Q. Explain the role of government for successful INRL programme. 14
Discuss the need/role of State Intervention in preserving industrial peace. 14
Ans. In recent years, the state has played an important role in regulating industrial relations in various countries. But the extent of its involvement in the process is determined by the level of social and economic development in the country. The mode of State intervention is greatly influenced by the prevailing political system in the country and also economic development. For ex. In a developing country like India, work stoppage to settle claims have more serious consequences than in a developed economy and similarly, a free market economy leave the parties free to settle their relations through strikes and lockouts but in other system it may vary. State intervention is required for building up Sound Industrial Relations.
The powers assumed by the state to regulate labour relations differ from country to country. In some countries, it has taken the form of laying down bare-rules for observance by management and workers, while in others the rules cover a wide area of relationship and there is equally greater supervision over the enforcement of these rules. For ex: In UK, the industrial relation system has been marked by the primary of free collective bargaining between the parties. Disputes relating to jurisdiction are mainly on internal matter for the British Trade Union Congress.
In USA, the State has confined itself to enacting legislation for ensuring the workers right to organize and bargain collectively. It constituted on independent authority to administer and interpret legal provisions and decide on complaints regarding unfair labour practices.
Australia has had a long tradition of state regulation in the field of Industrial Relation. The Government intervenes through the Common Wealth Conciliation and arbitration commission for settlement of disputes and also through Industrial Court. There is a fair scope for collective bargaining also.
In India, the role played by the State in the field of INRL has assumed a more direct form. The State has enacted procedural as well as substansive laws to regulate INRL in the country. In a developing country like India state intervention is necessary because of the following reasons:
a) The labour organizations however numerous are relatively weak. There has been a profound distrust of the employer as a profit seeking exploiter. Therefore, the Government has to play a major role in INRL because it cannot depend long on bipartite negotiations and confrontations between labour and management over the years.
b) When the labour situation worsens or the law and order situation gets out of hand the state intervenes. As the guardian of the people and of the economy of the country, it has to intervene and adopt INRL policies which will ensure social justice and industrial peace.
c) The federal nature of the constitution has made it imperative for the state to intervene in labour matters to ensure smooth and continuing production.
d) The Directive Principles of the Constitution enjoys upon the state to establish a welfare state & to look after the weaker section of the society.
In may therefore be seen that, state intervention in the field of INRL varies according to a nation’s political doctrine, traditions, and economic as well as social conditions. However, state intervention in any form helped in preventing severe exploitation of the classes and has helped in promoting industrial peace.
Q. Give a brief account of the Industrial Relations scenario, during the period between 1991 and 2012, In India. 14
Write an explanatory note on Industrial Relations Policies of Government of India in the post-globalization era. 14
Ans. Indian economy had experience a major policy change in early 1990s. The new economic reforms, popularly known as Liberalization, Privatization and globalization (LPG) aimed at making the Indian economy as fast growing economy and globally competitive. A series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient.
With the onset of reforms, to liberalize the Indian economy in July of 1991, a new chapter has draw for Indian and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy with the global economy which is called globalization.
With the advent of globalization, the policies of production proved impractical and rigid. They posed a serious threat for the industry to face the global competition and survive in the global markets. Apart from the global needs of the organization there was a technological revolution across the world. The business rules were changing with worldwide margin and acquisitions. Disinvestment, privatization, retrenchment and introduction of VRS, contract labour, outsourcing and the need for flexibility in workforce changed the industrial relations outlook.
The various types of policies and factors that emerged in India after globalization are:
1) The HR policies which were rigid before globalization have become flexible after globalization.
2) The style of management was generating negative feelings towards the employees which turned into positive due to the advent of globalization.
3) The type of negotiation was win-lose type before globalization which changed into win-win mode after globalization starts.
4) The strategic orientation became linked with the goals of the organisation with the advent of globalization which was not before.
5) Previously, the union management relations were adversarial, now its cooperative.
6) The workforce was production oriented, which has become service oriented now.
7) Collective bargaining was strongly criticizes which has now been decentralized.
8) Mergers and acquisitions were very few and that too within India, which had changed to large scale across the globe with the advent of globalization.
