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ACADEMIC YEAR: 2016-2017 REGULATION CBCS - 2012

RAAK/BBA/Dr.Kamaludeen . P/III YEAR/VI Sem/SBA61/IRLL/UNIT-1 Answers/VER 1.0Unit – 1 Answers Page 1 of 27

SBA 61 – INDUSTRIAL RELATION AND LABOUR LAWS (IRLL)

Unit-1 – (Concept of Industrial Relations)

Type: 100% Theory

Question & Answers

Syllabus: [Regulation: 2012]

Unit-1 Industrial Relations - Role - Importance - Trade Unions - Industrial disputes and their

Resolutions.

Part A

1. Define ‘Industrial Relations? (April/May 2014) & (Nov/Dec 2015)

The term ‘industrial relations’ has been variously defined. J.T. Dunlop defines industrial

relations

As “the complex interrelations among managers, workers and governments”.

2. What do you mean by Trade union? (April/May 2014)

A trade union is an association of workers who have come together to achieve common goals

such as protecting the integrity of its trade, achieving higher pay and benefits such as health

care and retirement, increasing the number of employees and employer assigns to complete

the work, safety standards, and better working conditions.

3. Give the meaning of Industrial dispute? (April/May 2015)

“Industrial Dispute is any dispute or difference between the employees and employers or

between employers and workmen or between workmen and workmen, which is concerned

with the employment or terms of employment or with the conditions of labour of any person.”

4. Who is an employee? (April/May 2014) & (Nov/Dec 2014)

An employee is anyone who has agreed to be employed, under a contract of service, to work

for some form of payment. This can include wages, salary, commission and piece rates.

5. Who is an employer? (April/May 2013) & (Nov/Dec 2014)

An employer is a person or institution that hires employees or workers. Employers offer wages

or a salary to the workers in exchange for the worker's work or labour. One speaks of wages if

the employee is paid by the hour and of salary if he is paid a set rate per pay period.



6. What do you mean by Factory? (April/May 2014) & (Nov/Dec 2015)

A factory or manufacturing plant is an industrial site, usually consisting of buildings and

machinery, or more commonly a complex having several buildings, where workers

manufacture goods or operate machines processing one product into another.

7. Give the meaning of company? (Nov/Dec 2014), (Nov/Dec 2015)

• A company is a legal entity that gets incorporated under the Companies Act and is involved in

manufacture and sale of products or services.

• A company is always a part of an industry which comprises many other companies that are

involved in manufacture of similar products and services.

• Company is part whereas industry is whole.

8. What do you mean by Industry? (April/May 2013), (April/May 2014)

Industry refers to productive aspect of business. In a narrow sense, industry means production of

goods and material. In a broad sense, it is concerned with the raising of material production and

processing of products.

For example, Revlon may be a cosmetic company making beauty products, but it is only a

part of a huge cosmetic industry which has hundreds of companies manufacturing similar

beauty products

9. What do you mean by Conciliation? (Nov/Dec 2013), (Nov/Dec 2015)

Conciliation is a form of mediation. Mediation is the act of making active effort to bring

two conflicting parties to compromise.

Conciliation is an alternative out-of-court dispute resolution instrument. Like mediation,

conciliation is a voluntary, flexible, confidential, and interest based process. The parties

seek to reach an amicable dispute settlement with the assistance of the conciliator, who

acts as a neutral third party.

10. Explain Arbitration? (Nov/Dec 2013), (Nov/Dec 2014)

Arbitration, a form of alternative dispute resolution (ADR), is a technique for the resolution

of disputes outside the courts. The parties to a dispute refer it to arbitration by one or more

persons (the "arbitrators", "arbiters" or "arbitral tribunal"), and agree to be bound by the



arbitration decision (the "award"). A third party reviews the evidence in the case and

imposes a decision that is legally binding on both sides and enforceable in the courts.

The major difference between arbitration and conciliation is that one is an actual legal

proceeding while the other is an informal attempt to settle a matter without the courts

11. Explain compulsory arbitration? (April/May 2014) (April/May 2015)

A legal and binding arbitration between labour and management by a neutral third party that

has been mandated by the government. Compulsory arbitration is used when collective

bargaining and other negotiation methods have failed, to settle outstanding issues without

either side resorting to extreme measures such as strikes or terminations.

12. List out any two objectives of industrial relations? (Nov/Dec 2014), (Nov/Dec 2015)

The primary objective of industrial relations is to maintain congenial relations between

employees and employer. The other objectives are:

a. To promote and develop congenial labour management relations;

b. To encourage and develop trade unions in order to improve the workers strength

c. To extend and maintain industrial democracy.

13. What are the characteristics of Industrial Relations? Nov/Dec 2014), (Nov/Dec 2015)

a. Industrial relations are outcome of employment relationship in an industrial enterprise.

b. The government involves shaping the industrial relations through laws, rules, agreements,

awards etc.

14. List out the various factors affecting Industrial relations? (Nov/Dec 2014), (Nov/Dec 2015)

i. Institutional factors

ii. Economic factors

iii. Technological factors

iv. Social and cultural factors

v. Political factors

vi. Government factors



15. List out the scopes for IR? (Nov/Dec 2014), (Nov/Dec 2015)

Industrial relations are relation between employee and employer in their day to day work. Hence,

it is continuous relationship. The scope of industrial relations includes:

a. Relationship among employees, between employees and their superiors or managers.

b. Collective relations between trade unions and management it is called union-management

relations.

c. Collective relations among trade unions, employers association and government.

16. What are the Advantages of Trade Unions? (April/May 2015)

According to the national commission on labour 1969, the advantages of industrial union are;

They provide a joint facility for collective bargaining.

They introduced the measure of uniformity in the principles governing all aspects of

service and working conditions.

They coordinate sectional claims of different levels and different natures of employees

within an industry.

17. What is personnel policy? (April/May 2013), (Nov/Dec 2015)

A policy may be defined as statement or general understanding which provides as guidance to

decision making to members of an organisation in respect of any course of action. Personnel

policies are well recognised intentions of the management with respect to manpower management

in the organisation. Personnel policies indicate the objectives or the establish course of action to

establish management’s relationship with the employees of the organisation.

18. What do you mean by welfare? (Nov/Dec 2014)

Welfare is the provision of a minimal level of well-being and social support for all citizens,

sometimes referred to as public aid. In most developed countries welfare is largely provided by

the government, and to a lesser extent, charities, informal social groups, religious groups, and

inter-governmental organizations.



19. Difference between human relation from Industrial Relation (April/May 2014)

Human relation deals with social and interpersonal relationships

Industrial relation deals with relationship between employers and employees

Part-B

1. What Are the Functions of Industrial Relations? (Nov/Dec 2014), (Nov/Dec 2015)

IR' refers to positive interaction between organizations and their major stakeholders, employees,

customers, unions, government agencies and vendors. Employee and labour relations don't apply

to your small business if you're not an employer.

Employees

Businesses with fewer than 50 workers might have an easier time managing employee relations

than a bigger company, but large organizations often have the advantage of appointing a full-time

human resources manager or employee relations specialist to oversee the function. Professionals

in this role study and try to resolve workplace problems that disrupt productivity, such as high

absenteeism, low morale, poor performance and misconduct.

They also look at how well management and staff communicate. After sharing their findings with

company heads, they might recommend starting an employee recognition program to raise morale

or offering more flexible work schedules to curb job burnout.

Employee relations also address the way organizations handle grievances, workplace

investigations, misconduct, disciplinary actions and conflict resolution. And to ensure that

companies comply with workplace mandates, they instruct managers and staff of their rights and

responsibilities under state and federal laws covering safety, family leave, discrimination and

harassment in the workplace.

Labour

Labour relations refer to collaboration between management and unionized workers for a rancor-

free work environment. The National Labour Relations Act gives employees the right to join

unions and take part in collective-bargaining negotiations, or to refrain from participating in

organizing activities.



Small businesses might not have union members on staff, but they must comply with the NLRA.

The act applies to all entities involved in commerce and protects both union and nonunion

workers' rights. Because the NLRA doesn't prevent nonunion employees from going out on strike,

work stoppages that could financially cripple a small business are possible.

Customers

Small businesses often have better customer relations than big companies because of the personal

attention they can offer clients, the SBA says. An IR strategy is to recognize buyers' preferences

and dislikes, and identify ways to improve customer relations.

The SBA recommends listening to what customers have to say about your products or services

and how they're treated as patrons. Soliciting their opinions through surveys can be a quick, low-

cost way to gather this information. You might need to train staff to be more courteous and avoid

arguing with unhappy patrons, or perhaps you need to revise your return policies.

Government

The federal government buys $100 billion worth of small-business goods and services every year.

Doing business with the government can be a lucrative partnership for small organizations.

Government relations function helps preserve the partnership by seeing that businesses meet

procurement requirements and follow regulations. You also must submit to an Open Ratings Past

Performance Evaluation, an independent D&B audit that collects and analyzes information on

your business from customers.

Vendors

Ashley Neal, owner of Celebrate Atlanta LLC and a small-business advocate, says your vendors

are extensions of your own company. She advises business owners to build and maintain long-

term vendor relations through more face-to-face interaction with suppliers than they might be used

to in this high-tech age of electronic communication.



2. State the significance of Industrial Relations? (April/May 2014), (Nov/Dec 2015)

The healthy industrial relations are key to the progress and success. Their significance may be

discussed as under.

Uninterrupted production

The most important benefit of industrial relations is that this ensures continuity of production. This

means, continuous employment for all from manager to workers. The resources are fully utilized,

resulting in the maximum possible production. There is uninterrupted flow of income for all.

Smooth running of an industry is of vital importance for several other industries; to other industries

if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and

workers, if these are goods of mass consumption.

Reduction in Industrial Disputes

Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of

basic human urges or motivations to secure adequate satisfaction or expression which are fully

cured by good industrial relations. Strikes, lockouts, go-slow tactics, and grievances are some of

the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It

helps promoting co-operation and increasing production.

High morale

Good industrial relations improve the morale of the employees. Employees work with great zeal

with the feeling in mind that the interest of employer and employees is one and the same, that is to

increase production. Every worker feels that he is a co-owner of the gains of industry. The

employer in his turn must realize that the gains of industry are not for him along but they should be

shared equally and generously with his workers. In other words, complete unity of thought and

action is the main achievement of industrial peace. It increases the place of workers in the society

and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone

can produce great results.



Mental Revolution

The main object of industrial relation is a complete mental revolution of workers and employees.

The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business

of leadership in the ranks of workers, employees and Government to work out a new relationship in

consonance with a spirit of true democracy. Both should think themselves as partners of the

industry and the role of workers in such a partnership should be recognized. On the other hand,

workers must recognize employer’s authority. It will naturally have impact on production because

they recognize the interest of each other.

Reduced Wastage

Good industrial relations are maintained on the basis of cooperation and recognition of each other.

It will help increase production. Wastages of man, material and machines are reduced to the

minimum and thus national interest is protected.

Thus, it is evident that good industrial relations is the basis of higher production with minimum

cost and higher profits. It also results in increased efficiency of workers. New projects may be

introduced for the welfare of the workers and to promote the morale of the people at work. An

economy organized for planned production and distribution, aiming at the realization of social

justice and welfare of the massage can function effectively only in an atmosphere of industrial

peace. If the twin objectives of rapid national development and increased social justice are to be

achieved, there must be harmonious relationship between management and labour.

3. Explain the Roles of Industrial Relations? (April/May 2013), (Nov/Dec 2015)

Industrial relations are associated with labour, management, labour unions, and the state.

The scene of industrial relations has grown tremendously, and cannot be represented

merely by relations between management and labour

It has become a comprehensive and total concept embracing the sum total of relationship

that exists at various levels of the organizational structure.

Additionally, it connotes relationships between workers themselves within the labour

class, and relations among the management within the managerial class. In an open sense,



industrial relations denote all types of relations within a group and outside a group - both formal

and informal relations.

4. What are the functions of Trade Union? (April/May 2014)

There are 9 main functions of a trade union, which are as follow:

Collective bargaining with the management to settle terms and conditions of employment.

Advise the management on personnel policies and practices.

Taking up the individual and collective grievances of the workers with the management.

Work for achieving better say of workers in the management of affairs of the enterprise

which

Influence the lives of the workers directly.

Organising demonstrations, strikes, etc, to press demands of workers.

Education of workers and their children.

Welfare and recreational activities for their members.

Representing of workers in various national and international forums.

Securing legislative protection for workers from the government.

5. Explain the Objectives Of Trade Unions? (April/May 2013), (Nov/Dec 2015)

Trade unions are formed to protect and promote the interests of their members. Their primary

function is to protect the interests of workers against discrimination and unfair labour practices.

Trade unions are formed to achieve the following objectives:

Wages and Salaries:

The subject which drew the major attention of the trade unions is wages and salaries. Of course, this

item may be related to policy matters. However, differences may arise in the process of their

implementation. In the case of unorganised sector the trade union plays a crucial role in bargaining

the pay scales.



Working Conditions:

Trade unions with a view to safeguard the health of workers demands the management to provide

all the basic facilities such as, lighting and ventilation, sanitation, rest rooms, safety equipment

while discharging hazardous duties, drinking, refreshment, minimum working hours, leave and

rest, holidays with pay, job satisfaction, social security benefits and other welfare measures.

Discipline:

Trade unions not only conduct negotiations in respect of the items with which their working

conditions may be improved but also protect the workers from the clutches of management

whenever workers become the victims of management’s unilateral acts and disciplinary policies.

This victimisation may take the form of penal transfers, suspensions, dismissals, etc.

Personnel Policies:

Trade unions may fight against improper implementation of personnel policies in respect of

recruitment, selection, promotions, transfers, training, etc.

Welfare:

Trade unions are meant for the welfare of workers. Trade union works as a guide, consulting

authority and cooperates in overcoming the personnel problems of workers. It may bring to the

notice of management, through collective bargaining meetings, the difficulties of workers in

respect of sanitation, hospitals, quarters, schools and colleges for their children’s cultural and

social problems.

