INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Submitted to
Prof (Dr) S.Rangnekar
Department of Management Studies
Indian Institute of Technology Roorkee
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Siddharth Chaudhry Nupur Kamble

B.Tech (Computer Science)
Sandeep Kumar Sah
CSE, SGGSIET
UPTU, Lucknow Data Science Training
6 years work-ex in Fuel B.Tech (Mechanical and
and live project at
Retail. Participant in all Automation )GGSIPU
tasklance , Competitive
three stages of UPSC Civil Winter internship at
Services Examination. Programming.
IDBI Bank
GRE Psychology score 650 Fresher
Co-Ordinator at Thomso
Submitted a Research
2018.
Paper in Spain
 INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Deepanshu Saraswat

B.Tech (Mechanical & Shadab Mallick

Automation) E&TC Engineer
GGSIPU PCE, Nagpur Unversity
Winter internship at MARK Work Ex –System Engineer
EXHAUST SYSTEMS LTD. at TCS (27 months)
As an HR trainee Attended a training session
Coordinator events at
on Financial Modelling
THOMSO & COGNIZANCE.
under Forevision.
• Eurotunnel is a public company which manages and operates the Channelled Tunnel linked
between Britain and France, running freight train and maintaining the infrastructure.
• To harmonize its workforce, it setup a company council for U.K contracted employees(1992)
• This had 8 representatives from different divisions of the company like shuttle services,
freight divisions, tourist divisions etc.
• Employment Relations Act, 1999 provided for a partnership agreement with Transport and
General Workers Union(TGWU) to cover all non managerial staffs. This conferred
negotiation rights, approved the existing consultation framework and established a joint
management-trade union forum.
• Two representational structures- a company council with 8 representatives representing all
employees and a joint trade union forum representing union members at Eurotunnel with
sole negotiating rights over pay and other employee related concerns.

4
• The first survey revealed increasing acceptance of trade union recognition with increasing number of
employees becoming member of TGWU.
• However, the second survey suggested that the trade union had not met the expectations of more than two-
third of the employees with regard to improving their position over work conditions, pay and benefits, health
and safety and employee grievances.
• This highlights the risks for trade union when employee expectations are unrealistic, which may undermine
the impact of union and their effectiveness in the bargaining process.
• While a majority of employees wanted a union recognition, they suggested that the company council should
retain a consultation role. While union recognition was favoured by most, they believe that union
representation can alone will not achieve great benefits for them. Hence, some employees suggested the
company council to be given greater powers with its role ranging from an informational channel on some
issues to a genuine negotiating body on others.
• Challenge for the trade union:
• Ineffective trade union--Seduction without love—Ineffective union voice---Challenge for management-
employees partnership

5
• The developments at Eurotunnel signalled the difficulties for trade unions and employers
in satisfying the requirements of the legislations.
• Unilateral imposition of trade union arrangements by management without discussion
with employees are ineffective and may threaten organizational health.
• Consultation with a view to reach agreements on decisions is a little different to
traditional trade union activities of collective bargaining. They do not provide any
automatic participatory rights to union representatives.
• Any representatives structures within firms need to have full support of majority of
employees and to be seen as organic to the workplace rather than an imposed
arrangement between and trade union. Without such a bottom up approach, the
legitimacy and respect for such arrangements will diminish creating obstacles for
developing meaningful dialogue and trust between management, staff and unions.

6
• A mechanism for communication between management and employees at
the workplace may not be enough. Voice, the right to be heard and having a
true say over workplace issues may be essential for achieving greater
employee satisfaction and commitment.
• While trade union may provide greater voice than non-union arrangements,
the strength of voice is dependent on the legitimacy and effectiveness of
trade unions in representing employees interest at workplace and that in
turn depends on the union being perceived by the workforce as both
representatives and able to act independently. If it isn’t, it will not meet the
needs of either employees or management.

7
Factors responsible for resolving Industrial Relation problems

COLLECTIVE BARGAING
It is a process in which the representatives of a labour organization & the representatives of business
organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-
employer union relationship.