9) Guaranteed payment system, is changed into variable and incentive payment system due to globalization.
10) Profit sharing was negligible, but after the LPG policy there was profit sharing in the form of bonus, allowances, etc.
11) The type of labour which were permanent and regular, is casualized after globalization.
In the globalization era, with the increase in competition there have been fewer strikes, lockouts and man days lost due to strike. In this era of knowledge economy, employees are educated and do not indulge in violent activities as during pre-globalization era. Today, they are more responsible and are aware of their duties as well as their rights.
The effects of globalization on Indian industry have proved to be positive as well as negative. The positive effects of globalization in Indian industry are that it brought in huge amounts of foreign investments into the industry especially, in the BPO, Pharmaceutical, petroleum and manufacturing industries. Foreign companies brought in advanced technology with them and this helped to make the Indian industry more technologically advanced.
The negative impact of globalization on Indian Industry is that it increased competition in the Indian market between the foreign companies and domestic companies. With the foreign goods being between than the Indian goods, the consumer prefers to buy the foreign goods, thereby reducing profit of the Indian Industrial Companies. Also, due to globalization technology has improved and the number of labours required decreased and resulted in job cuts.
Therefore, the government must try to make such economic policies with regard to Indian Industry’s globalization that are beneficial and not harmful.
Q. Define Strike under Industrial Disputes Act. What are the general prohibitions of strike? Which strikes/lockouts are illegal? 4+4+4=12
Ans. The term ‘Strike’ is defined in Section 2 (q) of the Industrial Disputes Act. ‘Strike’ means a cessation of work by a body of person employed in any industry acting in combination, or a concerted refusal or a refusal, under a common understanding of any number of persons who are or who have been so employed to continue to work or to accept employment. Whenever employees want to go on strike they have to follow the procedure provided by the Act. Otherwise there strike deemed to be an illegal strike.
Provisions of Strikes: Section 22 (1) of the Industrial disputes Act, 1947 put certain prohibition on the right to strike. It provides that no person employed in P.U.S. shall go on strike in breach of contract:
a) Without giving the employer notice of strike within 6 weeks before striking or
b) Within 14 days of giving such notice or
c) Before the expiry of the date of strike specified in any such notice as aforesaid or
d) During the pendency of any conciliation proceedings before of a conciliation officer and 7 days after the conclusion of such proceedings.
It is to be noted that these provisions do not prohibit the workmen from going on strike but require them to fulfill the condition before going on strike. Further these provisions apply to a P.U.S. only. The ID Act, do not specifically mention as to who goes on strike. Notice of strike should be given within 6 weeks before striking and it is not necessary where there is already lockout in existence.
The General Prohibition of Strikes are: The Provisions of section 23 are general in nature. It imposes general restrictions on declaring strike in breach of contract in the both public as well as non-public utility services in the following circumstances namely:
a) During the pendency of conciliation proceedings before a board and till the expiry of 7 days after the conclusion of such proceedings.
b) During the pendency and 2 months after the conclusion of proceeding before a Labour Court Tribunal or National Tribunal.
c) During the pendency and 2 months after the conclusion of arbitrator, when a notification has been issued under sub-section 3 (a) of Section 10 A of commenced during on within 2 months of completion of Adjudication Proceedings.
d) During any period in which a settlement or award is in operation in respect of any of the matter covered by the Settlement or award. The principal object of this Section is to ensure a peaceful atmosphere to enable a conciliation or adjudication or arbitration proceeding to go on smoothly.
Illegality & Lockout of Strike: Section 24 provides that a strike in contraventions of Section 22 & 23 is illegal.
1) A strike or a lockout shall be illegal if:
a) It is commenced or declared in contravention of Section 22 or Section 23.
b) It is continued on contravention of an order made under sub-section (3) of Section 10 or sub-section (4-A) of Section 10-A.
2) Where a strike or lockout in pursuance of an industrial dispute has already commenced and is in existence all the time of the reference of the dispute to a board, an arbitrator, a labour court, Tribunal or National Tribunal, the continuance of such strike or lockout shall not be deemed to be illegal; provided that such strike or lockout was not at its commencement in contravention of the provision of this Act, or the continuance thereof was not prohibited under sub-section (3) of Section 10 on sub-section (4-A) of 10-A.
