IMT–13: MANAGEMENT UNION RELATIONS

PART – A

Q1. What are obligations of employer under Provident Fund Act? What is

pensionable service? Write in detail.

Ans: There are various obligations of employer under Provident fund Act.

Financial Obligations:

Contributions:

• Statutory rate of contribution is 12% of emoluments (basic wages, dearness

allowance, cash value of food concession and retaining allowances if any,) in

the case of 175 establishments.

• Rate of contribution shall be 10% in the case of the following:

Brick, beedi, jute, guar gum factories, coir industry other than spinning

sector.

• Establishments declared as sick undertakings by BIFR.

• A matching contribution is to be collected from the emoluments of the

employees.

Out of 12% (or 10% as the case may be) of the employer’s share of

contribution, 8.33% is to be remitted towards pension fund.

• Employer is also required to pay a contribution of 0.5% of the emoluments

towards EDLIS’1976.

Administrative Charges:

• An employer is required to pay administrative charges at 1.10% of

emoluments towards provident fund charges and 0.01% towards EDLI

Scheme 1976.

• No separate administrative charges for pension scheme

Inspection Charges:

• In respect of exempted establishment under P.F. Scheme employer is liable

to pay only inspection charges at the rate of 0.18% of emoluments.

• In the case of establishment exempted from EDLI Scheme, the employer is

required to pay only inspection charges at the rate of 0.005% of

emoluments.

Interest Liability:

• For belated remittances of contributions, administrative / inspection charges

interest at the rate of 12% on such remittances for the period of delay is to

be remitted.

Damages:-

• For all the belated remittances of contribution and administration/inspection

charges damages are also payable as penalty ranging from 17% to 37% p.a.

depending upon delay.

Pensionable Service:

For pensionable service there is a formula to calculate pension. It is

Pensionable Salary x Pensionable Service / 70.

Pensionable salary can be categorized into 3.

1) Below Rs. 6500.

2) Rs. 6500 & above, but contribution on statutory celing of Rs. 6500.

3) Above Rs. 6500 & opted to contribute on actual salary.

In case of 2nd, pensionable salary is Rs. 6500. In other two cases, pensionable

salary will be the average of last twelve months. Also if pensionable service is 20

years & above 2 year’s bonus will be given.

Q2. Explain in detail --

a. Code of Discipline b. Writ of Certiorari

Ans 2a): Code of Discipline is voluntary in nature and does not have any legal

force. It was finalized in 1958 and mainly lays down that both workers and

employers should recognize their rights and responsibilities towards each other and

should willingly and properly discharge their obligations to each other.

The code has generally helped in ensuring a speedy settlement of industrial dispute

The breach of the code however, does not entail any legal liability or penalty. The

organizations of employers and workers are however, required to apply sanctions

against their members for violating the code. These sanctions have been laid down

by Standing Labour Committee Indian Labour Conference. They are reformative in

character and not punitive.

Ans 2b): Constitution of India, Art. 226-Powers of High Court there- under-Writ of

certiorari against Election Tribunals after they become functus officio-Certiorari

against Record- Distinction between writ of prohibition and writ of certiorari-Art.

227 of the Constitution-Superintendence of High Court over Election Tribunals-

Superintendence-Judicial as well as administrative-Certiorari-Scope and character

of -Representation of the People (Conduct of Elections and Election Petitions) Rules,

1951-Rule 47(1)(c)-Whether mandatory or directory-Error manifest on the fa1e of

record- Interference by certiorari.

Q3. What are the conditions under which a strike or lock-out is considered

illegal? Also explain:

a. gherao b. lighting strike

Ans 3: According to Section 2(q) of said Act defines the term strike, it says,

"strike" means a cassation of work by a body of persons employed in any industry

acting in combination, or a concerted refusal, or a refusal, under a common

understanding of any number of persons who are or have been so employed to

continue to work or accept employment. Whenever employees want to go on strike

they have to follow the procedure provided by the Act otherwise there strike

deemed to be an illegal strike. Section 22(1) of the Industrial Dispute Act, 1947

put certain prohibitions on the right to strike. It provides that no person employed

in public utility service shall go on strike in breach of contract:

(a) Without giving to employer notice of strike within six weeks before

striking; or

(b) Within fourteen days of giving such notice; or

(c) Before the expiry of the date of strike specified in any such notice as

aforesaid; or

(d) During the pendency of any conciliation proceedings before a conciliation

officer and seven days after the conclusion of such proceedings.

