Q1) Highlight the provisions provided under the law for employee safety in India.   12

A1) The Factories Act contains specific provisions for the safety of workers. These are referred to in Sections 21 to 40. They are:

1. Fencing of the Machinery:

It is obligatory on the part of the management to fence machinery with guards of a substantial construction, which shall be maintained and kept in position when any part of the machinery is in motion.

2. Work on or Near Machinery in Motion:

Any examination, adjustment or lubrication of any part of an operating machine shall be effected or carried out by a specially trained male worker wearing tight-fitting clothing. This worker, however, shall not handle a belt on a moving pulley:

(a) If the belt is more than fifteen centimeters in width;

(b) Unless the belt joint is either laced or flushed with the belt;

(e) Unless the pulley is normal for the purpose of a drive and not a fly-wheel or a balance wheel;

(d) Unless the belt, including the joint and the pulley rim, is in a state of good repair;

(e) Unless there is a reasonable clearance between the pulley and any fixed part of a machine or structure;

(f) Unless a secure foothold and, where necessary, a secure handhold are provided for the operator; and

(g) Unless the ladder to be used for carrying out any examination, adjustment or lubrication of any part of a machine is securely fixed or lashed or is firmly held by another person.

No woman or adolescent is allowed to clean, lubricate or adjust any part of a machine which is in motion if it is likely to expose her or him to the risk of injury from any moving part.

3. Employment of adolescents on dangerous machines:

No adolescent shall be allowed to work on any machine which poses a danger to him unless:

(a) He has been fully instructed to be aware of the particular danger that is likely to arise from the machine and to observe the necessary precautions; and

(b) He has received training on that machine or is under the supervision of a person who has a thorough knowledge of, and experience in working on, the machine.

4. Striking Gear or Device for Cutting off Power:

In every factory, a suitable striking ear or other efficient mechanical appliance shall be provided and maintained. Driving belts, when not in use, shall not be allowed to rest or ride on a shaft in motion. Suitable devices for cutting off power in an emergency shall be provided and maintained in every work room.

When a device, which is likely to be inadvertently shifted from the “off to the “on” position, is provided in a factory to cut off power, arrangements should be made to lock it in a safe position with a view to preventing any accidental starting of the transmission machinery or any other machines to which the device is fitted.

5. Self-Acting Machines:

No transverse part of self-acting machine and no material carried thereon shall be allowed to run on its outward or inward transverse within a distance of 45 centimeters from any fixed structure which is not a part of the machine.

6. Prohibition’ of employment of women and children near cotton openers:

No woman or child shall be employed in any part of a factory to press cotton when a cotton-opener is at work. But if the feed-end of a cotton-opener is in a room which is separated from ‘the delivery-end by a partition extending to the roof or to such height as the factory inspector may specify in writing, women and children may be employed in that part of the room in which the feed end is situated.

7. Hoists and Lifts:

In every factory, hoists and lifts shall be of good mechanical construction and of sound material; and they shall be sufficiently strong and properly maintained. Every hoist- way and lift shall be adequately protected by a proper enclosure fitted with gates. The maximum safe working load shall be clearly indicated on every hoist or lift. A heavier load shall not be allowed to be carried on that hoist or lift. Lifting machines, tackles, chains and ropes- In every factory, lifting machines, tackles, chains and ropes shall be of good construction and of sound material. They shall be free from defects and strong enough to carry the necessary loads.

8. Revolving Machinery:

In every room in which grinding jobs are carried on, a notice indicating the maximum working speed of the machine shall be fixed near it.

9. Pressure Plant:

In any operation which is carried on at a pressure which is higher than the atmospheric pressure, effective measures should be taken to ensure that the safe working pressure is not exceeded.

10. Floors, Stairs, and Other Means of Access:

All doors, steps, stairs, passages and gangways shall be of sound construction and shall be kept and maintained, in a state of good repair; and they shall be free of obstructions. No substance, which is likely to cause a person to slip, shall be kept near them. Necessary provisions should be made for a secure handhold or fencing to ensure the safety of persons working at a place from where he is likely to fall from a distance exceeding two meters.

11. Pits and Openings in Floor:

In every factory, even fixed vessel, tank, pit or opening in the floor, which may be a source of danger, shall be securely covered or securely fenced.

12. Excessive Weights:

No person shall be employed in any factory to lift, carry or move any load which is so heavy as to cause him possible injury. Precautions against Dangerous Fumes:

No person employed in a factory shall be allowed to enter any chamber, tank, vat, pit, flue or such other confined place in which dangerous fumes are likely to be present to such an extent as to constitute a hazard unless such chamber, tank, vat, pit or flue is provided with a manhole of a large enough size or with similar other means of egress.

Precautions against the use of portable electric lights in any factory:

(a) No portable electric light or any other electric appliance of a voltage exceeding 24 volts shall be permitted for use inside any chamber, tank, vat, pit, flue, or confined place;

(b) If any inflammable gas, fume or dust is likely to be present in such chamber, tank, vat, pit, flue, or confined place, no lamp or light other than the one which is flame-proof, shall be permitted to be used therein.

13. Explosive or Inflammable Gas or Dust:

When, in any factory, any manufacturing process produces dust, gas, fume or vapour of such nature and to such an extent that is likely to explode on ignition, all practical measures shall be taken to prevent such explosion by-

a. An effective enclosure of the plant or machinery used in the processes;

b. The removal or prevention of accumulated dust, gas or fume; and

c. The exclusion or effective enclosure of all possible sources of ignition.