3) A strike declared in the consequence of an illegal lockout shall not be deemed to be illegal.
v Illegal Strikes:
a) If it is in breach of contract of Employment.
b) If it is in P.U.S.
c) If notice under Section 22 (1) is not given.
d) During the pendency of conciliation proceedings before a board and till the expiry of 7 days after the conclusion of such proceedings.
e) During the pendency and 2 months after the conclusion of proceeding before a Labour Court Tribunal or National Tribunal.
f) During the pendency and 2 months after the conclusion of arbitrator, when a notification has been issued under sub-section 3 (a) of Section 10 A of commenced during on within 2 months of completion of Adjudication Proceedings.
g) During any period in which a settlement or award is in operation in respect of any of the matter covered by the Settlement or award. The principal object of this Section is to ensure a peaceful atmosphere to enable a conciliation or adjudication or arbitration proceeding to go on smoothly.
Essential features of Strikes:
1) There must be cessation of work.
2) The cessation of work must be by a body of persons employed in any industry (which can be called industry as per Sec. 2 (j).
3) The stricken must have been acting in combination.
4) There must be a concerted refusal under a common understanding of any no. of persons who are or have been so employed to continue to work or to accept employment.
5) There must stop work for some demands relating to employment, non-employment or the terms of employment or the conditions of labour of the workmen.
Q. Define Lockout?
Ans. Section 2 (l) of the ID Act, 1947 defines “Lock-out” to means, the temporary closing of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. It requires description of:
a) The acts which constitute it;
b) The party who uses it;
c) The party against whom it is directed and
d) The motive which prompts resort to it.
Q. Discuss the different forms of Strikes. (12)
Ans. Prohibition (Provisions) of Lockout:
In the similar circumstances the lockout has been prohibited in the P.U.S Section 22 (2) of the Act provides that no employer carrying on any public service shall lock out any of his workmen:
1) Without giving then notice of lockout as hereinafter provided, within six weeks before locking out; or
2) Within 14 days of giving notice; or
3) Before the expiry of the day of lockout specified in any such notice as aforesaid; or
4) During the pendency of any conciliation proceedings before a conciliation officer and 7 days after the conclusion of such proceedings.
It makes clear that the employer has to comply with the same conditions before he declares lockout in his industrial establishment which the workman are required to comply with before they go on strike. The conditions for both the parties are same.
Short Note: (a) Unjustified Strike: It is to be noted that a strike may be perfectly legal and yet be unjustified; for example; a strike commenced not to secure improvement on matters of basic industrial interest to labour, but to embarrass the management could not be justified. Thus, a strike may be held unjustified for various reasons, they are:
1. The demands may be pitched unreasonably high on workman.
2. The workmen may have adopted a strike for any political reasons and not for any trade union objects; or
3. The demands were not made bonafide but with other extraneous methods, i.e. for the specific purpose of embarrassing the employer.
The justifiability of a strike would depend upon several factors such as:-
a) Were the demands of the workmen genuine or were reasonable or inspired by an oblique motive;
b) Were the demands fair and reasonable;
c) Whether the workers try a less dynastic method before going on a strike, etc.
An unjustified strike may not necessarily be illegal. Section 24 provides that a strike in contravention of Section 22 & 23 is illegal. A Strike is justified if it has been raised for a good cause and carried in a peaceful manner.
Q. Explain the machineries that can be used for prevention and settlement of Industrial Disputes. 14
Ans. In the socio-economic development of any country cordial and harmonious industrial relations have a very significant note to play. Industry belongs to the society and therefore good and industrial relations are important from Society’s points of view.
Now-a-days, industrial relations are not bipartite affair between the management and the work force or employees. Government is playing an active role in promoting industrial relations. The concept of Industrial Relations has, therefore, become a tripartite affair between the employees, employers and the government concerned.
