Trade union

Trade union is a voluntary group of workers formed to protect and promote their interests
through collective action. These may be formed on plant basis, industry basis, firm basis,
regional basis or national basis. The trade union, through its leadership, bargains with the
employer on behalf of union members and negotiates labor with employers. This may
include the negotiation of wages, work rules, complaint procedures, rules governing hiring,
firing and promotion of workers, benefits, workplace safety and policies. The agreements
negotiated by the union leaders are binding on the rank and file members and the employer
and in some cases on other non-member workers. Over the last three hundred years, many
trade unions have developed into a number of forms, influenced by differing political and
economic regimes. The immediate objectives and activities of trade unions vary, but may
include:

 Provision of benefits to members: Early trade unions, like Friendly Societies, often
provided a range of benefits to insure members against unemployment, ill health, old
age and funeral expenses. In many developed countries, these functions have been
assumed by the state; however, the provision of professional training, legal advice and
representation for members is still an important benefit of trade union membership.
 Collective bargaining: Where trade unions are able to operate openly and are
recognized by employers, they may negotiate with employers over wages and
working conditions.
 Industrial action: Trade unions may enforce strikes or resistance to lockouts in
furtherance of particular goals.
 Political activity: Trade unions may promote legislation favorable to the interests of
their members or workers as a whole. To this end they may pursue campaigns,
undertake lobbying, or financially support individual candidates or parties (such as the
Labour Party in Britain) for public office.

GRIEVANCE
A grievance is a sign of an employee's discontentment with his job or his relationship with
his colleagues. Grievances generally arise out of the day-to-day working relations in an
organization. An employee or a trade union protests against an act or policy of the
management that they consider as violating employee's rights. Conflict occurs when two or
more people or parties perceive an incompatibility in their goals or expectations. A grievance
may arise from injustice and be cause for rebellion or revolution. Accumulation of
grievances disturbs industrial peace. The employers may be partly responsible for giving rise
to some of these grievances while some of them may be due to fatigue and domestic
problems of workers.

HANDLING OF GRIEVANCE
The management has to designate the officer in the establishments who will hear and settle
the grievances in the first instance. If it is not settled at that level, the department heads are to
be designating of settling at the second stage. In case the grievance is not settled at the second
stage it go to a grievance committee at the establishment with equal representation of
employer as worker. It should preferably be a small one consisting of four to six members
only then it can function with speed and in the official who will deal with the grievances a the
first stage. The personal officer may also be there on the committee as an adviser.Unanimous
recommendations of the grievances committee should invariable are implemented by the
management. If there is any difference of opinion among the members, the view of the
members along with relevant papers have to be placed before the manager for final decision,
In either case the final decision of the management has to be communicated to the worker
concerned by the personnel officer within three days of the receipt of the grievance
committee recommendation.

STRIKE
Strike is patent weapon with the labour to protect interest. A strike is tug of war between the
employee and employers. The employees try to secure reduces of the grievances or to effect a
change through it. Strike is defined under section 2(q) of I.D Act 1974 as under:-
Cessation of work by a body of persons employ in any industry acting in combination or a
concerted refusal of work under a common understanding of any member of persons who are
or have been so employed to continue to work or to accept employment.
There are following types of strikes:-
1. Hunger Strike
2. token strike
3. Support strike
4. Gate strike
5. Production strike
6. Go slow strike
7. Sympathetic strike

LOCKOUT
Lockout is a work stoppage in which an employer prevents employees from working. It is
declared by employers to put pressure on their workers. This is different from a strike, in
which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is
raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the
temporary closing of a place of employment or the suspension of work or the refusal by an
employer to continue to employ any number of persons employed by him.

A lockout may happen for several reasons. When only part of a trade union votes to strike,
the purpose of a lockout is to put pressure on a union by reducing the number of members
who are able to work. For example, if a group of the workers strike so that the work of the
rest of the workers becomes impossible or less productive, the employer may declare a
lockout until the workers end the strike. Another case in which an employer may impose a
lockout is to avoid slowdowns or intermittent work-stoppages. Occupation of factories has
been the traditional method of response to lock-outs by the workers' movement.

PICKETING
When workers are dissuaded from work by stationing certain men at the factory gates, such a
step is known as picketing. If picketing does not involve any violence, it is perfectly legal.
Pickets are workers who are on strike that stand at the entrance to their workplace. It is
basically a method of drawing public attention towards the fact that there is a dispute between
the management and employees.