The Substance of Bargaining:

1. Wages and working conditions 8. Grievances

2. Work norms 9. Disciplinary matters
3. Incentive payments 10. Health and safety
4. Job security 11. Insurance and benefits
5. Changes in technology 12. Union recognition
6. Work tools, techniques and practices 13. Union activities/responsibilities
7. Staff transfers and promotions 14. Management rights

8
Advantages of Collective Bargaining:

Provides Gives
Prohibits
Security To Employees a
Strikes
Workers voice

Reduces Bias Stabilizes The

and Favoritism Business

Disadvantages of Collective Bargaining:

Not All People A Loss of Bureaucracy

Will Agree Authority Takes Forever

Reduces
Equalized Pay
Managements
Causes Problems
Hand In Business

9
Trade Union Association in India (Legal Framework)

Union recognition: criteria and rights

The Bombay Industrial Relations Act, 1946, classified the registered unions as:
i. Representative union having a membership of not less than 25% of the total employees as members in an
industry;
ii. Qualified union having at least 5% of membership in an industry; and
iii. Primary union having a membership of at least 15% of employees in an undertaking.
The rights of a Representative union under the Act are:
a. First preference to appear or act in any proceedings under the Act as the representative of employees;
b. Right to submit a dispute for arbitration;
c. To make a special application to the Labour Court to hold an inquiry; and
d. Office-bearers of the union cannot be dismissed or discharged.

10
 The Industrial Disputes Act, 1947

The Industrial Disputes Act, 1947 extends to the whole of India and regulates Indian labour law so far as that
concerns trade unions as well as Individual workman employed in any Industry within the territory of Indian
mainland.

OBJECTIVES:-
 The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and
procedure for the investigation and settlement of industrial disputes by conciliation, arbitration and adjudication
machinery which is provided under the statute.

 The main and ultimate objective of this act is "Maintenance of Peaceful work culture in the Industry in India" which
is clearly provided under the Statement of Objects & Reasons of the statute.

 The laws apply only to the organized sector. It talks about the Regulation of strikes and lockouts and the proper
procedure which is to be followed to make it a Legal instrument of 'Economic Coercion' either by the Employer or
by the Workmen.

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Machinery for Prevention and Settlement of Industrial Disputes:
Machinery for prevention and settlement of disputes

Voluntary Methods Government Machinery  

Statutory Measures

State Acts
Industrial Disputes Act, 1947
 Collective Bargaining Labour Administration  Works Committees
Machinery
 Trade Unions  Conciliation
 State Level
 Joint consultations (A) C.Officer
 Central Level (B) C. Board
 Standing Orders
 Arbitration
 Grievance Procedure
 Adjudication
 Code of Discipline
(a) Labour Courts
(b) Industrial Tribunals
(c) National Tribunals

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Q-1. Why was the company council not a substitute for union
representation?
• The company council played a limited role in the bargaining and decision making
process.
• Its main focus was on performance or business issues(improving quality,
productivity, sales etc.) rather than issues based on meeting worker’s
expectations.
• Collective bargaining in its true sense was essentially possible only through Union
representation and not company council.
• Elected representation of employees could be only possible by Union only.

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Q-2. Can Union-Management partnership actually succeed?
Why?
Union management partnership can succeed under the following conditions:
• When the union is truly representative of the entire employee body.
• It needs to have full support of the majority of employees and should be seen as
organic to the workplace rather than an imposed arrangement. Bottom up
approach is critical in this context.
• It should be able to act independently without interference.

14
Q-3. Why could Eurotunnel employees’ perception of a lack of effective union voice
undermine the union’s influence on management?

• The perception of having an ineffective union was a challenge to workable

partnership between management and partnership.
• Some employee suggested they were best able to deal with issues like pay and
working conditions as individuals.
• Employees often chose not to vent out their grievances since they perceived the
union to be ineffective.
Owing to the above factors, the union influence on management was sub optimal.

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Q-4. In what way could the new information and consultation legislation affect the
union-employer partnership at Eurotunnel?

• The new information and consultation legislation encourages a more formal approach
expanding on existing information and consultation rights within enterprises.
• However, it does not provide any automatic participatory rights to union representatives.
• There may be difficulties for trade unions and employers in satisfying the requirements of
the legislations. For Ex- Employers are to be establish an information and consultation
framework when a valid request has been initiated by 10% of the employees in the firm.

16
Q-5. What can management do to increase union effectiveness?

• Free and Fair elections of Union leaders.

• Allow the Union to function independently ensuring that the employees have voice,
right to be heard and true say over workplace issues.
• Management should avoid “Sweetheart” deals with union bypassing the
employees.
• Management must ensure full consultation with employees on critical issues
including:
1)Economic situation of enterprise
2)Structure of and Potential threat to employment
3)Changes in work Organization or in contractual relations.