It is possible to settle the industrial disputes if timely steps are taken by the management. Such disputes can be prevented and settled amicably if there is equitable arrangement and adjustment between the management and the workers. The following are the machinery for prevention and settlement of Industrial Disputes:
1) Works Committees: This committee represents workers and employers. Under the Industrial Disputes Act, 1947, works committees exist in industrial establishments in which one hundred or more workmen are employed during the previous year. It is the duty of the works committee to promote measures for securing and preserving amity and good relations between the employers and workers. It also deals with certain matters viz. Condition of work, amenities, safety and accident prevention, educational and recreational facilities.
2) Conciliation Officers: Conciliation officers are appointed by the government under the Industrial Disputes Act, 1947. The duties of conciliation officers are:
a) He has to evolve a fair and amicable settlement of the dispute. In case of P.U.S he must hold conciliation proceedings in the prescribed manner.
b) He shall send a report to the government if a dispute is settled in the course of conciliation proceedings along with the charter of the settlement signed by the parties.
c) Where no settlement is reached, conciliation officer sends a report to the government indicating the steps taken by him for ascertaining the facts, circumstances relating to dispute and the reasons on account which settlement within 14 days of commencement of the conciliation proceedings.
3) Boards of Conciliation: The government can also appoint a Board of conciliation for promoting a settlement of Industrial Disputes. The chairman of the board is an independent person and other members (may be 2 or 4) are to be equally represented by the parties to the disputes. The duties of the board includes:
a) A report which has to be sent to the government by the board if a dispute has been settled or not, within 2 months of the date on which the disputes were referred to it.
b) To investigate the dispute and all matters affecting the merits and do everything fit for the purpose of inducing the parties to reach a fair and amicable settlement.
4) Court of enquiry: The Government may appoint a court of enquiry for enquiring into any industrial dispute. A court may consist of one person or more than one person and in that case, one of the person will be the chairman. The court shall be required to enquire into the matter and submit its report to the government within a period of 6 months.
5) Labour Courts: As per the 2nd schedule of the Industrial Dispute Act, 1947 the government sets up labour courts to deal with matters such as:
a) The propriety or legality of an order passed by an employer under the standing orders.
b) The application and interpretation of standing orders passed.
c) Discharge or dismissal of workmen including reinstatement, grant of relief to workers who are wrongfully dismissed.
d) Withdrawal of any customary concession of privilege.
e) Illegality or otherwise of a strike or lockout and all other matters not specified in the third schedule.
6) Industrial Tribunals: A tribunal is appointed by the government for the adjudication of Industrial Disputes. It consists of one person who is either a sitting judge or a noticed judge of a high court and two more persons are appointed for assisting the tribunal. It deals with matters such as more of payment of wages, compensatory and other allowances, hours of work and nest internals, bonus, profit sharing, P.F. & gratuity etc.
7) National Tribunal: National Tribunal is constituted by the Central Government if the matter is of national importance or related to an undertaking which has industries, scattered more than one states, it is referred to National Tribunal. Generally, it depends on the will of the government to refer the disputes in industrial establishment to National Tribunal. But, it becomes compulsory to refer the matter to National Tribunal when there is an info of strike in P.U.S. and this info is not merely threat.
8) Arbitration: The employer and employees may agree to settle the dispute by appointing an independent and impartial person called Arbitrator. Arbitration provides justice at minimum cost. The Arbitrator is not vested with any judicial powers. He derives his power to decide the dispute from the agreement that parties have made between themselves regarding the reference of dispute to the arbitrator.
9) Wage Board: There should be an appropriate machinery for the fixation of workers wages in order to avoid industrial disputes which are mostly due to the question of wages. In this job of the determination of wages, the government of the country can play a very important note. It can determine appropriate wages of the workers of different industries by forming tripartite bodies consisting of the representative of the workers, the representatives of the employers and independent representatives, Wage board, i.e. tripartite body can also make a provision of changes in the wages from time to time.
Q. Explain the skills required for effective negotiation. 10
Ans. Job description offer list negotiation skills as a desirable asset for candidates, but the ability to negotiate requires a collection of interpersonal and communication skills used together to bring a desired result. The circumstances of negotiation occur when two parties or groups of individuals disagree on the solution for a problem on the goal for a project or contract. A successful negotiation requires the two parties to come together hammer out an agreement that is acceptable to both.