Employee-employer relation:

Harmonious relations between the employees and employer are a sine quo non for industrial peace. A

trade union always strives for achieving this objective. However, the bureaucratic attitude and

unilateral thinking of management may lead to conflicts in the organisation which ultimately disrupt

the relations between the workers and management. Trade union, being the representative of all the

workers, may carry out continuous negotiations with the management with a view to promote

industrial peace.



Negotiating machinery:

Negotiations include the proposals made by one party and the counter proposals of the other party.

This process continues until the parties reach an agreement. Thus, negotiations are based on ‘give and

take’ principle. Trade union being a party for negotiations, protects the interests of workers through

collective bargaining. Thus, the trade union works as the negotiating machinery.

Safeguarding organisational health and the interest of the industry:

Organisational health can be diagnosed by methods evolved for grievance redresses and techniques

adopted to reduce the rate of absenteeism and labour turnover and to improve the employee relations.

Trade unions by their effective working may achieve employee satisfaction. Thus, trade unions help

in reducing the rate of absenteeism, labour turnover and developing systematic grievance settlement

procedures leading to harmonious industrial relations. Trade unions can thus contribute to the

improvements in level of production and productivity, discipline and improve quality of work life.

6. What are the various roles of Trade Union? (Nov/Dec 2015)

Political role, using collective power to influence decisions on behalf of members and the wider

society;

Market role, by intervention wage bargaining and thus impacting on the economy;

Regulatory role by setting standards in relation to jobs and terms and conditions;

Democratizing role, in creating industrial democracy at the workplace;

Service role, in promoting the intervention of members;

Enhancement role in helping to develop the human potential of members; and

Welfare role in providing assistance to particular groups.

Political role:-

In many instances, trade unions were established in the Caribbean before the advent of political

parties which evolved from the trade unions. This resulted in a close nexus between the two

institutions which were often organically linked. The vote of trade union members was important

in assisting labour leaders to become members of the political elite. In every country in the region,

at some time or another, trade union leaders became politicians.



Market role:-

The market or economic role of trade unions is no doubt the dominant role practised by Caribbean

trade unions. Exclusive, collective bargaining trade unions negotiate wages and salaries, helping

to distribute the value added in the business firm and increasing the spending power of their

members in the economy.

In societies where the majority of people are wage or salary earners, the role of the trade union in

regulating the local economy is extremely important. Labour costs are an important consideration

in determining the ability of locally-produced goods and services to compete against any

externally produced items.

Regulatory role:-

The early craft union has as one of its basic functions the regulation of apprenticeship and setting

of standards of work required of journeymen and master craftsmen, and linking this to pay. Trade

unions are still influential in determining and establishing job standards in the workplace.

Increasingly, management has sought to regain control of the workplace and to determine

unilaterally, matters relating to the nature of jobs and other working conditions.

Democratizing role:-

The trade union’s rank and file are provided with the opportunity of electing their stewards,

committees of management, and through the delegate system, their executives and other leaders.

The process of preparation for collective bargaining also encourages worker participation. Trade

unions are fertile institutions for the furtherance of participatory democracy, for the freedom of

assembly, the right to speak freely and the right to exercise choice.

Service role:-

Trade unions attempt to develop services which are valuable to their members as individuals,

outside of the scope of collective bargaining. In the early stages, this took the form of mutual

assistance, but with the onset of the welfare state, with provisions for national insurance and

similar schemes, this demand has abated.



Enhancement role:-

Trade unions provide the opportunity for workers to develop pride in themselves, to reach

positions of leadership and to excel, where without this vehicle of mobility, many would have had

a stultified existence. Many persons who have moved on to management and other leadership

roles can testify to their beginnings as shop towards who were given basic training and

opportunity for leadership in the labour movement.

Welfare role:-

Some trade unions have actively engaged in providing welfare services for members and even for

the wider community. This takes various forms including the employment of those who have

disabilities, as an example to the wider community, the provision of family services including

baby crèches, child care centres and old people’s homes, as well as play and recreational centres

in depressed areas.

7. Discuss in detail about Trade Unions Act -1926? (April/May 2013), (Nov/Dec 2015)

Trade union is a voluntary organization of workers pertaining to a particular Trade, industry or a company

and formed to promote and protect their interests and welfare by collective action. They are the most

suitable organisations for balancing and improving the relations between the employer and the

employees. They are formed not only to cater to the workers' demand, but also for inculcating in them the

sense of discipline and responsibility.

They aim is to:-

Secure fair wages for workers and improve their opportunities for promotion and training.

Safeguard security of tenure and improve their conditions of service.

Improve working and living conditions of workers.

Provide them educational, cultural and recreational facilities.

Facilitate technological advancement by broadening the understanding of the workers.

Help them in improving levels of production, productivity, discipline and high standard of living.

Promote individual and collective welfare and thus correlate the workers' interests with that of

their industry.



In India, the first organised trade union was formed in 1918 and since then they have spread in almost all

the industrial centres of the country. The legislation regulating these trade unions is the Indian Trade

Unions Act, 1926.

The Act deals with the registration of trade unions, their rights, their liabilities and responsibilities as

well as ensures that their funds are utilised properly. It gives legal and corporate status to the registered

trade unions. It also seeks to protect them from civil or criminal prosecution so that they could carry on

their legitimate activities for the benefit of the working class.

The Act is applicable not only to the union of workers but also to the association of employers. It extends

to whole of India. Also, certain Acts, namely, the Societies Registration Act, 1860; the Co-operative

Societies Act, 1912; and the Companies Act, 1956 shall not apply to any registered trade union, and that

the registration of any such trade union under any such Act shall be void.

The Act is administered by the Ministry of Labour through its Industrial Relations Division. The Division

is concerned with improving the institutional framework for dispute settlement and amending labour laws

relating to industrial relations. It works in close co-ordination with the Central Industrial Relations

Machinery (CIRM) in an effort to ensure that the country gets a stable, dignified and efficient workforce,

free from exploitation and capable of generating higher levels of output.

The CIRM, which is an attached office of the Ministry of Labour, is also known as the Chief Labour

Commissioner (Central) [CLC(C)] Organisation. The CIRM is headed by the Chief Labour

Commissioner (Central). It has been entrusted with the task of maintaining industrial relations,

enforcement of labour laws and verification of TRADE union membership in central sphere. It ensures

harmonious industrial relations through:-

Monitoring of industrial relations in Central Sphere;

Intervention, mediation and conciliation in industrial disputes in order to bring about settlement of

disputes;

Intervention in situations of threatened strikes and lockouts with a view to avert the strikes and

lockouts;

Implementation of settlements and awards.



Central Trade Union Organizations in India:

All India Trade Union Congress (AITUC)

Bharatiya Mazdoor Sangh (BMS)

Centre of Indian Trade Unions (CITU)

Hind Mazdoor Kisan Panchayat (HMKP)

Hind Mazdoor Sabha (HMS)

Indian Federation of Free Trade Unions (IFFTU)

Indian National Trade Union Congress (INTUC)

National Front of Indian Trade Unions (NFITU)

National Labor Organization (NLO)

Trade Unions Co-ordination Centre (TUCC)

National Mazdoor Union (NMU)

8. Explain briefly about registering a trade union?(April/May 2014) (Nov/Dec 2015)

Appointment of Registrars.

The government will appoint a person to be a Registrar.

The government will appoint required number of person as the Addition and deputy Registrar of

the Trade Unions. These office will be under the Registrar of the Trade Union

Minimum Requirement of Registration of Trade Union (2001 amendment)

Applicants seeking registration to show that at least 10% or 100 workmen, whichever is less,

engaged in relevant industry members of such trade union on the date of making application. If a trade

union fails to attract at least 10% workmen engaged in the establishment is has no right to get registered.

However, it has been made clear on the date of making application for registration at least 7 persons as its

members must be workmen engaged actually in that industry with which the trade union is connected. It

appears that the strength of the workmen in that industry or establishment must be 70 at least to enable

them to form a trade union and get it registered under the Act, the reason being that 10% of 70 would be 7

which would fulfill the requirement.



Application for Registration.

Application for registering the Trade Union should contain the following.

a) Name of the 7 persons in Trade Union.

b) Occupation of the persons.

c) Address of the persons.

d) Place of the work of the persons.

e) Name of the Trade Union.

f) Address of the Trade Union head Office.

If Trade Union has already been existing for one year, for its registration the members should submit all

the details of the Trade Union going to be registered by the Registrar of Trade Union.

Provisions to be contained in the rules of a Trade Union (2001 amendment)

For registration of the Trade Union, provision or rules mentioned below should be followed by the

member for registration of the Trade Union according to this act.

1) The name of the Trade Union.

2) The object of the Trade Union.

3) General funds of the Trade Union by its members should be properly used for Lawful purpose.

4) Maintenances of list of members in the Trade Union and their facilities to be provided.

5) Half of the members of the trade union must be the member who actually engaged in an

industry with which trade union is connected.

6) the payment of a minimum subscription by members of the Trade Union which shall not be less

than—

7) one rupee per annum for rural workers;

8) three rupees per annum for workers in other unorganized sectors; and

9) twelve rupees per annum for workers in any other case;

10) Disciplinary action against member of the Trade Union and procedures in imposition of fines

on members.

11) the manner in which the rules shall be amended, varied or rescinded;

h) the manner in which the members of the executive and the other of the Trade Union shall be

elected and removed

12) executive members and other office bearers should be elected for the period of maximum 3

years..



13) Funds of the Trade Union should be safe guarded, annual audit is necessary, and account

books should be maintained for the purpose of inspection if necessary.

14) Procedure how to wind up the Trade Union

Power to call for further particulars and to require alteration of name. [Sec 7]

If Registrar is not satisfy with information provided by the members of the Trade Union going to

be registered, Registrar is having power to call its members for submitting the additional and

required information for registering the Trade Union.

If the Name of the Trade Union is already existed or similar to other Trade Unions names,

registrar is having power to order for changing of the name.

Registration [Sec 8]

All the documents submitted with details and information is correct by the members of the Trade

Union going to be registered, the Registrar will register the Trade Union.

Certificate of Registration. [Sec 9]

The Registrar registering a Trade Union under Section 8, shall issue a certificate of registration in

the prescribed form which shall be conclusive that the Trade Union has been duly registered under

this Act.

Minimum requirement about membership of a Trade Union. [Sec 9A]

A registered Trade Union of workmen shall at all times continue to have not less than 10% or 100

of the workmen, whichever is less, subject to a minimum of seven, engaged or employed in an

establishment or industry with which it is connected, as its members.

Cancellation of registration [sec. 10] (2001 amendment)

Registrar of the Trade Union can cancel the registration of the Trade Union in following

circumstances

1. When Trade Union registration certificate has been obtained by fraud or other illegal means.

2. Disobey the rules and regulation of Trade Union act.

3. All the provision contained in section 6 of this act not followed by the members of the Trade

Union.

4. When there are no minimum required numbers of members in the Trade Union.



Appeal [Sec 11]

If Registrar of the Trade Union stops registration of the Trade Union or withdrawal of the

registration, members can appeal to Labour Court or an Industrial Tribunal, with in jurisdiction.

Court can Court may dismiss the appeal, or pass an order directing the Registrar to register the

Union and to issue a certificate of registration under the provisions of Section 9 or setting aside

the order for withdrawal.

[Sec 13] Features of Registered Trade Union.

Registered Trade Union will have perpetual succession (will no stop after the death of the

members of the Trade Union.

Every registered Trade Union will have common seal.

Every registered Trade Union can acquire and hold both movable and immovable property.

Every registered Trade Union can sue others.

Every registered Trade Union can sour by others also.

9. What are the measures to improve Industrial Relation? (April/May 2014)

The following measures should be taken to achieve good industrial relations:

Strong and Stable Union:

A strong and stable union in each industrial enterprise is essential for good industrial relations. The

Employers can easily ignore a weak union on the plea that it hardly represents the workers. The

agreement with such a union will hardly be honoured by a large section of workforce. Therefore, there

must be strong and stable unions in every enterprise to represent the majority of workers and negotiate

with the management about the terms and conditions of service.

Mutual Trust:

Both management and labour should help in the development of an atmosphere of mutual cooperation,

confidence and respect. Management should adopt a progressive outlook and should recognize the rights

of workers. Similarly, labour unions should persuade their members to work for the common objectives

of the organization. Both the management and the unions should have faith in collective bargaining and

other peaceful methods of settling disputes.



Workers’ Participation in Management:

The participation of workers in the management of the industrial unit should be encouraged by making

effective use of works committees, joint consultation and other methods. This will improve

communication between managers and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation:

The employers must recognize the right of collective bargaining of the trade unions. In any organization,

there must be a great emphasis on mutual accommodation rather than conflict or uncompromising

attitude. One must clearly understand that conflicting attitude does not lead to amicable labour relations;

it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of

mutual “give and take rather than “take or leave.” The management should be willing to co-operate rather

than blackmail the workers.

Sincere Implementation of Agreements:

The management should sincerely implement the settlements reached with the trade unions. The

agreements between the management and the unions should be enforced both in letter and spirit. If the

agreements are not implemented then both the union and management stop trusting each other. An

environment of uncertainty is created. To avoid this, efforts should be made at both ends to ensure the

follow up of the agreements.

Government’s Role:

The Government should play an active role for promoting industrial peace. It should make law for the

compulsory recognition of a representative union in each industrial unit. It should intervene to settle

disputes if the management and the workers are unable to settle their disputes. This will restore industrial

harmony.

Progressive Outlook:

There should be progressive outlook of the management of each industrial enterprise. It should be

conscious of its obligations and responsibilities to the owners of the business, the employees, the



consumers and the nation. The management must recognize the rights of workers to organize unions to

protect their economic and social interests.