The purpose of picketing is:

  to stop or persuade workers not to go to work

 to tell the public about the strike

 to persuade workers to take their union's side

GHERAO
Gherao in Hindi means to surround. It denotes a collective action initiated by a group of
workers under which members of the management are prohibited from leaving the industrial
establishment premises by workers who block the exit gates by forming human barricades.
The workers may gherao the members of the management by blocking their exits and forcing
them to stay inside their cabins. The main object of gherao is to inflict physical and mental
torture to the person being gheraoed and hence this weapon disturbs the industrial peace to a
great extent.

LABOUR WELFARE
Labour Welfare means working out things for the well-being of the labours. Knowing there
wants and enabling them to fulfill there wants. The government, has made certain facilities
obligatory on the part of employers under legislations because The employers have limited
financial resources an moreover their attitude towards labour is apathetic. They consider the
expenditure on labour welfare activities as waste of money rather than an investment. Even
so, some enlightened employers, on their own initiative, have been doing a bit in the direction
of welfare. They have provided medical aids, hospital and dispensary facilities, canteens, fair
prices shops, co-operative societies, recreation club etc. these facilities are apart from their
liability under various control of state legislations.
The government created a new Department of Labour under a commissioner of labour. The
department has organised labour welfare centre in almost all big industrial centers. The
regular centers are divided in to three categories on the basis of the activities undertaken by
them. Nearly all basic welfare facilities like hospitals and dispensaries, libraries and reading
rooms, sewing classes, maternity centers, crèches in door and outdoor games etc. are
provided by these centers. The Government framed factories welfare offices rules. According
to these rules, every factory employing 500 workers or more will have to appoint a Labour
Welfare Officers and factories employing 2,500 workers or more will have appoint an
additional welfare officer. There are also labour welfare advisory committees, one for the
whole state 19 in districts to advise the government in organizing labour welfare activities. A
few municipalities and municipal corporations have also taken special welfare measures such
as co-operative credit societies, maternities and nursery schools, adult schools, crèches, etc.
these progressive municipalities are of Bombay, Calcutta, Delhi, Kanpur, Madras, Ajmer etc.

WORKERS PARTICIPATION IN MANAGEMENT.

Meaning of participation

The term participation is variously understood by involved parties. For management it is a

joint consultation prior to decision making, for workers it means co determination, while for
government it is an association of labour with management without the final authority or
responsibility in decision making. Participation is generally conceived of as a way of
reducing power difference and, therefore, equality is stressed. Participation as a means to
reduce power inequity however, seems difficult to accept because of the obvious difference in
formal power positions between the labourer and the director.
Workers Participation in Management is a system of communication and consultation,
either formal or informal, by which employees of an organisation are kept informed about
the affairs of the undertaking and through which they express their opinion and contribute
to management decisions.

LEVELS OF PARTICIPATION

Informative and Associative Participation –

Right to receive information, discuss and give suggestions on the general economic
situation of the concern. For example – The state of the market, Production and Sales
Programmes ,Circumstances affecting the economic position of the company ,Long term
plans of expansion and redeployment

Consultative Participation –
Involves a high degree of sharing of views of the members and giving them an opportunity
to express their feelings. Members are consulted on matters such as Welfare amenities
,Adoption of New Technology and the problems emanating from it ,Safety measures

Administrative Participation –
Involves a greater degree of sharing of authority and responsibility of the management
functions. Members are given little for autonomy in the exercise of administrative and
supervisory powers with regard to ,the preparation of schedules of working hours,
breaks and holidays ,payment of reward for valuable suggestions

Decision Participation –
Is the highest form of participation. The delegation of authority and responsibility of
managerial function is maximum in matters like – Economic, Financial and Administrative
policies the decisions are mutually taken

Importance of participation

1. Unique motivational power and a great psychological value.

2. Peace and harmony between workers and management.
3. Workers get to see how their actions would contribute to the overall growth of the
company.
4. They tend to view the decisions as `their own’ and are more enthusiastic in their
implementation.
5. Participation makes them more responsible.
6. They become more willing to take initiative and come out with cost-saving
suggestions and growth-oriented ideas.