1) Problem analysis: Effective negotiations must have the skills to analyze a problem to determine the interests of each party in the negotiation. A detailed problem analysis identifies the issue, the interested parties and the outcome goals. Ex. In a employer and employee contract negotiation, the problem or area where the parties disagree may be in salary or benefits. Identifying the issue for both sides can help to find a compromise for all parties.
2) Preparation: Before entering a bargaining meeting, the skilled negotiator prepares for the meeting. Preparation includes determining goals, areas for trade and alternatives to the stated goals. In addition, negotiators study the history of the relationship between the two parties and past negotiations to find areas of agreement and common goals.
3) Active listening: Negotiators have the skills to listen actively to the other party during the debate. Active listening involves the ability to real body language as well as verbal communication. It is important to listen to the other party to find areas for compromise during the meeting.
4) Emotional Control: It is vital that a negotiator have the ability to keep his emotions include during the negotiation.
5) Verbal Communication: Negotiators must have the ability to communicate clearly and effectively to the other side during the negotiation. Misunderstandings can occur if the negotiator does not state his case clearly. During a bargaining meeting, an effective negotiator must have the skills to state his desired outcome as well as his reasoning.
6) Collaboration & Teamwork: Negotiation is not necessarily a one side action against another. Effective negotiators must have the skills to work together as a team and faster a collaborative atmosphere during negotiations.
7) Problem Solving: Individuals with negotiation skills have the ability to seek a variety of solutions to problems. Instead of focusing on his ultimate goal for the negotiation, the individual with skills can focus on solving the problem, which may be a breakdown in communication to benefit both sides of the issue.
8) Decision making ability: Leaders with skills have the ability to act decision by during a negotiation. It may be necessary during a bargaining arrangement to agree to a compromise quickly to end a statement.
9) Interpersonal Skills: Effective negotiators have the interpersonal skills to maintain a good working relationship with those involved in the negotiation.
10) Ethics and reliability: Ethical standards and reliability in an effective negotiator promote a trusting environment for negotiations. Both sides in a negotiation must thrust that the other party will follow through on promises and agreements. A negotiator must have the skills to execute on his promises after bargaining ends.
Q. What is Negotiation? Explain its characteristics. 4
Ans. Negotiation has been defined as any form of direct or indirect communication whereby parties who have opposite interests discuss the form of any joint action which they might take to manage and ultimately resolve the dispute between them. Negotiations may be used to resolve an already existing problem or to lay the groundwork for a future relationship between two or more parties. The characteristics features of negotiations are:
1. Voluntary: No party is forced to participate in a negotiation. The parties are free to accept on a eject the outcome of negotiations and can withdraw at any point during the process.
2. Bilateral/Multilateral: Negotiations can involve two, three or dozens of parties. They can range from two individuals seeking to agree on the sale of a house to negotiations involving diplomats from dozens of states.
3. Non-adjudicative: Negotiation involves only the parties. The outcome of a negotiation is reached by the parties together without recourse to a third-party neutral.
4. Informal: There are no prescribed rules in negotiation. The parties are free to adopt whatever rules. They choose, if any. Generally, they will agree on issues such as the subject matter, timing and location of negotiations.
5. Confidential: The parties have the option of negotiating public or privately.
Q. Discuss significance advantage of negotiation in the settlement of Industrial Disputes. 10
Ans. Negotiation allows the parties to agree to an outcome which is mutually satisfactory. The actual terms of the agreement must be concluded by the parties and can be as broad or an specific as the parties desire. A negotiated settlement can be recorded in the form of an agreement. One signed, has the force of a contract between the parties. If the settlement is negotiated in the context of a litigious dispute, then the parties may wish to register the settlement with the court in conformity with the applicable rules of practice.
1) In procedural terms, negotiation is probably the most flexible form of dispute resolution as it involves only those parties with an interest in the matter and their representatives if any. The parties are free to shape the negotiations in accordance with their own needs. By ensuring that all those who have an interest in the dispute have been consulted regarding their willingness to participate and that adequate safeguards exists to prevent inequities in the bargaining process, the changes of reaching an agreement satisfactory to all are enhanced.