Part-C

1. What are the problems faced by Trade Union? (April/May 2014), (April/May 2015)

These are the following problems are faced by Trade Unions:-

Lack of Balanced Growth

Trade unions are often associated with big industrial houses. A vast majority of the working

population is without any union backing. The entire agricultural sector is highly unorganized in

India. The agricultural workers are subject to all kinds of exploitation. The same is true with

respect to those working in small scale and cottage industries. Lack of balanced growth of

TRADE unions in all sectors is one of the major weaknesses of the TRADE union movement in

India.

Low Membership

Trade unions, with the exception of few have low membership. This is because many employees

are not willing to join unions although they are ready to enjoy the benefits arising out of the union

actions. The reasons for the hesitation of employees to join unions include, among others, the need

to take pat in strikes and such other programmes, fear of pay cut and fear of punishment.

Poor financial Position

Low membership is one of the reasons for the poor financial position of the unions. Moreover, the

subscription payable by every member is kept low. Some members may not even make a prompt

payment of the small amount of subscription. These are also not very many sources from which

unions can GET FUNDS. They may probably depend on contributions from philanthropists. The

poor financial position can only weaken the TRADE union movement.



Political Control

Most popular trade unions in India are affiliated to certain political parties. These political parties

are only keen on making every grievance of the working class a political issue to attain political

gains. As a result the problem only gets wide publicity and remains unsolved.

Multiplicity of Unions

Often there exists more than one union within the same industry each backed by a political party.

These various unions have conflicting ideology. If one union comes out with a strike proposal

another union may work against it. As a result, none of the unions is actually able to solve the

problems of the workers.

Inter-Union Rivalry

The existence of many unions within a particular industry paves way for what is called inter-union

rivalry. These unions do not work together for the cause of the workers. Each union may adopt a

different approach to the problem. The inter-union rivalry may become a more serious problem of

the workers. As a result, the employees are unable to derive the benefits of collective bargaining.

Lack of able Leaders

Another barrier to the growth of TRADE unions is the lack of able leaders. Some union leaders

give a strike call even for petty problems that can easily be resolved through talks. On the other

hand, there are leaders who have secret pact with the management. They get bribes from the

government and work against the interests of the employees. Some leaders don’t convene a

meeting of the general body at all even when a crisis develops. They take unilateral decisions that

are thrust on the employees.

Lack of Recognition

Most management is not prepared to recognize TRADE unions. This happens because of any of

the following reason.

The existence of low membership that reduces the bargaining power of the union.

The existence of more unions within the same industry.



Inter-union rivalry.

The indifferent attitude of the employees themselves towards TRADE unions.

Opposition from Employers

Apart from the fact that most employers are not prepared to recognize TRADE unions, they also do

not let their employees from a union. This the employers are able to achieve by adopting certain

punitive measures like intimidating employees victimizing union leaders, initiating disciplinary action

against employees indulging in union activities and so on.

Some employers also start rival unions with the support of certain employees. Sometimes, they may

go to the extent of bribing union leaders to avert a strike or such similar show of protest by

employees. The employers fail to understand that the union enables the employees to express their

grievances in a democratic manner and can also be used as a means of promoting better labour

management relationships.

Indifferent Attitude of the Members

Union leaders alone cannot be blamed for the weakness of the trade union movement. The indifferent

attitude of the members of certain unions is also a barrier. Some members do not even make a prompt

payment of the subscription amount.

The treasurer of the union has to go behind them, remind and persuade them to pay the subscription

that is often a very small amount. There are not on the other hand, members who do not attend the

general body meetings nor do they bother to know what is discussed in such meetings. There are still

others who do not take part at all in any of the programmes of the union organized to press the

demands of the employees like slogan shouting procession, demonstration, hunger strike etc.

Members generally expect the office-bearers to do all that is necessary to achieve the demands.

2. List out the causes of poor Industrial Relations? (April/May 2014) (Nov/Dec 2015)

The main causes of industrial disputes are:

(i) Wages:



Low wages of industrial workers constitute a major cause of industrial disputes in the country. Wages

have not been rising in proportion to the rise in prices. This has forced the labourers to demand higher

wages, consequently leading to disputes.

(ii) Bonus:

The demand for bonus or increase in bonus has been the second major cause of industrial disputes. The

workers feel that they should have a greater share in the profits of the industrial concern. Non-acceptance

of this fact by the employers has been a source of friction among the employers and the workers.

(iii) Working Conditions:

The demand for improvement in working conditions such as lesser working hours, security of job, better

safety measures in the factory, leave, canteen, gratuity facilities, etc., are also responsible for many

industrial disputes.

(iv) Other Causes:

Among other causes that lead to disputes are failure of employers to recognise trade unions, conflict

between rival unions for representation, insult to trade union leadership by the employer, introduction of

rationalisation in the factory, the fear of retrenchment of workers, sympathetic strikes with fellow

employees in other establishments, general discontent and sense of frustration among labourers, political

issues etc.

Personnel and retrenchment: The personnel and retrenchment have also been an important factor

which accounted for disputes. During the year 2002, disputes caused by personnel were 14.1%

while those caused by retrenchment and layoffs were 2.2% and 0.4% respectively. In 2003, a

similar trend could be seen, wherein 11.2% of the disputes were caused by personnel, while 2.4%

and 0.6% of disputes were caused by retrenchment and layoffs. In year 2005, only 9.6% of the

disputes were caused by personnel, and only 0.4% were caused by retrenchment.

Indiscipline and violence: From the given table, it is evident that the number of disputes caused by

indiscipline has shown an increasing trend. In 2002, 29.9% of disputes were caused because of

indiscipline, which rose up to 36.9% in 2003. Similarly in 2004 and 2005, 40.4% and 41.6% of

disputes were caused due to indiscipline respectively. During the year 2003, indiscipline

accounted for the highest percentage (36.9%) of the total time-loss of all disputes, followed by



cause-groups wage and allowance and personnel with 20.4% and11.2% respectively. A similar

trend was observed in 2004 where indiscipline accounted for 40.4% of disputes.

Bonus: Bonus has always been an important factor in industrial disputes. 6.7% of the disputes

were because of bonus in 2002 and 2003 as compared to 3.5% and 3.6% in 2004 and 2005

respectively.

Leave and working hours: Leaves and working hours have not been so important causes of

industrial disputes. During 2002, 0.5% of the disputes were because of leave and hours of work

while this percentage increased to 1% in 2003. During 2004, only 0.4% of the disputes were

because of leaves and working hours.

3. Discuss in detail about the settlement of Industrial Disputes. (April/May -2015)

Whatever may be the cause of industrial disputes, the consequences are harmful to all stakeholders’

management, employees, economy, and the society. For management, disputes result in loss of

production, revenue, profit and even sickness of the plant.

A dispute, therefore, needs to be settled as early as possible.

Various methods are available for resolving disputes are as follows

Collective bargaining

Code of discipline

Grievance procedure

Arbitration.

Conciliation

Adjudication

Collective bargaining:

It is probably the most effective method of resolving industrial disputes.

The bargaining is collective in the sense that the chosen representative of the employees

acts as a bargaining agent for all the employees in carrying out negotiations and dealings

with management. On the employer side, it is also collective in those common situations in



which the companies have joined together in an employer association for purposes of

bargaining with a union.

Code of Discipline:

The code of discipline defines duties and responsibilities of employers and

workers. The objectives of the code are:

1. To ensure that employers and employees recognise each other’s rights and obligations;

2. To promote constructive co-operation between the parties concerned at all levels;

3. To secure settlement of disputes and grievances by negotiation, conciliation, and

voluntary arbitration;

4. To avoid work stoppages;

5. To facilitate the free growth of Trade union and

6. To maintain discipline in industry.

Grievance procedure:

It is another method of resolving disputes. All labour agreements contain

some form of grievance procedure. And if the procedure is followed strictly, any dispute

can easily be resolved.

In meanwhile, a grievance may be understood as an employee’s

dissatisfaction or feeling of personal injustice relating to his or her employment

relationship. A grievance is generally well-defined in a collective-bargaining agreement.

It is usually restricted to violation of terms and conditions of employment. Other

conditions which may give rise to a grievance are:

A violation of law

A violation of the intent of the parties as stipulated during contract

Negotiations.

A violation of company rules.



A violation of health and safety standards.

When an employee believes that the labour agreement has been violated, he or she

files a grievance. The grievance needs to be resolved according to a set procedure.

Grievance procedure generally establish the following

How the grievance will be initiated?

The number of steps in the process.

Who will represent each party?

The specified number of working days within which the grievance must be

taken to the next step in the hearing.

Arbitration

It is a procedure in which a neutral third party studies the bargaining situation,

listens to both the parties and gathers information, and then makes

recommendations that are binding on the parties. Arbitration is effective as a

means of resolving disputes because it is:

Established by the parties themselves and the decision is acceptable to

them, and

Relatively expeditious when compared to courts or tribunals. Delays are cut

down and settlements are speeded up.

Conciliation

Conciliation is a process by which representative of workers and employers are

bought together before a third party with a view to persuading them to arrive at an

agreement by mutual discussion between them. The third party may be one individual or a

group of people. The alternative name for third party is mediators.

Adjudication



Adjudication means a mandatory settlement of an industrial dispute by a

labour court or a tribunal. Generally, the government refers a dispute for adjudication

depending on the failure of conciliation proceedings.

Disputes are generally referred to adjudication on the recommendation of the

conciliation officer who had dealt with them earlier. However, the government has

discretionary powers to accept or reject recommendations of the conciliation officer. It is

obvious that once a dispute is referred for adjudication, the verdict of a labour court or

tribunal is binding on both the parties.

ACADEMIC YEAR: 2016-2017 REGULATION 2012

RAAK/BBA/Dr.Kamaludeen.P/III YEAR/VI Sem/SBA61/IRLL/UNIT-2 Ans/VER 2.0Unit – 2 Answers Page 1 of 14

SBA 61 – INDUSTRIAL RELATION AND LABOUR LAWS (IRLL)

Unit-II– (Participative Management)

Type: 100% Theory

Question Bank

Syllabus: [Regulation: 2012]Unit- II- Participative Management - Structure - Scope - Collective Bargaining -Works Committee - Joint Management Councils - Pre-Requisite for successfulparticipation - Role of Government in Collective Bargaining.

PART – A QUESTION

1. Mention any two importance of Collective Bargaining? (April/May 2014)(April/May 2015)

Collective bargaining develops a sense of self respect and responsibility amongthe employees.

It increases the strength of the workforce, thereby, increasing their bargainingcapacity as a group.

Collective bargaining increases the morale and productivity of employees.

2. State the role of Works Committee? (April/May 2014)

Works committees in every establishment employing hundred or more workers.The work committee consists of equal numbers of workers and employer. The employer’srepresentatives are nominated by the employer and should be those who are connectedwith the firm and have day-to-day contact with workers. The workers representatives areelected from among the workmen engaged in the firm in consultation with the union.

3. What is Participate Management? (April/May 2014), (April/May 2015)

It is a type of management in which employees at all levels are encouragedto contribute ideas towards identifying and setting organizational-goals, problem solving,and other decisions that may directly affect them. It is also called as consultativemanagement

4. List out any two objectives of participative management? (April/May 2015)

To Make Best Use of Human Capital

To Meet the Psychological Needs of Employees



To Retain the Best Talent To Increase Industrial Productivity

5. What do you mean by collective bargaining? (April/May 2015)

Collective bargaining consists of the process of negotiation betweenrepresentatives of a union and employers in respect of the terms and conditions ofemployment of employees, such as wages, hours of work, working conditions, grievance-procedures, and about the rights and responsibilities of trade unions.

6. List out any two importance of collective bargaining? (April/May 2014),(Nov/Dec2014)

Collective bargaining develops a sense of self respect and responsibilityamong the employees.

It increases the strength of the workforce, thereby, increasing their bargainingcapacity as a group.

7. What are the functions of Collective Bargaining? (April/May 2013), (Nov/Dec 2014)

Economic strength: Increase the economic strength of employees andmanagement

Uniformity: Establish uniform conditions of employment

Fair Redressal: Secure a prompt and fair redressal of grievances.

Norms: Lay down fair rates of wages and other norms of working conditions

8. What is Joint management council? (April/May 2013), (Nov/Dec 2015)

JMC consist of equal number of representatives of employers and workers. Thecouncils discuss various matters concerning the working of the company. The decision ofthat council is advisory in nature. The management however considers these decisionssympathetically and implement them although it is not mandatory.

9. What are the essential conditions for Collective Bargaining? (Nov/Dec 2014),(Nov/Dec 2015)

Two parties of collective bargaining accept the principle of free consultationand free enterprise consistent with the advancement of public interest.

Both the parties must have mutual confidence, good faith and a desire to makecollective bargaining machinery a success.



10. What do you mean by employee empowerment? (April/May 2013), (Nov/Dec 2014)

Employee empowerment is a term that many managers and organizations thinkthey understand, but few actually do, and even fewer really put into practice. Manymanagers feel that by empowering employees, they relinquish the responsibility to leadand control the organization

11. List out the elements in employee empowerment? (April/May 2014), (Nov/Dec 2015)

Control over work situation

Self-sufficiency or competence Purposefulness

Belief system and trust

12. List out any two causes of Industrial Relations? (April/May 2013), (Nov/Dec 2014)

Employees find it extremely difficult to get leave with pay.

Employees are becoming more and more conscious about self-respect.Tempers flare when they are insulted or instigated by their superiors.

13. List out the consequences in Industrial disputes? (April/May 2014), (Nov/Dec 2015)

1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved inlabourers and senior management.

2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss.

3. Industrial losses may cause economic depression because many industries are interlinked.A problem in one industry may drastically affect another industry.

PART- B QUESTIONS

1. Illustrate the role of government in Collective Bargaining? (April/May2015)

The government may influence collective bargaining and employment conditionsin ways which differ

Greatly among countries. Some of the roles can be listed as under:

It may determine employment conditions by law, for example, through setting theminimum wages, legislating the length of holiday or preventing ethnicdiscrimination.

