IIMM/DH/2/2005/5674

INDIAN INSTITUTE OF MODERN MANAGEMENT (IIMM)

REGISTRATION NO. : IIMM/DH/2/2005/5674

NAME : BRIGHTY SEBASTIAN

PERSONNAL MANAGEMENT (PM), TRADE UNION MOVEMENT (TUM) &

INDUSTRIAL RELATIONS (IR)

Part - A (Personnel Management)

Question 1 (A) What are the main objects of Personnel Administration and also describe
the duties of Personnel Staff.

Answer: Personnel Administration

The scope of personnel administration is quite wide. It includes all activities which help the
management in getting the work done by the labour force in the best manner possible to
accomplish the organizational objectives. The main objective in any organization is the optimum
utilization of available resources. Personnel administration is primarily concerned with the
organization of men; therefore, the main objective may be summarized as to utilize the available
human resources in a a way so as to get the work done effectively to the maximum satisfaction of
the individual worker to seek their cooperation in accomplishing the general goals of the
organization. The objectives of personnel administration can be classified into General
Objectives and Specific Objectives.

General objectives

1. Maximum individual development – the employer should always be careful in developing the
personality of each individual. If an act of the employer can adversely affect the personality of the
individual, he should avoid it. Employer should establish and support such human values that
may have social recognition and importance. They should always be regarded as partners and
given due importance. The objective of Personnel administration as a bridge between the
management and the employees is to keep the management apprised of positive
accomplishments and warning signals in the personnel practices. If the human assets of an
organization are being misused in the process of profit maximization, it is definitely a short term
achievement, because in the long run, the adverse effects felt by the work force will translate into
lesser profits for the organization.

2. Desirable working relationship between employer and employee – it is the major objective
of personnel administration to achieve a desirable working relationship between the employer and
the employees so that they may cooperate with the management. Both of them must rely on each
other. The personnel administrator should get it realized to the top management that personnel
should be given fair and equitable treatment and on the other hand, convey to the workers that
they should cooperate in achieving the goals of the management. The basic responsibility for the
personnel lies with the supervisors although the administrator supplies tools such as policy,
record keeping, control and advice. His objective is therefore to ensure that the line supervisor is
aware of his personnel responsibilities and carries them out responsibly. Simultaneously he

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should also ensure ethical conduct amongst all personnel and on the part of each supervisor
towards each employee for whom he is responsible.

3. Specialized services – The administrator provides the tools such as record keeping, policy
making, controlling and advising. Although not directly responsible for the personnel, who lie with
the line supervisor, he may examine causes for non-efficiency or non-effectiveness, suggest
remedial measure, perform research into proposed personnel procedures, handle negotiations
with a government agency, etc. The basic objective here is to provide assistance to the line
supervisor whilst simultaneously ensuring that the line supervisor meets his responsibilities to the
personnel.

4. Molding of human resources – Human beings is the most important resource and the only
active factor which engages all other factors of production. Therefore, the administrator should
emphasize the effective utilization of human resources as compared to physical resources so
that production and productivity is optimized. Other factors of production will be ineffective without
effective molding of human resources.

Specific objectives
1. Selection of the right type and number of persons
2. Proper orientation and introduction of new employees to their jobs
3. Organisation of suitable training facilities
4. Provision of better working conditions and facilities.
5. Provision of sound, fair and effective wage and salary administration and incentives.
6. Good industrial relations with representative trade unions
7. Personnel research

Duties of Personnel Staff:

In a dynamic working environment, the boundaries of any role cannot be clearly defined.
However, the duties of Personnel staff may be described as under:-

1. As a Service Provider – Providing information on market statistics of personnel availability,

pay rates, etc. Interpret the complex laws and legislations. Employment and placement programs,
employee compensation programs, training and development programs, labour relations could be
stated to be the duty as a service provider. It must be noted that there will often be an overlap
between the different roles that a Personnel staff may assume.

2. As a Facilitator – Advises the supervisors on employee problems, facilitates training and

development, and when performance appraisals are done. One of the responsibilities of
Personnel staff is also to ensure that other managers who undertake such activities are well
equipped to do so.

3. As a Consultant – To help the supervisors resolve problems due to lack of motivation, lack of
training, grievances, etc.

4. As an Auditor – To ensure that all members of the management perform their respective
roles, to determine whether personnel policies and procedures are being administered uniformly
by supervisors.

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Question no 1 (B) Enumerate the functions of the Personnel Managers in an Industry

Answer:

Functions of Personnel Managers

The functions of a personnel manager can be broadly classified into two categories :-

I. Managerial functions

II. Operative functions

I. Managerial functions

The managerial functions of a personnel manager have an impact on the operative functions as
well. They are enumerated below :

1. Planning – This involves formulating the future course of action. Planning includes determining
in advance the personnel programs and changes required that would contribute to the
achievement of organizational goals.

2. Organising – It involves establishing an intentional structure of roles for people in an

organization. Structural considerations such as the chain of command, division of labour, and
assignment of responsibility are party of the organizing function. The organizing function
establishes relationships among employees so that they can contribute collectively towards the
attainment of an organisation's goals.

3. Staffing – This is the process of obtaining and maintaining capable and competent personnel
in various positions at all levels. It broadly encompasses manpower planning, recruitment,
placement, induction and orientation, transfer, career progression, promotion and separation.

4. Directing – It involves directing all the available resources towards the common organizational
goals. Thus, direction is a vital management function, which ensures maximum employee
contribution and also helps in establishing sound industrial and human relations. It also involves
coordination between different departments.

5. Controlling – It involves the measurement of performance against goals and plans, identifies
deviations and by placing the process back on track, helps in the accomplishment of plans.

II. Operative functions

These can be classified into four broad areas:

1) Employment
2) Development
3) Compensation and
4) Employee Relations

1) Employment – it involves procuring and employing individuals with suitable knowledge, skills,
experience and aptitude necessary to perform various jobs. It includes functions such as job
analysis, human resource planning, recruitment, selection, placement and induction.

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1. Job analysis involves preparing job description, job specification, job requirements and
employee specification and providing the guides, plans and basis for job design and redesign.
2. Human resource planning involves forecasting the human resource requirements of an
organization and the future supply of human resources. It also involves assessing the possibility
of developing the human resources to match the requirements.
3. Recruitment is the process of seeking and attracting prospective candidates against a vacancy
in an organization.
4. Selection is the process of identifying and establishing the credentials of a candidate for a job
to ensure success.
5. Placement is decided based on the needs of the organization.
6. Introducing a new employee to the organization, its business, the organization culture, its
values and beliefs, practices and procedures is termed as induction.

2) Training and development

This process aims to train and develop employees to improve and update their knowledge and
skills, so as to help them perform their jobs better. The process also includes developing the
attitudes, beliefs and values of the employees to match the organizational needs. This comprises
of performance appraisal, training, management / executive development, career planning and
development.

1. Performance appraisal is the process of evaluating the performance of an employee on the job
and developing a plan for improvement.
2. Training is the systematic development of the knowledge, skills and attitudes required to
perform a job.
3. Development is the concept of developing the employees in an organization to meet future
changes and challenges.
4. Career planning and development refers to identifying one's career goals and formulating plans
of reaching them. It attempt to harmonize an individuals career aspirations with organizational
needs.