The following precautions shall be taken:

(a) Exit doors shall not be locked or fastened and shall be capable of being easily opened; and they shall be so constructed as to open outwards;

(b) Proper means of escape shall be provided in every industrial establishment;

(c) Every door, window or other exit, through which persons can escape in the event of a fire, shall be distinctly marked in red letters in a language that is understood by workers;

(d) Proper arrangements shall be made to raise an alarm in the event of a fire; it would be preferable if a siren is sounded so that workers may recognise the signal as an indication that a fire has broken out somewhere in the factory premises;

(e) All the exits should be easily and freely accessible to all the workers in every place in the factory premises, so that they can easily make their escape when a fire breaks out; and

(f) All the workers shall be trained in the routine to be followed in the event of a fire in the factory premises.

14. Safety of Building and Safety and Health Machinery:

When a building or machinery poses a danger to workers, it shall not be used till it has been suitably repaired or altered. Indian government enacted an Act known as Factories Act, safety regarding the following:

(a) Fencing of machines.

(b) Work near the machine in motion.

(c) Employment of child and woman.

(d) Striking device or gear for power cut off.

(e) Hoists and lifts.

(f) Pressure plants.

(g) Excessive weights.

(h) Inflammable and fumes.

(i) Fire precautions,

(j) Eye protection,

(k) Floor, stairs and others.

Q2) Explain the components of employee safety management in India.           8

A2) A comprehensive safety management programme should include:

Figure: Employee health and safety mnagement

1. Safety Organisation:

A safety committee should be set up by top management and appoint or nominate some person as a chairman or secretary of the safety committees. The following facts should be given due consideration in any safety organisation:

(i) Safety programmes must have top management approval, sanction and support.

(ii) Responsibility for safety must rest with the supervisory personnel.

(iii) Safety must be given equally important consideration in elimination of mechanical and personal hazards.

(iv) A definite safety programme must be developed to educate all employees in safety and to secure their active cooperation in the effort to eliminate accidents.

2. Good Working Conditions:

The accidents frequency and severity can be controlled by providing safe and proper working conditions, avoid of risks and hazards. All dangerous parts of the machinery in a factory must be adequately fenced. The colour shade can play a very important role in preventing accidents. The American Standards Association adopted a safety colour code as ‘red’ for danger or stop, ‘Yellow’ for cautions or hazards, ‘green’ for safety or first aid equipment, and ‘white’ for house beeping and traffic working. Floor should not be slippery. The protective equipments and clothing should be provided to the employee if necessary without charging.

3. Safety Educations and Training:

Safety education and training for all levels of management and for employees is a vital ingredient for any successful safety management programme. Workers should be educated in safety precautions, rules and advised about the safety devices. Posters, leaflets, bulletins, films and talk are all effective method of safety education of workers. He should also teach the principles of first aid, the need for avoiding active hazards, for taking precautions to prevent the outbreak of a fire, and for protecting eyes. A safety code for worker is necessary in all undertaking. This can be done in conjunction with the Safety First Association of India and National Productivity Council. The supervisors must understand their key role in the safety effort because they are primarily responsible for preventing accidents. They must conduct safety training programmes for their employees who are directly under their supervision.

4. Safety Culture:

Every organisation has its own culture, simply described as “the way things are done around”. As a part of industry culture, safety should start, ‘at the top’ from the senior management and pervade the whole organisation. Safety is unfortunately seen as a cost item and a necessary evil demanded by law. An unsafe plant can prove far too expensive in the long run for everyone. It is people who cause accidents and it is only people who can protect them. In the absence of a safety culture no amount of sophisticated gadgetry, full proof safety devices and alarms will ensure a safe plant operation.

5. Worker’s Cooperation:

A knowledge of the attitude of the employees to the safety programmes developed for them and the specific measures adopted for that purpose. The cooperation of the workers in accidents preventive measures should be enlisted. When co-operation is offered, they should be advised about the type of cooperation required in a particular event or accident. When the workers cooperate the management should respond and properly make use of such cooperation. Safety schemes cannot be successful without the full understanding, appreciation and cooperation of the employees. The safety committee may discuss the problems of safety with the employees, get and act on their suggestions.

6. Safety Engineering:

It is necessary to use proper engineering procedures because they can eliminate or minimize work place accidents. The full attention is paid to safety engineering in design, layout and installation. Safety equipment is made available to an employee. The discipline of ergonomics should be used to prevent the outbreak. The movement of materials during all stages of the manufacture of a product should be properly planned to eliminate accidents.

7. Accident Reports and Records:

The accident records should be maintained accurately by safety office or safety director. The Factories Act, 1948 provides that when any accident which causes death or bodily injury by reason of which the injured person is prevented from working for a period of 48 hours or more immediately following the accident takes place in an industry, the manager of factory should notify the inspector of factories. The annual return of accidents showing the number of accidents which took place during the year, the number of persons killed and or injured, the number of man days lost on account of the accident should be sent to the commission for workmen’s compensating and to the inspector of factories for the year ending 31st December, not later than 31st January.

8. Safety Audit:

It is a useful technique to undertake a systematic critical appraisal of the effectiveness of a company’s safety programme. Such a periodic review provides an independent assessment of the correctness of the basic direction as well as identifies the specific areas for action to improve the programme. It is a tool for ensuring that the plant operation and maintenance procedures match the design intent and standards.

Q3) What is employee welfare? State the features of employee welfare.    5

A3) Employee welfare means anything done for the comfort and (intellectual or social) improvement of the employees, over and above the wages paid. In simple words, it means “the efforts to make life worth living for workmen.” It includes various services, facilities and amenities provided to employees for their betterment. These facilities may be provided voluntarily by progressive entrepreneurs, or statutory provisions may compel them to provide these amenities; or these may be undertaken by the government or trade unions, if they have the required funds. According to ILO, “Employee welfare should be understood as such service, facilities and amenities which may be established in or in the vicinity of undertakings to enable the persons employed in them to perform their work in healthy and peaceful surroundings and to avail of facilities which improve their health and bring high morale”.