It may provide some benefits directly, for example, pensions.



It may set the ground rules which govern the parties; conduct to take an example,through giving unions the right to bargain, restricting the conditions under whichstrikes may occur or determining the scope of bargaining.

It may settle disputes which the parties are unable to settle themselves oftenthrough mediation or arbitration. In Australia, conciliation and arbitration playmajor roles in determining the conditions of employment.

Through its macro-economic and social policies, it affects the terms of bargainingagreements.

The government is a major employer itself and often bargains with unionsrepresenting its employees, frequently setting a pattern for the entire economy. Infact, union density is higher in the public sector, rather than in the private sector inmost countries today.

Furthermore, as the presumed representative of the public interest, the governmentis interested in industrial peace, price stability, increased productivity and non-discriminatory employment patterns. To achieve these objectives, it can pressurethe parties (often through legislation).One the other hand, the parties too canpressurize the government (often through political action).

2. What are the prerequisites of successful participation? (Nov/Dec 2013), (Nov/Dec2014)

Important Prerequisites for a Successful Collective Bargaining are listed below:

The parties must attain a sufficient degree of organisation. If the workers’organisation is weak, employers can say that it does not represent the workers andwill refuse to negotiate with it. Unless the workers are able to form strong andstable unions, collective bargaining will not be successful.

Freedom of association is essential for collective bargaining. Where there is nofreedom of association, there can be no collective bargaining. Freedom ofassociation implies that the workers as well as the employers will have the right toform an organisation of their own to protect their interests.

There should be mutual recognition between both the groups. Collectivebargaining cannot begin if the employers do not recognise the workers’organisation. The conflict of interests makes the two groups hostile to each other.They must recognise each other and realise that adjustment and understanding isessential for the achievement of organisational goals.

There must exist a favourable political climate, essential for successful collectivebargaining. If the government encourages collective bargaining as the best method



of regulating conditions of employment, it will be successful. Where thegovernments restrict trade union activities, there can be no collective bargaining.

Agreement must be observed by those to whom they apply. The workers’organisation must be strong enough to exercise its authority over its members. Ifthe trade union has no power over its members, collective bargaining will not beeffectively implemented. A give and take policy must prevail in the organisation.

Their attitudes should be flexible and both sides should be ready to give up someof its demands. Unions should not rigidly insist upon unreasonable demands andshould be ready to reduce its demands to come to an agreement.

3. What are the various scopes available in Participative Management? (Nov/Dec 2015)

Ethical Dimensions: Participatory management has ethical dimensions and basedon morals, principles and values. In this form of management, everyone is treatedequally when it comes to organizational decision making. It is based on employeeempowerment, responsibility sharing and delegation of authority.

Proper Channel of Communication: Participative form of managementencourages two-way communication. It is not only management that decides whatemployees need to do but it also encourages employees to participate in decisionmaking and give ideas and suggestions to make organizational processes betterand more efficient. They are allowed to share their problems, views, ideas andfeedback with their managers.

Empowers Employees: Participative style of management gives employees achance to participate in management processes. They are encouraged to come upwith their views. Gone are the days when employees were bossed around by theirmanagers.

Recognition of Human Dignity: In this form of management, all employees aretreated equally irrespective of their designations when it comes to giving ideas andsuggestions for organizational decision making process. Employees are no morethe servants of managers but are the most important assets of an organization.

Psychological Satisfaction to Employees: Most of our lives are spent atworkplace. It is important for everyone to have psychological satisfaction as far asour employment is concerned. Commitment from the organization, respecting thedignity of individuals and co-determining the company policies are some of thefeatures of participative management that provide psychological satisfaction toemployees.



4. Explain the benefits in Participative Management? (April/May 2013), (April/May2014)

Benefits of participative management as follows:

Innovation and increased efficiency:

The problem solving process and openness to new ideas can result in innovation.Apart from this as mentioned above there is also knowledge sharing amongst theworkers and the managers. This means that those who are part of a certain process at theground level give inputs for improved efficiency of the same. This has dual implications,helping improve the quality of product and curtailing the cost of manufacture.

Timeliness:

There is improved communication between the managers and the workers andbetween workers across different units. A loophole or flaw is reported in time.

Employee satisfaction and Motivation:

Empowering the employees increases their ownership or stake in their work. Thisincreases efficiency and productivity. Consequently there is decreased absenteeism andless employee turnover. This also works in attracting more people towards theorganization and the job.

Less supervision requirements:

There is greater focus on management of self with due emphasis of wideningone’s skill set. One of the major benefits of this is that there is a lesser need ofsupervision and support staff.

Better grievance redressal:

Increased communication paves way for reduced number of grievances and quickand effective resolution of dispute (often on the spot). Union - management relationship isalso benefited and strengthened.

Hiring Flexibility:

Hiring flexibility is increased as a result of cross training. Increased coordinationamong team members also offers a comfort zone for the newly hired.

Participative management thus results in overall increase of the ownership ofwork of an employee. This empowerment can lead to increased efficiency, betterproductivity, improved morale and job satisfaction. But the fact the participativemanagement requires an overall change in the organizational culture, the implementation



of the same, especially when there is a bureaucratic style of decision making in place, canbe a major challenge!

5. State the features of worker’s participation in management? (April/May 2015)

Participation implies mental and emotional involvement rather than muscularactivity.

It motivates the employees to contribute their maximum and provides anopportunity to workers to direct their initiative and creativity towards theobjectives of the group.

It encourages people to accept responsibility for an activity as they feel selfinvolved in the group.

It increase the scope of employee’s share of influence in the decision makingprocess

The is a effective distinction between the worker’s participation and collectivebargaining in the sense that while the worker’s participation is based on mutualtrust, mutual problem solving and hearing and sharing where as collectivebargaining is based on power-play negotiations and tactics.

It leads to promote mutual understanding between the management and workersleading to industrial harmony.

It leads to creation of sense of commitment to the decisions among workers asthey happened to be a party to the process of decision making

Thus, we can conclude that participation provides an opportunity to every memberof the organization to contribute his brain and ingenuity as well as his physicalefforts for the improvement of organizational effectiveness and at the same timeenhancing his own economic welfare. It also develops in them a sense oforganizational loyalty and involvement.

6. State the objectives of collective bargaining? (April/May 2014), (April/May 2015)

The basic objective of collective bargaining is to arrive at an agreement betweenthe management and the employees determining mutually beneficial terms and conditionsof employment.

This major objective of collective bargaining can be divided into the followingsub-objectives:

To facilitate reaching a solution that is acceptable to all the parties involves.



To provide an opportunity to the workers, to voice their problems on issuesrelated to employment.

To resolve all conflicts and disputes in a mutually agreeable manner.

To enhance the productivity of the organization by preventing strikes lock –out etc.

To develop a conducive atmosphere to foster good organizations relations.

To provide stable and peaceful organization (hospital) relations.

To prevent any conflict/disputes in the future through mutually signedcontracts.

7. State the functions of Joint management councils? (April/May 2013), (Nov/Dec 2014)

Joint Management Council: It involves setting up of joint committees represented bythe workers and the management to discuss and give suggestions for improvement withregard to matters of mutual interest.

The Joint Management Council exchanges information on:

General economic situation of the undertaking.

State of the market, productions and sales.

Organization and general position of the undertaking.

Circumstances affecting the economic position of the undertaking.

Manufacturing methods and techniques.

Annual balance sheet, profit and loss statement, and related documents.

Long-term development and expansion plans.

Other related matters.

The Joint Management Council also acts as an administration:

Administers welfare measures.

Supervision of safety measures.

Operation of vocational and apprenticeship schemes.

Prepare work schedules and vacation timings.



Reward employees for their valuable input.

Other related matters.

Miscellaneous:

All other matters related to wages, bonus, employment, promotion, grievances,etc. and matters related to collective bargaining are not under the power of the JointManagement Council.

8. What deductions are allowed from the wages of a worker? (April/May 2014),(Nov/Dec 2015)

Fines

Deductions for absence from duty.

Deductions for damage to or loss of goods made by the employee due to hisnegligence.

Deductions for recovery of loans made from welfare labour fund.

Deductions for recovery of loans granted for house-building or otherpurposes.

Deductions of income-tax payable by the employed person.

Deductions by order of a court.

Deduction for payment of provident fund.

Deductions for payments to co-operative societies approved by the StateGovernment.

Deductions for payments to a scheme of insurance maintained by the IndianPost Office.

Deductions made if any payment of any premium on his life insurance policyto the Life

Insurance Corporation with the acceptance of employee.

Deductions for contributions to any insurance scheme framed by the CentralGovernment.



PART-C

1. Discuss in detail about the pre-requisite for successful participation?(April/May2013), (April/May 2014), (Nov/Dec 2015)

Freedom of Jobs: The employee should be able to do his jobs in his own way. Or hemust have the provision to give suggestion to do the job easiest way. Because who doa job only he knows how the job can make swift and easier.

Top Management Support: The top management will support to the participant.They will consider the opinion seriously. They will then discuss on it with expert.After success on the pilot project, the opinion holder should be rewarded.

Responsibility: The employee also should have the responsibility of doing somethingfor the organization. The organization management should have the responsibility todevelop participation manner among the employee. Thus the participation will befruitful.

Policy Support: The organization should have policy to encourage the participation.There will be god rewarding system for the successful participation. The employeeshould be rewarded also. This will bring the participation manner in the mind ofemployee.

Culture: Developing the culture of participation in the organization is the best way tofind the desire success. The management as well as employee will be habituated withthe participation. The participant will have to be responsibility about their jobs as wellas organization.

Adequate time: There will be needed adequate time to participate. It does to occursuddenly. Sudden participation does not bring any fruit. Because there is time neededto think something about something. So proper time should be facility of proper time.

Cost versus Benefit: Every participation takes some cost. Management should incursome expenditure for any type of participation. The Benefit through this participationmust have to be fruitful. That means the overall return should have to be increased bythis participation.

Employee Interest: The interest to participate in any type of decision making processshould be encouraged. For this the opinion of participant should give importance. Ifthe participant thinks that his/her opinion is not important, it’s just a formality thenthey will lose the interest of participation.

Employee ability: For make participation there should be needed the ability toparticipate. The physiological, physical etc. should be sound. The disability tothinking something should not be participating. The employees should have the abilityto discuss something.



Threat: The employee should feel secure after participate. In meeting employeeshould not be feel uneasy or embarrassed. There should be sufficient provision for theparticipation with Safety.

2. Describe the role of government in collective bargaining? (April/May 2014),(Nov/Dec 2015)

The government may influence collective bargaining and employment conditionsin ways which differ greatly among countries. Some of the roles can be listed as under:

It may determine employment conditions by law, for example, through setting theminimum wages, legislating the length of holiday or preventing ethnicdiscrimination.

It may provide some benefits directly, for example, pensions.

It may set the ground rules which govern the parties; conduct to take an example,through giving unions the right to bargain, restricting the conditions under whichstrikes may occur or determining the scope of bargaining.

It may settle disputes which the parties are unable to settle themselves oftenthrough mediation or arbitration. In Australia, conciliation and arbitration playmajor roles in determining the conditions of employment.

Through its macro-economic and social policies, it affects the terms of bargainingagreements.

The government is a major employer itself and often bargains with unionsrepresenting its employees, frequently setting a pattern for the entire economy. Infact, union density is higher in the public sector, rather than in the private sector inmost countries today.

3. Explain the process of collective bargaining? (April/May 2014), (April/May 2015)

The collective bargaining process comprises of five core steps:

Prepare:

This phase involves composition of a negotiation team. The negotiation teamshould consist of representatives of both the parties with adequate knowledge and skillsfor negotiation. In this phase both the employer’s representatives and the union examinetheir own situation in order to develop the issues that they believe will be most important.The first thing to be done is to determine whether there is actually any reason to negotiateat all. A correct understanding of the main issues to be covered and intimate knowledgeof operations, working conditions, production norms and other relevant conditions isrequired.



Discuss:

Here, the parties decide the ground rules that will guide the negotiations. Aprocess well begun is half done and this is no less true in case of collective bargaining.An environment of mutual trust and understanding is also created so that the collectivebargaining agreement would be reached.

Propose:

This phase involves the initial opening statements and the possible options thatexist to resolve them. In a word, this phase could be described as ‘brainstorming’. Theexchange of messages takes place and opinion of both the parties is sought.

Bargain:

Negotiations are easy if a problem solving attitude is adopted. This stagecomprises the time when ‘what ifs’ and ‘supposes are set forth and the drafting ofagreements take place.

Settlement:

Once the parties are through with the bargaining process, a consensual agreementis reached upon wherein both the parties agree to a common decision regarding theproblem or the issue. This stage is described as consisting of effective jointimplementation of the agreement through shared visions, strategic planning andnegotiated change.

4. What are the advantages & disadvantages in worker’s participation? (April/May2013), (April/May 2014), (Nov/Dec 2015)

Advantages of worker’s participation

Undoubtedly participative approach to management increases the stake orownership of employees. But there is more to it. The following points elucidatethe same.

Increase in Productivity: An increased say in decision making means that thereis a strong feeling of association now. Working hours may get stretched on theirown without any compulsion or force from the management. All this leads toincreased productivity.

Job Satisfaction: In lots or organizations that employ participative management,most of the employees are satisfied with their jobs and the level of satisfaction idvery high. This is especially when people see their suggestions andrecommendations being implemented or put to practice..



Motivation: Increased productivity and job satisfaction cannot exist unless thereis a high level of motivation in the employee. The vice versa also holds true!Decentralized decision making means that everyone has a say and everyone isimportant.

Improved Quality: Since the inputs or feedback comes from people who are partof the processes at the lowest or execution level. This means that even theminutest details are taken care of and reported. No flaw or loophole goesunreported. Quality control is thus begins and is ensured at the lowest level.

Reduced Costs: There is a lesser need of supervision and more emphasis is laidon widening of skills, self management. This and quality control means that thecosts are controlled automatically.