3) Compensation

It is governed by the principle of rewarding an employee extrinsically during and after the course
of his job for his contributions to the organization adequately, equitably and in a fair manner. It
encompasses salaries, incentives, bonus and fringe benefits. This function comprises of Job
evaluation, wage and salary administration, incentives, bonus and fringe benefits.

1. Job evaluation is the systematic determination of the value of each job in relation to other jobs
in the organization.
2. The process of formulating and operating a suitable wage and salary program is known as
wage and salary administration.
3. Incentives are the rewards an employee earns in addition to regular salary based on his
performance or of the collective performance.
4. Bonus is primarily a share in the surpluses and is often directly related to the organization
performance.
5. Fringe benefits are monetary and non-monetary benefits including disablement benefits,
housing facilities, canteen facilities, conveyance facilities, educational facilities, recreational
facilities, medical and welfare facilities, post retirement benefits, etc.

4) Employee relations & services

This function deals with employees as a social group that contributes to the organization, it
includes –

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1. Maintaining employee records, analyzing them and developing information needed for
managerial decision making.
2. Increasing employee productivity
3. Keeping the employees satisfied and motivated
4. Maintaining a healthy and effective human organization.
5. Counseling services and developing employees into complete individuals and responsible
citizens.
6. Developing policies, rules, guidelines and procedures relating to employee behaviour and
ensuring their implementation and observance.
7. Developing team building, team management and leadership skills in employees.
8. Developing a fast and suitable grievance management system to redress grievances.
9. Compliance with labour laws.
10. Personnel research.
11. Enhancing the quality of work life and personal life of the employees.

Question no 2 (A) Career Planning of employees occupies an important place for the
management. Describe the need, purpose and objectives of Career planning and also its
various advantages.

Answer:

Career Planning is a relatively new personnel function. Established programmes on Career

Planning are still rare except in larger or more progressive organizations.

Many of today's workers have high expectations about their jobs. There has been a general
increase in the concern of the quality of life. Workers expect more from their jobs than just
income. A further impetus to career planning is the need for organizations to make the best
possible use of their most valuable resources-people-in a time of rapid technological growth and
change.

A career has been defined as the involving sequence of a person's experiences over time. It is
viewed as fundamentally a relationship between one or more organizations and the individual. To
some a career is a carefully worked out plan for self advancement to others it is a calling- a life
role to others it is a voyage to self discovery and to still others it is life itself.

Aims and Objectives of Career Planning:

Career Planning aims at matching individual potential for promotion and individual aspirations
with organizational needs and opportunities. Career Planning is making sure that the organization
has the right people with the right skills at the right time. In particular it indicates what training and
development would be necessary for advancing in the career altering the career path or staying in
the current position. Its focus is on future needs and opportunities and removal of stagnation,
obsolescence, dissatisfaction of the employee.

In the process it opens avenues for growth to higher levels of responsibilities for each and every
employee of the organization through hierarchy of position and training and development
activities to equip the individuals with the requisites fir succession.

Purpose and Objectives of Career Planning are:

(1) To secure the right man at the right job and at the right time.
(2) To maintain a contended team of employees.

Role of Career Planning:

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(1) It motivates employees to grow.

(2) It motivates employees to avail training and development
(3) It increases employee’s loyalty as they feel organization cares about them through career plan
for them. So they integrate their goals with the organization goals.
(4) Encourage employee to remain in organization.
(5) Organization image as better employment market.
(6)It contributes to man power planning as well as organizational development and effective
achievement of corporate goals.
(7) It helps employee in thinking of long term involvement with organization.
(8)Career Planning provides general scenario of career opportunities in organization.
(9) It gives an idea of direction towards growth.
(10) Builds pathways for employee.

Advantages of career planning:

Career planning helps to pave a secure path. For example, if a person wants to become a
banker, they have to possess a Bachelor's degree in finance. Preplanning can help us achieve
our educational targets effectively and also helps us to evaluate our personality. In short, career
planning is necessary to guide us towards a proper and safer future.

Without proper planning, we may find ourselves lost - it will also be difficult to find the job we want
in the future. It motivates and drives us to accomplish the task.

A well-planned career helps us to achieve our goals and dreams. As time passes by, we grow
and our needs change. Therefore, to keep pace with the future, we need to plan well ahead. It
helps us to make many adjustments along the way as we keep learning throughout our lives.
Successful people are those who have adopted proper career planning.

Mentors and guides play a pivotal role in this. It is an important aspect of our lives, but we should
not put too much pressure on ourselves, as that would probably discourage us from making any
real, profitable choices.

Question 2 (B) Explain the factors which mainly contribute to the importance of training
for different types of managers and workers in an Industry/ Organisation.

Answer:

The factors which mainly contribute to the importance of training for different types of manage
and workers in an industry are:

1. There is always shortage of skilled employees and it is always felt that the most direct attack
on the problem of un-employment, can be made through expansion of vocational training and
professional education
2. Skill shortages have arisen due to rapid technology changes. Managers are faced with labor
markets in which the skilled man-power fails to meet the needs for the new skills requirement.
3. Trained employee makes better and economical use of materials and equipment. Therefore,
the wastage and shortage are lessened.
4. The inevitability of hiring unemployables consequent upon the social goal of equal employment
opportunities necessitate the adequate process of training and development facilities

Recruitment checklist:

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The recruiter should have some checklist before conducting the interview. To conduct the exam
he should see weather he got permission from his manager to conduct. Like that he has to make
one list to make interview successful and efficient. Below I have given some of the important
check list:

a) If the responsible manager agreed the vacancy

b) Is there up to date job description
c) What are the conditions of employment for the vacant position
d) Has a candidate specialization been prepared
e) Has a notice of vacancy been supplied earlier
f) Has the job advertisement been agreed
g) What arrangements have been made for drawing a short list of candidates
h) Have the interview arrangements been made
i) If unsuitable candidates held in reserve been informed
j) Have offer letters been agreed and dispatched
k) Have suitable rejection letters been sent to unsuccessful short listed candidates.

With all these in mind recruiter conduct the interview

SALARY ADMINISTRATION PROCEDURE

It is the systems and procedure designed for the purposes of the efficiently managing the
compensation of organizational members. In order to have efficient control all the employees are
paid within the range for the job performed. Salary administration should be approached as a
management tool to attract, retain and develop the required quantity and quality of human
resources within organization. Control is an essential part of salary administration.

The following are the procedure for the efficient salary control:

a) Salary budget
b) Cost of living or general review of salary levels
c) Individual salary review
d) Fixing salary levels on joining or on promotion
e) Other allowances
f) Bonus schemes

The unit also helps in developing skills in formulating and designing salary structures. A well
designed and properly administered salary system not only reward the employee with the
material remuneration’s they think deserve, but also act as motivating factory.

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PART – B TRADE UNION MOVEMENT (TUM)

Question no. 4 (A) Explain the principles and functions of Trade Unions in relation to
Industries.