17
 Related Case (NTPC: An Introduction)

• NTPC Limited, a Public Sector Unit (PSU), and the largest power-generating
company in India, was incorporated in 1975 to accelerate power development in
the country
• It also provides consultancy to companies in India and abroad in the areas of
power plant construction and power generation
• The Government of India has even identified NTPC as one of the ‘Maharatna'
companies of Indian public sector.
• The backbone of NTPC is its human resource. NTPC believes in achieving
organizational excellence through its human resources and follows a "People
First"
• The HR function of NTPC has formulated an integrated strategy which rests on
four building blocks of HR: Competence Building, Commitment Building, Culture
Building and Systems Building

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Organisational Structure of Unchahar Powerplant

19
TRADE UNIONS AT NTPC, UNCHAHAR

693 are workman

Total employee 1200 grade

• NTPC Power Karamchari Sangh

• NTPC Employees' Union
• NTPC Mazdoor Sangh and
• NTPC Electric Employee Union
• Feroze Gandhi Urja Thermal Power Plant Pariyojna Karamchari Sangh
• FGUTPP Pravidhik Karamchari Sangh (independent)
• UP Vidyut Mazdoor Sangh (affiliated to Bhartiya Mazdoor Sangh) and
• NTPC Shramik Sangh (affiliated to UTUC)

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 LABOUR WELFARE AND ROLE OF TRADE UNIONS AT NTPC

Welfare activities of the workers at Unchahar Power Station are divided into two
broad categories:-

Plant Welfare

 Canteen facilities
 Drinking water facilities
 Other facilities
Township Welfare
 Union Working Committees
 The Employee Welfare Association (EWA)
 The Township Advisory Development Committee

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MEETINGS: LEVELS AND ISSUES DISCUSSED

• Meetings at the Plant are an important means to take care of the overall
development of workers. Issues related to plant improvement, labour problems
and labour welfare are discussed here

• Shop level committee

• Plant level committee
• Direct meetings of union with general manager
• Township advisory development committee meetings
• Canteen maintenance committee meetings

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Conclusion

• Participation of union members in decision-making regarding welfare activities, as

is in vogue in NTPC
• Unchahar, may be taken as an example by other organizations. Unions may also
take the example of Unchahar and actively involve themselves in organizing
training and development programs on subjects such as technical skills,
computers, and safety measures at work, to ensure a healthy and safe working
and learning environment.
• Not only the individual development of workers, but the welfare of worker’s families
and the quality of their social lives may also be taken up as a concern by unions

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Research Papers

24
 EFFECTIVENESS OF TRADE UNIONS IN PROMOTING EMPLOYEE
RELATIONS IN ORGANISATIONS
Global Journal of Arts and Management - ISSN 2249-2658
Research Paper: Josephine Moeti-Lysson and Henry Ongori, 2011

INTRODUCTION

• A trade union is defined as any "organisation of workers" whose principal purpose includes the regulation of relations between workers "of
one or more descriptions" and employers or employers' associations (Trade Union and Labour Relations (Consolidation) Act 1992).
• It gives a broad definition which incorporates a wide variety of organizations, each with their differing commitments to the general
principles and ideology of "trade unionism.
• The formation of trade union structure began as discussion groups formed into professional organizations which had the following
functions, negotiating for better wages, working hours, and working conditions.
• The labour movement arose as an outgrowth of the disparity between the power of employers and the powerlessness of individual
employees.
• There are several trade unions in Botswana. For instance, Botswana Bank Employees Union, Botswana Commercial and General Workers
Union, Botswana Constructions Workers Union, Botswana Federation of Trade union, Botswana Mining workers Union etc. All these trade
unions are promoting employees relations in organisations.

PROBLEM STATEMENT

Recently, there has been a resurgence of interest in the relationship between change in the work environment and the activities of the trade
unions. Therefore, due to these rapid innovations the trade unions are taking part in a national debate about the uses and consequences of this
innovation. Therefore, the important question is what kind of relationship unions have with their government in addressing the issues concerning
employees. For instance, in Botswana labour disputes mainly in the public sector have become a worrisome phenomenon. Year 2002 in particular
was characterised by a number on strikes and demonstrations. Both secondary and primary school teachers waged a five-day national strike
demanding better wages and working conditions.

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 ROLE AND CHALLENGES OF TRADE UNIONS

Role of Trade Unions:

 The trade union plays many roles in promoting the welfare of its members. For instance, trade unions plays the role of bargaining power,
minimise discrimination of any kind, sense of participation of the members, platform of self expression, betterment of employee relations and
sense of job security of its members.
 However, they are reasons why union presence may have lower labour productivity, these are unions maybe associated with restrictive work
practices. Industrial action may have an adverse impact, and finally trade union firms may invest less as compared to non union firms.
 Similarly, reasons why union presence may raise labour productivity are firms responses to union relative wage effects may result in higher
labour productivity, unions may play a monitoring role on behalf of the employer and unions can stop exploitation of labour resulting in
improved productivity.