Disadvantages of worker’s participation

There is a flip side to everything; participative management stands no exception toit. Whereas this style of leadership or decision making leads to better participationof all the employees, there are undoubtedly some disadvantages too.

Decision making slows down: Participative management stands for increasedparticipation and when there are many people involved in decision making, theprocess definitely slows down. Inputs and feedback starts pouring from each side.It takes time to verify the accuracy of measurements which means that decisionmaking will be slowed down.

Security Issue: The security issue in participative management also arises fromthe fact that since early stages too many people are known to lots of facts andinformation. This information may transform into critical information in the laterstages. There is thus a greater apprehension of information being leaked out.

5. Discuss in detail about the pre-requisite for collective bargaining? (April/May2013),(April/May 2014),(Nov/Dec 2015)

Important Prerequisites for a Successful Collective Bargaining are listed below:

The parties must attain a sufficient degree of organisation. If the workers’organisation is weak, employers can say that it does not represent the workers andwill refuse to negotiate with it. Unless the workers are able to form strong andstable unions, collective bargaining will not be successful.

Freedom of association is essential for collective bargaining. Where there is nofreedom of association, there can be no collective bargaining. Freedom ofassociation implies that the workers as well as the employers will have the right toform an organization of their own to protect their interests.



There should be mutual recognition between both the groups. Collectivebargaining cannot begin if the employers do not recognize the workers’organization. The conflict of interests makes the two groups hostile to each other.They must recognize each other and realize that adjustment and understanding isessential for the achievement of organizational goals.

There must exist a favorable political climate, essential for successful collectivebargaining. If the government encourages collective bargaining as the best methodof regulating conditions of employment, it will be successful. Where thegovernments restrict trade union activities, there can be no collective bargaining.

Agreement must be observed by those to whom they apply. The workers’organization must be strong enough to exercise its authority over its members. Ifthe trade union has no power over its members, collective bargaining will not beeffectively implemented.

A give and take policy must prevail in the organization. The difference betweentwo parties can be adjusted only by compromise so that an agreement can bereached. Neither side should be too rigid on its demand.

Their attitudes should be flexible and both sides should be ready to give up someof its demands. Unions should not rigidly insist upon unreasonable demands andshould be ready to reduce its demands to come to an agreement. Sometimes unfairlabour practices are resorted to by both the employers and the trade unions.

ACADEMIC YEAR: 2016 – 2017 REGULATION CBCS - 2012

RAAK/BBA/Dr.Kamaludeen.P/III YEAR/VI Sem/UBA62/IRLL/UNIT-3 Answers/VER1.0Unit – 1 Answers Page 1 of 11

(SBA 61) – (Industrial relation and labour laws)Unit-3 – (Industrial Unrest)

Type: 100% TheoryQuestion & Answers

PART – A ANSWERS

1. What is Lockout? (April 2013) (Apr/May2015)A lockout is a temporary work stoppage or denial of employment initiated by the managementof a company during a labour dispute. This is different from a strike, in which employees refuseto work.

2. Define ‘grievance’. (April/May 2014) (Nov/Dec2015)A grievance is a complaint filed by an employee who may be resolved by procedures providedfor in a collective agreement or by mechanisms established by an employer. Such a grievancemay arise from a violation of the collective bargaining agreement or violations of the law, suchas workplace safety regulations..

3. Give the meaning of Industrial Unrest. (April/May 2014)Industrial unrest is an dissatisfaction displayed by workers, often in the form of strikes, and

Sometimes violent disputes, etc, which disrupts normal business routine.

4. What are the reasons for Employee Dissatisfaction? (April/May 2013) (Nov/Dec2014) One of the primary reasons for job dissatisfaction results from companies underpaying

workers. A lack of career growth and advancement is another reason why workers are dissatisfied at

their jobs. Lack of interest in the work is another reason why employees are unhappy

5. Define ‘Strike’. (Apr/May2015) (April/May 2016)A work stoppage undertaken in support of a bargaining position or in protest of some

aspect of a previous agreement or proposed agreement between labor and management.

6. What do you mean by domestic inquiry? (Nov/Dec2013) (Nov/Dec2014)It is a search for truth, facts, or circumstances concerning charges alleged by the employeragainst its employee. It is an inquiry held by the management against its own employee againstwhom certain acts of misconduct are alleged.

7. What do you mean by discipline? (April/May 2014) (Nov/Dec2015)Discipline refers to a condition or attitude, prevailing among the employees, with respect torules and regulations of an organization. Discipline in the broadest sense means “..orderliness,the opposite of confusion.



8. List out the Objectives of Discipline. (Nov/Dec2013) (Nov/Dec2014) To develop among the employees a spirit of tolerance and a desire to make adjustments. To give and seek direction and responsibility. To create an atmosphere of respect for the human personality and human realtions

9. Give the meaning of Labour. (April/May 2014) (Nov/Dec2015)labour is one of the three factors of production, along with capital and land. Labour can also beused to describe work performed, including any valuable service rendered by a human agent inthe production of wealth, other than accumulating and providing capital.

10. Define underpaid. (April/May 2014) (Nov/Dec2015)The act of making smaller payments than originally agreed when paying back a loan or salaryfor the employees.

11. What do you mean by Unfair Labour Practices? (April/May 2014) (Nov/Dec2015)An unfair labor practice is a violation of specific provisions of the laws administered by theNational Labor Relations Board (NLRB), and state laws, which vary by state that may becommitted by either the employer or the union.

12. What do you mean by skilled labour? (Nov/Dec2014) (April/May 2015)Skilled labor is the specialized part of the labor force with advanced education. Examples of

skilled labor include physicians, plumbers, attorneys, engineers, scientists, builders, architectsand professors.

13. Give the meaning of unskilled labour. (Nov/Dec2014) (April/May 2015)A segment of the work force associated with a low skill level or a limited economic value forthe work performed (human capital). Unskilled labor is generally characterized by loweducation levels and small wages.

14. What do you mean by Employee Morale? (April/May 2014) (Nov/Dec2015)It is a description of the emotions, attitude, satisfaction, and overall outlook of employees

during their time in a workplace environment.

15. Define ‘workgroup’. (Nov/Dec2016) (Nov/Dec2015)A workgroup is a collection of individuals working together on a task. Workgroup computingoccurs when all the individuals have computers connected to a network that allows them tosend e-mail to one another, share data files, and schedule meetings.



PART – B ANSWERS

1. List out the causes of Grievances. (April/May 2014) (Nov/Dec2015)Grievances generally arise from the day-do-day working relations in the undertaking, usually aemployee or trade union protest against an act or omission or management that is considered toviolate worker’s rights. There are certainly some of the causes that can lead to grievance. Someof them are listed below:

Morality: There are some rights which must be provided by the company. Which showsMorality for the company:

It gives an opportunity to the workers to express their feelings. The management comes to know that what the workers think. It highlights the morale of the people. There may be some complaints, which cannot be solved at supervisory level. They must have been resolved by a systematic grievance handling procedure. It improves the policies and practices of the company.

Working environment: an fulfill environment work place for them and to create aManageable work place, company has to be persuading, and some effective steps are:

Poor working conditions Faulty machines and equipments Attitude of supervisor Behavior of top management Favoritism and nepotism

Economic manners: it’s an effective motivator for the staffs almost all staffs getMotivated for good amount of wages and other relative facilities and some factors areGiven below:

Wage fixation and revision Payment of overtime Inadequate bonus Demand for welfare and equipments Incentive Allowances Increments

Supervision: Some staffs likes to take responsibilities in different situation, specially,Project management, promotion, and other exiting activities, its attributed by the interestOf the individual staffs, and supervisory is also can be a motivator.

Work group: Many employees are unable to adjust with colleagueso Suffer from feeling of neglecto Victimization an object of ridicule and humiliation.



Maladjustment of the Employee:o Improper attitudes towards worko Lack of interest

2. Explain the need for a Grievance Procedure.(Nov/Dec2013)(Nov/Dec2014)Grievance procedure is necessary for any organizations due to the following reasons: Most grievances seriously disturb the employees. This may affect their morale,productivity and their willingness to cooperate with the organization. If an explosive situationdevelops, this can be promptly attended to if a grievance handling procedure is already inexistence.

It is not possible that all the complaints of the employees would be settled by first –timesupervisors, for the supervisors may not have had a proper training for the purpose, and theymay lack authority. Moreover, there may be personality conflicts and other causes as well.

It serves as a check on the arbitrary actions of the management because supervisors knowthat employees are likely to see to it that their protest does reach the highest management

It serves as an outlet for employee gripes, discount and frustrations. Its acts like a pressurevalve on a steam boiler. The employees are entitled to legislative, executive and judicialprotection and they get this protection from the grievance redressal procedure which also actsas a means of upward communication.

The management has complete authority to operate the business as it sees fit-subject ofcourse, to its legal and moral obligations and the contracts it has entered into with its workersor their representative trade union. But if the trade union or the employees do not like the waythe management functions, they can submit their grievance in accordance with procedure laiddown for that purpose.

3. What are the causes of Indiscipline? (April/May 2014) (Nov/Dec2015)

The reasons could range anything from poor wages to, poor management and thecommunication gaps between the union and management.The common causes of indiscipline are as follows:

Unfair Management Practices: Management sometimes indulges in unfair practices like: Wage discrimination Non-compliance with promotional policies and transfer policies Discrimination in allotment of work Defective handling of grievances Payment of low wages Delay in payment of wages Creating low quality work life etc.



These unfair management practices gradually result in indiscipline.

Absence of Effective Leadership: Absence of effective leadership results in poormanagement in the areas of direction, guidance, instructions etc. This in turn, results inindiscipline.

Communication Barriers: Communication barriers and absence of humane approach on thepart of superiors result in frustration and indiscipline among the workers. The managementshould clearly formulate the policies regarding discipline.

Varying Disciplinary Measures: Consistent disciplinary actions must be there in theorganization to provide equal justice to all concerned. At different times and for everyone, thesame standard of disciplinary measures should be taken otherwise it may give rise to growingindiscipline in the industry in future i.e., the judicious function on the past of managementmust be free form may bias, privilege or favoritism.

Defective Supervision: Supervisor is the immediate boss of the workers and manydisciplinary problems have their in faulty supervision. The attitude and behavior of thesupervisor may create many problems.

Inadequate attention to personnel Problems: Delay in solving personnel problems developsfrustration among individual workers. The management should be proactive so that there is nodiscontent among the workers. It should adopt a parental attitude towards its employees.However it should be noted that no relationship can continue for long if it is one sided.

Victimization: Victimization of subordinate also results in indiscipline. The managementshould not exploit the workers. It is also in the long-term interest of the management to takecare of its internal customers

Absence of Code of Conduct: This creates confusion and also provides chance fordiscrimination while taking disciplinary action. We will be discussing Code of Discipline indetails etc.

4. Explain the objectives of discipline. (Nov/Dec2014) (April/May 2015)The primary concern of discipline is to frame an employee's behavior as per the organizationalrules and regulations, or the value set by the organization. Besides, other important objectivesare as follows:

To obtain organizational rules, regulations, norms and values so that the organizationalactivities are performed effectively.



To impart the environment of certainty despite the differences in individual backgrounds,cultures, values and experiences, and other related organizational changes.

To develop a spirit of tolerance and desire to make adjustments among employees.

To give and seek direction and responsibility.

To promote the environment of respect for human personality and harmonious laborrelation.

To motivate the employees for higher level of performance and so on.

5. Bring out the various aspects of Discipline. (April/May 2014) (Nov/Dec2015)

There are two aspects of discipline, positive and negative aspects.

Positive Aspects:Employees believe in and support discipline and adhere to the rules, regulations and

desired standards of behaviour. Discipline takes the form of positive and reinforcement forapproved actions and its aim is to help the individual in moulding his behavior and developinghim in a corrective and supportive manner.

This type of approach is called positive approach or constructive discipline orselfdiscipline. Positive discipline takes place whenever the organizational climate is marked byaspects such as payment of adequate remuneration and incentives, appropriate avenues forcareer advancement, appreciation of proper performance and reinforcement of approvedpersonnel behavior or actions etc., which all motivates employees to adhere to certain rules andregulations or exercise self-control and work to the maximum possible extent.

Negative Aspects:

Employees sometimes do not believe in and support discipline. As such, they do notadhere to rules, regulations and desired standard of behavior. As such, disciplinary programmeforces and constraints the employees to obey orders and function in accordance with set rulesand regulations through warnings, penalties and other forms of punishment.

This approach to discipline is called negative approach or corrective approach or punitiveapproach. This approach is also called autocratic approach as the subordinates are given no rolein formulating the rules and they are not told why they are punished. Negatives or enforceddiscipline connotes that personnel are forced to observe rules and regulations on account of fearor reprimand, fine, demotion, or transfer provide or establish a climate which demotivatesemployees.

Hence, such climate is not helpful for the accomplishment of group goals and for enhancing themorale on the part of employees.



6. State the difference between lockout & layoff. (Apr/May2016) (Nov/Dec2015)

7 Most Important Differences between Lock-Out and Lay-Off are as follows:

Lock-out:1. Section 2(l) defines “Lock-out”.2. Lock-out means the temporary closing of a place of employment.3. In Lock-out, the establishment is completely closed.4. Generally, the causes of lock-out lie political, disturbances with trade union leaders, rigidpolicies of management, etc., besides economic problems.5. Payment of compensation to workers depends upon various factors viz. legal or illegal lock-outs justified or unjustified.6. Generally, lock-out is declared by employer in answer to strike.7. Lock-out is applicable to entire industry or to entire department of that industry.