Answer:

A Trade Union is an association of workers in any trade or allied traders for the protection and
enhancing their interests in regard to wages, hours and conditions of labour and/or the provision,
from their common funds, of assistance to members during strikes, sickness, unemployment, old
age etc.

Trade Unions are “Voluntary organizations of workers formed to promote and protect their
interests by collective action.”

Thus the conclusion drawn from these different definitions is that:

1) Trade Union is economically oriented i.e. associated with wage-earners.

2) It is a voluntary association and a permanent body, and instrument of

defense against exploitation.

3) It is a collective bargaining agent, an outcome of industrialization.

Principle of Trade Unionism:

There are mainly three basic principles on the basis of which Trade Unions function. These are:

1) Unity is strength.

2) Equal pay for equal work for the same job.

3) Security of service.

It is generally observed that the workers join or become members of trade union because of the
constrained circumstances, which raises doubts in their minds about certain aspects like:

1) Economic security i.e. steady employment with an adequate income.

2) Whether they can restrain the management from taking actions which are
irrational, discriminate or prejudicial to the interest of labour.

3) Communicating their views, ideas, feelings and other aims to the

management i.e. possible or not.

4) For securing protection from economic hazards which are beyond their
control, for example, illness, accidents, old age, unemployment etc.

5) To get along with their fellow workers in a better way and to gain respect.

6) To get a good job.

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Role of Trade Union:

The Trade Unions are organized by the workers to solve the labour problems created by or due to
industrialization. Various agencies in the field of labour are working to tackle these problems.
They use the methods of labour legislation and labour administration.

The employers try to solve/deal with labour problems through the personnel management and
labour welfare methods.

Public organizations try to solve the economic and social problems of workers and their families
through voluntary social work activities.

Even though all these organizations try to solve the labour problems Trade Unions deal or handle
these problems more effectively and efficiently. It tries to facilate the welfare of workers; eliminate
exploitation through organized action like collective bargaining, welfare work, strikes etc.

Thus, it is concluded that the primary role of a Trade Union is to protect the workers and to
channelize their efforts into more rational directions.

Functions of Trade Unions:

The functions of Trade Unions are wide and comprehensive. These functions have been termed
as:

(i) Militant or protective functions, and

(ii) Fraternal, ministrant or positive functions.

The former functions aim at securing better conditions of work and employment for members
through militant activities such as strikes, gheraos etc., if there is a failure of collective bargaining.
The latter functions provide benefits to their members and support them during strikes/lockouts or
during periods of temporary unemployment by giving them financial support out of the funds
raised with their contributions.

Question no. 4 (B) What are the Organizational structure of Trade unions in Indian
Industrial Organisations, also explain the union security covers?

Answer:

Organizational Structure of Trade Unions In India:

The Organizational Structure in India consists of three levels:

1) Plant / Shop or Local

2) State

3) Central

Every National or Central Federation of labour in India has state branches from its organization
works down to the local level.

These are two types of organizations to which the trade union in India are affiliated:

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1) National Federation

2) The Federation of Unions

National Federations:

The National Federation have all the trade unions in a given industry as their affiliated members.
Every trade unions, irrespective of the industry to which it belongs, can join a general national
federation.

The National / Central Federation are empowered to decide the question of jurisdiction of the
various local and national unions, e.g. INTUC consists of:

Central organization, the affiliated unions, the industrial federation, regional branches and
councils, the assembly of delegates the general council and the working committees.

Federation of Unions:

These have as the objection the establishment of new unions, uniting and strengthening the
existing ones, creating harmonious relations between capital and labour and improving the status
of trade unions and workers.

Unions Security:

Sometimes the individual employees may refuse to follow contract provisions. These people can
create dissatisfaction among union members who may also likewise refuse to continue their
support to union activities. For these reasons, the union propose a system of union security, of
which all employees are required to be or to become and to remain union members.

Union Security Covers:

(a) Sole or Exclusive Bargaining Agent: Under this type of security, the union is accepted as a
bargaining agent for all employees in the Unit.

(b) Preferential Union Shop: In this, additional recognition is granted to a Union by agreement
that management hall give first chance to union members in recruitment.

(c) Maintenance of Membership: Under this all employees who are or who become members
of the union must remain members in good standing for the duration of the contract as a
condition of employment.

(d) Agency Shop: In this, an employee in a bargaining unit is obliged to pay dues to the Union
in return for the collective bargaining service which it is rendering him, although he does not
join the unions.

(e) Union Shop: Under this all employees in the bargaining unit must become members of the
union after a specified date. The Union shop is preliminary to the acceptance of collective
bargaining.

(f) Check-off: It is a practice which the employer deducts union dues from the pay of the
workers and hands over the deductions to the union. It lays down the procedure whereby

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the employer collects for a trade union its subscription from members by withholding the
necessary amount from the wages of the Union members.

Question no. 5 (A) Describe Trade Union Act 1926 with particular emphasis on the object
and provisions of the Act.

Answer:

The Trade Unions Act was passed in 1926 under the title of the Indian Trade Union Act and was
brought into effect from 1st June 1927 by a notification in the Official Gazette by the Central
Government. The Act was amended in 1947, 1960 and 1962. Subsequently, the word “India” was
deleted from the amended Act of 1964, which came into force from 1 st April 1965. A
comprehensive Trade Unions (Amendment) Act was passed in 1982.

Object of the Act:

The Act was enacted with the object of providing for the registration of trade unions and
verification of the membership of trade unions to registered so that they might acquire a legal and
corporate status. As soon as a trade union is registered, it is treated as an artificial person in the
eyes of the law, capable for enjoying rights and discharging liabilities like a natural person. In
certain respects, the Act attempts administration and penalties, makes provision for:

(a) Conditions governing the registration of trade unions;

(b) The obligation of a registered trade union, and

(c) The rights and liabilities for registered trade unions.

The amendments in the Act in 1982 have been made with the following objectives:

(i) To reduce multiplicity of unions, the existing provision of enabling any seven workers
membership of 10% of the workers (subject to minimum of ten) employed in the industry or
establishment where the trade union is proposed to function, or 100 workers, whichever is
less, for the registration of trade unions.

(ii) There is at present no machinery for the resolution of trade union disputes arising from
inter-union and intra-union rivalries. Therefore, the term “trade union dispute” has been
defined afresh to make provision for resolving such disputes through voluntary arbitration,
or by empowering the appropriate government and the parties to the disputes to refer it to
the Registrar of Trade Unions for adjudication.

(iii) The Act of 1926 did not set any time limit for the registration of trade unions. Now a
provision has been made for a period of 60 days for the registration of trade unions by the
Registrar after all the formalities have been completed by the trade unions. Provision has
also been made that a trade union, whose certificate of registration has been cancelled,
would be eligible for re-registration only after the expiry of a period of 6 months from the
date of cancellation of registration, subject to certain conditions being fulfilled by the trade
union.

(iv) Under the existing provisions of the Act, 50% of the office bearers in the executive of
registered trade union shall be persons actually engaged or employed in an industry with

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which the trade union is connected. This limit has been enhanced to 75% so as to promote
the development of internal leadership.

(v) Registrar of Trade Unions has been empowered to verify the membership of registered
trade unions and connected matters and report the matter to the state and the Central
Government.