The basic features of employees’ or labour welfare are as follows:

(i) Labour welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.

(ii) Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining.

(iii) Labour welfare measures are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.

(iv) Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.

(v) The purpose of labour welfare is to bring about the development of the whole personality of the worker to make him a good worker and a good citizen.

Q4) State the importance of employee welfare.     5

A4) Employee welfare work assumes great importance because of the following reasons:

Figure: Importance of employee

1. Lack of strong trade union movement – In the absence of strong trade unions and effective leaders, welfare work helps the workers in the industry to stand on their own feet, think properly and systematically of their interests, progress hand in hand and participate in the nation’s development.

2. Poverty – Poverty is one of the main reasons behind the provisions of labour welfare activities. Indian workers in majority are poor, and are, therefore, unable to provide a healthy living for their families and good education for their children.

3. Illiteracy – In India, the number of educated workers is low. Being illiterate, they are unable to receive advanced industrial training, understand the problems in industries, and understand their own interests and those of nations.

4. Low level of health and nutrition – Due to poverty and illiteracy, the Indian workers remain unhealthy and ill fed. This reduces their productivity and efficiency.

5. Lack of healthy recreation – Due to lack of healthy recreation, the workers indulge in crime and other wrong activities. The employer should provide means of healthy recreation in order to maintain their efficiency.

6. Lack of training – The number of trained workers in India is very low. Thus, it is necessary to have training facilities for such a vast workforce.

Q5) Discuss about different approaches of employee welfare.    8

A5) The different approaches to employee welfare reflect the evolution of the concept of welfare. A brief description of the various approaches to employee welfare is as follows:

Figure: Approaches to employee welfare

1. Policing Approach:

According to this theory, the factory owners exploit the employee in an unfair manner. Instances of exploitation are making the employees work for long hours, paying low wages, neglecting health and safety provisions, providing unhygienic conditions of work, etc. A welfare state enacts legislation under which managements are compelled to provide basic amenities to the workers. Thus, the state assumes the role of a policeman and compels the employers to provide welfare facilities and punishes the non-complier.

2. Religion Approach:

The religion theory has two aspects namely, the investment aspect and atonement aspect. The investment aspect implies that the fruit of today’s deeds will be reaped tomorrow. Any action, whether positive or negative, is thus, treated as an investment. Inspired by this belief, some employers plan and organize welfare facilities for the employees. The atonement aspect of the religion theory implies that the present disabilities of a person are the result of the sins committed by him previously. He should undertake to do good deeds on how to atone or compensate for his sins.

3. Philanthropic Approach:

Affection for mankind is the basis of philanthropic theory. This theory refers to the provision of good working conditions, creches and canteens out of pity on the part of the employers who want to remove the disabilities of the employees. The philanthropic theory is more common in social welfare rather than in industrial enterprises.

4. Paternalistic Approach:

According to the paternalistic theory, the industrialist holds the entire industrial estate, properties and the profits accruing from them in trust. This trust is not actual and legal but it is moral. The employers provide for the well-being of their employees out of funds under their control. As, the whole enterprise is held in trust for the benefit of the employees, this theory is also called trusteeship theory.

5. Placating Approach:

When workers are organized and unions are strong, management has to appease them. As crying children are pacified by sweets, workers are pleased by welfare works. This theory is based on the assumption that management can bring peace in the organization by welfare measures.

6. Public Relations Approach:

According to this theory, welfare facilities provided by the employers to the employees, create a good image of the employer in the mind of the general public. Some employers proudly take their visitors around the plant to show how well they have organized their welfare activities.

7. Functional Approach:

According to the functional theory, welfare work is a means of securing, preserving and increasing the efficiency of labour. Welfare facilities are provided by the employers to the employees to make them more efficient.

8. Social Approach:

The social responsibility of business has been assuming great significance these days. The social theory implies that an industrial establishment is morally bound to improve the conditions of society in addition to improving the condition of the employees. Labour welfare is gradually taking the shape of social welfare.

Q6) What is social security? State the features of social security.       5

A6) Social security is that security which the society furnishes through appropriate organisation against certain risks or contingencies to which its members are exposed. These risks are essentially contingencies against which the individual cannot afford by his small means and by his ability or foresight alone. Social security is a dynamic concept which is considered in all advanced countries of the world as an indispensable chapter of the national programme. With the development of the idea of the welfare state, it has been considered to be most essential for the industrial workers, though it includes all sections of the society.

Characteristics of social security

(1) Social security is an instrument of ensuring social and economic justice.

(2) In a welfare state, social security is an essential part of public policy.

(3) Social security is not static; it is a dynamic concept which changes with the change in social and economic conditions prevailing in a country at a particular point of time.

(4) The basic aim of social security is to provide protection to people of small means against risks or contingencies.

(5) The contingencies which may impair a person’s ability to support himself and his family may include sickness, old age, invalidity, unemployment, death etc.

(6) Social security measures are generally guided by social legislations.

(7) Social security measures provide for cash payment to affected persons to partly compensate them for the loss of income due to any of the contingencies.

(8) Social security is a must for the protection and stability of the labour force. Social security is a wise investment made by the state which yields good social dividends in the long run.

