1. business environment

2. MODULE – 4 LaBOUR ENVIRONMENT
Dharmendra Pandey
Assistant Professor
@profdpandey

3. Module IV- Labour Environment
Labour legislation in India
Social Security benefits
Industrial disputes- causes and preventive measures
Settlement of Disputes
ILO
Trade Union- meaning and function,
Trade Union Act

4. Labour Legislation in India4 4

5. Labour Environment Introduction
Labour – an active and important factor of production;
It embodies both physical and mental labour;
It covers all the levels of hierarchy from top management to the workers at the shop floor level.
Labour environment –
refers to the conditions which affect the working environment of labour and management and the relationship between the two (Labour & the Mgmt.).
It is greatly conditioned by the socio-economic and cultural factors, and the labour laws in force.

6. A Congenial labour environment:
Promotes domestic and foreign investment;
Increases efficiency, productivity and competitiveness of business organisations;
Increases the level of motivation, and work satisfaction;
Results in better utilisation of productive assets;
Promotes employment;
Promotes industrial peace;
Increases the role and status of workers in the society;
Promotes work culture; and
Promotes growth of the economy. 6 6

7. Need for Labour Legislation (Laws)
Protection of labour interests is also held as one of the important responsibilities of the State (government) in democratic countries.
Article 42 and 43 of the Directive Principles in the Constitution of India imposes an obligation on the State to secure, by suitable legislation, for all workers: work, a living wage and decent working conditions.
From time to time, the government has been bringing various forms of Labour Legislations in India, to protect the interest of labour.
Labour is an item included in the Concurrent List in the Constitution, which implies that both Union and State governments can legislate on this matter.

8. Labour Legislation (Laws) in India
1. Payment of Wages Act, 1936: Ensures that industrial workers receive payment of their wages at regular intervals and that no unauthorised deductions are made from their wages.
2. Minimum Wages Act, 1948: empowers the Government to fix, review, revise, and enforce minimum wages of workers employed in all scheduled employments.
3. Payment of Bonus Act, 1965: provides for the payment of bonus to all employees working in industrial establishments and drawing up to Rs. 3,500 p.m.

9. Labour Legislation (Laws) in India
4. Bonded Labour System (abolition) Act, 1976: This Act abolishes bonded labour system in India. Under the Act, every bonded labourer stands freed and discharged from any obligation to render any bonded labour.
5. Trade Unions Act, 1926: The Act lays down procedure for registration of trade unions and defines their rights and liabilities. Members of registered trade unions get protection against various civil and criminal liabilities which they are likely to incur in promoting and safeguarding their legitimate interests.

10. Labour Legislation (Laws) in India
6. State Acts on Shops and Commercial Establishments: covers all wage earners employed in shops, commercial establishments, restaurants, theaters, cinemas, and other places of work. These Acts contain provisions related to opening and closing hours, hours of work, rest intervals, overtime rates, and weekly holidays.
7. Factories Act, 1948: provides for the licensing, registration, and inspection of factories, for protecting the interests of workers by ensuring for them better work conditions, and safe and healthy working conditions in factories.

11. Labour Legislation (Laws) in India
8. Industrial Disputes Act, 1947: The main objectives of the Act are: -
Promotion of measures for securing good relations between employers and workers;
Investigation and settlement of disputes between labour and employers, workmen and workmen, employers and employers;
Prevention of illegal strikes and lockouts; and
Providing relief to workers adversely affected by retrenchments (layoffs).

12. Labour Legislation (Laws) in India
9. Equal Remuneration Act, 1976 – This Act seeks: -
to protect the interests of women labour;
equal remuneration to women workers (as that paid to men workers) for same / similar work;
that women are not discriminated against in matters of recruitment or service conditions.

13. Social Security Benefits and Welfare of the Labour:

14. Welfare and Amenities within the Organization: 1. Lavotaries. 2
Welfare and Amenities within the Organization: 1. Lavotaries. 2. Washing and bathing facility. 3. Crèches. 4. Rest shelters and canteens. 5. Drinking water. 6. Arrangement of prevention of Fatigue. 7. Health service including occupational safety. 8. Administration arrangements inside a plant to look after welfare. 9. Uniforms and protective clothing. 10. Shift allowance.