It is to be noted that these provisions do not prohibit the workmen from going on

strike but require them to fulfill the condition before going on strike. Further these

provisions apply to a public utility service only. The Industrial Dispute Act, 1947

does not specifically mention as to who goes on strike. However, the definition of

strike itself suggests that the strikers must be persons, employed in any industry to

do work.

Ans 3a:

Gherao, meaning "encirclement," is a word originally from Hindi and is a typically

Indian way of protest. Usually, a group of people would surround a politician or a

government building until their demands are met, or answers given. This principle

was introduced as a formal means of protest in the labour sector by Subodh

Banarjee, the PWD and Labor Minister in the 1967 and 1969 United Front

Governments of West Bengal, respectively.

Owing to its popularity and intensity as a new method of labour action the word

“gherao” got inducted into the Concise Oxford English Dictionary, Eleventh Edition,

2004, on page 598 has the following entry: “Gherao: n (pl. gheraos). Indian; a

protest in which workers prevent employers leaving a place of work until demands

are met; Origin: From Hindi” and Subodh Banarjee was referred to as the Gherao

minister. In usage, the past tense of the verb, gheraoed, is more common.

Ans 3b: The first stage of a lightning strike involves an initial discharge of low

luminosity known as a downward leader. It forms at the cloud centre and moves

down toward the ground in steps of several dozen meters at a time. At the same

time, the electric charge in the atmosphere at ground level increases as the

downward leader gets closer.

Any high point in the vicinity such as an electricity pylon or a lightning rod

immediately gives rise to natural ionisation in the form of a series of electrical

discharges which are blue in colour. This is the point effect or corona effect as

observed by sailors during a storm, known as Saint Elmo’s fire, or by mountaineers

who report hearing the characteristic humming of «bees» prior to a storm. As soon

as the downward leader is close enough to the ground, the ionisation due to the

corona effect intensifies, especially near any high point, and eventually turns into

an upward discharge: this discharge is the upward leader that develops toward the

cloud.

When one of these upward leaders comes into contact with the downward leader, a

conductive path is created allowing a powerful current to flow. This is lightning and

is characterized by its bright flash and the deafening sound of thunder. The

lightning strike may in fact be made up of a number of successive return strokes,

only a few hundredths of a second apart, all following the same highly ionised path.

Q4. Discuss briefly the powers of ESI Corporation? How is contribution of

employer as well as employee to be paid to the ESI Corporation?

Ans: The Employee State Insurance Act, [ESIC] 1948, is a piece of social welfare

legislation enacted primarily with the object of providing certain benefits to

employees in case of sickness, maternity and employment injury and also to make

provision for certain others matters incidental thereto.

The Act in fact tries to attain the goal of socio-economic justice enshrined in the

Directive principles of state policy under part 4 of our constitution, in particular,

articles 41, 42 and 43 which enjoin the state to make effective provision for

securing, the right to work, to education and public assistance in cases of

unemployment, old age, sickness and disablement.

The Act also strives to materialize these avowed objects through only to a limited

extent, which becomes a wider spectrum than factory act, in the sense that the

factory act is concerned with the health, safety, welfare, leave etc of the workers

employed in the factory premises only. However, the benefits of this act extend to

employees whether working inside the factory or establishment or elsewhere or

they are directly employed by the principal employee or through an intermediate

agency, if the employment is incidental or in connection with the factory or

establishment.

The Employee State Insurance act was promulgated by the Parliament of India in

the year 1948, and was initially launched on 2nd February 1952 at just two

industrial centers in the country namely Kanpur and Delhi with a total coverage of

about 1.20 lakh workers.

The ESI Act is a social welfare legislation enacted with the object of providing

certain benefits to employees in case of sickness, maternity and employment

injury. Under the Act, employees will receive medical relief, cash benefits,

maternity benefits, pension to dependents of deceased workers and compensation

for fatal or other injuries and diseases.