Q7) Discuss about different types of social security laws exist in India.  12

A7) Some of the important social security laws enacted in India are given below:

(i) The Workmen’s Compensation Act, 1923:

In 1923, the Government of India passed the Workmen’s Compensation Act. This Act, marked the beginning of social security system in India. The main object of this Act is to impose upon the employers an obligation to pay compensation to workers for accidents arising out of and in the course of employment. It also helps to reduce the number of accidents, to give workers greater freedom from anxiety and to make industry more attractive to workers. The Act has been amended several times. The last amendment was made in 1962. The Act applies to all permanent employees employed in railways, factories, mines, plantations, mechanically propelled vehicles, construction work and certain other hazardous operations. It does not apply to members of armed forces, casual workers and workers covered under the Employee’s State Insurance Act, 1948. The amount of compensation payable depends upon the nature of injury and the average monthly wages of the worker concerned. For this purpose injury has been divided under three categories:

The rates of compensation have been given in schedule IV of the Act.

(ii) The Employee’s State Insurance Act, 1948:

The Employee’s State Insurance Act was passed in 1948 to provide medical facilities and unemployment insurance to industrial workers during their illness. This Act provides medical benefits in the form of medical attendance, treatment, drugs and injections to insured persons and to members of their families where the facility has been extended to the families also. The ESI Act is applicable to all non-seasonal factories run with power and employing 20 or more persons. It covers all types of employees—manual, clerical, supervisory and technical—not drawing a salary of Rs. 1000 P.M. (This amount was raised to Rs. 1,600 p.m. w.e.f. January 1985 and to Rs. 6,500 p.m. w.e.f. January 1997). This Act is a landmark in the history of social security in India and its object is to introduce social insurance for workers. The Employees State Insurance Scheme introduced under this Act is compulsory and contributory. Compulsory in the sense that all workers covered under this Act must be insured and contributory in the sense that it is financed by the contributions from employees and employers. The administration of the Act has been entrusted to an autonomous body called the Employees State Insurance Corporation. The corporation is managed by a governing body of 40 persons representing the Union and the State Governments, Parliament, employers’ and employees’ organisations and the medical profession. The benefits under this scheme are-

(iii) The Maternity Benefits Act, 1961:

The Maternity Benefits Act, 1961 was enacted to provide uniform standards for maternity protection. It applied in the first instance to all factories, mines and plantations except those to which the Employee’s State Insurance Act applied. This Act was amended in 1976 to extend the benefit to all women workers covered by the ESI Act. The main purposes of this Act are:

(a) To regulate the employment of women in certain establishments for certain specified periods before and after child birth.

(b) To provide for the payment of maternity benefits to women workers and

(c) To provide for certain benefits in case of miscarriage, premature birth or illness arising out of pregnancy.

(iv) The Employees Provident Fund Act, 1952:

Retirement benefits in the form of provident fund, family pension and deposit linked insurance are available to the employees under the Employees’ Provident Fund (and miscellaneous Provisions) Act, 1952. The Act is applicable to a factory in any industry specified in schedule I and in which 20 or more persons are employed or which the Central Government notifies in the official Gazette. The Act does not apply to cooperative societies employing less than 50 persons and working without the aid of power. It also does not apply to new establishments for 3 years from the date of establishment. The Government is empowered to grant exemption from the operation of this Act to any class of establishments under certain conditions. The Act provides for the following benefits.

(a) Provident Fund Scheme:

Under the contributory provident fund scheme, monthly deductions from the employee’s salary are made. The employer contributes an equivalent amount. The total contributions are deposited with the provident fund commissioner or invested in the prescribed manner. An employee can obtain advances, and permanent withdrawals (after 15 years of service) for construction of house, higher education/ marriage of children, purchase of car etc. On retirement, death, migration, leaving service etc. the full balance at his credit with interest is payable.

(b) Employees’ Family Pension Scheme, 1971:

Under the Employee’s Family Pension Scheme, pension is paid to the widow/children of the employee who dies while in service. Under the new pension scheme, pension is payable to the employee after his retirement in place of provident fund. According to the new regulations all new employees will have to opt for pension scheme. Persons already employed can switch over from provident fund to pension scheme.

(c) Employee’s Deposit Linked Insurance Scheme, 1976:

The Employee’s Deposit linked Insurance Scheme 1976 was introduced for the members of the Employee Provident Fund with effect from August 1976.

(v) The Payment of Gratuity Act, 1972:

This Act is applicable to all factories, mines, oil fields, plantations, ports, railways, ships or establishments in which 10 or more workers are employed. All persons employed in these establishments are entitled to receive gratuity irrespective of the amount of their wages. The Central Government is empowered under the Act to extend this Act to any establishment.

(vi) Group Life Insurance:

Group life insurance may be defined as a plan which provides coverage for the risks on the lives of a number of persons under one contract. The basic feature of this scheme is the coverage of a number of persons under one contract. Group insurance facility is provided to the employees working with one employer. The important features of this scheme are as follows:

(a) Insurance is provided to all employees working under one employer without any evidence of insurability.

(b) This scheme provides risk coverage to the employees so long as they remain in the service of the employer.

(c) Group life insurance is a contract between the employer and the insurance company. The policy issued to the employer is called Master contract.

(d) The premium is paid jointly by the employer and the employees.

(e) The amount of premium is payable at a flat rate without any regard of the age and the salary of the employees.

(f) In case of injury or death of an employee, the claim received by the employer is paid to the employee or his nominee.

Q8) What do you mean by employee-employer relation? What are the causes to maintain employee-employer relation within the organisation.             8

A8) Employer Employee Relation refers to the relationship shared among the employees in an organization. It is an art which effectively monitors and manages the relation between individuals either of the same team or from different teams. The employees must be comfortable with each other for a healthy environment at work. It is the prime duty of the superiors and team leaders to discourage conflicts in the team and encourage a healthy relationship among employees. Healthy employee relation has a close connect with improving productivity and reducing employee turnover. According to International Labour Organization (ILO), employer- employee relations comprise relationships between the state on the one hand and the employers’ and employees’ organizations on the other hand and the relationship among the occupational organizations themselves. The ILO uses the term to denote such matters on freedom of association and the protection of the right to organize, the right to collective bargaining, collective agreements, conciliation and arbitration and the machinery for cooperation between the authorities and the occupational organizations at various levels of economy.