Labour laws and disputes

Labour laws are necessary for the following reason because the workers were financially
weak and had little bargaining power. The wages paid to factory workers were quite
inadequate to meet their barest needs. If workers exposed to serious accidents because
machine lost their employment and had no right to compensation, the employment was not
secured. Worker would be discharged suspended or dismissed at any time without assigning
any reason. Children and women were taking to work under hazardous conditions It
establishes a legal system that facilitates productive individual and collective employment
relationships, and therefore a productive economy. By providing a framework within which
employers, workers and their representatives can interact with regard to work-related issues.
Labour legislation is widely used both to regulate individual employment relationships and to
establish the framework within which workers and employers can determine their own
relations on a collective basis.

WAGE
A wage is compensation, usually financial, received by a worker in exchange for their labor.
Compensation in terms of wages is given to worker and compensation in terms of salary is
given to employees because the quantum of the services delivered by the employees is not
measurable such as supervisory staff. Compensation is a monetary benefit given to
employees in returns of the services provided by them. Generally wages are paid on hourly/
daily/weekly/monthly basis where as salaries are paid on monthly basis.

SYSTEM OF WAGE PAYMENT

A good wage payment plan is one which satisfies the workers and at the same time profits to
management. The following are some of the systems of wages payments, which are
commonly used:
1. Time Rate System.
2. Piece Rate System.
3. Combination of time and piece rate system.

Time Rate System

Under this system, a definite sum of money is paid for a particular period of work. It may be
hourly, weekly or monthly unit of time. Its greatest defect is that there is no incentive element
as the wage is fixed more according to the efficiency and skill of the
Its chief use lies where the quality of product is necessary rather than its quantity.
Labour is not worried about the output. It suffers from many serious disadvantages but has
certain advantages too.
Advantages
The following are the advantages of Time Rate System of wage payment:
1. It ensures regular employment and greater security of services to the workers.
2. The workers know in advance what they are going to get as it has been already fixed.
So there is no dispute about the amount of payment.
3. Due to ‘slow and steady’ working hours. There is no rough handling of machines.
4. The interruption of work due to breakdown of machinery will not make workers to
suffer from the loss of wages.
5. The quality of work can be raised easily, as there is no need of hurrying about the
things to be done.
6. It avoids the workers over-straining themselves, mentally and physically thus causing
less fatigue.
7. It is specially adopted where the job is of an artistic nature and requires hi quality of
workmanship.
8. There are no difficult calculations to be made.
Disadvantages
The following are the disadvantage of Time Rate System of wage payment:
1. Employer bears loss due to slow workers. They are paid the same wages irrespective
of their output.
2. This system tends to reduce production, unless a strict supervision is managed. It
increases the overhead charges.
 3. It does not inspire the spirit of competition in the workers.
4. This system tends to give higher production cost.
5. Lazy workers are not suitable in this system.
6. The system does not differentiate between efficient and inefficient workers.

Piece Rate System

Under this system, the worker is paid according to the quantity of work he complier
satisfactorily. The rate per unit of work is fixed. This system therefore provides at adequate
incentive for the more efficient workers. It does not guarantee a fixed minimum. wage to the
worker. The Wages depend upon his productive capacity. Thus there is t keen tendency in
him to work more and more with higher efficiency. This system is uses where quality is of
less importance than quantity.
This system suffers from many serious disadvantages but it has certain advantages too.
Advantages
The following are the advantages of Piece Rate System of wage payment:
1. Workers are paid on their merits.
2. There is no need of keeping strict supervision thus reducing the overhead expenses
and hence cost of production.
3. Waste time is not paid in this system.
4. It induces a spirit of keen competition in the workers.
5. This system is fair to both the employer and employees.
6. There is no dispute for wages as the workers get satisfactory reward for then work.
7. The inefficient workers are automatically punished.
8. It is easy to be operated and understood by the workers.
9. The worker is able to know his labour cost per unit of job.
10. The work and time spent on preparing pay rolls and bills is eliminated.

Disadvantages
The following are the disadvantages of Piece Rate System of wage payments:
1. It will cause an increase in waste of materials because the worker will always try to
obtain maximum output.
2. Accident may occur due to hasty work and improper use of machines and tools
3. The quantity of work may be inferior because the, workers try to speed up their work
in order to earn high wages.
4. The worker’s health may be spoiled due to fatigue and overwork, due to his tendency
to earn more money.
5. It may cause over production which is dangerous for economy when demand is
limited.
6. The spirit of keen competition among the workers sometime turns into mutual
jealousy.
7. It does not ensure the regularity of work and the worker suffers for the period of his
sickness.