Lay-Off:1. Sec. 2 (kkk) defines “Lay-off”.2. Lay-off means the failure, refusal or inability of an employer on account of shortage of rawmaterials, shortage of power, excess of finished goods, no market demand for finishedproducts etc.3. Lay-off occurs while the establishment is continuing operation.4. In lay-off, the employer is unable to provide employment to one or more workmen due toseveral reasons generally genuine and owe to economic factors, viz. shortage of coal, rawmaterials, excess production, shortage of electricity, break-down of machinery, Governmentpolicy, no-demand of the finished products in the market, shortage of finance, shortage ofspace in the storage, etc.5. Compensation shall be paid to the workers laid-off.6. Generally, employer declares lay-off under certain genuine circumstances.7. Lay-off may be applicable to a group of workers or to entire workers, or to the workers toone shift, or some shifts, under certain circumstances.

PART – C ANSWERS

1. Discuss in detail about Disciplinary Procedures.Or

What are the steps in Domestic Enquiry? (April 2014)

Disciplinary procedure in Indian industries comprise of the following stages:

Issuing a letter of charge to the employee calling upon him for explanation:When the management of the establishment comes to conclusion that an act of misconductcommitted by an employee warrants disciplinary action, the concerned employee should be



issued a charge sheet. The charge-sheet should indicate the charges of indiscipline ormisconduct clearly and precisely. Explanation should also be called form the delinquentemployee and for that sufficient time should be given to the employee. Serving of the charge-sheet may either personally or by post.

Consideration of the explanation: When the delinquent employee admits, in an unqualifiedmanner, about his misconduct and when the employer is satisfied with the explanation given bythe delinquent employee, there is no need for conducting any enquiry further. On contrary,when the management is not satisfied with employee’s explanation, there is need for serving ashow-cause notice.

Show-cause notice: In the show-cause notice, the employer provides another chance to theemployee to explain his conduct and rebut the charges made against him. Show-cause is notices issued by the manager, who decides to punish the employee. Besides, a notice of enquiryshould be sent to the employees and this should indicate clearly the name of the enquiringofficer time, date and place of enquiry into misconduct of the employee.

Holding of a full-fledged enquiry: The enquiry should be in conformity with the principles ofnatural justice, that is, the delinquent employee must be given a reasonable opportunity ofbeing heard. The enquiry officer should record his findings in the process of an enquiry. Hemay also suggest the nature of disciplinary action to be taken.

Considering the enquiry proceedings and findings and making final order of punishment:When the misconduct of an employee is proved, the manager may take disciplinary actionagainst him. While doing so, he may give consideration to the employee’s previous record,precedents, effects of this action on other employees, consulting others before awardingpunishment rates. No inherent right to appeal has been provided, unless the law provides it. Incase the employee feels the enquiry is not proper and action unjustified, he must be given achance to make an appeal.

Follow-up: After taking disciplinary action, there should be proper follow-up. The disciplinaryaction should not make the employee repeat his mistake

2. Discuss in detail about prevention of strikes“A strike is unjust in that it is an appeal to force in a matter of disputed right; it is inhumanbecause of the misery it causes to the workers; it is wasteful of resources of capital and labour;it is wicked, because it stirs up hate; it is anti-social, in that it denies and disrupts the solidarityof the community

The following suggestions may prove fruitful to prevent strikes: It should adopt a well-defined, precise, clear and progressive personnel policies aiming at

the maintenance of good industrial relations in the undertaking. It should ensure an effective administration and timely implementation of these policies.



It should adopt fair and reasonable recruitment, promotion and wage policies and ensuretheir proper implementation.

It should ensure an effective two-way system of communication. This will help themanagement to create a favorable atmosphere of goodwill, and faith in the organizationand understand the human climate threat; and enable the workers to the appreciate themanagement policies in their right perspective so that no misunderstanding is createdbetween them.

It should provide just and humane conditions of work, along with suitable welfareactivities for the benefit of the workers and develop close personal contacts with theemployees at all levels.

It shall evolve and adopt a suitable and speedy grievance procedure for redressal of thegrievance of the workers.

It should give recognition to a representative union and should have pragmatic approachtowards union activities.

It should encourage joint consultation at different levels and encourage collectivebargaining for resolving the difference between them.

3. What are the various factors leads to Employee Dissatisfaction?Many employees feel dissatisfied with their jobs at one point or another. Some employees leavetheir jobs for better opportunities, while others choose to stay. Employees with low jobsatisfaction can negatively affect a company because they typically lack motivation, performpoorly and possess negative attitudes. These symptoms can directly affect a company’s bottomline. Managers should understand the reasons employees are unhappy at work. Understandingthe causes can help managers find the right solutions.

UnderpaidOne of the primary reasons for job dissatisfaction results from companies underpaying workers.Not only must employees deal with stagnant wages but also high costs for health insurance.The stress of paying bills with limited income causes many workers to feel dissatisfied withtheir jobs.

Limited Career Growth and AdvancementA lack of career growth and advancement is another reason why workers are dissatisfied attheir jobs. Employees who feel stuck in their job position are less motivated to maintain highproductivity than those who do not. Workers feel valued when employers include them in theirlong-term plans and show their appreciation through promotions.

Lack of InterestA lack of interest in the work is another reason why employees are unhappy. Most employeeswant to perform job duties that are engaging and challenging. Monotonous work causes anemployee to experience boredom. Bored and unchallenged employees experience littleincentive to concern themselves with workplace productivity.Poor Management



The management team plays an important role within an organization. Managers areresponsible for motivating employees, planning, organizing and controlling within theorganization. A key reason employees perform poorly in the workplace is poor management.Managers with poor leadership skills tend to offer little feedback on employees’ performances.

4. Discuss the essential of strike (Apr/May2015)

StrikeStrike is one of the oldest and the most effective weapons of labour in its struggle withcapital for securing economic justice.

The term ‘strike’ has been defined in a wide variety of branches of humanknowledge, viz. etymology, sociology, political economy, law and political science

Strike has been defined in Section 2 (q) of the Industrial Disputes Act asunder—“Strike means a cessation of work by a body of persons employed in any industryacting in combination, or a concerted refusal, or a refusal under a common understanding,of any number of persons who are or have been so employed to continue to work or toaccept employment.”

The basic strength of a strike It lies in the labour’s privilege to quit work and thus brings a forced readjustment

of conditions of employment. It owes its origin to old English words ‘Striken to go’. In common parlance it

means hit, impress, occur to, to quit work on a trade dispute. The latter meaning istraceable to 1768. Later on it varied to ‘strike of work’.

The composite idea of quitting work or withdrawal of work as a coercive act couldbe gathered in the use of word as a verb as well as adjective.

The definition and use of the word ‘strike’ has been undergoing constanttransformation around the basic concept of stoppage of work or putting of work byemployees in their economic struggle with capital

The analysis of the definition would show that there are the following essentialrequirements for the existence of a strike:(1) There must be cessation of work.(2) The cessation of work must be by a body of persons employed in any industry;(3) The strikers must have been acting in combination;(4) The strikers must be working in any establishment which can be called industry withinthe meaning of Section 2(j); or(5) There must be a concerted refusal; or(6) Refusal under a common understanding of any number of persons who are or havebeen so employed to continue to work or to accept employment;

(7) They must stop work for some demands relating to employment, non-employment or theterms of employment or the conditions of labour of the workmen.



The strike is illegal

1. if it is in breach of Contract of Employment.2. if it is in Public Utility Services.3. if Notice under Section 22(1) is not given.4. if commenced during Award or settlement period.5. if commenced During or within 7 days of completion of Conciliation Proceedings.6. if commenced During or within Two months of completion of Adjudication Proceedings.


RAAK/BBA/PRAVINGOPI/III YEAR/VI Sem/SBA61/IRLL/UNIT-4 Answers/VER 1.0Unit – 1 Answers Page 1 of 11

(SBA 61) – (Industrial relation and labour laws)Unit-4 – (Factories Act)

Type: 100% TheoryQuestion & Answers

PART – A ANSWERS

1. Who is an Occupier?(Apr/2014)An employee who is having Managerial and/or supervisory power in the management inthe factory like to appoint and terminate the service of any person (worker, official of thefactory, sanction of leave, gate pass), become the occupier of the factory. The Board ofDirector has to declare that person as occupier under the provisions of Factories Act, 1948.Otherwise, any of the Directors should be an occupier under the provisions of FactoriesAct, 1948.

2. What is factory?A factory (previously manufactory) or manufacturing plant is an industrial site, usuallyconsisting of buildings and machinery, or more commonly a complex having severalbuildings, where workers manufacture goods or operate machines processing one productinto another.

3. Define ‘company’.A company is an association or collection of individuals, whether natural persons, legalpersons, or a mixture of both. Company members share a common purpose and unite inorder to focus their various talents and organize their collectively available skills orresources to achieve specific, declared goals.

4. Who is a worker under factories act? (April/may 2014)Worker is a person who performs a specific or necessary task or who completes tasks in acertain way is called as a worker.

5. What do you mean by Health?Occupational Health is the promotion and maintenance of the highest degree of physical,mental and social well-being of workers in all occupations by preventing departures fromhealth, controlling risks and the adaptation of work to people, and people to their jobs.

6. What is welfare?'Staff welfare' is an all-encompassing term covering a wide range of facilities that areessential for the well-being of your employees. At its most basic, every employer isrequired by law to provide essential amenities such as toilets, washstations and cleandrinking water for employees.



7. What are the scope of Factories act 1948?( April/may 2014) Regulates working condition in factories. Basic minimum requirements for ensuring safety, health and welfare of workers. Applicable to all workers. Applicable to all factories using power and employing 10 or more workers, and if

not using power, employing 20 or more workers on any day of the preceding 12months.

8. List out the objectives of Factories act 1948? To ensure adequate safety measures and to promote the health and welfare of the

workers employed in factories. To prevent haphazard growth of factories through the provisions related to the

approval of plans before the creation of a factory. To regulate the working condition in factories, regulate the working hours, leave,

holidays, overtime, employment of children, women and young persons.

10. Define ‘Young Person’

Young person means a person who is either a child or an adolescent. In other words,a person between the age of 14 to 18 is a young person.

11. Define ‘Adolescent’

Adolescent means a person who has completed his fifteenth year of age but has notcompleted his eighteenth year.

12. Give the meaning of Safety Provisions.

According to the factories act it is obligatory for the owner or the occupier of thefactory to secure the safety of the workers working in it. The requirements of the actin this respect are absolute and are in no way depending upon the previous notice orwarning from the chief inspector of factories. The following are the provisions givenin regard to the safety of the workers.

13. What do you mean by Spittoons?

Every factory shall provide sufficient number of spittoons in convenient places andthey shall be maintained in a clean and hygienic condition. Nobody should beallowed to spit at any place other than the spittoons. Any person violating this ruleshall be liable to a fine upto 5 rupees.

14. What do you mean by Lifts and Hoists?



Lifts should be of sound material, strong enough and periodically repaired andexamined by competent persons at least once in 6 months. For the purpose a properregister should be maintained showing the details of periodical inspection carriedout.

15. What is Lighting?Every part of the factory where the workers are working, or passing shall haveadequate light, natural or artificial or both. Windows should be glazed. There shouldbe sky-lights. Glass panes of the windows and skylights should kept clean from boththe sides. Light should not be obstructed.

16. Give the meaning of revolving Machinery.It is a notice indicating the maximum safe working peripheral speed of everygrindstone are abrasive wheel should be placed near such machines to show that thespeed indicated should not be exceeded.

PART – B ANSWERS

1. State the provisions of the factories act, 1948 with regard to Health of theworkers (Apr/2013).

Cleanliness: Every factory shall be kept clean and free from effluvia arising from anydrain, privy or other nuisance, and effective arrangement shall be made for the disposalof waste affluents due to the manufacturing process carried on.

The flows of every work room shall be cleaned atleast every week and disinfected.

Ventilation and Temperature: Suitable arrangement shall be made for securing andmaintaining adequate ventilation by the circulation of fresh air to prevent injury to theirhealth.

Dust and Fume: In a factory in which, by reason of the manufacturing process carriedon, any dust or fume or other impurity of such an extent as is likely to be injurious oroffensive to the workers, is given off, effective measures shall be taken to prevent theirbeing inhaled or their being accumulated.

Artificial Humidity: Where the humidity of the air is artificially increased, the waterused for the purpose should be clean so that such a humidity may not adversely affect thehealth of the workers. Humidity should be adjustable according to the standard laiddown.

Overcrowding:

Overcrowding in factories is forbidden



Every worker is entitled to have, in a factory which was in existence at the time ofenactment of the factories act, 350 cubic feet of space within a space of no more than 14feet above the floor of the room. while in the case of factories established after theenactment of the factories act, every worker is entitled to atleast 500 cubic feet of suchspace. The ceiling should be atleast 14 feet from the floor.

Lighting:

Every part of the factory where the workers are working, or passing shall have adequatelight, natural or artificial or both. Windows should be glazed. There should be sky-lights.Glass panes of the windows and skylights should kept clean from both the sides. Lightshould not be obstructed.

Drinking water:

Effective management are to be made to provide and maintain at suitable places,conveniently situated for all workers, sufficient supply of wholesome drinking water. Allsuch places should be marked in a language understandable by majority of the workers as’drinking water’

Latrines and Urinals:

Every factory shall have sufficient number of latrines andurinals conviently situatedand accessible to all the workers at all times Separate enclosed Latrines and Urinals formale and female shall be provided.

Spittoons:

Every factory shall provide sufficient number of spittoons in convenient places and theyshall be maintained in a clean and hygienic condition. No body should be allowed to spit atany place other than the spittoons. Any person violating this rule shall be liable to fineupto 5 rupees.

2. Write a short note on i) Notice by occupier ii) Manufacturing Process

Notice by Occupier: ‘Occupier’ of a factory means the person who has ultimate controlover the affairs of the company.

In the case of a firm or other association of individuals, any one of the individual partnersor members thereof shall be deemed to be a occupier.

In the case of a company, anyone of the directors shall be deemed to be occupier;

In the case of a factory owned or controlled by the central government or any stategovernment, or any local authority, the person or persons appointed to manage the affairs



of the factory by the central government, state government or the local authority, as thecase may be, shall be deemed to be the occupier.