Contribution

E.S.I. Scheme being contributory in nature, all the employees in the factories or

establishments to which the Act applies shall be insured in a manner provided by

the Act. The contribution payable to the Corporation in respect of an employee shall

comprise of employer’s contribution and employee’s contribution at a specified rate.

The rates are revised from time to time. Currently, the employee’s contribution rate

(w.e.f. 1.1.97) is 1.75% of the wages and that of employer’s is 4.75% of the wages

paid/payable in respect of the employees in every wage period. Employees in

receipt of a daily average wage upto Rs.50/- w.e.f. 01-04-2004 are exempted from

payment of contribution. Employers will however contribute their own share in

respect of these employees.

Q5. Explain IESO Act? What are it’s major features?

Ans: Industrial Employment Standing Orders Act (IESO Act) is applicable only to

industrial establishments where more than 100 workmen are engaged. For all

practical purposes, as the workman would be treated as contractor's employee, the

number of workmen working in the principal employer's establishment (if they are

more than 100), is immaterial. In such case, IESO Act will be applicable to the

permanent employees of the principal employer and not contractual workers

working in the same establishment through contractor.

Features of IESO Act

� Classification of workmen, e.g., whether permanent, temporary, apprentices,

probationers, or badlis.

� Manner of intimating to workmen periods and hours of work, holidays, pay-

days and wage rates.

� Shift working.

� Attendance and late coming.

� Conditions of, procedure in applying for, and the authority which may grant

leave and holidays.

� Requirement to enter premises by certain gates, an liability to search.

� Closing and reporting of sections of the industrial establishment, temporary

stoppages of work and the rights and liabilities of he employer and workmen

arising there from.

� Termination of employment, and the notice thereof to be given by employer

and workmen.

� Suspension or dismissal for misconduct, and acts or omissions which

constitute misconduct.

� Means of redress for workmen against unfair treatment or wrongful exactions

by the employer or his agents or servants.

� Any other matter which may be prescribed.

PART – B

Q1. Write short notes on

a. Types of Conciliation b. Parties of “Industrial Dispute”

Ans 1a): Conciliation proceeding could be of two types:

� Facilitative conciliation

� Evaluative conciliation

In facilitative conciliation, the conciliator avoids opinion and judgments and he

merely assists the parties to clarify their communications, interest and priorities. On

the other hand, in evaluative conciliation, the conciliator expresses his opinion on

the merit of the issues so as to enable the parties to approach settlement. His

opinion is a third party view on the merit but such opinion would not be conclusive

and binding.

A conciliator must be seen as an independent and impartial person and he must

enjoy confidence of both the parties. The parties should be able to repose trust and

confidence on him so as to enable them to share their secrets and their thinking

process with the conciliator with the belief that the same should not be divulged to

other party without specific instructions in that regard. Therefore, a conciliator is

bound by rules of confidentiality and not by the strict rules of the Code of Civil

Procedure, 1908 and the Indian Evidence Act, 1872.

A party desiring to avail of the remedy could take resort to the said procedure

during pre-litigation and even during the pendency of litigation. If the effort fails,

the parties can always come back to litigation. However, during the pendency of

conciliation preceding a party is not entitled to pursue litigation.

A large number of disputes arise in the commercial areas, matrimonial matters and

labour and employment areas. These disputes are being resolved by resorting to

litigation. However, in these areas conciliation and mediation could play an effective

role in bringing about a solution as they involve emotional angle and strong feelings

in the disputing parties, which are best settled by conciliation.

Ans 12): An industrial dispute may be defined as a conflict or difference of opinion

between management and workers on the terms of employment. It is a

disagreement between an employer and employees' representative; usually a trade

union, over pay and other working conditions and can result in industrial actions.

When an industrial dispute occurs, both the parties, that is the management and

the workmen, try to pressurize each other.

As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined

as any dispute or difference between employers and employers, or between

employers and workmen, or between workmen and which is connected with the

employment or non-employment or the terms of employment or with the conditions

of labor, of any person.

