents (in case of death). It applies to any factory or business that employs 20 or more people. The Central Government, on the other hand, can put any establishment under the Act’s jurisdiction by issuing a notification. Factories Act of 1948, Section 19.6.1

1961’s Maternity Benefit Act

Employees who are women are eligible for maternity leave. It specifies that a woman may take full-pay maternity leave before or after the birth of her kid.

The Gratuity Payment Act of 1972

This Act also serves as a social security measure, providing a retirement benefit to employees who have provided the business with long and exemplary service. The Act gives employees the right to claim gratuity.

Welfare Laws and Labour Laws

This area of legislation aims to promote the overall welfare of workers and improve their living situations. Though all labour laws can be said to support the welfare of workers and improve their living situations in some way, and many protective labour laws also include chapters on labour welfare, the laws that fall into this category aim to improve workers’ living conditions. They also include the word “welfare” in their title.

1. Act of 1972 establishing the Limestone and Dolomite Mines Labour Welfare Fund
2. Mica Mines Welfare Fund Act (Mica Mines Welfare Fund Act) (Mica Mines Welfare Fund Act)
3. The Labour Welfare Fund for Iron Ore Mines, Manganese Ore Mines, and Chrome Ore Mines Act of 1976
4. The Cine Workers Welfare Fund Act of 1981 (Act No. 4)
5. In addition, several state governments have established welfare fund legislation.
6. The Beedi Workers Welfare Fund Act of 1976 established the Beedi Workers Welfare Fund.

13.9.3 Miscellaneous Labour Legislations

Aside from those above, other types of labour rules are equally significant. Here are a few examples:

1. The Contract Labour (Regulation and Abolition) Act of 1970 was enacted to regulate and abolish contract labour.
2. The 1986 Child Labour (Prohibition and Regulation) Act
3. The Building and Other Construction Employees (Regulation of Employment and Conditions of Service) Act of 1996 regulates the employment and conditions of construction workers.
4. The Apprenticeship Act of 1961
5. The 1983 Emigration Act
6. The Employment Exchange (Compulsory Notification of Vacancies) Act 1959 was enacted.
7. The Inter-State Migrant Workers (Employment and Conditions of Service) Act of 1979
8. Employees in Sales Promotions (Conditions of Service) Act of 1976
9. Working Journalists and Other Newspaper Employees (Conditions of Service and Other Provisions) Act, 1955.

Equal Opportunity in the Workplace

Equal opportunity employment refers to an employer’s strategy to ensure the hiring process is fair and impartial. President Lyndon B. Johnson coined the phrase “Equal Opportunity Employment” when he signed Executive Order 11246 prohibiting federal contractors from discriminating against employees based on race, sex, creed, religion, colour, or national origin. Discrimination based on minority status was also included in the directive’s scope.

Discrimination in the workplace refers to any form of prejudice, bias, or favouritism based on disability, race, age, sex, sexuality, pregnancy, or marital status. No one should be treated less favourably or disadvantaged than another because of their race. Many countries (including South Africa) have already enacted Equal Opportunity Acts, making it illegal to mistreat anyone.

People from various origins, educational backgrounds, age groups, races, genders, abilities, and so on, join together to work for one organisation and achieve common objectives due to globalisation and the growing size of the organisations. As a result, the employer’s job is to promote an equal-opportunity and discrimination-free working environment and procedures to be competitive and successful.

Equal opportunity means treating individuals fairly and equally, regardless of colour, religion, gender, age, or disability. Providing equitable treatment and opportunities for women in the workplace. No employee shall be subject to mistreatment or harassment by the employer or other employees based on discrimination.

Equal Employment Opportunity principles assist in recognising and respecting an individual’s true worth based on his knowledge, skills, abilities, and merit. Furthermore, the policy should apply to all company employees, whether permanent or temporary, contractual or otherwise. The fundamental goal of equal employment opportunity is to ensure that:

1. To provide people with equal access to all development opportunities.
2. To establish an equitable organisation, industry, and society.
3. To encourage and provide disadvantaged or disabled persons equal opportunity to participate in society’s growth.

As a result, equal employment opportunity should ensure that all applicants and employees have equal access to all available jobs, training, promotion possibilities, and similar benefits and services. There should be no discrimination between applicants or employees based on the aforementioned discriminatory reasons.