Provisions of the Act:

The main provision of the Act relates to

1) Definition

2) Registration of trade unions.

3) Duties and liabilities of registered trade unions.

4) Rights and privileges of registered trade unions.

5) Amalgamation and dissolution of trade unions.

6) Submission of returns.

7) Penalties and fines.

8) Power to make regulations.

Question no. 5 (B) What are the additions of the new sections under Amendment of 1982,
also specify the penalties and fines as section 31 of chapter.

Answer:

Addition of New Sections under 1982 Amendments:

(a) Registrar’s Power to Verify Trade Union Membership: Section 28A:

(i) The Registrar shall have the power to verify the membership of registered trade unions and
matters connected herewith in such manner as may be prescribed and shall send a report about
such membership to the State Governments and The Central Government.

(ii) To exercise such powers, the Registrar shall follow such procedure as may be prescribed and
shall have the same powers as are yested in a Civil Court documents or other connected
materials.

(b) Voluntary Reference of Trade Union Dispute to Arbitration: Section 28 B:

(i) Where any trade union dispute exists or is apprehended and the parties to the dispute agree to
refer the dispute to arbitration, they may, by a written agreement(i.e. arbitration agreement), refer
the dispute to arbitration, and the reference shall be to such arbitrator or arbitrators as may be
specified in the arbitration agreement.

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(ii) Where an arbitration agreement provides for the reference of the dispute to an even number of
arbitrators, the agreement shall provide for the appointment of another person as umpire who will
make and award on the reference. Arbitrators should be equally divided in their opinion, and the
award of the umpire shall prevail and shall be deemed to be the award of the arbitrators for the
purposes of this section.

(iii) The arbitration agreement shall be in such form and shall be signed by the parties thereto in
such manner as may be prescribed.

(iv) A copy of the arbitration agreement shall be forwarded to the appropriate government and the
government shall, within one month from the date of the receipt of the copy, publish the same in
the official Gazette.

(c) Reference of trade Union Disputes to Registrar : Section 28 C:

(i) Where the appropriate government is of the opinion that any trade union dispute exists or is
apprehended, it may, at any time, by an order in writing, refer the dispute to the Registrar for
adjudication.

(ii) Subject to any regulations that may be made in this behalf, the Registrar shall, in adjudging
the dispute referred to him, follow such procedure, as he thinks fit.

(iii) Where in an order referring a trade union dispute to the Registrar, the appropriate government
has specified the points of dispute for adjudication, the Registrar shall confine his jurisdiction to
those points and matters incidental thereto.

(iv) The award of the Registrar shall be in writing and shall be signed by him.

(v) The award published shall be final and shall not be called into question by any count in any
manner whatsoever.

(vi) Any award made by the Registrar in a reference made to him shall be final and shall not be
called into question by any Court in any manner whatsoever.

Penalties and Fines:

A Penalty may be imposed for default in submitting returns or for the supply of false information
or statements.

(a) Failure to give notice which is required to be given by a registered trade union;

(b) Failure to send any return, required to be sent by a registered trade union; or

(c) Failure to send any documents, required to be sent by a registered trade union.

Every office bearer or other member of the executive is bound to give such information, or send
statements or documents, as required under the provisions of the Act; and if this is not done, they
are punishable with fine which may extend to Rs.25. In the event of a continuing default, and
additional fine, not exceeding Rs. 25, may be imposed for each week after the first week during
which the default continues. But in no case shall the total amount of the fine exceed Rs.500.

The following information or statements are required to be submitted by the registered trade
union:

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(i) Notice of change in the address of the head office of the trade union:

(ii) Notice of change of the name or amalgamation of the union;

(iii) Notice of change in the officers of the trade union;

(iv) Copies of the corrected rules; and

(v) Copy of every alteration made in the rules;

(vi) Notice of dissolution of trade union; and

(vii) Annual returns for the period ending March 31

The Act also lays down that where any person with intent to deceive gives; to any member of
such trade union, a copy of the rules or a copy of any alterations of rules which he knows or has
reason to believe is not a correct copy of the rules of alteration or rules that are for the time being
in force, shall be punishable with fine which may extent to Rs.200.

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Part – C INDUSTRIAL RELATIONS (IR)

Question no. 8 (A) Explain the main causes of Industrial Dispute in an organization. How
can you manage Industrial peace?

Answer:

Causes of Industrial Disputes:

There is no one single cause for industrial disputes in India. The causes are many; psychological
potential and economic. As early as in 1931, the Royal Commission on Labour observed;
“although workers may have been influenced by persons with nationalist, communist or
commercial ends to serve, we believe that there has rarely been a strike of any importance which
has not been due entirely or largely to economic reasons.”

A classification for work-stoppages by cases is given for disputes whose causes are known. The
Labour Bureau, simla, has listed the following causes:-

(i) Wages and Allowances;

(ii) Bonus;

(iii) Personnel;

(iv) Leave and hours of work; and

(v) Others

In 1971, a new cause indiscipline and violence was added to the older classification.

During the period from 1921 to 1931, 15.2 percent of the demands related to wages, 4.6 percent
to bonus, 21.3 percent to personnel matters, 4.4 percent to leave and hours of work and 18.5
percent to other matters.

According to V.B Singh the causes of industrial disputes may be categorized under:

(a) Income

(b) Employment; and

(c) Technological changes

Under these three groups are included the following causes:

(a) The causes of industrial disputes falling under the Income category include wage items and
piece rates, dearness allowance, bonus, minimum and basis wages, the fixation and scales
of provident fund, gratuity and pension, pay for night and overtime work, and fines.

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(b) The causes falling under “Employment” are : holidays and leave, including maternity,
privilege and sick leave, shift duty and hours of work, welfare activities, including canteens,
dispensary, crèches, sports, and education, recruitment, dismissals retirement and
permanency, reintatement and discharge, standing orders. Code of Discipline, production
target and lay-off, lockout and strikes.

(c) Technological changes include those relations to workload, standardization of raw

materials, rationalization scheme and modernization of the plant.

The Ways of Industrial Peace:

One of the prime threads to the efficient conduct of the modern industrial system seems to be the
ravaging industrial disharmony, characterized by embittered relationships between the employer
and the workers. The gulf between the employer and the employee has widened more than ever
before. Distributional disparities have worsened. Discounted and frustration at the lower ends of
the echelon have heightened; and if things are not put in there proper setting, the ‘grand’
industrial frabic ma show tears that may not be repaired.

Industrial peace can be built upon mutual and proper understanding of the problems of employers
and workers. It is absolutely necessary to have an enlightened management and workers union.

The Royal commission on Labour, 1931, has suggested three ways of stabilizing industrial
relationship.

1) Appointment of labour officer in undertakings to look after the welfare of workers and to
represent their grievances to the employers with a view to establishing and promoting
healthy contacts between labour and management;

2) Constitution of Works Commities in industrial establishing and joint consultative councils for
different industries;

3) Development of stable and responsible trade unions.

Question no. 8 (B) Describe briefly Industrial Dispute Act 1947. State the main authorities
provided under the act.