2) Like any method of dispute resolution, negotiation cannot guarantee that a party will be successful. However, many commentators feel that negotiations have a greater possibility of a successful outcome when the parties adopt an interest-based approach as apposed to a positional-based approach. By focusing on their mutual needs and interests and the use of mechanisms such as objective standards, there is a greater chance of reaching an agreement that meets the needs of the parties. This is sometimes referred to as a ‘win-win’ approach.
3) Negotiation is a voluntary process. The parties are free to accept or reject the outcome of negotiations and can withdraw at any point during the process.
4) Assuming that the parties are negotiating in good faith, negotiation will provide the parties with the opportunity to design an agreement which reflects their interests.
5) Negotiations may preserve and in some cases even enhance the relationship between the parties once an agreement has been reached between them.
6) Opting for negotiation instead of litigation may be less expensive for the parties and may reduce delays.
7) It is inevitable that from time to time, conflict and disagreement will arise as the differing needs, wants aims and beliefs of people are brought together. Without negotiation such conflicts may lead to argument and resentment resulting in one or all the parties feeling dissatisfied. The point of negotiation is to try to reach agreements without causing future barriers to communications.
Q. Explain the process of negotiation briefly. 8
Ans. The process of negotiation is as follows:
1. Preparation: Before any negotiation takes place, a decision needs to be taken as to when and where a meeting will take place to discuss the problem and who will attend. Setting a limited time scale can also be helpful to prevent the disagreement continuing.
2. Discussion: During this stage, individuals or members of each side put forward the case or they see it, i.e. their understanding of the situation.
3. Clarifying goals: From the discussion, the goals interests and viewpoints of both sides of the dispute need to be clarified. Classification is an essential part of the negotiation process, without it misunderstandings are likely to occur which may cause problems and barriers to reaching a beneficial outcome.
4. Negotiate towards a win-win outcome: This stage focuses on what is termed a win-win outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.
5. Agreement: Agreements can be achieved after understanding of both sides; viewpoints and interests have been considered.
6. Implementing a course of action: For the agreement, a course of action has to be implemented to carry through the decision.
Q. Write Short Notes: Negotiation for win-win dispute resolution. 4
Ans. Negotiation is a means of resolving difference between people. In the process of negotiation, not only different opinions are taken into account, but also individual needs, aims, interests and differences in background and culture are considered.
We can adopt win-lose or win-win approach of negotiation. Negotiation is sometimes seen in terms of ‘getting your own way’ ‘driving a hard bargain’ or ‘beating off the opposition’. While in the short term bargaining may well achieve the aims for one side, It is a win-lose approach. This means that while one side wins the other losses and this outcome may well damage future relationships between the parties. It also increases the likelihood of relationships breaking down of people walking out or refusing to deal with the ‘winners’ again and the process ending in a bitter dispute.
But many processional negotiations prefer to aim towards what is known as a win-win solution. This involves looking for resolutions that allow both sides to gain. In other words, negotiators aim to work together towards finding a solution to their differences that result in both sides being satisfied. The key points which must be considered for win-win negotiation are:
a) Focus on maintaining the relationship: This means not allowing the disagreement to damage the interpersonal relationship not blaming the others for the problem and aiming to confront the problem not the people. This can involve actively supporting the other individuals while confronting the problem.
b) Focusing on Interests Not Position: Rather than focusing on the other side’s stated position, consider the underlying interests they might have what are their needs, desires and fears? These might not always be obvious from what they say. When negotiating, individuals often appear to be holding on to one or two points from which they will not move. It is important to clearly express our own needs, desires, wants and fears so that others can also focus on your interests.
c) Generate a Variety of options: Rather then looking for one single way to resolve differences, it is worthwhile considering a number or options that could provide a resolution and then to work together to decide which is most suitable for both sides.
d) Aim for the Result to be based on an objective standard: Rather than resorting to a confrontational bargaining approach, which may leave individuals. Feeling let-down or angry, it can be helpful to seek some fair, objective and independent means of resolving the differences. It is important that such a basis for deciding is: (a) Acceptable to both parties; (b) Independent to both parties; (c) Can be seen to be fair.