Unit 1: Industrial relations and trade unionism

Industrial relations refers to the relations between management and employees, and between employers' and workers' organisations, in an industrial setting, along with the role of the state. Objectives: industrial peace, higher productivity, protection of workers' interests, fair wages and conditions, and avoidance of strikes and lockouts. Scope: labour-management relations, collective bargaining, grievance handling, workers' participation, dispute settlement and labour welfare. Importance: uninterrupted production, reduced conflict, better morale, economic growth and social justice.

John Dunlop (1958) described an industrial relations system as a set of actors, contexts, an ideology and a web of rules.

• Criticism: static, neglects conflict and behavioural factors; later extended by Kochan, Katz and McKersie's strategic choice framework.

A trade union is a voluntary organisation of workers formed to protect and promote their interests through collective action.

• Objectives: better wages and conditions, job security, welfare, participation in management.
• Types: craft unions (one trade), industrial unions (whole industry), general unions and federations (national centres like INTUC, AITUC, BMS, CITU).
• Functions: militant (collective bargaining, strikes) and fraternal (welfare, education, mutual help).
• Structure: plant-level unions, industry-level federations, and central trade union organisations.

Trade Unions Act, 1926: provides for the registration of unions (minimum seven members, with at least 10% or 100 workers of the establishment, whichever is less); registered unions get legal status, immunity from certain civil and criminal liability for legitimate trade dispute activities, and a general fund and optional political fund. (The Industrial Relations Code, 2020 consolidates this law with others.)

• Collective bargaining power lets unions raise wages above competitive levels in organised sectors — the union wage premium.
• Effects: higher wages and benefits for members, narrower wage differentials within firms, standardised pay scales, linking of wages to productivity and cost of living (DA).
• Limits: employers' ability to pay, product market competition, substitution of capital for labour, possible job losses, the growing non-union and contract workforce.
• Theories: monopoly view (unions raise wages but cut employment) vs collective voice view (unions improve productivity by reducing turnover and voicing grievances — Freeman and Medoff).

• Registration: any 7 or more members may apply; in an establishment, at least 10% or 100 workmen (whichever is less) must be members.
• Rights and privileges of a registered union: body corporate with perpetual succession; immunity from criminal conspiracy (Section 17) and civil suits (Section 18) for acts in furtherance of a trade dispute; general and political funds.
• Obligations: maintain accounts and registers, file annual returns, spend the general fund only on permitted objects; at least half the office-bearers must be actually engaged in the industry.
• Under the Industrial Relations Code, 2020: registration retained; recognition of a negotiating union (51% membership) or a negotiating council.

Applies to premises with 10 or more workers using power, or 20 or more without power, where a manufacturing process is carried on.

• Adults: maximum 9 hours a day and 48 hours a week; a rest interval of at least half an hour after 5 hours; weekly holiday; overtime at twice the ordinary wage.
• Children below 14 may not be employed in factories. Adolescents (15–18) need a fitness certificate and work limited hours.
• Women: traditionally not allowed between 7 pm and 6 am, now permitted in many states with safeguards and consent.