Manufacturing Process:

It is a process of making, altering, repairing, ornamenting, finishing, packing, oiling,washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any articleor substance with a view to its use sale, transport delivery or disposal, or

Pumping oil, water or sewage, or

Composing types for printing, printing by letter press lithography photogravure or othersimilar process or book binding, or

Constructing, reconstructing, repairing, refitting, finishing, or breaking up ships or vessels.

3. What are the restrictions on employment of women workers?

No women worker shall be employed in any factory except between the hours of 6am and 7 pm.

However, a state government may, in respect of any class or description offactories, vary the limits laid down in clause a) Above, but no such variation shallauthorise the employment of any women between the hours 10 pm and 5 am

No exemption from sec54, which lays down that no adult worker shall be requiredor allowed to work in a factory for more than 9 hours in any day may be granted inrespect of any women worker.

There shall be no change of shift except after a weekly holiday or any other inrespect of women workers.

4. Explain the various provisions for Children working hours.

No child is required or allowed to work for more than four and half hour in afactory.

No child is required or allowed to work at night.

The period of work of all child workers is limited to two shifts which should notoverlap or spread over more than 5 hrs each.

A child is allowed to work in one shift unless authorized by the chief inspector offactories.



Weekly holidays to which an adult workers entitled to, shall also be the right ofthe child workers.

No child worker shall be employed in two shifts or in two shifts in two differentfactories on the same day.

5. Explain the Importance of first aid.

Any emergency can be handled easily with adequate preparation, including amedical one. A well stocked first aid kit, kept within easy reach is a must forevery home. Preparing and maintaining a first aid kit is also a great way ofteaching kids about safety, though it should be stored well out of their reach.

Robin Age takes us through the uses and components of a first aid kit.

Though readymade first aid kits are available at most medical stores, it is simpleto put together one at workplace. Here's what you need to keep in mind when youmake your own first-aid kit.

Check the expiry date: One of the most important things youneed to keep inmind is that medicines have a shelf life and must be disposed carefully once itgoes past the expiry date.

Store in a dark, cool and dry place: The shelf life of medicines decreases ifkept in a humid place. Hence, avoid keeping your first-aid kit in bathrooms orplaces that are humid or moist. Medicines also need to be kept away from directsunlight.

Use appropriate containers: You must ensure that all your first-aid kit suppliesare kept in large, water proof and non-breakable containers.

Organise by function: Segregate each supply according to its usage. Keepwound-tending supplies in one re-sealable bag and medicines that treat ailmentsin another.

Share the knowledge: Train everybody in your family onhow to use a first-aidkit as it is very essential that everyone in the family knows how to give basic firstaid.



PART – C ANSWERS

1. State the provisions of the factories act, 1948 with regard to safety of the workers(Apr/2013).

Safety provisions: According to the factories act it is obligatory for the owner or theoccupier of the factory to secure the safety of the workers working in it. The requirementsof the act in this respect are absolute and are in no way depending upon the previous noticeor warning from the chief inspector of factories. The following are the provisions given inregard to the safety of the workers.

Fencing of machinery:Every dangerous part of machinery shall be securely fenced by safeguards of substancialconstruction. Such fencing shall be constantly maintained and kept in position when theparts of the machinery are in motion.

Work on or near machinery in motion:If any part of the machinery which is in motion and which has to be examined, theexamination should be effected by a specially trained adult male worker wearing tightfitting clothes which should be supplied by the occupier. Such workmen shall not handlewhen these parts are not to a bigger size as prescribed by this section. The stategovernment may prohibit in a factory the cleaning. lubricating or adjusting by anyperson of special parts of machinery while those parts are in motion.

Striking gear and devices for cutting off power:In every factory suitable striking gear or ather mechanical appliances shall be provided andmaintained and used to move driving belt to and fro fast and loose pullies which form partof transmission machinery.Driving belts when not in use shall not be allowed tp rest orride upon shafting in motion.

Self-Acting machines:No transversing part of a self-acting machine in any factory and no material carried thereon shall, if the space over which it runs is a space over which any person is liable to pass,whether in the course of his employment or otherwise, be allowed to run on its outward orinward transfers within a distance of 45cm from any fixed structure which is not part ofthe machine. However, the chief inspector may permit a factory the continuance of the useof a machine installed before the commencement of the factories act if he thinks fit

Casing of a new machinery:Every machinery shall be so installed that it may prevent any danger.

Hoists and Lifts:Lifts should be of sound material, strong enough and periodically repaired and examinedby competent persons at least once in 6 months. For the purpose a proper register shouldbe maintained showing the details of periodical inspection carried out.



Revolving Machinery:A notice indicating the maximum safe working peripheral speed of every grindsone areabrasive wheel should be placed near such machines to show that the speed indicatedshould not be exceeded.

Pressure Plant:If any part of the plant or the machinery used in the manufacturing process is operated atthe pressure, effective measures shall be taken to ensure that the safe working pressure ofsuch part is not exceeded

Floors, Stairs and means of Access:Floors, Stairs and gang ways and passages shall not be slippery or unsafe when a worker ispassing through them. When necessary, Stairs or passages should have proper railings toprevent any worker slipping from it.

Pits, sumps, openings in Floors etc:Pits, Sumps, openings in floors shall be covered or properly fenced to prevent any workerslipping into them.

Excessive Weights:No weights in a factory shall be employed to lift, carry or move any load which is veryheavy and consequently may cost him injury.

Protection of Eyes, lungs etc:A state government may by rules required that effective screens or suitable goggles shallbe provided for the protection of persons employed in the immediate vicinity of theprocess.

Special provisions for safety of women and children:o No young person shall work at any machine unless he has been fully instructed as

to the danger arising in connection with the machine and the precautions to beobserved.

o No women or child shall be employed in any part of the factory for processingcotton in which cotton opener is at work.

2. What are the Welfare measures under the factories Act, 1948? (Apr/2014)Some of the provisions relating to the Labour Welfare as mentioned in the Factories Act,1948 are:

Washing Facilities Facilities for storing and drying clothing Facilities for sitting First aid appliances Canteens



Shelters, rest rooms and lunch rooms Creches and Welfare officers

Washing Facilities:

In every factory(a) Adequate and suitable facilities shall be provided and maintained for the use ofworkers;(b) Separate and adequately screened facilities shall be provided for the use of male and

female workers;(c) Such facilities shall be easily accessible and shall be kept clean.

Facilities for storing and drying clothing:

In every factory provision for suitable place should exist for keeping clothing not wornduring working hours and for the drying of wet clothing.

Facilities for sitting:

In every factory, suitable arrangements for sitting shall be provided and maintained forall workers who are obliged to work in a standing position so that the workers may takeadvantage of any opportunity for rest which may occur in the course of work. If in anyfactory workers can efficiently do their work in a sitting position, the Chief inspectormay require the occupier of the factory to provide such seating arrangements as may bepracticable.

First aid appliances:

Under the Act, the provisions for first-aid appliances are obligatory. At least one first-aidbox or cupboard with the prescribed contents should be maintained for every 150workers. It should be readily accessible during all working hours.

Canteens:

In every factory employing more than 250 workers, the State government may makerules requiring that a canteen or canteens shall be provided for the use of workers.

Shelters, rest rooms and lunch rooms:

In every factory wherein more than 150 workers are ordinarily employed, there shall be aprovision for shelters, rest room and a suitable lunch room where workers can eat mealsbrought by them with provision for drinking water.



Creches:

In every factory wherein more than 30 women workers are ordinarily employed thereshall be provided and maintained a suitable room or rooms for the use of children underthe age of six years of such women.

Such rooms shall provide adequate accommodation, shall be adequately lighted andventilated, shall be maintained in clean and proper sanitary conditions and shall be underthe charge of women trained in the care of children and infants.

3. State the provisions of the factories act with regard to annual leave with wages(Apr/2014).

Annual leave with wages:

Every worker who has worked in a factory for at laest 240 days during a calendar year,must be allowed during subsequent calenter year leave with wage at the rate of-

One day for every twenty days of work performed by an adult;

One day for every fifteen days of work performed by a child.

The leave mentioned above earned by a worker and is exclusive of all holiday whetheroccurring during or at either end of the period of leave.

For computing 240 working days, days of lay-off maternity leave not exceeding twelveweeks in the case of women workers and leave earned by a worker in the prior year are tobe taken as days on which the worker has worked.

A worker who is discharged before the closing of the year is entitled to proportionateleave.

These leaves can be accumulated for 30 days in case an adult and 40 days case of child.

Extra wages for overtime:

Where a worker works in a factory for more than nine hours in any day or for more thaneight hours in any week, he shall, in respect of overtime work, be entitled to wages atthe rate of twice his ordinary rate of wages.

If a person does work of supervisory, managerial or confidential nature in a factory, hewill be entitled to overtime wages only if his rate of wage does not exceed Rs.750- permonth.



The word “wages” used in connection with overtime wages includes basic wages,dearness allowance and other allowances but not the bonus, cash equivalent toconcessional food grains supplied according to rules.


RAAK/BBA/Dr.P Kamaludeen/III YEAR/VI Sem/UBA62/IRLL/UNIT-5Answers/VER 2.0Unit – 5 Answers Page 1 of 12

(UBA62) – (Industrial Relation and Labour Laws)

Unit-5 – (Workmen Compensation Act)

Type: 100% Theory

Question & Answers

PART – A ANSWERS

1. What is International Labour Organization? (April/May 2014) (Nov/Dec2015)

International Labour Organization (ILO) is a United Nations agency dealing withlabour issues, particularly international labour standards and decent work for all.

2. List out any two objectives of Workmen Compensation Act. (Nov/Dec2015)

To provide workmen and their dependents some relief on account of accidentsarising out of and in the course of employment.

To make provision for the payment of compensation by certain class of employersto their workmen for injury by accident.

3. Define ‘Disablements’. (Nov/Dec2014)(Apr/May 2015)

Disablement means loss of capacity to work or to move. Disablement of aworkman may result in loss of reduction of his earning capacity. In later case, he isnot able to earn as much as he used to earn before his disablement

4. Give the meaning of Occupational Diseases. (Nov/Dec2013) (Apr/May 2014)

An occupational disease is a disease or disorder that is caused by the work or workingconditions. This means that the disease must have developed due to exposures in theworkplace and that the correlation between the exposures and the disease is well known inmedical research. Or put in another way, it must not be likely, beyond reasonable doubt,which the disease was caused by factors other than work.

5. List out any few occupational diseases. (Nov/Dec2013)(Apr/May 2015)

Tennis elbow Allergy Hearing loss Asthma



6. Who is a dependent under the Workmen’s Compensation Act, 1923? (Nov/Dec2015)

According to sec 2(1) (d) of the act ‘dependent as to mean any of the following relations ofa deceased workman, namely:

A widow, a minor legitimate son, an unmarried legitimate daughter, or a widowedmother, and

If wholly dependent on the earnings of the workman at the time of his death, a sonor a daughter who has attained the age of 18 years and who is in firm.

7. What do you mean by Managing Agents? (Nov/Dec2015)(Apr/May 2016)

Managing agents as to mean any person appointed or acting as the representative ofanother person for the purpose of carrying on such other person’s trade or business, butdoes not include an individual manager subordinate to an employer.

8. Define ‘Total Disablement’. (Nov/Dec2014)(Apr/May 2015)

A total disability is one where the employee is prevented from performing any work at allon account of the injury or condition. This is generally defined as the loss of the use ofboth legs, arms, hands, or eyes, or any two such parts like a leg and arm. Total disabilitycan also involve impairment due to a serious occupational disease.

9. Define ‘Partial Disablement’.

Partial disability is defined as any type of disability in which the workers is unable toperform at full physical capacity. This is usually due to an on the job injury or due toillness.

10. What do you mean by Appeals? (Apr/May 2016)

An appeal shall lie to the High Court from the following orders of a Commissioner,namely:--

An order awarding as compensation a lump sum whether by way of redemption ofa half- monthly payment or otherwise or disallowing a claim in full or in part for alump sum.

An order refusing to allow redemption of a half- monthly payment; An order providing for the distribution of compensation among the dependants of a

deceased workman, or disallowing any claim of a person alleging himself to besuch dependant.

11. Give the meaning of dependant. (Apr/May 2013)(Nov?Dec2015)

According to sec.2 (1) (d) of the act’ dependent’ as to mean any of the following relationsof a deceased workman, namely:



A widow ,a minor legitimate son, an unmarried legitimate daughter, or awidowed mother, and

If wholly dependent on the earnings of the workman at the time of his deathor a daughter who has attained the age of 18 years and who is in firm.

12. What do you mean by seamen? (Nov/Dec2013)(Apr/May 2015)Seamen under section2 (1) (k) means any person forming part of the crew of any ship but

Does not include the master of the ship.

13. Give the meaning of Accident. (Nov/Dec2011)(Apr/May 2015)

The term accident includes any injury which is not designed by the workman himself andit is no consequence that the injury was designed and intended.

14. What is contribution period? (Apr/May2014) (Nov/Dec2015)(Apr/May 2016)

It means the sum of money payable during specified period to the Corporation by theprincipal employer in respect of an employee and includes any amount payable by or onbehalf of the employee in accordance with the provisions of this Act.

PART – B ANSWERS

1. Explain the scope and objectives of workmen’s compensation act.(Apr/May 2011) (Nov/Dec2013)(Apr/May 2015)

Objectives:

To provide workmen and their dependents some relief on account of accidentsarising out of and in the course of employment.

To make provision for the payment of compensation by certain class of employersto their workmen for injury by accident.

To determine the amount of compensation payable in case of death on the averagemonthly wages of the deceased workman and in the case of an injured workmanboth in the average monthly wages and the nature of disablement.



Principles Governing compensation:

A casual connection between the injury and the accident and the accident and thework done in the course of employment is essential.

The onus lies upon the claimant to establish that the injury or its aggravation wasthe outcome of the work and resulting strain.