Combination of Time Rate and Piece Rate System

Under this method both time and product are taken into consideration. Minimum wages are
fixed for every worker which is to be paid irrespective of his output during the week. But his
presence for the full week is necessary. If the worker is absent for a long period during a
week, his wages will be deducted proportionately i.e. a week consists of 48 hours of working
and a worker works for only 40 hours then he will be 5/6 th of his regular weekly wages so far
the payment is based on Time Rate System.
The number of job completed by the worker during that week is mentioned on a job card of
each worker. Payment for each job is fixed in advance. If the piece work wages by a worker
are in excess than the time wage, the balance is paid to the worker. If short of time rate then
the worker will have to compensate the same.
Suppose the worker is paid Rs. 24/- a week according to time rate and the piece rate of a job
which he is doing is Rs. 3/- each. Again he has completed 10 jobs during a will be paid Rs.
30/- for that week. If he completes only 7 jobs he shall still be Rs .24/-. During the next week,
he shall only be paid in excess than the time wage completes more than 9 jobs and so on.
Advantages
Following are the advantages of this system:
1. It provides incentives to the workers to produce more.
2. The overhead cost of production is lowered.
3. It is simple in its working and the workmen can easily calculate the wages,
4. In this method production will improve.
Disadvantages
Following are the disadvantages of this system.
1. It needs a careful checking of quality.
2. It needs attention at the time of fixing the rate of piece work or job.
3. The entire benefit of extra payment goes to the worker and no direct benefit to
employer.

INDIAN FACTORY ACT 1948

Factory act was framed with the objective to ensure adequate safety measures and to promote
the health and welfare of the workers employed in factories, to prevent haphazard growth of
factories through the provisions related to the approval of plans before the creation of a
factory and to regulate the working condition in factories, regulate the working hours, leave,
holidays, overtime, employment of children, women and young persons.

Scope and coverage

Regulates working condition in factories, Basic minimum requirements for ensuring safety,
health and welfare of workers. Applicable to all workers. Applicable to all factories using
power and employing 10 or more workers, and if not using power, employing 20 or more
workers on any day of the preceding 12 months.
The main provisions of the act are:-

1. Compulsory approval, licensing and registration of factories. - The occupier of any

factory has to obtain prior approval of the state government for the site on which the
factory is to be situated and for the construction or extension of a factory. The
occupier of factory is also required to get the factory registered for obtaining a license
for operating it.
2. Age and working hours: - The act fixes the minimum age of persons who can enter a
factory for work at 14 years. The Act restricted the hours of work at four and a half
hours from 5 hours for children age of 14 - 17 and prohibited the work at night for
such persons, restricts employment of women in factories between 6 pm to 7 am and
has also reduced the daily working hours from 8 hours to 7-1/2 hours. The act also
made it compulsory of half an hour break after completing 5 hours. The worker, who
works for more than 8 hours in a day, is to be paid for the extra hours work at the rate
 of twice their ordinary rate of wages.

3. Cleanliness: The Act provides that every factory shall be kept clean. Accumulation of
dirt and refuse shall be removed from the floor. The benches of work room, staircases
and passages are also to be maintained properly and cleaned every week. All inside
walls shall be white-washed every year of painted once in every 5 years. Due
importance is given for cleanliness.
4. Ventilation and Temperature: The Act provides for adequate ventilation and fresh air
circulation in every factory and maintains the required temperature. Adequate
measures shall be taken by the management to protect the workers from excess
temperature.

5. Overcrowding: To prevent overcrowding in any factory, the Act lays down that a
minimum of 500 cubit feet space shall be provided to each work. The Chief Inspector
of Factories will communicate each factory manager the maximum number of
workers that may be employed on any premises. However, he has the authority to
exempt any factory or work area from this rule if he is satisfied that it is not necessary
to follow the prescribed rules in the interest of workers employed therein.

6. Lighting: Management of a factory has to maintain sufficient and suitable lighting,

natural or artificial or both, in all the work areas. All the glasses are to be kept clean
on both the inner and outer surface and effective measures to be taken where shadows
may cause eye-strain or create a risk of accidents.

7. Drinking Water: In every factory, effective arrangement of water at prominent

locations shall be provided. Where more than 253 workers are ordinarily employed,
provision of cool drinking water shall be made during the hot weather.