Answer:

The definition is very wide and covers a variety of disputes between and employer and a
workman. A dispute is an industrial dispute provided it satisfies the following conditions:-

(a) There should be an industry, employer and workman. There must be a “collective will” of a
substantial or appreciable number of workmen taking up the cause of the aggrieved
workman. It must be fully raised with the management and rejected by it, i.e., the employer
must be in a position to redress the grievance.
(b) There should be a real and substantial dispute or difference. It should be one in which the
workman is substantially interested, i.e., there must be a ‘community of interest’.

(c) The dispute should be between the employer and his workmen, between employers and
employers or between workmen and workmen.

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(d) The dispute must be connected with

(i) the employment, or

(ii) non-employment

(iii) terms of employment or conditions of non-employment includes

retrenchment and refusal to reinstate

(e) An individual dispute may assume the character of an industrial dispute provided it is
sponsored either by a trade union or by a number of workmen.

Collective support by workmen is essential before an individual dispute becomes an industrial

dispute, i.e., the workmen as a body or a considerable section of them must make common
cause with the individual workman before his dispute becomes and industrial dispute.

Authorities under the Act

The Act provides for a number of authorities. Viz.:

(a) Works Committee; Sec 3

A works committee shall be constituted in every establishment where 100 r more workmen are
employed or have been employed on any day in the preceding 12 months; to ‘promote measures,
for securing and preserving amity and good relations between the employers and workmen and
comment upon matters of common interest or concern and endeavor with a view to reconciling
any material difference of opinion on such matters.” It shall consist of an equal number of
representatives of employers and of the elected representatives of workmen (the total number
must not to exceed20). The representatives of the employer shall be nominated by the employers
and those of workmen by the registered trade union or by non-members, if there is no trade
union. The tenure of office of the representatives is for two years; and they lose membership if
they fail to attend three consecutive meetings. The committee may meet as often as possible, but
not less than once in 3 months.

(b) Conciliation Officer, Sec 4

His duty is to induce the parties to come to fair and amicable decisions on matters in disputes. He
is an independent person who investigates the dispute and all matters affecting it. He is not an
adjudicating body but is merely a suggesting body. He goes from company to company and finds
out the greatest common measures of agreement. He is charged with the duty of mediating in,
and promoting the settlement of industrial disputes.

The appropriate government appoints this officer by a notification in the official gazette. The
number of conciliation officers to be appointed is determined by number of industrial disputes that
actually exist or may arise. A conciliation officer may be appointed for a specified are or for
specified industries either permanently or for a limited time.

(c) Boards of Cociliation: Sec 5

A Board of Conciliation is constituted an ad hoc body by the appropriate government. Its purpose
is to induce the parties to come to a fair and amicable settlement. The appropriate government is
not empowered to constitute a Board for the purpose of referring criminal proceedings. The Board
cannot enforce and award. It also cannot thrust upon the contending parties its own terms and

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conditions of settlement. It can take action only when the appropriate government has referred a
dispute to it.

The appropriate government may constitute the board by a notification in the Official Gazette. It
shall consist of a chairman (who shall be an independent person, i.e., unconnected with the
dispute or with any industry directly affected by such dispute) and two or four members, as the
government thinks fit, who shall be appointed to represent the parties. If any party fails to
recommend any name within the prescribed time, the appropriate government shall appoint such
persons as it thinks fit to represent that party.

(d) Courts of enquiry: Sec 6

A court of Inquiry is constituted as an ad hoc body by the appropriate government. It can inquire
into any matter connected with or relevant to an industrial dispute; but not into the dispute itself.
The constitution of the court has to be notified in the Official Gazette. It may consists of one
independent person or such member of independent persons as the appropriate government
thinks fit. If there are more than Two persons, one them shall be appointed as chairman. A court,
having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its
members or any vacancy that may have occurred. The court of inquiry is not required to make
any recommendations for resolving disputes. It is seldom appointed, as it is a superfluous and an
ad hoc body. It has no power to impose any settlement on the parties. It is merely a fact-finding
body. It does not care much for the settlement of the dispute.

(e) Labour courts: Sec 7

One or more Labour Courts may be constituted by the appropriate government by a notification in
the Official Gazette to adjudicate on industrial disputes relating to any matter specified in the
Second Schedule to the Act, and to perform such other functions as may be assigned to them.

A labour court shall consist of one person only to be appointed by appropriate government such a
person is or has been a judge of a High Court; or has been, for a period of not less than 3 years,
a District Judge or an Additional District Judge; or has held any judicial office in India for not less
than 7 years;

(f) Industrial Tribunal: Sec 7A

The appropriate government may appoint one or more Industrial Tribunals for the adjudication of
industrial disputes reacting to any matter, whether specified in the Second Schedule or the Third
Schedule. The matters, which are in the form of new demands and give rise to industrial disputes,
which affect the working of a company or industry, are usually referred to an industrial tribunal.

The functions of the industrial tribunal are essentially quasi-judicial and, are therefore, subject to
the over-riding jurisdiction of the Supreme Court. The powers of the Tribunals are derived from
the Statute that creates them and they have to function within the limits imposed thereon and to
act according to its provisions.

(g) National Tribunals, Sec 7B

The Central Government may, by a notification in the Official Gazette, constitute one or more
national tribunal for adjudication of industrial disputes

(i) Involving questions of national importance; or

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(ii) Which are of such a nature that industries in more than one state are likely to be interested in,
or affected by, such disputes.

It consists of one person only, who is an independent person below 65 years of age. He should
be or has been a judge of a High Court or has held the office of chairman or any other member f
the Labour Appellate Tribunal for a period of not less than 2 years.

Question no. 9 (A) What do you understand by Tripartite and Bipartite bodies? Explain
fundamentals of the industrial settlement.

Answer:

TRIPARTITE BODIES :

The Industrial Relations in India have been shaped largely by principles and policies evolved
through Tripartite consultative machinery at the Industrial and National levels. The process of
consultations was itself the outcome of a realization between employers and workers, without
their participation in direct action.

Importance:

(1) To bring the parties together for a mutual settlement of differences and a spirit of
cooperation and goodwill.
(2) To promote uniformity in labour legislation.
(3) To discuss all matters of All India importance as between employers and employees.
(4) To determine a procedure for the settlement of Industrial disputes.

Evolution:

The need for tripartite consultation on labour matters on the pattern set by the ILO was
recommended by the Whitley Commission in 1931. It envisaged a statutory organization which
should:

(1) Be sufficiently large to ensure adequate representation of the various interests involved.
(2) Not be too large to prevent the members from making individual contributions to the
discussions.
(3) Representatives of employers, Labour and government should meet regularly in a
conference.

Separate consultations held during the Second World War highlighted the necessity of
holding joint meetings of the representatives thus providing a a common platform for the
resolution of differences.

Accordingly, the fourth labour conference held in August 1942, set up permanent tripartite
collaboration machinery and constituted a preliminary labour conference, named as the Indian
Conference and The Standing Labour Advisory Committee.

BIPARTITE BODIES :

Relations between laborers and managements set the tone of social relationships in an
industrial society. With industrialization the government has attempted to democratize these
relations and thus extend democracy to the work place. The institutions of WORKS

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COMMITTEES and JOINT MANAGEMENT COUNCILS were some of the early steps taken by
the country in stride towards this goal.