This definition includes all the aspects of a dispute. It, not only includes the

disagreement between employees and employers, but also emphasizes the

difference of opinion between worker and worker. The disputes generally arise on

account of poor wage structure or poor working conditions. This disagreement or

difference could be on any matter concerning the workers individually or

collectively. It must be connected with employment or non-employment or with the

conditions of labor.

From the point of view of the employer, an industrial dispute resulting in stoppage

of work means a stoppage of production. This results in increase in the average

cost of production since fixed expenses continue to be incurred. It also leads to a

fall in sales and the rate of turnover, leading to a fall in profits. The employer may

also be liable to compensate his customers with whom he may have contracted for

regular supply. Apart from the immediate economic effects, loss of prestige and

credit, alienation of the labor force, and other non-economic, psychological and

social consequences may also arise. Loss due to destruction of property, personal

injury and physical intimidation or inconvenience also arises.

For the employee, an industrial dispute entails loss of income. The regular income

by way of wages and allowance ceases, and great hardship may be caused to the

worker and his family. Employees also suffer from personal injury if they indulge

into strikes n picketing; and the psychological and physical consequences of forced

idleness. The threat of loss of employment in case of failure to settle the dispute

advantageously, or the threat of reprisal action by employers also exists.

Q2. What is ‘collective bargaining’ & types of ‘collective bargaining’?

Describe in detail essential factors for the success of collective bargaining.

Ans: Collective bargaining is a process of negotiations between employers

and the representatives of a unit of employees aimed at reaching

agreements that regulate working conditions, which usually set out wage

scales, working hours, training, health and safety, overtime, grievance

mechanisms and rights to participate in workplace or company affairs.

Subsequently, the union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a

group of businesses, depending on the country, to reach an industry wide agreement.

Collective bargaining consists of the process of negotiation between representatives of a union and employers (generally represented by

management, in some countries[which?] by an employers' organization) in respect of the terms and conditions of employment of employees, such as

wages, hours of work, working conditions and grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective

bargaining agreement (CBA) or as a collective employment agreement (CEA), and the right to bargain collectively with an employer enhances the

human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby

gain some control over a major aspect of their lives.

Collective bargaining is not simply an instrument for pursuing external end, but rather, intrinsically valuable as an experience in self-government that permits workers to achieve a form of workplace democracy and to ensure

the rule of law in the workplace.

Workers gain a voice to influence the establishment of rules that control a major aspect of their lives, since collective bargaining is a type of

negotiation used by employees to work with their employers because during a collective bargaining period, workers' representatives approach the

employer and attempt to negotiate a contract which both sides can agree with.

Q3. What are the major forums of worker’s participation? What are the

major hurdles for workers participation?

Ans: Workers have several channels through which they can participate in

corporate governance. Participation typically involves worker representatives

becoming involved in formal corporate governance mechanisms. One form is

membership on the corporate board of directors, and another is works councils.

Collective bargaining between management and labor unions, which is not

considered as a formal governance mechanism, also has a significant impact on

corporate decision-making.

The major hurdles in optimizing human resources in the organizational context

seem to be wide spread alienation among the workers. One needs to follow the

Principal - "Prevention is better than cure" and try prevent (or at least reduce the

possibility) of alienation. It is not an easy job - no readymade answer are available.

Dealing with job enrichment, quality of working life, job involvement and such

prevalent and popular domains might help in tackling such a problem.

Q4. Distinguish between ---

a. Arbitration & National tribunal b. Domestic enquiry & labor court

Ans 4a)

Arbitration: Arbitration is the process of bringing a business dispute before a

disinterested third party for resolution. The third party, an arbitrator, hears the

evidence brought by both sides and makes a decision. Sometimes that decision is

binding on the parties.

National tribunal: The Central Government may set up a National Tribunal for

adjudication of industrial disputes which in its opinion involve questions of national

importance or are of such nature that industrial establishments in more than one

State are likely to be interested in such disputes.

The Presiding Officer of a Labour Court should at least have held a judicial office for

not less than 7 years or been a Presiding Officer of a labour Court under a State Act

for not less than 5 years. He may also have higher qualifications such as being a

District Judge or an Additional District Judge for three years or a High Court Judge.