15. :Welfare and Amenities outside the Organization: 1. Maternity benefits
:Welfare and Amenities outside the Organization: 1. Maternity benefits. 2. Social security measures like insurance, gratuity, PF and rehabilitation. 3. Benevolent funds. 4. Medical facilities, including programmes for Physical fitness and efficiency, family planning and child welfare. 5. Educational facility including adult education. 6. Housing facility and Transportation. 7. Recreational facility. 8. Holiday facility, LTC. 15

16. A.Acts that provide security in cases of employment injury, maternity and sickness: 1. The workmen’s Compensation Act, The Maternity Benefits Act, The Employees’ State Insurance Act, B. Acts that cover the risks of old age and unemployment: 1. The Employees’ Provident fund and Miscellaneous Provisions Act, The Payment of Gratuity Act, The Industrial Disputes Act, The coal mines Provident Fund, Family Pension and Bonus Act, 1948.

17. Social Security Measures (benefits) in India
1. Workmen’s Compensation Act, 1923: It provides compensation to workers in case of industrial accidents and injury. Under this Act compensation is paid by the employer and the amount of compensation depends upon the nature of injury and the salary of the worker concerned. There is no wage limit for coverage under the Act. It covers all workers employed in factories, mines, plantations, mechanically propelled vehicles, construction workers, and certain other hazardous occupations. The Act is, however, not applicable to the persons who are covered by Employees State Insurance Act, 1948.

18. Social Security Measures (benefits) in India
2. Employees’ State Insurance Act, 1948:
The purpose of this Act is to provide compulsory and contributory health insurance facilities to workers. It provides for medical care and treatment (to workers and to their families), cash benefit during sickness, maternity benefits, employment injury, pension to the dependents on the death of worker. The Act covers employees working in organised industrial sector and whose monthly income is less than Rs. 7,500.

19. Social Security Measures (benefits) in India
3. Employees’ Provident funds and Miscellaneous Provision Act, 1952 :
The Act provides for provident fund (PF), family pension, and deposit linked insurance for employees working in industrial establishments. The pay (Basic pay + D.A) limit for the purpose of coverage under the Act is Rs. 6,500 p.m. The scheme is compulsory and contributory. Both, the employer and the employee contribute equally (a fixed percent of employee’s monthly pay) on a monthly basis into the PF account of the employee with the PF department (of government). Interest is credited on a regular basis on the accumulated balance in the account. On retirement (or death), the money is given to the employee (or to his family).

20. Social Security Measures (benefits) in India
4. Payment of Gratuity Act, 1972:
The Act covers employees working in factories, mines, oilfields, plantations, ports, railways, companies, shops or other establishments employing more than 10 persons;
There is no wage ceiling for getting benefit under this Act;
On completion of 5 years of service, the employee is entitled to gratuity payable at the rate of 15 days wages for each completed year of service, subject to a maximum of Rs. 3.5 lacs.

21. Industrial Disputes Introduction
There are conflicts between employers and workers;
These conflicts (disputes) have different forms;
From the side of workers, the protests may be in the form of: strikes, go slow, gheraos, demonstration etc.;
From the side of employers, it could be in the form of: retrenchment, dismissals, lockouts etc.
Industrial disputes result in loss of production and decline in national income;
It is, therefore, in interest of all, to look into factors responsible (causes) for such disputes and the methods used to remove them.

22. Causes of Industrial Disputes
Workers demand for more wages (wages not rising in proportion to rise in prices);
Workers demand for bonus the increase in bonus: There is an increasing feeling among workers that they should have greater share in the profits. Non-acceptance of this fact by the employers becomes a source of friction;
Demand for improved working conditions – such as normal working hours, lunch time, holidays and leaves, better occupational health & safety measures at workplace, drinking water, clean washrooms, medical facilities, canteens, restrooms, etc. – their absence or lacking may cause workers protest.

