Unit 1: Industrial relations & trade unions

Industrial relations (IR) are the relationships between management and workers and their organisations, and the role of the state in regulating them. Dale Yoder defines IR as "a whole field of relationships that exist because of the necessary collaboration of men and women in the employment processes of industry".

Importance

• Industrial peace and uninterrupted production.
• Higher productivity and quality.
• Industrial democracy — workers' voice in decisions.
• Fewer strikes, lockouts and absenteeism.
• Better wages and welfare; reduced labour turnover.
• Economic growth and attraction of investment.

• Other approaches: psychological (differing perceptions), sociological (social factors), human relations (Mayo), systems (Dunlop), oxford (institutions of job regulation).

• Automation and AI reduce routine jobs, create fear of redundancy and demands for job security and retraining.
• New skills and a shift to knowledge workers with individual negotiation.
• Flexible work — remote work, gig and platform work (Zomato, Uber drivers) — challenges traditional unionisation; Code on Social Security, 2020 recognises gig and platform workers.
• Monitoring technology raises privacy concerns.
• Positive effects: safer work, better communication, data-driven HR.
• Response: technology agreements, consultation before change, reskilling, productivity-linked wages.

Trade union (Section 2(h), Trade Unions Act, 1926): any combination, temporary or permanent, formed primarily for regulating relations between workmen and employers, or between workmen and workmen, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business.

Nature and functions

• Militant functions: collective bargaining, strikes, protecting wages and jobs.
• Fraternal functions: welfare, education, legal aid, cooperative societies.
• Political functions: influencing labour legislation.

Problems of trade unions in India

• Multiplicity and inter-union rivalry — several unions in one plant.
• Political interference and outside leadership.
• Small size and weak finances.
• Low membership, especially in the unorganised sector (over 85% of workers).
• Lack of recognition by employers; absence of a central recognition law.

Trade Unions Act, 1926 (now subsumed in the Industrial Relations Code, 2020)

• Registration: any seven or more members may apply; at least 10% or 100 workmen (whichever is less) of the establishment must be members; office bearers — at least half must be actually engaged in the industry.
• Rights of registered unions: body corporate with perpetual succession; immunity from civil and criminal liability for acts in furtherance of a trade dispute (Sections 17–18); separate political fund.
• Obligations: general fund used only for specified purposes; annual returns to the Registrar; books open for inspection.
• Under the IR Code, 2020: recognition of a negotiating union (51% membership) or a negotiating council; central and state-level recognition.

Quality circles

A quality circle is a small group of 6–10 employees from the same work area who meet voluntarily and regularly to identify, analyse and solve work-related problems (Kaoru Ishikawa, Japan, 1962).

• Benefits for IR: participation, communication, team spirit, recognition, improved quality and productivity, reduced conflict.
• In India: BHEL, Maruti Suzuki, Tata Steel; QCFI (Quality Circle Forum of India).