Several economic, social, psychological, technological and political factors may be held responsible for poor employer-employee relations. Such causes are discussed below-

Figure: Causes of employee-employer relationship

1. Economic Causes:

The main reasons for unhealthy relations among management and labour are poor wages and poor working conditions. Other economic causes include unauthorized deductions from wages, lack of fringe benefits, absence of promotional opportunities, dissatisfaction with job evaluation and performance appraisal methods, faulty incentive schemes, etc. The industrial peace is disturbed when employers deny equitable and fair remuneration and good working and living conditions to the working class which agitates the trade unions. Inadequate infrastructural facilities, worn-out plant and machinery, poor layout, unsatisfactory maintenance and other physical and technical causes also contribute to industrial conflicts.

2. Organizational Causes:

Faulty communication system, dilution of supervision and command, non-recognition of trade union, unfair practices, violation of collective agreements and standing orders and labour laws are the organizational causes of poor relations between employers and employees in industry.

3. Social Causes:

The introduction of factory system at large scale and highly specialized character of the production system has made workers subordinate to machines. This is known as introduction of machine culture in production systems. This mechanization has led to loss in the pride and job satisfaction of workers in these mechanized factories. The employer-employees relations have worsen due to tensions and conflicts arising out of break-up of joint family system and growing intolerance.

4. Psychological Causes:

The psychological reasons for unsatisfactory employer-employee relations include lack of job security, poor organizational culture, non-recognition of merit and performance, authoritative administration and poor interpersonal relations.

5. Political Causes:

There are many political issues which have contributed substantially to poor employer-employee relations. Some of them may be identified as the extremely political nature of trade unions, creation of multiple trade unions and emergence of rivalry among these unions have made them weaker in their bargaining position.

Q9) Discuss about the principles of sound employee-employer relationship.    8

A9) Some fundamental principles or requirements that guide sound employer-employee relations are:

Figure: Principles of employee-employer relationship

1. Sound Human Resource Policies:

An organization having clear and transparent human resource policies of compensation, transfer, promotion, etc., are found to have better employer-employee relations than the ones which do not disclose their policies clearly to its staff and top management. Everyone in the enterprise along with the union leaders should have complete understanding of all the human resource policies. It is not only the formulation of fair and strong policies but their equitable implementation as well plays a vital role.

2. Constructive Attitudes:

Any organization can witness harmonious employer-employee relations in case both the parties involved- management and trade unions adopt a positive attitude towards each other. It is the responsibility of both trade unions and management to respect and trust each other’s decisions and works. Management should view employees and their leaders as important building blocks of the firm. They should perceive union leaders as the custodian of the employees’ rights. Union leaders, on the other hand should recognize the rights and limits of the employers. If such an optimistic view is formed by each party for the other, the probability for conflicts between the two would drop down significantly.

3. Collective Bargaining:

Collective bargaining between employers and employees should be seen as an important negotiation process between the two parties involved. No unit should try to take undue advantage of its strong position. A genuine desire on the part of the employers to bargain with employees on equality basis is necessary.

4. Participative Management:

If the management of the company provides opportunities to employees to participate in policy formulation and human resource activities, it provides the employees a sense of belongingness to the company. This element of belongingness provides confidence to employees on their employers.

5. Responsible Unions:

Unions, on the other hand should also adopt responsible attitude towards employer-employee relations. It is widely observed that trade unions adopt a political attitude instead of a responsible one. Hence, they do not wish to understand employers’ situation and concentrate on their demands in order to protect their political interest.

6. Employee Welfare:

Employers should recognize the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, opportunities for training and development, and other necessary facilities for labour. A genuine concern for the welfare and betterment of working class is necessary.

7. Grievance Procedure:

Employer-employee relations can be made better by adopting a simpler and faster grievance redressal procedure. This would provide the employees an outlet for tensions and frustration of workers. When the employees feels that the employer is concerned about their problems and is adhering to them they would definitely think high of the management and company in turn. This would develop cordial relations among them and their employers.

Q10) What is grievance? What are the features of grievance handling?      5

A10) A grievance is a complaint of one or more workers with respect to the organisation. It can be related to wages, conditions of work, leave, transfer, overtime, promotion, seniority, job assignment and termination of service. A grievance may be submitted by a worker or several workers. Where a grievance is transformed into a general claim either by the union or by a large number of workers it falls outside the grievance procedure and normally comes under the purview of collective bargaining. In other words, where the issue is of a wider or of general nature or of general applicability then it will be outside the purview of grievance machinery.

Features of grievance handling

1. Fairness – Fairness is needed not only to be just but also to keep the procedure viable, if employees develop the belief that the procedure is only a formality, then its value will be lost, and other means sought to deal with the grievances. This also involves following the principles of natural justice, as in the case of a disciplinary procedure.

2. Facilities for Representation – Representation, can be of help to the individual employee who lacks the confidence or experience to take on the management single-handedly. However, there is also the risk that the presence of the representative produces a defensive management attitude, affected by a number of other issues on which the manager and representative may be at loggerheads.

3. Procedural Steps – Steps should be limited to three. There is no value in having more just because there are more levels in the management hierarchy. This will only lengthen the time taken to deal with matter and will soon bring the procedure into disrepute.