Evolution:

The importance of BIPARTITE CONSULTATIVE MACHINERY was recognized as early as 1920,

when a few joint committees were set up in the presses controlled by the Government of India.
They were introduced in TISCO in Jamshedpur.

In 1922, the worker Peoples Welfare Committee was established in the Buckingham and Carnatic
Mills, Madras to achieve close contact with workers. Some other committees were also started in
private and state owned enterprises. The results were rather disappointing.

By the end of Second World War, committees were functioning in a few industrial undertakings;
and these were known as Worker’s councils, Joint Committees or Workers Committees.

The industrial Truce Resolution 1947 found a place in the Industrials Disputes Act of 1947.

FUNDAMENTALS OF THE INDUSTRIAL SETTLEMENT :

(1) Both the parties agree that this settlement is being entered into at a time when the total
business environment in the country is undergoing a metamorphic change towards
liberalization, globalization and fierce international competition. This break-away from the
past is in turn going to put continuous pressure on improving the quality of man-power at all
times and positive and pro-active response from human resource to the demanding
changes in the future from time to time.
(2) It is also agreed and understood by the parties that survival in the demanding business
environment, calls for a greater degree of working together and sharing together to bring
about highest degree of qualitative performance, timely response and supply of goods to
the society at competitive price.
(3) Appreciating above realities, parties agree and accept following Charters of “Human
Resources Policy” which will govern the conduct of employee in future.
(a) Every effort shall be made by every individual employee to improve his performance,
quality of skill through training and participation in development activities. The Company will
organize/introduce programmes /schemes from time to time and the employee shall
participate and respond to the needs of the company, multi-trades, versatility skills, etc.
(b) As a departure from the past, every employee will appreciate through including skills, and
versatility in operations, and in doing so, shall be available for any operations depending
upon the exigencies of work.
(c) Under no circumstances, machinery shall remain idle and inoperative for want of either skill
or availability of trained man-power, meaning thereby depending on the needs of the
industry, it would be the joint endeavor to utilize the machinery round the clock throughout
the year.
(d) There shall be a growing emphasis on conversion of indirect employees into direct
employees thereby reducing the indirect cost and optimise utilization, etc..
(e) There shall be a greater degree of emphasis on planned absenteeism to reduce uncalled
for holdups in the process.
(f) A greater degree of concern towards ensuring all critical operations is being considered as
top priorities for man-power development in order to avoid bottlenecks and to ensure that
the trained employees will bring down progressively the need for increase in short term
employment. Short term employment will be resorted only to meet sporadic increase in
business commitments, but shall be in accordance with relevant statues.
(g) It is also clearly understood between the parties that the above measures are intended to
bring about utilization, cost effectiveness, quality of performance and timely response to

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changing situations. The intent and purpose is not exploitation in any form, not avoidance
of any of the statutory obligations but taking care of ups and downs in the demand.
(h) It is agreed endeavor of the parties that every employee is totally committed to 100%
quality standards and shall strive hard to ensure Zero defect performance in every role he
plays, namely customer to the earlier process, Supplier to the subsequent process and
Inspector of his own work process. Every employee will spread the Quality mission not only
in his work environment, but also in his total quality of life. Towards this end, he shall take
part in training ad developmental programmes and disseminate the message to all others in
the organization.

Question no. 9 (B) Define “mediation” and “Conciliation”? Explain the role of a
Conciliator.

Answer:

MEDIATION :

“Mediation” is the ancient art of the peace-maker. It has been practiced in the number of areas
when people disagree; it is an ancient and honorable process for the settlement of disputes
between two warring nations, disputes between litigants, disputes between labour and
management and in general disputes between people.

Mediation is an attempt at setting disputes with the help of an outsider who assists the parties in
their negotiations. It contemplates affirmative and positive action by a third party to bring about
and a settlement of disputes. It encourages the employers and the union to come to a decision
without any force or orders from the mediator. He does not exercise any compulsion; he cannot
and should not undertake to decide what parties should do; he may advance various
considerations, but certain evaluations and judgments must be left to the parties themselves.

CONCILIATION:

Conciliation is the most important method for the prevention and settlement of industrial disputes
through third party intervention.

It may be described as “the practice by which the services of a neutral third party are used in a
dispute as a means of helping the disputing parties to reduce the extent of their differences and to
arrive at an amicable settlement or agreed solution. It is a process of rational and orderly
discussion of differences between the parties to a dispute under the guidance of a conciliator”. It
is a process by which representatives of workers and employers are bought together before a
third person or a group of persons with a view to persuading them to arrive at an agreement by
mutual discussion between them.

As a process of peace-making in industrial relations, conciliation tends to bring about a speedy

settlement of disputes without resorting to strikes or lockouts, and to hasten the termination of
work stoppages when these have occurred.

ROLE OF THE CONCILIATOR :

The conciliator induces the parties to a course of action. His intervention in the disputes creates
for the parties a situation different from one of direct confrontation. The conciliator opens to the
parties a variety of available options besides those they can think themselves. By promoting their
attitudes and discovering in what fields they may prepared to show some flexibility, he gains a
perspective of the issues in dispute and of alternative possibilities of settlement.

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The role of a conciliator may be discussed under the following heads:

(a) Discussion Leader:

As a discussion leader, the conciliator reduces irrationality and antagonism between the parties.
He guides them towards a problem solving approach to their dispute, he ensures that they
discuss their differences in as friendly a manner as possible, he helps them to analyze their
problem, always striving to keep the analysis on a rational plane, he identifies the elements of the
problem for the benefit of both the parties and for his own.

(b) Safety Value:

The conciliator places him in the position of an alternative target when he feels that the parties
are in an aggressive mood. By setting a substitute target, the parties can achieve an emotional
release without direct and immediate damage to the negotiations.

(c) Communication Link:

The conciliator fulfils an important function as communication link between the parties. Serving as
a communication link may either constitute his main conciliatory effort or be a contribution to it.

(d) An Innovator:

The conciliator acts as an invaluable source of new information and new thoughts, particularly in
providing the parties with different views of the issues, with possible alternative solutions and
possibly an entirely new approach.

(e) A Sounding Board:

He is often described as a flying ambulance squad, appearing whenever or wherever a collision

or conflict, which threatens to disturb harmonious relations, occurs or is apprehended to occur
between interest of the parties.

(f) A Protector:

The conciliation plays a protecting role, for he readies the parties for collective bargaining position
by exploring alternative solutions during separate meetings.

(g) A Fail-safe Device

The conciliator often assists a party which has overstated its position to the extent of bluff or
exaggeration of its reaction to some move on the part of the other or taken a clearly untenable
stance to withdraw gracefully under the banner of reason.

(h) A Stimulator:

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Sensing the need for positive action, the conciliator can provide the necessary impulse to a
settlement, he makes a concise statement, supplies some data, gives a hint or suggestion. He
crystallizes changes of opinion in the course of discussions by intervening at the appropriate
moment and giving such ideas a concrete form.
(i) An Advisor:

The conciliator tries to remove the misunderstandings regarding the other’s position, intention and
capabilities. He tries to see that misinterpretations do not occur and that each side thoroughly
understands the other’s point of view, obtains pictures of the opponent’s strength and realizes its
own limitations and weaknesses.