The Presiding Officer of an Industrial Tribunal should have been at least a District

Judge or an Additional District Judge for three years. Alternatively, he should have

held the post of a judge in a High Court. No person can be appointed as the

presiding Officer of a National Tribunal unless he has held the post of a Judge in a

High Court.

Ans 4b:

Domestic Enquiry:

Domestic enquiry is similar to a trial in a court of law, but while a trial in a court is

for crimes done against society, domestic enquiry is conducted for offences

committed against the establishment for misconduct, punishable under the standing

orders/rules and regulations of the organization.

Further, while a trail in a court is in accordance with the criminal procedure code,

civil procedure code, evidence act, the domestic enquiry is conducted in terms of

what is known as ‘Natural Justice’. Also, the enquiry officer while examining the

evidence and pronouncing on the guilt is not authorized to penalize the employee.

It is only the employer or the appointing authority also known as notified

disciplinary authority who can pronounce the penalty.

Labour Court:

Labour Court can give appropriate relief in case of discharge or dismissal of

workmen. Where an industrial dispute relating to the discharge or dismissal of a

workman has been referred to a Labour Court, Tribunal or National Tribunal for

adjudication and, in the course of the adjudication proceedings, the Labour Court,

Tribunal or National Tribunal, as the case may be, is satisfied that the order of

discharge or dismissal was not justified, it may, by its award, set aside the order of

discharge or dismissal and direct re-instatement of the workman on such terms and

conditions, if any, as it thinks fit, or give such other relief to the workman including

the award of any lesser punishment in lieu of discharge or dismissal as the

circumstances of the case may require - Provided that in any proceeding under this

section the Labour Court, Tribunal or National Tribunal, as the case may be, shall

rely only on the materials on record and shall not take any fresh evidence in

relation to the matter.

Q5. What is the procedure to register a trade union? Explain how political

affiliation help trade unions?

Ans: A trade union can be made permanent and stable only if it is registered under

the Trade Union Act. A registered trade union enjoys various privileges, benefits

and immunities, and therefore, most sponsors of a trade union are tempted to

register it. After registration, a trade union is entitled to represent its members.

Procedure for Registration of a Union

As per Section 4 of the Trade Union Act, a minimum of 10 members of a trade

union shall apply for registration, with the total number of members being 100 or

less. In all other cases, at least seven members of a union shall apply for

registration.

However, in cases where less than half the number of applicants who originally

applied for registration withdraw their membership from the union after submitting

the application of registration, the application shall not be considered invalid.

The application shall be submitted in Form A to the Registrar along with the rules of

the union and other mandatory details, such as name of the trade union, names,

addresses and occupations of the applicants and the office bearers and address of

the main office of the trade union.

As per Section 6 of the Trade Union Act, a trade union cannot be registered unless

it adheres to the provisions of the Act. Here are some mandatory rules to be

satisfied by a trade union to be eligible for registration:

� Name of the Trade Union.

� Objectives of its establishments

� The lawful purpose of spending the general funds

� Maintenance of list of members, sufficient facilities for its scrutiny by the

office bearers and union members.

� Payment of monthly membership fee of 25 paise

� Safe custody of funds

� Conduction of annual audits

Certain trade unions also have political affiliation. For instance, the INTUC is

affiliated with the Congress Party, whereas the AITUC is affiliated with the

Communist Party of India. In addition to the interference of political leaders, such

affiliation has, at times, led to multi-unionism (i.e., multiple unions in the same

organization), which creates complexities for the employer especially during the

collective bargaining process.

PART – C

Q1. What are the implications of bata shoe company v. d.n ganguly case?

What is importance of section 11-A of industrial dispute Act?

Ans: During the course of conciliation proceedings in respect of a dispute between

the appellant company and its workmen a settlement was arrived at between the

parties on February 18, 1954. Despite the settlement some of the workmen went

on strike on February 23, 1954, but eventually it was called off on March 19 and

20, 1954. On the ground that the strike was illegal because it took place during the

currency of a settlement, the appellant took steps to serve charge-sheets on the

workmen who had joined the strike and, after a managerial inquiry, dismissed sixty

of them. There were conciliation proceedings in respect of the dismissal of the

workmen before the Labour Commissioner and an agreement was arrived at

between the appellant and the union on September 2, 1954. The Labour

Commissioner was apprised of this settlement, but since it was found that the

union was opposing reinstatement of certain workmen, he proposed to hold further

conciliation proceedings. The appellant was against holding further conciliation

steps and, therefore, the Labour Commissioner reported the matter to the

Government under s. 12(4) of the Industrial Disputes Act, 1947.