4. Promptness – Promptness is needed to avoid the bitterness and frustration that can come from delay.

Q11) State the merits and demerits of grievance handling.     10

A11) Merits:

1. Investigate and handle each and every case as though it may eventually result in an arbitration hearing.

2. Talk with the employee about his grievance; give him a good and full hearing.

3. Get the union to identify specific contractual provisions allegedly violated.

4. Enforce the contractual time limits.

5. Comply with the contractual time limits for the company to handle a grievance.

6. Determine whether all the procedural requirements, as dictated by the agreement, have been complied with.

7. Visit the work area where the grievance arose.

8. Determine if there were any witnesses.

9. Examine the relevant contract provisions, and understand the contract thoroughly.

10. Determine if there has been equal treatment of employees.

11. Examine the grievance personal record.

12. Fully examine prior grievance records.

13. Evaluate any political connotations of the grievance.

14. Permit a full hearing on the issues.

15. Identify the relief the union is seeking.

Demerits:

1. Discuss the case with the union steward alone; the grievant should definitely be there.

2. Make agreements with individuals that are inconsistent with the labour agreement.

3. Apply the grievance remedy to an improper grievance.

4. Hold back the remedy if the company is wrong.

5. Admit the binding effect of a past practice.

6. Relinquish your authority to the union.

7. Settle grievances on the basis of what is fair. Instead, stick to the labour agreement which, after all, should be your standard.

8. Make mutual consent agreements regarding future action.

9. Bargain over items not covered by the contract.

10. Concede implied limitations on your management’s rights.

11. Argue grievance issues of the work premises.

12. Treat as “arbitral” claims demanding the disciplining or discharge of management members.

13. Commit the company in areas beyond your limits of responsibility or familiarity.

14. Give away your copy of the written grievance.

15. Discuss grievances of striking employees during an illegal work stoppage.

Q12) Discuss about the grievance handling redrassel of India.      8

A12) Adequate attention has been paid to the settlement of grievances in Indian industries by the Government of India by framing appropriate legislative frameworks. It consists of:

Figure: Grievance handling redressel

1. The Industrial Employment (Standing Orders) Act, 1946:

It pro­vides that all industries employing hundred or more workers should frame standing orders which should contain, among other matters, provision for means of redressing the workers against unfair treatment or wrongful executions by the employer or his agents or servants.

2. The Factories Act, 1948:

The Act provides for the appointment of welfare officers in every factory wherein 500 or more workers are employed. These officers are generally entrusted with the task of dealing with grievances and complaints.

3. The Industrial Disputes Act, 1947:

This law provides that:

(a) The employer in relation to every industrial establishment in which 50 or more workmen are employed shall provide for a Grievance Settlement Authority for the settlement of industrial disputes connected with an industrial workman employed in the establishment.

(b) Where an industrial dispute connected with an individual workman arises in an establishment referred to above, a workman or any trade union of workmen of which such workman is a member may refer such dispute to the Grie­vance Settlement Authority for settlement.

(c) The Grievance Settlement Authority shall follow such pro­cedure and complete its proceedings within such period as may be prescribed.

(d) No reference shall be made to Boards, Courts or Tribunals of any dispute referred to in this section unless such dis­pute has been referred to the Grievance Settlement Autho­rity concerned and the decision of the authority is not ac­ceptable to any of the parties to the dispute.

Q13) Explain the causes of Industrial dispute.     12

A13) The causes of industrial dispute are discussed in detail as under:

Figure: Causes of industrial dispute

a) Economic Causes: 

Most of the Industrial Disputes are due to economic causes. Main economic causes are as under:

Figure: Economic causes

(1) Low Wages:

In industries wages are low. As a result, it becomes awfully difficult for the labourers to meet their minimum necessaries. Labourers demand that wages should commensurate with the amount of work. Such a demand leads to industrial disputes. Demand for higher wage-rate is the most dominant cause leading to industrial disputes.

(2) Dearness Allowance:

Increasing cost of living is another factor responsible for industrial disputes. In order to neutralise it, workers demand additional remuneration in the form of dearness allowance. Rising prices are at the root of demand for dearness allowance and non-acceptance of this demand leads to industrial dispute.

(3) Industrial Profits:

Workers are an important part of production. Profits of the employers multiply because of the untiring labour of the workers. That they should not be treated as a part of machine is the persistent demand of the workers, rather they be considered as partner in production. On the basis of this concept, they demand share out of the increasing profit. When this profit-sharing demand is rejected by the employers, industrial dispute crops up.

(4) Bonus:

Demand for bonus is also a cause of industrial dispute. Workers consider bonus as deferred wage. Demand for payment of bonus constitutes cause of industrial dispute.

(5) Working Conditions:

In India working conditions of the workers are not satisfactory. Obsolescence of machines, lack of safety provisions, inadequate light arrangement, less moving space, lack of other necessary facilities, are the normal features of industrial units. Demand for better working conditions on the part of the workers also contributes to industrial disputes.

(6) Working Hours:

Hours of work is another matter of controversy between employers and workers. Despite legislation to this effect, it is always the intention of the employers to keep the workers engaged for long hours at low wages. It is opposed tooth and nail by the workers. Result is industrial dispute.

7. Other Causes:

(i) Safety of work,

(ii) Modernisation of machines,

(iii) Pension, Gratuity, Provident Fund and other Beneficiary Schemes,

(iv) Medical and accommodation facilities,

(v) Leaves and Leaves with pay,

(vi) Share in Profits.

b)  Managerial Causes:

Success of an organisation depends largely on its managerial capacity. Growth of the organisation is based on the policies of the management. If the management pursues appropriate policies, development of the industrial unit will be automatic. But many a time, due to wrong policies of the management, disputes get accentuated. Managerial causes of industrial dispute are as under:

Figure: Managerial causes

(1) Non Recognition of Unions:

Employers’ attitude towards trade unions has been antagonistic from the very beginning. They do not want that labourers should organise themselves. Hence, to prevent the workers from uniting, they refuse to recognise their unions. It leads to conflict between the employers and the workers. In order to create rift among the workers they deliberately recognise the rival union.