(j) A face saver:

When a party knows at the outsets or realizes during the course of proceedings that it has a weak
ease and can hope for little success in pursuing the dispute. The people concerned often
reluctant to admit defeat, because they feel that this involve them in loss of face, or prestige, with
their members or public. In such situations, the conciliator may devise a form of accommodating
settlement, which apparently makes some small concession to the party concerned but which in
reality gives it little or nothing.

(k) Promoter of Collective Bargaining:

While intervening in dispute, he is not only concerned with promoting a settlement, but often
assists in collective bargaining and guides the parties in the development of their relationship.

Question no. 10 Write short notes on any seven:

Answer:

(A) SALARY ADMINISTRATION PROCEDURES:

In this section we will be concerned with the implementation and control of salary policies and
with the control of salary consists against budgets. Control is an essential element of salary
administration. We will also examine the following procedures:

Salary Budget:

A salary budget is a statement in qualitative/financial terms of the planned allocation and use of
resources to meet the operational needs of the company. Ina salary budget, you should forecast
the levels of activity, which will indicate the number of different categories of staff that are needed
for the budget period. When you prepare the salary budget you must take account of the financial
resources available to the company. This will, as you can see, affect the ability to pay general or
individual merit increases, or the numbers employed, or both.

Salary Reviews:

General salary reviews take place when it is necessary to increase all or most salaries as a result
of an increase in the cost of living or in market rates, or as a result of settlements. It is equally

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important to keep individuals informed of how they stand in the salary structure and the rewards
they are getting or can obtain.

The purpose of an individual salary review is to decide on the merit increments that should be
given to staff. You can have one annual review for all staff or you may phase increases through
the year on the anniversary of the staff joining the organization. The later enables you to give
more individual attention to the staff and removes the emotional atmosphere that surrounds the
annual review.

Fixing Salaries on Appointment or Promotion:

Control over starting salaries should be exercised by providing guidelines on the policies to be
flowed and by defining who has the authority to approve salaries. Promotions should be dealt with
as they arise rather then being left to the annual review. The increase should be meaningful and
the starting point in the new grade should provide adequate scope to reward performance in the
new job.

Other Allowances:

Employees are given various forms of additional cash remuneration or encourage commitment to
and participation in the success of the organization. Payment other than the basic salary is also
meant to compensate the employees for the special demands imposed on them by working for
the organization.

Bonus Schemes:

• The amount of reward received should be sufficiently high to encourage

staff to accept exacting targets and stands of performance.

• The scheme should be sensitive enough to ensure that rewards are

proportionate to achievements.

• The scheme should contain provisions for a regular review which could
result in its being changed or discontinued.

• The scheme should be easy to administrator and understand, and it

should be tailored to meet the requirements of your organization.

• The formula for calculating the bonus and the conditions under which it is
paid should be clearly defined.

(B) FACTORS FOR LOW EFFICIENCY OF LABOURS:

Efficiency of labour depends upon the capacity of laborer’s hand, head and heart i.e. upon his
ability, intelligency and willingness to do the work. Labour efficiency may be expressed in terms of
“Unit of Physical Output”-“Output Per Man Hour”, “Output Per Man Shift”. Ability depends on diet,
housing, climate, work combination and training.

1) Willingness depends upon the behavior of employer, family condition, social impacts,
prospects of rewards and promotion, his own intelligence and motivation and morale and
the remuneration that he gets.

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2) Factors for Relatively low Efficiency:

(a) Climate

(b) Migratory Character

(c) Low Wages lower Standard of Living

(d) Break up of Joint family so insecure feeling

(e) Obsolete machinery, poor quality raw material

(f) Education and training

(g) Hours of work and unsatisfactory work condition

(h) Bad housing condition

(i) Indent tends

(j) Absenteeism

(k) Social habits

(l) Lack of discipline and easy going attitude

(m) Political influence.

(n) Relationship between low wages and high prices is evident.

3) Higher productivity: Not at End in itself But means of Production, Social progress and
Strengthening economic foundations of human well being.

4) Different to production “Production is mere volume of output.” Mere increase in production

does not mean higher productivity, though HIGHER productivity IMPLIES higher
production.

5) Increasing productivity IMPLIES the full, proper and optimum utilization of the available
resources of men, machines, materials, money, management techniques, power and level.
It implies ruthlessly cutting down waste in all.

(C) JOB ANALYSIS:

Developing an organization structure results in the jobs, which have to staff. “Work” is an
organization’s primary function. The ‘basic work activities’ may relate to three categories Data,
People and Things. Under Data are include, computing, copying and comparing activities. People
relate to monitoring, negotiating, instructing supervising, and diverting, persuading, speaking,
signaling, serving and taking instructions.

The following are the certain terms relating to job analysis:

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Job: A job may be defined as a “collection or aggregation of tasks, duties and responsibilities
which as a whole, is regarded as a regular assignment to individual employees, and which is
different from other assignments. In other words, when the total work to be done is divided and
grouped into packages, we call it a “job”.

Job Analysis: It is a procedure by which pertinent information is obtained about a job i.e. it is
detailed and systematic study of information relating to the operations and responsibilities of a
specific job. In authority has defined job analysis as “the process of determining, by observations
and study, and reporting of a specific job. It is the determination, the skills, knowledge, abilities
and responsibilities required of the worker of a successful performance and which differentiate on
job from all others.

Job Description: It is a written record of the duties, responsibilities and requirements of a

particular job. It is concerned with the job itself and not with the work. It is a statement describing
the job in such terms as its title, it is to be done” and ‘why’. It is a standard of function, in that it
defines the appropriate and authorized content of a job.

Job Specification: It is a standard of personnel and designed required for an acceptable

performance. It is a written record of the requirements sought in an individual worker for a given
job. In other words, in refers to a summary of the personal characteristics required for a job, it is a
statement of the minimum acceptable human qualities necessary for the proper performance of a
job.

Job Design: It is the division of the total task to be performed into the manageable and efficient
units, position, departments and divisions and to provide for their proper integration. The sub-
division of work is both on a horizontal scale with different tasks across the organization being
performed by different people and on the vertical scale, in which higher levels of the organization
are responsible for the supervision of such groups, more complex planning etc.

Job Analysis (JA): After a job has been defined, it is analyzed i.e. each task is described in
detail. Job analysis is a procedure and tool for determining the specified tasks, operations and
requirements of each job. In the process of getting information about jobs: specially, what the
worker does, how he gets it don; why he does it; skill, education and training is required;
relationship to other jobs; physical demands; environmental conditions. In other words, it refers to
the anatomy of the job. It is a complete study of the job, embodying every known and
determinable factor including the duties and responsibilities involved in its performance, the
nature of the task, the qualities required in the worker, and such conditions of employment as
pay, long, opportunities and privileges. It also emphasized the relation of one job to others in the
organization.

(D) RECRUITMENT CHECKLIST:

Recruitment Policy assesses the objective of recruitment and provides a framework of

implementation of the recruitment programme. In the form of procedures, a good Recruitment
Policy must contain the following elements.