A reference was accordingly made and the Tribunal gave the award under which all

the dismissed workmen were to be reinstated on the ground that they had not been

shown to have taken part in violence and there were extenuating circumstances in

their case inasmuch as they were misled to join the strike in order to oust the old

office bearers of the union so that others might be elected in their place, and that

though a much larger number of workmen had taken part in the illegal strike and

the union took up the case, only these sixty were eventually dismissed while the

rest were reinstated. The appellant objected to the award on the grounds (1) that

as a settlement had been arrived at during the course of conciliation proceedings on

September 2, 1954, which specifically dealt with the case of these sixty workmen,

the reference was incompetent in view of s. 18 of that Act, (2) the reference was

also incompetent because what was referred was riot an industrial dispute but a

dispute between the employer and its individual workmen, and (3) the Tribunal's

order of reinstatement was in any case unjustified.

According to Section 11A: Powers of Labour Court, Tribunals and National Tribunals

to give appropriate relief in case of discharge or dismissal of workmen. Where an

industrial dispute relating to the discharge or dismissal of a workman has been

referred to a Labour Court, Tribunal or National Tribunal for adjudication and, in the

course of the adjudication proceedings, the Labour Court, Tribunal or National

Tribunal, as the case may be, is satisfied that the order of discharge or dismissal

was not justified, it may, by its award, set aside the order of discharge or dismissal

and direct re-instatement of the workman on such terms and conditions, if any, as

it thinks fit, or give such other relief to the workman including the award of any

lesser punishment in lieu of discharge or dismissal as the circumstances of the case

may require : [Provided that in any proceeding under this section the Labour Court,

Tribunal or National Tribunal, as the case may be, shall rely only on the materials

on record and shall not take any fresh evidence in relation to the matter.]

Q2. Write short notes on---

a. “victimization” as per supreme court judgment in bharat iron works v.

bhagubhai patel

b. National commission on labor

Ans 2a: “victimization” as per supreme court judgment in bharat iron

works v. bhagubhai patel

Ordinarily a person is vitimised if he is made a vitim or a scapegoat and is

subjected to persection, prosecution or punishment for no real fault or guilt of

his own. If actual fault or guilt meriting punishment is established, such action

will be rid of the taint of victimisation. [283F]

Victimisation may partake of various types, as for example, pressurising an

employee to leave the union or union activities, treating an employee in a

discriminatory manner or inflicting a grossly monstrous punishment which no

rational person would impose upon an employee and the like. Victimisation is a

serious charge by an employee against an employee and, therefore, it must be

properly and adequately pleaded. The charge must not be vague or indefinite.

The fact that there is a union espousing the cause of the employees in

legitimate trade union activity and an employee is a member or active office-

bearer thereof, is per se no crucial instance. [283G]

The onus of establishing a plea of victimisation will be upon the person pleading

it. Since a charge of victimisation is a serious matter reflecting to a degree,

upon the subjective attitude of the employer evidenced by acts and conduct,

these have to be established by safe and sure evidence. Mere allegations, vague

suggestions and insinuations are not enough. All particulars of the charge brought

out, if believed, must be weighed by the Tribunal and a conclusion should be

reached on totality of the evidence produced. [284C-D]

Victimisation must be directly connected with the activities of the concerned

employee inevitably leading to the penal action without the necessary proof of valid

charge against him. [284D]

Ans 2b: THE National Commission on Labour has made certain important and path-

breaking recommendations in the context of the review of labour laws. A few

important points from the report are given below:

� The Commission recommends a specific provision in the Trade Union Act to

enable workers in the unorganised sector to form trade unions and register

them. It has recommended a waiver of the condition of employer-employee

relationship and also of the 10 per cent membership in the establishment.

This is a path-breaking recommendation that can pave the way for bringing

into the fold of the labour movement 92 per cent of the workers in the

unorganised sector.