(2) Violation of Agreements:

Employers and workers do enter into agreements on various issues. On many occasions, the employers do not enforce these agreements nor do they strictly adhere to them. It also accounts for dispute between the two parties.

(3) Ill-Treatment by Managers and Supervisors:

Managers and supervisors consider themselves to be superior. It is under the influence of this superiority complex that they ill-treat the workers. The same is vehemently opposed by the trade unions.

(4) Defective Recruitment Procedure and Employees Development Policies:

Defective Recruitment system also gives rise to industrial disputes. Many a time, workers are recruited by the middlemen who get bribe from them. They take undue advantage of the helplessness of the workers. Defective development policies like favoritisms in promotion, unnecessary and biased transfer, casual approach towards training facilities, on the part of employers also contribute to industrial disputes.

(5) Wrongful Retrenchment, Demotion and Termination:

Sometimes on account of fall in production labourers are retrenched. Those workers who take active part in trade union activities are demoted. Sometimes employers terminate the services of the workers without assigning any reason. All these provocative acts of the employers are not only strongly opposed by the trade unions but also serve as good cause for industrial disputes.

(6) Selfish Leadership:

Lack of right and effective leadership weakens the trade unions and the employer class takes advantage of it. In order to serve their selfish ends, these leaders enter into unholy alliance with the employers against the interests of the workers. Often this also becomes cause of dispute.

(7) Violation of Accepted Code of Conduct:

Code of conduct refers to the terms accepted by both the parties and both the parties are required to abide by it. Employers agree to all the codes on paper but fail to carry them out in practice. As a result, workers oppose it.

(8) Collective Bargaining and Workers’ Participation in Management:

In the modern industrial world, labour class is seized with new awakening and is influenced by new concept of management. Trade unions, therefore, insist on workers’ participation in management. By collective management they try to protect their interests to the maximum. The employers oppose it. The inevitable result is industrial dispute.

c) Political Causes:

Political causes are no less significant than economic and managerial causes in accounting for industrial disputes. Chief among them are as under:

Figure: Political causes

(1) Influence of Politics:

In a country like India, influence of politics on trade unions is clearly visible. Political parties have been using their influence on trade unions for their selfish ends. Parties mislead the unions and instigate industrial unrest.

(2) Trade Union Movement:

Ever since trade union movement got recognition, industrial disputes have multiplied. Many a time trade unions take undue advantage of their position and this results into industrial dispute.

(3) Strikes against the Government:

During the struggle for independence labour-class had taken leading part in it. Now this class directs its struggle against the government thereby adding fuel to industrial disputes.

4) Other Causes:

Industrial Dispute – Measures Taken by Government for Prevention of Disputes: 

Various measures have been taken by the Government for the prevention of industrial disputes are-

(I) Payment of Bonus Act:

As payment of bonus is one of the major cause of industrial disputes, the Government of India on the recommendation of Mehar Committee, appointed to study the entire issue of bonus, enacted the Payment of Bonus Act 1965 which is applicable to workers earning wages upto Rs. 1,600 p.m. (Basic + D.A.). The Act is applicable to factories employing at least 20 or more workers. At present, the rate of bonus payable to industrial workers is minimum 8.33% and maximum 20% of their wages. Bonus Amendment Act 1980 also covers all banks and public sector undertakings not working for profits.

(II) Code of Discipline:

The Indian Labour Conference in 1958 evolved a Code of Discipline which was ratified by the central organizations of employers and workers. To ensure better discipline in industry, both the parties voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the industrial unit/ industry and to settle all the disputes and grievances by negotiations, conciliation and voluntary arbitration. Both parties will try to avoid direct action.

(III) Industrial Truce Resolution:

A joint meeting of the central organisations of employers and employees was convened on November 3, 1962, in the wake of Chinese aggression. The meeting adopted an Industrial Truce Resolution agreeing that there should be maximum recourse to voluntary arbitration and envisages that all complaints pertaining to dismissal, discharge, victimisation and retrenchment of individual workman, not settled mutually should be settled through arbitration.

(IV) Tripartite Machinery:

A number of tripartite bodies have been set up for the promotion of industrial peace. The Tripartite Machinery refers to various bodies composed of representatives of employers, employees and the Government. The important tripartite bodies are the following:

(a) The Indian Labour Conference:

It is concerned with matters like promoting uniformity in labour legislations, procedures for the settlement of industrial disputes etc.

(b) The Industrial Committees:

These committees discuss the specific problems of industries for which they have been set up and submit their reports to the Indian Labour Conference (ILC), which coordinates their activities.

(c) The Central Implementation and Evaluation Committees:

These Committees are concerned with effective implementation of labour laws, awards, settlements etc.

(d) The Standing Labour Committee:

It considers all matters referred to it by the Indian Labour Conference or by the Central Government including the suggestions, by the employers, employees and State Governments concerning labour.

(e) The Committee on Conventions:

The Committee examines the ILO conventions and recommendations and explores the possibility or advisability of ratifying them to Indian conditions.