(a) Organization’s objective: Both the short-term and the long-term.

(b) Identification of the recruitment needs to take decisions regarding the balance of
The Qualitative dimensions.
(c) Preferred sources of recruitment – Whether internal or external
(d) Criteria of selection and preference.
(e) Cost of recruitment and the financial implications of the same.

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The following checklist has to be made:

1) Has the responsible Manager agreed the vacancy?

2) Is there up to date job description?

3) What are the conditions of employment (salary, hrs, and holiday) for the
vacant position?

4) Has a candidate specification been prepared?

5) Has a notice of vacancy been submitted earlier?

6) Has the job advertisement been agreed?

7) What arrangements have been made fro drawing a short list of

candidates?

8) Have the interview arrangement been made?

9) Have unsuitable candidates held in reserve been inform?

10) Have offer letters been agreed and dispatched?

11) Have suitable rejection letters been sent to unsuccessful short listed
candidates?

12) Have all replies to offer letters been accounted for?

(E) RIGHTS OF RECOGNIZED TRADE UNION

(1) Such officers, members or the office staff and members of a recognized union as may be
authorized by or under rules made in this behalf by the stage government shall in such manner
and subject to such condition as may be prescribed, to have a right:

(a) to collect sums payable by members of recognized union on the premises, where wages are
paid to them.

(b) To put up or cause to be put up a notice board on the premises of the undertaking in which
the members are employed and affix or cause to be affixed notice thereon.

(c) For the purpose of the prevention or settlement of an industrial dispute:

(i) to hold discussion on the premises of the said undertaking with the employees concerned,
who are the members of the union, but so as not to interfere with the due working of the
undertaking.

(ii) to meet and discuss, with an employer or any person appointed by him in that behalf, the
grievances of employees employed in his undertaking.

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(iii) to inspect, if necessary, in an undertaking any place where an employee of the undertaking is
employed.

(d) to appear on behalf of any employee or in any domestic or departmental inquiry held by the
employer.

(2) Where there is a recognized union for any undertaking:

(a) that union alone shall have the right to appoint it’s nominee to represent workmen on the
works committee constituted under sec.3 of the central Act (IDA)

(b) no employee shall be allowed to appear or act and be allowed to be represented in any
proceedings under the Central Act (not being a proceeding in which the legality or propriety of an
order of dismissal, discharge, removal, retrenchment, termination of service or suspension of an
employee is under consideration) except through the recognized union; and the decision arrived
at, or order made, in such proceeding shall be binding all the employees in such undertaking.

(F) WOMEN WORKERS IN INDIA:

The following are the salient features of employment of women observed in the Annual Report
1993-94, Ministry of Labour, Government of India and as revealed by the 1991 Census figure:

• As per 1991 Census over one third of India population is working. Among
males, more than half are workers while among females nearly one in four is engaged in
some kind of work.

• The Census of 1991 has registered 22.89% of the female population as

workers 91.4 million persons is absolute terms out of a total female population of 402.8
million.

• The rate of women Workers in the total worker population in urban and
rural areas is respectively 9.73% and 27.06%.

• Majority of women workers in rural areas and 87% of them are employed
in agriculture as cultivators and laborers.

The average daily annual rate of growth of employment amongst educated women was 11.08%
during the period 1983 to 1987-88, compared to only 6.58% during the period 1977-78 to 1983.
These figures reflect a higher rate of growth than for men during the same period which men 6.76
and 5.51 respectively.

The Report of the National Commission on Self-Employed Women in the Informal Sector
observes that 90% of the working women are in the informal and unorganized sector, and only
10% work in the formal sector. According to a World Bank Report, 1991, the percentage of
women in the non-agricultural formal sector ranges between 2 and 5% of the total female labour
force and the non-agricultural informal sector between 7 and 15% Women in agriculture account
for 81% of the work force.

Types of Work Done By Women:

According to Maitheryi Krisnaraj the type of work done by women in India can be classified into
the following categories:

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1) Wage and Salaried employment.

2) Self-employment outside the household for profit.

3) Self-employment in cultivation and household industry for profit.

4) Self-employment in cultivation for own consumption.

5) Other subsistence activities in all allied sectors like dairying, other livestock rearing such as
poultry, goats, pigs, etc. and fishing, hunting cultivation of fruit and vegetable gardens.

6) Activities related to domestic work such as fetching fuel, fodder, water, forest produce,
repairing

(G) SOURCES OF INCOME AND ITEMS OF EXPENDITURE:

Membership Fee:

The main source of the income of a trade union is the membership fee. Every member is
expected to pay a fee which may be recovered monthly, quarterly or annually. The fee is small or
big depending upon the emoluments of members and services rendered by the union. In India,
according to Trade Union Act, 1926, minimum membership fee to be charged is 25 paisa per
member.

Admission Fees:

A union may charge an admission fee. This admission fee may be deposited in a fund to be
utilized for special purpose.

Donations:

A union may also recover from members from time to time donations and other levies. Such
recoveries are usually made when members get some lump sum payments by way of bonus or
arrears of wages. Usually such payments are secured as a result of the efforts of the union.
Members do not then grudge making additional contributions to the funds of the union.

Levy Charges:

A union may levy charges for some of its services. For example, there may be a fee for the use of
a library or reading room or for medical and other type of help that may be rendered.

Welfare Fund:

A union may also start a welfare fund out of which assistance may be provided in cases of
sickness, unemployment or old age. Members may be asked to make contributions to it. British
and American unions have many such funds and they have contributed materially to their
strength and stability.

Fines and Forfeitures:

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Fines may be levied upon members for non-payment of dues or other departures from rules.
There may be also some forfeiture, when members may leave the union and not claim the benefit
due to them.

Interest on Investments:

When unions make investment in securities, fixed deposits etc. they get interest thereon. It is so
far an insignificant factor because in the case of our unions very few have funds which can be
invested in securities. But the position change in the next few year.

Sale of Periodicals, Books etc.:

Unions may publish some periodicals and books about their activities. They are sold to workers
and other concerned people. From this sale proceed union may get some amount. But this
amount also is very small.

Income from Miscellaneous Sources:

Unions can also raise donations from non-members. They can also get in times of need, financial
assistance from sister unions or from their federations and nations organizations, But these are
not usual items of revenue on which a union can build its activities.

Items of Expenditure:

The funds of a union can be spent only for the purpose of the unions. Section 15 of the Indian
Trade Union Act 1926 provides “The General funds of a registered trade union cannot spent on
any other object than the following:

1) The payment of salaries, allowances and expenses to officers of the trade

union.

2) The payment of expenses for the administration of the trade union, including
audit of accounts of the trade unions.

3) The prosecution or defense of any legal proceedings to which the trade union
or any member thereof is a party.

4) The conduct of trade disputes on behalf of the trade union or any member
thereof.

5) The compensation of members for loss arising out of trade disputes.

6) Allowances to members or their dependents on account of death, old age,

sickness, accidents or an employment of such members.

7) The issue of or the undertaking of liability under policies of assurance on the

lives of members, or under policies insuring members against sickness, accidents or
unemployment.

8) The upkeep of periodical published mainly for the propose of discussing

questions affecting employers or workmen as such.

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