Challenges of Trade Unions:

 The position of unions among traditional members has been affected because of the changing environment which has eroded their position as
key allies of the State. The global flight of capital and the decline or migration of specific industries has added to the growing vulnerability of
labour.
 Privatization, the downsizing of enterprises and the adoption of flexible employment practices have all affected the strength of unions in their
traditional bastions. In the United States and other nations where no such formal ties exist, unions themselves may engage in political activities,
including lobbying for legislation and supporting political candidates favourable to labour.
 The rise of wage disparities, the differentiation of workers based on widening skill gaps has weakened the solidarity platform of trade unions.
Unions are under pressure to develop wage policies, which accommodate productivity differentials for greater efficiency in resource allocation.

26
 DISCUSSIONS AND FINDINGS FROM THE RESEARCH

 Demographics of the Respondents: One hundred and fifty questionnaires were distributed to the sample of the study. However, one
hundred and twenty five were duly completed and returned. Majority of the respondents 44 % were holders of certificates and 40%
holders of Diplomas.
 Position of Respondents: Most of the respondents were in position of senior teacher grade 2, who accounted for 35.2 %, and assistant
teacher were 21.6 % respectively.
 Membership of Trade Union: The questions were formulated to get the perceptions on the membership of the trade union and the
empirical findings indicated that 52 % of the respondents were members of the trade union and 48 % were non-members.
 Joining Trade Union: The empirical results indicated that 36% of the respondents joined the trade union because of the influence of
other members who had earlier joined the trade union. The findings further indicated that female member were much more likely to join
the trade union than their male counterparts.
 Satisfaction of Service Rendered: 41% of the respondents stated that they benefited or were satisfied with services provided by the
union. They gave the following as examples of the services received as legal advice or presentation pertaining to conditions of
employment, getting discounts from certain shops etc.
 Voting of the Trade Union: Almost all the respondents 93.6% stated that they would vote for the union presentation. Only 6.4% stated
that they would not vote for union presentation.
 Role of Trade Union in Minimizing Trade Disputes: The members were asked whether the union helps them in minimizing trade
disputes, the empirical findings indicated that 61.29% of the respondents consented that the union was helps in minimizing the disputes.
38.71% of the respondents stated that the union is not helpful in minimising the disputes since the level of disputes is growing.

27
 Conclusion and Policy implications of the study
 This study sought to establish whether there was any relationship between Botswana Teachers Union participation in labour relations
and its member’s perspective. On the basis of these findings from this study showed that there is a significant relationship between the
members and the union.
 Leaders of the trade unions are blamed for failure, because members approach their responsibility as “paying dues”, and have long ago
abrogated their true responsibility to uphold the ideals of the movement. Apathy and animosity within the organization decreases the
performance of the union, increasing the union’s continued decline and ineffectiveness.
 Trade unionism as an ideology favours membership since it boost the social esteem of members and reduces the psychic of punishing
non-members. There are factors that could bring changes in the unions and affects its operations.
 Therefore, it can be concluded that the survival of trade unions in Botswana is determined by the unions' ability to represent their
members according to their expectations. Trade unions also derive the legitimisation to represent the interest of the workforce from a
high degree of union density.
 For instance, from the report a decline in membership indicated that unions in Botswana maybe regarded as not being as effective as
compared to their counterpart in South Africa because the membership has been increasing.
 Hence, a large degree of unionisation in South Africa enhances the bargaining power of trade unions. The implication of this study is
that it will inspire the management of trade union to come up with various interventions to promote the spirit of trade unionism in
Botswana.
 Similarly, other stakeholders in the industrial relations will understand the importance of the trade union inthis era of participative
management and transformation leadership. Finally, this study has extended the literature on trade union in Botswana which could be
used by students and other scholars.

28
 A study of Industrial Relation in India:International Journal of Development ResearchVol. 07, Issue,
08, pp.14379-14383, August,2017: Author :Y.M. Gosavi.
• RESEARCH METHODOLOGY:Type of Research of study is exploratory & descriptive in nature. The data is collected from
Questionnaire & Secondary Data is collected from the books, publication and Records of the companies.
• Objectives:1)To gain an understanding of Industrial Relation.2)To identify the object is the satisfaction of material human
needs.3)To study the co-operation of employer and employees.
• Several changes in recent years have been responsible for more attention being paid to employment relations within
organizations. 1)The first is the impact of globalization which has significantly changed the ways in which enterprises are
managed and work performed. 2)Enterprises have resorted to a range of measures to increase efficiency and
competitiveness, based not on low wages and natural resources, but on innovation, skills and productivity as ways of
improving quality and reducing costs
• Analysis of Data

29
 Features and Concerns in Public sector
enterprises.

• Heavy legalism in Industrial Relation: Protect the interests of weaker party increase number of
labor legislations.
• Late Emergence and Development of Collective Bargaining.
• Fragmented and Politicized Trade Unions.
• Dilatory and Ineffective methods of Dispute settlements: Third party or to pressurize the other
party leading to loss of one of them
• In context of Public Sector, concern of employment is to a larger size than needed
• Middle level management is developing sense of powerlessness and alienation.
Unionism in public sector has been increasing and reaching its full potential
• The percentage of labor cost to cost of production is high.