� The Commission has recommended using the check-off system to determine

the negotiating agent in an establishment. Moreover, by fixing 66 per cent

membership for entitlement as negotiating agent, the panel has not favoured

the principle of simple majority but has opted for two-thirds majority. If the

condition is not satisfied, a composite negotiating agent from among

representatives of unions with support of more than 25 per cent has been

recommended.

� The Commission has recommended a three-tier system of Lok Adalats,

Labour Courts and the Labour Relation Commission. While the Lok Adalats

and Labour Courts deal with individual grievances and complaints, the Labour

Relations Commission has been empowered to deal with both individual

problems and those of collective bargaining a settlement cannot be reached

through bilateral negotiations.

Q3. What is the difference between?

a. check off & exit interview

b. settlement & award

Ans 3a:

Check Off:

The collection of union dues by employers through compulsory deduction from each

worker's wages

A voluntary contribution from one's income tax for a specific purpose, as the public

financing of election campaigns, made by checking off the appropriate box on a tax

return.

Exit Internview:

An exit interview is typically a meeting between at least one representative from a

company's human resources (HR) department and a departing employee. (The

departing employee usually has voluntarily resigned vs. getting laid off or fired.)

The HR rep might ask the employee questions while taking notes, ask the employee

to complete a questionnaire, or both.

Ans 3b) settlement & award

The difference is that settlement arrived at in course of conciliation or an arbitration

award or award of labour court or Tribunal binds all parties to industrial dispute

including present and future workmen and all parties who were summoned to

appear in the proceedings. (Section 18(3)].

If settlement is arrived at by mutual agreement, it binds only those who were

actually party to agreement. [section 18(1)]

Q4. What are the main features of workers in the management bill 1990?

How these features can be enforced?

Ans: Main features of workers in the management bill 1990:

� The Bill is to be applicable to all units covered under the ID Act, 1947 and

the definition of Appropriate Government prevailing in the ID Act is to be

made applicable.

� The Central Government will be responsible for enforcing the law in all cases

where the Central Government is the appropriate Government under the ID

Act, 1947 and also in enterprises where the Central Government holds 51%

or more of the paid up share capital. In the remaining cases, the

responsibility for enforcement will be that of the State Government.

� The Bill provides for formulation of one or more schemes to be framed by the

Central Government for giving effect to the provisions of the law which will

include, among others, the manner of representation of workmen at all the

three levels and of other workers at the Board level, nomination of

representatives of employers on the shop floor and establishment level

councils, procedure to be followed in the discharge of the functions of the

Councils etc.

� The Bill proposes to constitute one or more Councils at the shop floor level

and a Council at the establishment level. These Councils shall consist of

equal number of persons to represent the employers and the workmen. The

Appropriate Government shall in consultation with the employer and taking

into account the total number of workmen, the number of levels of authority,

the number of shop floors determine the number of persons who shall

represent the employer and the workmen in a Council.

� The Bill also envisages a Board of Management at the Apex level where

representatives of the workmen as defined under the ID Act shall constitute

13% and persons representing other workers shall constitute 12% of the

total strength of such management. The persons to represent the workmen

and other workers in the Board of Management shall be elected by and from

amongst workmen and other workers of the industrial establishment or by

secret ballot.

Feature can effective

� Employer should adopt a progressive outlook. They should consider the

industry as a joint endeavour in which workers have an equal say. Workers

should be provided and enlightened about the benefits of their participation

in the management.

� Employers and workers should agree on the objectives of the industry. They

should recognize and respect the rights of each other.

� Workers and their representatives should be provided education and training

in the philosophy and process of participative management. Workers should

be made aware of the benefits of participative management.

� There should be effective communication between workers and management

and effective consultation of workers by the management in decisions that

have an impact on them.

� Participation should be a continuous process. To begin with, participation

should start at the operating level of management.

� A mutual co-operation and commitment to participation must be developed

by both management and labour.

� Modern scholars are of the mind that the old adage “a worker is a worker, a

manager is a manager; never the twain shall meet” should be replaced by

“managers and workers are partners in the progress of business”

Q5. What is gratuity? What can an employee do if he is being refused his

gratuity on leaving his company after seven years of service?