23. Causes of Industrial Disputes
Labour retrenchment or dismissal;
Non-implementation of Labour Acts, awards and agreements, standing orders by the employers;
Workers indiscipline and violence – resulting into lockouts. When the managements think that labour productivity has failed to rise commensurate with the rise in wages, consequently, the managements think that it is better to close down than pay inflated wages to an undisciplined labour force;

24. Settlement of Industrial Disputes
Under the Industrial Dispute Act (IDA), 1947, the following arrangement exists for the prevention and settlement of industrial disputes: -
Works Committees – these are joint committees comprising members from both, management and the workers, and is set up in order to promote harmonious relations between the two groups. These committees provide a forum for negotiations between workers and management at the factory level.
Conciliation - under this, all establishments employing 50 workers or more, are required to establish Grievance Settlement Authority (GSA). All labour disputes have to be initially referred to it. If the decision of the GSA is not acceptable to all the concerned parties, then it is referred to a conciliation officer appointed by the Government for the purpose.

25. Settlement of Industrial Disputes
If a settlement is arrived, the conciliation officer sends his report with the Memorandum of Settlement (signed by all the parties to the dispute) to the government. If the settlement is not arrived, the reasons for non-settlement are recorded and a report (of non-settlement) is sent to the government, which may then constitute a Board of Conciliation (consisting of a Chairman – an independent person, and members from both management and workers). The Board then reports to the government about the success or failure of its efforts;
Arbitration - In arbitration mechanism, the concerned parties, by mutual agreement, can refer the dispute to an arbitrator (an external third person, acceptable to all) before the same has been referred for adjudication.

26. Settlement of Industrial Disputes
In case the matter is not solved by arbitration, it is then referred to court (i.e. for adjudication);
Court of Enquiry – Whenever the industrial dispute is not settled by conciliation and arbitration, the matter is referred to a court of enquiry. The court will investigate the whole dispute and will submit its report to the government (within a period of six months from the date of commencement of its inquiry). The case will then be referred to either a Labour Court or an Industrial Tribunal for adjudication;
Adjudication (to deliver judgment) – Under the IDA, 1947 the adjudication mechanism is divided into two, depending upon the type of problem - The labour Court, and the Industrial Tribunals. The latter could be of two types, viz., State Tribunals, and National Tribunals.

27. Settlement of Industrial Disputes
5 a) Labour Courts – Set up by State governments; Decide matters (contained in the 2nd Schedule of IDA, 1947) like disputed orders of the employers, dismissals, suspensions of employees, legality of strikes, lock-outs etc. The labour courts decide matters speedily and report to the government.
5 b) Industrial Tribunals – These tribunals decide matters (contained in 3rd Schedule of IDA, 1947) related to wages, bonus, allowances, other benefits, working conditions, discipline, retrenchment etc.). When set up by the State Govt. they are called State Tribunals. National Tribunals are set up by the Central Govt. to decide upon matters of national importance or which affect industrial establishments situated in more than one State.

28. Trade Unions
Definition: According to V.V. Giri, “Trade Unions are voluntary organisations (associations) of workers formed to promote and protect their interests by collective action”;
Functions of Trade Unions (According to National Commission on Labour):
To secure for workers fair wages;
To safeguard security of tenure and improve conditions of service;
To improve opportunities for promotion and training;
To provide for educational, cultural and recreational facilities;
To co-operate in and facilitate technological advance by broadening the understanding of workers;

29. Trade Unions Continued –
To promote interests of workers in their industries;
To promote production and productivity, discipline and high standards of quality;
To promote individual and collective welfare.
Trade Union Act, 1926
Objectives – To lay down the procedure for registration of Trade Unions, defining their rights and liabilities, regulating their activities, and making them more purposeful for the society.
The Act extends to the whole of India.

30. Provisions of the Trade Union Act, 1926
Section 3: Appointment of Registrars -
The appropriate Government is empowered to appoint a Registrar of Trade Unions for each State. It may also appoint Additional and Deputy Registrars of Trade Unions.
Section 4: Mode of Registration -
Any seven or more members of a Trade Union may apply for registration of the Trade Union under this Act:
by subscribing their names to the rules of the Trade Union; and
by complying with the provisions of this Act with respect to registration.