It is not necessary that the workman must be actually working at the time of hisdeath or that death must occur while he is working or has just ceased to work.

If the evidence adduced shows greater probability which satisfies a reasonable manthat the work contributed to the causing of personal injury, it would be sufficientground for the workman in his claim.

2. When an employer is not liable to pay compensation under workmen’s compensationact? (Nov/Dec2014)(Apr/May 2016)Employers are NOT liable to pay compensation in the following circumstances:

The injury neither results in permanent incapacity nor incapacitates the employeefrom earning full wages at normal work;

The injury is self-inflicted;

The death or incapacity results from the injury (including all occupational diseaseswhich are specified in the ECO) that the employee has falsely claimed to be free ofto the employer; or

The injury is caused by an accident that is directly attributable to the employee'saddiction to drugs or alcohol and does not result in death or serious and permanentincapacity.

In addition, in any proceedings under the Employees' Compensation Ordinance in which itis proved that the injury is attributable to the serious and wilful misconduct of theemployee, or that an injury by accident arising out of and in the course of employment isdeliberately aggravated by the employee, any compensation claimed will be disallowed.

The exception is that when the injury results in death or serious incapacity, onconsideration of all of the circumstances the Court may award the compensation providedby the Ordinance or such part thereof as it thinks fit.

3. Explain the role and function of international labour organization. (Apr/May 2011)

(Nov/Dec2011)(Apr/May 2014) (Apr/May 2016).

The International Labour Organization (ILO) is the United Nations agency mandated toaddress labour and social policy issues. Unique within the UN, the ILO is a tripartite



organization where governance is shared between governments, workers' organizationsand employers' organizations.

Employers are represented through the Employers' Group within the ILOGoverning Body which oversees and provides the policy input into the work of the ILOSecretariat (the International Labour Office), and participates through tripartitedelegations in the work of the International Labour Conference.

The IOE is the Secretariat to the Employers' Group. It assists the work of theGroup in the ILO and represents employer interests in the ILO in their absence, playing akey role in preparatory work for discussion and decision. In essence, the IOE's role is toensure that the policy interests of employers are reflected in the work and activities of theILO.

At present, the IOE and the Employers' Group are focusing on a number of keyareas: The right business environment for the creation and maintenance of sustainablebusiness as pre-requisites for economic development, job creation, wealth creation andsocial development.

The development and strengthening of employers' organizations in closecollaboration with the ILO's bureau for employers' activities, ACT/EMP. The creation ofsustainable social policies and social security systems. Reform of the ILO internationallabour standards system, including improving the functioning and working methods of theILO supervisory bodies to make them more relevant to the current world of work.Reform of the ILO's governance, as it relates to both the Governing Body and theInternational Labour Conference.Function of international labour organization To coordinate the preparation of a flagship Global Social Protection Floor Report,

that will serve as an advocacy tool and as general guidance on global and regionalpolicies and strategies to support the implementation of the social protection floorin developing countries and address poverty issues in developed countries;

To provide input regarding the adaptation of the global concept of a socialprotection floor to regional, national and local needs, priorities and constraints;

To encourage international dialogue among key actors and stakeholders onappropriate policy issues;

To advise on policies and strategies to increase the fiscal space and ensure financialsustainability and affordability of the social protection floor.

4. Explain about the amount of Compensation. (Nov/Dec2014)(Apr/May 2015)The amount of compensation payable depends on the nature of the accident and the

amount of average monthly wages of the worker concerned and the relevant factor for



working lump sum equivalent of compensation amount in case of death and permanentdisablement.

Compensation for death:When death results from the injury, the amount of compensation shall be amount equal to

40% of the monthly wages of the deceased workman multiplied by the relevant factor, or aamount of Rs 20,000, whichever is more.

Compensation for Permanent Total Disablement:Where permanent total disablement results from an injury, the amount of compensationshall be an amount equal to 50% of the monthly wages of the injured workman multipliedby the relevant factor or an amount equal to Rs 24000, whichever is more.

Compensation for Temporary Disablement Total:Where temporary disablement, whether total or partial, results from the injury the amountof compensation shall be a half-monthly payment of the sum equivalent to twenty fivepercent of monthly wages of the workman, to be paid in accordance the followingprovisions.

The half-monthly payment shall be payable on the sixteenth day.

From the date of disablement where such disablement lasts for a period of twentyeight days or more or

After the expiry of a waiting period of three days from the date of disablementwhere such disablement lasts for a period of less than twenty-eight days; andthereafter half-monthly during the disablement or during a period of five whicheverperiod is shorter.

5. Difference between partial disablement & total disablement.

(Apr/May2013) (Nov/Dec2014)(Apr/May 2015)

Temporary Total DisabilityThe injured worker's wage-earning capacity is lost totally, but only on a temporary basis.

Temporary Partial DisabilityThe wage-earning capacity is lost only partially, and on a temporary basis.

Permanent Total DisabilityThe employee's wage-earning capacity is permanently and totally lost. There is no limit onthe number of weeks payable. In certain instances, an employee may continue to engage inbusiness or employment, if his/her wages, combined with the weekly benefit, do notexceed the maximums set by law.



Permanent Partial DisabilityPart of the employee's wage-earning capacity has been permanently lost. There are twotypes of permanent partial disability benefits, depending on the body part affected and thenature of the permanent disability: schedule loss of use (SLU) and non-schedule. Theseverity of the disability is measured when the employee has reached maximum medicalimprovement (MMI). MMI is presumed to occur no more than two years after the date ofinjury.

Schedule Loss of UseA SLU occurs when an employee has permanently lost use of an upper extremity(shoulder, arm, hand, wrist, finger), lower extremity (hip, leg, knee, ankle, foot, toe), oreyesight or hearing. Compensation is limited to a certain number of weeks based on thebody part and severity of the disability, according to a schedule set by law. Temporarybenefits that have been paid are deducted from the total SLU award.

Non-ScheduleNon-schedule is a permanent disability involving a part of the body or condition that is notcovered by a SLU award (e.g. spine, pelvis, lungs, heart, brain, etc.). Non-schedulebenefits are based on the employee's permanent loss of earning capacity. If the workrelated accident or date of disablement occurred before March 13, 2007, benefits arepayable as long as the partial disability exists and results in wage loss.

DisfigurementSerious and permanent disfigurement to the face, head or neck may entitle the worker tocompensation up to a maximum of $20,000, depending upon the date of the accident.

PART – C ANSWERS

1. When an employer is not liable to pay compensation under workmen’s compensation act?(Apr/May 2013) (Nov/Dec2014)(Apr/May 2015)

LIABILITY OF AN EMPLOYER TO PAY COMPENSATION:

For payment of compensation under the Act, there should be casual connection betweenthe employment and cause of death.

Even when an employee goes for lunch and receives injury, the same will be treated as'employment injury' entitling him to compensation .

Motor Vehicles Act, 1988, sections 146 & 147 - Deceased employed for loading andunloading stone from the Tractor - Died of heart attack while at work ¬Contention thatunless there is some nexus between and the use of vehicles, the Insurer is not liable - Notsustainable.



Death of an employee on the way different than the normal route, while returning afterduty hours will not amount to an industrial accident and no compensation will be payable.

There must be direct connection between accident and death for claiming compensation.

An employee will be liable for payment of compensation even when a' casual employeeemployed abroad meets with an accident.

The dependents of a workman murdered during communal riots on his way to work placewill be entitled to compensation.

There will be no nexus between the cause of death and employment injury when anemployee dies after treatment of the injury in the hospital.

Even a casual employee will be entitled to compensation if he meets with an accidentduring the course of his employment.

An employer will be liable to pay compensation when a workman dies in a road accidenton leaving the work place for taking lunch, the road being maintained by the employer.

The owner of the truck will be liable to pay compensation if a cleaner engaged by thedriver is injured in an accident.

Compensation on accident cannot be denied to the claimants on the plea that the deceasedemployee was less than 16 years.

Compensation for accident will be payable by an employer even when the employmentwas of casual nature.

Compensation will be payable when an employee sustained stab injuries on rus way to dothe work.

Compensation for accident will be payable to an injured employee travelling in theemployer's vehicle.

Compensation will be payable for injuries caused by acid jar being carried by a head loadworker.

Compensation will be paid on accidental death of a tractor driver even if he had nodriving licensee.

An employer will be liable to pay compensation to a truck driver as murdered on the wayalong with the goods as loaded in the truck.



An employee can claim compensation under the Workmen's Compensation Act when rusclaim for disablement has been declined because he has ceased to be an employee underthe ESI Act.

When a Branch Manager is incapacitated due to assault by a guarantor, the employer willbe liable to pay compensation.

An employer will have to pay the compensation even if the workman was not discharginghis duty at the time of accident.

2. Discuss in detail about the history of International Labour Organization.(Nov/Dec2014)(Apr/May 2015)

Labour commission:The ILO was created in 1919, as part of the Treaty of Versailles that ended World War I,

to reflect the belief that universal and lasting peace can be accomplished only if it is based onsocial justice. The Constitution was drafted between January and April, 1919, by the LabourCommission set up by the Peace Conference, which first met in Paris and then in Versailles.

Tripartite organization:The Commission, chaired by Samuel Gompers, head of the American Federation of

Labour (AFL) in the United States, was composed of representatives from nine countries:Belgium, Cuba, Czechoslovakia, France, Italy, Japan, Poland, the United Kingdom and theUnited States. It resulted in a tripartite organization, the only one of its kind bringing togetherrepresentatives of governments, employers and workers in its executive bodies. TheConstitution contained ideas tested within the International Association for LabourLegislation, founded in Basel in 1901.

Labour Issues:Advocacy for an international organization dealing with labour issues began in the

nineteenth century, led by two industrialists, Robert Owen (1771-1853) of Wales and DanielLegrand (1783-1859) of France. The driving forces for ILO's creation arose from security,humanitarian, political and economic considerations. Summarizing them, the ILOConstitution's Preamble says the High Contracting Parties were 'moved by sentiments ofjustice and humanity as well as by the desire to secure the permanent peace of the world...'

Economic interdependence:There was keen appreciation of the importance of social justice in securing peace, against

a background of exploitation of workers in the industrializing nations of that time. There wasalso increasing understanding of the world's economic interdependence and the need forcooperation to obtain similarity of working conditions in countries competing for markets.



Reflecting these ideas, the Preamble states:

Whereas universal and lasting peace can be established only if it is based upon socialjustice; And whereas conditions of labour exist involving such injustice hardship andprivation to large numbers of people as to produce unrest so great that the peace and harmonyof the world are imperiled; and an improvement of those conditions is urgently required;Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle inthe way of other nations which desire to improve the conditions in their own countries.The areas of improvement listed in the Preamble remain relevant today, for example:

Regulation of the hours of work including the establishment of a maximum workingday and week;

Regulation of labour supply, prevention of unemployment and provision of anadequate living wage;

Protection of the worker against sickness, disease and injury arising out of hisemployment;

Protection of children, young persons and women; Provision for old age and injury, protection of the interests of workers when employed

in countries other than their own; Recognition of the principle of equal remuneration for work of equal value; Recognition of the principle of freedom of association;

Organization of vocational and technical education, and other measures.

3. Enumerate the Liability of employer for Occupational Diseases.(Nov/Dec2014)(Apr/May 2015)

An occupational disease is a disease or disorder that is caused by the work or workingconditions. This means that the disease must have developed due to exposures in theworkplace and that the correlation between the exposures and the disease is well known inmedical research. Or put in another way, it must not be likely, beyond reasonable doubtthat the disease was caused by factors other than work.

Liability of employer for Occupational DiseasesThe employee is liable to pay compensation if a workman employed by him contractsand disease specified in part A of schedule III as occupational disease peculiar to thatemployment.

A workman contracts any disease specified in Part B of schedule III as anoccupational disease peculiar continuous period of not less than six months. This



period of six months shall not include a period of service under any other employer inthe same kind of employment.

A workman while in the service of one or more employers in any employmentspecified in part C of schedule III for such continuous period as the centralgovernment may specify in respect of each such employment; contracts any diseasespecified therein as an occupational disease peculiar to that employment.

The state government in the case of employments specified in Part A and Part B ofschedule III, and the central government in the case of employment to theemployment specified in schedule III. A three months notice of its intention to do somuch is given when any employment is added to schedule III. The respectivegovernment shall also specify in the case of employments so added the diseases whichshall be deemed for the purposes of sec.3 to be occupational diseases peculiar to thoseemployment, respectively.

Sec 3(4) provides that no compensation shall be payable to a workman respect of anydisease unless the disease is directly attributable to a specific injury by accidentarising out of and in the course of his employment.

4. Explain the conditions for compensations to workmen laid off by the employer?(Apr/May2015) (Nov/Dec2015)(Apr/May 2016)

Whenever a workman (other than a badly workman or a casual workman) whosename is borne on the muster rolls of an industrial establishment and who hascompleted not less than one year of continuous service under an employer is laid-off,whether continuously or intermittently, he shall be paid by the employer for all daysduring which he is so laid-off, except for such weekly holidays as may intervene,compensation which shall be equal to fifty per cent, of the total of the basic wages anddearness allowance that would have been payable to him had he not been so laid-off:

PROVIDED that if during any period of twelve months, a workman is so laid-off formore than forty-five days, no such compensation shall be payable in respect of anyperiod of the lay-off after the expiry of the first forty-five days, if there is anagreement to that effect between the workman and the employer:

PROVIDED FURTHER that it shall be lawful for the employer in any case fallingwithin the foregoing proviso to retrench the workman in accordance with theprovisions contained in section 25F at any time after the expiry of the first forty five



days of the lay off and when he does so, any compensation paid to the workman forhaving been laid off during the preceding twelve months may be set off against thecompensation payable for retrenchments

Explanation: "Badli workman" means a workman who is employed in an industrialestablishment in the place of another workman whose name is borne on the musterrolls of the establishment, but shall cease to be regarded as such for the purposes ofthis. section, if he has completed one year of continuous service in the establishment.

Documents

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