Ans: Gratuity is a part of salary that is received by an employee from his/her

employer in gratitude for the services offered by the employee in the company.

Gratuity is a defined benefit plan and is one of the many retirement benefits offered

by the employer to the employee upon leaving his job. An employee may leave his

job for various reasons, such as - retirement/superannuation, for a better job

elsewhere, on being retrenched or by way of voluntary retirement.

If the employee fails to receive the payment from the employer after having

entered into full and final settlement of the account, the employee can file a civil

suit for recovery of office dues. In case gratuity has not been paid then the

employee can proceed under the provisions of Payment of Gratuity Act and then in

case Provident Fund has not been released after the employee leaving, then he can

proceed under the provisions of the Provident Fund Act

CASE STUDY – I

Suma ltd is having its plant in Ghaziabad where 500 workers are working. It has

also got workers union in the plant. It opened a new plant in greater noida where

300 workers got jobs. The new plants’s workers decided to form a separate union

but company refused to allow formation new union. The workers went on a strike &

also damaged property of the company. After hectic negotiations, the strike was

called off. But the company asked workers to sign a undertaking that they will

neither resort to violence nor they will damage any property of company. The

workers refused to do so & again went on strike. Based on above facts answer the

following questions—

Q1: Can any company refused formation of new union by its workers?

Answer: A company cannot refuse any formation of unions within the company. It

is their universal rights to organize into unions to be able to collectively bargain

with the company for better working conditions in the workplace, better salaries

and benefits, work rules and better grievance machineries in place to prevent

abuse.

Q2: What actions a company can take against those workers who damaged

the property of company?

Answer: While it is true that labor unions protect their rank against abuse from

employers, the company has also the right to protect their interests including

corporate property and facilities. The company can take actions, such as filing

cases and oblige payment for damage to property and facilities, against individual

union members or officers. The union does have a right to strike but do not have

prerogative to destroy company property to express their grievance or frustrations.

Q3: Can workers refuse signing of such bond? Can company incorporate

these conditions in its standing order? If yes how?

Answer: Workers has the right to refuse signing of bonds that would be construed

as abusive or has not been briefed on what the bond entails including conditions

and penalties. The company must ensure that the Bonds should be written (i.e.

documented), contains provisions that would spell out detailed conditions (and in a

way do not abuse workers’ rights and privileges) covering employees under this.

After the draft document is done, the company should explain this first to union

leaders and disseminated to members of the union. If everyone agrees to the

conditions of the Bond, then everyone should sign the document, copies be kept by

the Management and Union Officers under file and key. If disputes are encountered

during the period of its implementation, the signed document should be the key to

settle any dispute involving Bonds.

CASE STUDY – II

Princess was employed in company for last 3 year. One day she was caught stealing

from the company. She was dismissed from the job with one month salary. Is the

company’s action legal? If you were the labor officer, how would you terminate

services of such employee. (Give proper procedure)

Case Solution: While it is true that Princess should be terminated for stealing and

dismissed from service, as a Labor Officer I will observe due process and do the

following before terminating her services:

1. After reporting the incident to the Human Resources Department, the HR or

Labor Officer should serve a written notice to Princess to explain her side of

the incident. It would also contain the allegations hurled against her and

give her a period to explain her side. The period should be at least 24-48

hours. She is also advised to prepare for an Investigation that will take place

and to confront her accusers.

2. Gather witnesses that would prove that Princess was indeed involved in the

thefts within the company. All witnesses’ accounts should be documented.

3. Ask the Accounting Department to do an Audit of her work for the past three

years to check whether there were losses that were not reported. This will

form part of the investigation later on.

4. Temporarily suspend Princess during the Investigation Period to avoid

intimidating witnesses or anyone involved in the investigation

5. On the day of the investigation, read all the accusations hear and receive her

accounts and do a cross check of the facts stated herein.

6. After which, recommend termination of her services. Although she is entitled

to be compensated for her services, however; total compensation for which

she is entitled to shall be on the basis of her last pay less the amount she

stole from the company.

7. Princess will be given termination notice plus her compensation on the last

day. She will be asked to sign a Quit Claim. There is also an option to sue

her in court as well.