31
Conclusions

• Industrial relations don’t fall into pure pattern-bipartite, voluntarism or

tripartite. They exhibit the characteristics of all the system.
• Each sector has developed its own system of industrial relations.
• Industrial relation as gone a lot of change owing to internal and external
factors within and outside the industries.
• Latter phase saw a gradual improvement in industrial relations scenario
• Recruitment: Common mode is connection and personal contacts. More than
half of workers have skills while the rest is opposite
• With growing competition, pressure is on industries to train workforce and
increase the capacities which further increases insecurity leading to
Industrial relations concern.

32
BOOKS RECOMMENDED

Author:Harry C. Katz
Thomas A. Kochan
Alexander J. S. Colvin
Copyright Date: 2015
Edition: 1
Published by: Cornell University Press, ILR Press
Paperback: 368 pages
Publisher: ILR Press; 1 edition (June 4,
2015)
Language: English
ISBN-10: 0801479894
ISBN-13: 978-0801479892

33
Intra-Organizational Issues in the Marikana, South Africa,Bloody Strike of
2012(African National Congress was in Dispute with employers over pay due to
price rise of platinum. 2 additional people were shot in conflicts by Police.
Final Outcome: 22% wage increase and One time payment(2000 rand)
Mediators: the leader of the Council of South African Churches and South Africa’s
official mediation agency, the Commission for Conciliation, Mediation, and
Arbitration.
Honda Strike in China 2010:Accepting low salaries in economic slowdown. Voice fo
increase in wages when economy revived.
Outcome:Raise of 366 yuan (£36) per month for each full-time worker.
Caution:Union representative appointed by management and communist party
rather then workers themselves.
34
Abstract and
Crux of Book

This book uses a three-tiered approach to analyzing the operation of labor relations.
STRATEGIC LEVEL: Government influences labor relations and NGO’s and international agencies.
FUNCTIONAL LEVEL: Outcomes of collective negotiations. Strikes, bargaining power,structure and wage determination etc.
WORKPLACE LEVEL: Involves activities through which workers, their supervisors, and their representatives relate to one another
on a daily basis. adjustment to changing circumstances and new problems occurs regularly. A typical question at this level, for
example, is what form of conflict resolution is used to deal with disputes that arise between workers and managers.

35
Author:Morgan O.Reynolds:Traces history of unions and their effect on economy

Hardcover: 309 pages

Publisher: Universe Books, New York (March 1, 1984)
Language: English
ISBN-10: 0876634382
ISBN-13: 978-0876634387
Abstract:This book is about labor unions. Its purpose is to
,
explain and interpret the behavior of unions and unionists-what
they do, why they do it,
and what effects their actions have. Author try to discuss most
of the important and basic questions about unions in light of
contemporary economic analysis.
Topics:
1)Enduring Controversy over Labor Unions
2)The Economic Nature of Unionism
3)The Mythology of Unionism
...
11)Capitalism,Socialism and Unionism are discussed in detail.
36
 Unions have been very effective at promulgating the view that the
labor
movement has played an essential role in improving the economic
well-being of all workers. In fact, there is no evidence,
How much do unions raise the relative wage rates of their members? theoretical or empirical, to support this view.
How much do unions reduce national income? -Dwight R. Lee, 1980
Who bears the costs of union gains?
The Myths of Unions:
“High living standards in the United States are due to a strong union movement”:By union wage pressure (or wage legislation),
it would be easy for even the poorest nations of the world to get rich quick.

“The enemy is the company”:Unions compete with those who sell substitutes for their members' services, which means other
forms of labor-members of rival unions,foreign workers, strikebreakers, nonunion workers-as well as machinery
and other nonlabor commodities that can substitute for directlabor, or, in effect, the labor of those who produce and service
machinery that can substitute for the services of organized workers.

"The strike is the basis of union power"

The strike per se is not the basis of union power. More precisely, the ability to deny an employer access to labor at prices below
those demanded by strikers is the basis of power.
37
38