8. Latrines and Urinals: Sufficient latrines and urinal facilities shall be provided at the
places accessible to workers at all times while they are duty in the factory. The State
Government may prescribe the number of latrines and urinals to be provided in any
factory in proportion to the number of male and female workers employed therein.

9. Safety Provisions: All possible safety measures are to be provided at the factory
premises. It is the legal responsibility of the management for maintenance and use of
safety guards. It is its duty to supervise the use of these guards by the workers. In
every factory, all dangerous parts of all machines like moving parts of prime movers,
fly wheels, electric generators, motors, Rotary converts, etc. shall be provided with
proper fencing for safety measures.
10. Welfare Provisions: Workers shall be provided with suitable welfare facilities like
washing facilities, storing and drying clothes, and facilities for sitting, first aid
appliances, and other welfare activities which might boost the worker for satisfactory
working conditions.
11. Penalties for Breach of Provision of the Act: Disobeying the provisions of the Act
shall be liable for office and be punishable with imprisonment for a term not
exceeding three months or with a fine unto Rs. 500 or both.
The Payment of Wages Act, 1936

All the workers in a factory are supposed to get wages either weekly or monthly, for the work
and the service he has done. The payment of wages to the workers in a particular form and at
regular intervals without any unauthorized deductions is the objective of this Act.

Scope of the Act: The provision of this Act applies to workers engages in factories as defined
in the Factories Act of 1948 and the persons employed in any railway by contractor or sub-
contractor. The Act may also include any persons employed in any industrial establishments..

The date of payment of wages: The wages of every persons employed in any factory,
industrial establishment, or railways, where less than 1000 workers are employed, shall be
paid before the expiry of the seventh day after completion of the wage period, generally a
month. The wages for a month, for example, shall be paid before the seventh day of the next
month. If the workers employed in a factory are more than 1000, the wages shall be paid
within 10th day of the next month. The wages of a terminated person shall be settled his
account by the next work day after such termination.

Authorized Deductions: The Act authorizes an employer to make deductions from wages for
the specific purposes only such as fine, absence from duty, damage to or loss of goods or
money, where such damage is due to the negligence or default on the part of the employee,
housing accommodation supplied by the employer and such amenities / services provided by
the employer as the State Government may authorize.

THE INDUSTRIAL DISPUTES ACT, 1947

The Industrial Disputes, strikes and lock-outs were not very common occurrences in India till
1914. During the Great War of 1914 – 1918, the strike came to be regarded as a weapon of
industrial warfare. During the war, the cost of living went on rising, but the wages did not
keep pace with it. This gave rise to serious pain among industrial workers and led to a series
of strikes, notably in Mumbai Textile Industries.. In addition to low wages, there were many
other causes which were partly responsible for the outbreak of strikes during that period. The
more important of these were long hours of work, bad working conditions, insanitary housing
conditions, absence of any provision for compensation for injuries sustained during the
course of employment, absence of the right to form a trade union, ill treatment of workmen,
officials, etc.

The important provisions of the Industrial Disputes Act of 1947 are:

1. If any industrial dispute exists or is planned or sensed, the appropriate Government

may by order in writing, refer the dispute to a Board for promoting a settlement or
refer to the court of Inquiry and to a Tribunal for Arbitration.

2. When either or both of the parties apply to the Government to refer the dispute to a
Board, Court or Tribunal, the person applying should represent majority of each party.

3. If a dispute has been referred to a Board or a Tribunal, the Government may prohibit
the continuance of any strike or lock out in connection with such a dispute.
4. A settlement arrived at in the course of conciliation proceedings under the Act, or an
award declared by the Government, shall be binding on all the parties to the dispute
for 6 months.

5. An award declared by the Government shall come into operation for a period of one
year.

6. Workers employed in public utility industries shall not go on a strike and the
employers in such industries shall not resort to lock outs,Without giving a fourteen
days’ notice and before the period of notice expires, or During the pendency of
conciliation proceedings.

7. Workers employed in any industrial establishment shall not go on strike During the
pendency of conciliation proceedings, During the pendency of proceeding before a
Labour court, Tribunal or National Tribunal,During a period in which a settlement or
a award is in operation.

8. If any industrial dispute exists or is planned or sensed, the appropriate Government

may by order in writing, refer the dispute to a Board for promoting a settlement or
refer to the court of Inquiry and to a Tribunal for Arbitration.