31. Provisions of the Trade Union Act, 1926
Section 5: Application for registration
Application for registration of a Trade Union shall be made to the Registrar and shall be accompanied by:
A copy of the rules of the Trade Union;
Statement of the following particulars:-
The names, occupations and addresses of the members making the application.
The name of the Trade Union and the address of its head office.
Where a Trade Union has been in existence for more than one year before the making of an application for its registration it needs to submit a statement of the assets and liabilities held by it.

32. Provisions of the Trade Union Act, 1926
Section 6:
A Trade Union shall not be entitled to registration under this Act, unless its executive body is constituted in accordance with the provisions of this Act, and its rules provide for the following:
the Name of the Trade Union;
the Object for which the Trade Union has been established; and
the purposes for which the general funds of the Trade Union shall be applicable.

33. Provisions of the Trade Union Act, 1926
Section 8, 9: Registration
The Registrar, on being satisfied that the Union has complied with all the requirements of this Act in regard to registration, shall register and issue a certificate of registration to the Trade Union.
Note:
The Registrar cannot refuse to register a Trade Union if the application for registration complies with the technical requirement as laid down in this Act.

34. Provisions of the Trade Union Act, 1926
Section 10: Cancellation of Registration
The certificate of registration of a Trade Union may be withdrawn or cancelled:
On the application by the concerned Trade Union;
If the Registrar is satisfied that the certificate has been obtained by fraud or mistake.
Section 12: Registered office - All communications and notice to a registered Trade Union may be addressed to its registered office. Notice of any change in the address of the head office shall be given within fourteen days of such change to the Registrar in writing.

35. Provisions of the Trade Union Act, 1926
Section 13: Every registered Trade Union: -
Shall have separate legal existence and be known by the name under which it is registered.
It would have perpetual succession and a common seal;
Shall have power to acquire and hold both movable and immovable property;
Can sue and be sued.

36. Provisions of the Trade Union Act, 1926
Section 15: Objects on which general funds may be spent -
Payment of salaries, allowances and expenses to office bearers, expenses for the administration, compensation to members for loss arising out of trade disputes;
Allowance to members or their dependants on account of death, old age, sickness, accidents or unemployment;
Provision of educational, social or religious benefits for members or for the dependants of members;
Upkeep of a periodical published for the purposes of discussing questions affecting employers or workmen;
Any other object notified by the appropriate Government in the official Gazette.

37. Provisions of the Trade Union Act, 1926
Section 18: Immunity from civil suit to certain cases
No suit or other legal proceeding shall be maintained in any Civil Court against any registered Trade Union or its member in respect of any act done in contemplation or furtherance of a trade dispute to which such member or the Trade Union is a party.
Section 27: Dissolution
When a registered Trade Union is dissolved, notice for the dissolution signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of the dissolution, be sent to the Registrar.

38. International Labour Organization (ILO)38 38

39. International Labour Organization
The International Labour Organization (ILO) was established in 1919 after World War I at Versailles;
India become member of ILO in 1919;
ILO considers Labour peace essential for universal prosperity.
It (ILO) is a tripartite UN agency that brings together governments, employers and workers of its member states in common action to promote decent and productive work, throughout the world.

40. Key ILO Conventions
To promote its objectives, ILO has from time to time passed certain conventions (agreements between member States). Some of them are: -
Freedom of Association and Protection of the Right to Organize (1948)
Abolition of Forced Labour (1957);
Equal Remuneration (for work of equal value) (1951);
Elimination of Discrimination (a regards employment and occupation) (1958);
Minimum Age (1973).

41. Role of ILO in Promoting Industrial Relations:
Promoting International labour standards (decent working conditions, and enhanced labour productivity);
Promoting freedom, equity, security and dignity at work place;
A common platform (of employers, employees, governments, NGOs, and other experts) for international dialogue on labour issues;
It generates a worldwide Public Awareness for events, campaigns and issues concerning labour;

42. Role of ILO in Promoting Industrial Relations:
(continued)
Effort towards prohibition of Child Labour worldwide;
Protecting the rights of Migrant workers;
Promoting - Health, Safety, Welfare, and Social Security measures for workers worldwide;
Effort towards workers skills enhancement & training.

43. THANK YOU