Q14) Discuss about different machinery for industrial dispute resolution.     8

A14) When a dispute has arisen i.e., it could not be prevented on voluntary basis, the Industrial Disputes Act 1947 provides several provisions for settling the disputes. A dispute settlement machinery has been evolved under the Act. The machinery for settlement of disputes consists of several bodies which are:

Figure: Machinery for dispute settlement

1. Establishment of Works Committees:

In every industrial establishment employing 100 or more workers, it is compulsory to establish a works committee at the plant level to promote the measures for securing and preserving unity and good relations between the parties. There are equal number of representatives of workers and employer on the committee. The main function of the works of committee is to remove causes of friction between the two parties which concern the factory life of workers. No mention of functions of works committee have been made in the Act but however in 1960 a tripartite committee of Indian Labour Conference prepared two lists of functions one for works to be dealt with and the other for works not to be dealt with by the works committees. The works committee is to discuss such problems relating to grievances, complaints, matter of discipline, welfare problems such as health, safety, training, education and other personal problems which vitally affect the interests of the workers in general. The functions of these committees are purely of advisory character and no legal obligation is imposed upon employers to carry out the decisions arrived at in the meeting of works committee.

2. Grievance Settlement Authority:

The Industrial Disputes (Amendment) Act 1982 has provided for the setting up of a Grievance Settlement Authority and for reference of certain individual disputes to such authorities. Any employer employing one hundred or more workers on anyone day in the preceding twelve months, is required to provide for a Grievance Settlement Authority for settlement of industrial dispute relating to an individual. Where such dispute arises, the concerned worker or the trade union of which he is a member, may refer the dispute to the Authority for settlement. Any such reference shall not be referred to Board or Tribunal.

3. Conciliation Officer:

The appointment of conciliation officer is made by the Central or State Government for a particular region or industries in the state. The main duty of these officers is to bring the two parties together and help them resolve their differences. They can do everything to settle the dispute between the two parties amicably. He is bound to take decision within 14 days or such period as extended by the State Government from the date of registration of dispute. If the dispute is settled through his good offices and an agreement is reached, he should send a. Report to the appropriate Government along with a memorandum of settlement signed by the parties to the dispute. In case, the dispute is not settled he should inform the appropriate Government about his failure, steps taken and the reasons for not being successful.

4. Court of Inquiry:

Where an industrial dispute remains unresolved by the efforts conciliation officer and the board of conciliation, the matter is referred to a court of inquiry. The court may consist of one or more independent persons. It will investigate the whole dispute and submit its report to the Government on the matters referred to it ordinarily within 6 months from the date of commencement of inquiry. If settlement is not arrived at by the efforts of the above machinery, a three-tier machinery for compulsory adjudication is provided under the act. There are three types of semi- judicial bodies, i.e., labour courts, industrial tribunals and national tribunals.

5. Conciliation Board:

In case, the conciliation officer fails to resolve the dispute, the Government appoints a board of conciliation on adhoc basis for a particular dispute consisting of a Chairman and two to four persons representing the employer and the employees to bring the parties of disputes to sit together and thrash out their differences as referred to by the Government. The board reports the Government about the success or failure of its efforts, steps taken and reasons for its failure to bring about a settlement within 2 months from the date of reference of the dispute.

6. Labour Courts:

Such courts have been set up by the State Governments to go into the disputed orders of the employers dismissal, discharge and suspensions of employees by the management, legality or otherwise of any order passed by an employer under the standing orders, withdrawal of any concession or privilege, legality or otherwise or any strike or lock-out etc. These courts will award decision and send report to the Government.

7. Industrial Tribunals:

The State Government has been empowered to appoint as many industrial tribunals as it thinks proper, for the adjudication of disputes selecting to wages, hours of work and rest, intervals, leave with pay, holidays, compensatory and other allowances, bonus, profit sharing, provident fund, gratuity, discipline, retrenchments closure of establishment etc. The tribunal will consist of a person of the rank of a high court judge. The adjudication of these tribunals is binding on both the parties.

8. National Tribunal:

Such tribunals are set up by the Central Government for the adjudication of industrial dispute which involve questions of national importance or which affect industrial establishments situated in more than one state. It gives decisions on matters referred to it by the Central Government. If any matter is referred to the National Tribunal by the Central Government the labour courts and industrial courts are barred from entertaining such disputes and if any such dispute, is pending before labour courts or tribunals, shall be deemed to be quashed.

9. Other Important Provisions:

a. Restrictions on Strikes and Lock-Outs:

The Act prohibits strikes and lock-outs in public utilities without sufficient notice as specified in the Act. The Act also prohibits strikes and lock-outs during pendency of proceedings relating to the dispute before the concerned authority and certain specified period after that. Further prohibition will also apply during the period in which a settlement or award is in operation in respect of any of the matters covered by the settlement or award.

b. Restriction of Layoff and Retrenchment:

The Industrial Disputes (Amendment) Act 1984 has provided that no industrial establishment employing 300 or more workers c-in layoff or retrench a worker without the prior permission of the Government at least three months before such layoff or retrenchment.

The Act also lays down the conditions of layoff and retrenchment, the right of laid off workmen for compensation, procedure for closing down an undertaking, compensation to workmen in case of closing down of undertaking.

c. Essential Services Maintenance (Ordinance) 1981:

The President of India has promulgated an ordinance on 26th July 1981, declaring a ban on strikes in essential services. These essential services are Railways, Post and Telegraph, Telephone, Ports, Air ports, Banks, units producing or refining petroleum products public conservancy services, defence establishments and hospitals etc. The Government has power to declare a service as essential by notification.

Q15) State the objectives of grievance handling.    5

A15) Objectives of grievance handling

1. To enable the employee to air his/her grievance.

2. To clarify the nature of the grievance.

3. To investigate the reasons for dissatisfaction.

4. To obtain, where possible, a speedy resolution to the problem.

5. To take appropriate actions and ensure that promises are kept.

6. To inform the employee of his or her right to take the grievance to the next stage of the procedure, in the event of an unsuccessful resolution.