group9 erec final

Upload: priyanka-pardasani

Post on 08-Apr-2018

233 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/6/2019 Group9 EREC Final

    1/24

    MDI, Gurgaon

    ROLE OF TRADEUNION IN NATIONAL

    AND GLOBALENVIRONMENT

    EMPLOYEE RELATIONS AND EMERGING CONTOURS

    FACULTY IN CHARGE : Mr. J.K. Jain

    SUBMITTED BY GROUP 9:

    Jigyasu Shukla 10PGHR17

    Navneet Gupta 10PGHR27

    Nishith Nishesh 10PGHR28

    Priyanka Pardasani

    10PGHR38

    Shikha Goyal 10PGHR45

    Yashraj Mahansaria

    10PGHR60

    http://images.google.co.in/imgres?imgurl=http://www.drumindia.org/images/mba-logo.jpg&imgrefurl=http://www.drumindia.org/drum_team.asp&h=77&w=56&sz=3&hl=en&start=7&tbnid=uNMM5E9X7JcU9M:&tbnh=72&tbnw=52&prev=/images%3Fq%3Dmdi%2Bgurgaon%26gbv%3D2%26ndsp%3D18%26svnum%3D10%26hl%3Den%26sa%3DN
  • 8/6/2019 Group9 EREC Final

    2/24

    ACKNOWLEDGEMENT

    We would first like to extend our gratitude to our Professor, Prof. J. K. Jain

    whose knowledge and experience has served as a continuous source of

    encouragement and motivation. Without his invaluable support and

    guidance, this project would not have been possible.

    We would also like to thank all those people who helped us understand

    the role of trade unions by giving their valuable inputs. We would like to

    extend a special vote of thanks to Mr. Varun Shrivastav, Operations

    Manager, Tata Steel, who shared his valuable inputs regarding the real life

    challenges and the role the trade union plays in the working of an

    organization and helped us understand better.

    Last but not the least, we would like to thank our esteemed institute,

    Management Development Institute, Gurgaon, for providing the entire

    infrastructure, without which this project would have remained an

    unfulfilled dream. We would also like to thank the Institute for helping us

    learn and appreciate what working in groups is all about.

    2

  • 8/6/2019 Group9 EREC Final

    3/24

    EXECUTIVE SUMMARY

    Trade Unionism is over a century old in India. The history and theoretical

    foundations of trade union movement vary across different parts of the

    world. In Europe, it was based on the Marxist theory of class conflict and

    the Communist Manifesto. In U.S., unionism is based on class

    collaboration under the capitalist system. Trade unions in India, as in

    many parts of the world are closely connected with political parties. We

    have briefly traced the origin of trade union movement in India and its

    changing relationship with politics and its role in economic development.

    The establishment of the ILO is an important milestone for the trade union

    movement.

    We have then studied the role of trade union in both national and global

    environment. We have also discussed the recent happenings in various

    industries and the role played by trade unions. We have also taken an

    interview from an industry expert who handles this domain to get a better

    picture of the live issues and challenges and the significant role played by

    trade unions.

    Lastly, we have come upon the conclusion that the goal of unions may be

    eternal, but the means of action should be adapted to changing times. In

    this era of intense competition, unions should consider cooperating with

    management in baking the cake and compete with the management in

    sharing it.

    3

  • 8/6/2019 Group9 EREC Final

    4/24

    TABLE OF CONTENTSINTRODUCTION ...................................................................................................... 5

    ROLE OF TRADE UNIONS ........................................................................................ 5

    ............................................................................................................................. 7

    OBJECTIVES OF TRADE UNIONS ............................................................................. 7

    ROLE OF TRADE UNIONS IN INTERNATIONAL ENVIRONMENT ...............................12

    UNITED STATES OF AMERICA............................................................................12

    FAMOUS STRIKES: THE MOST FAMOUS LABOR STRIKES IN USA ...........................14

    INDUSTRY INTERVIEW .......................................................................................... 17

    Part 2: Employee Perspective (Non-executive level) ........................................... 18

    Analysis: .............................................................................................................. 21

    CONCLUSION ....................................................................................................... 22

    4

  • 8/6/2019 Group9 EREC Final

    5/24

    INTRODUCTION

    Industrial relations deal with either the relationship between the state and

    employers and workers and organizations or the relation between theoccupational organizations themselves. Trade unions mean any

    combination whether temporary or permanent, formed primarily for the

    purpose of regulating the relations between workmen and employers for

    imposing restrictive conditions on the conduct of any trade or business.

    Trade Unions are basically organizations of workers and union leaders

    wherein they define promote and fight for the collective interests and

    rights of the workers. The trade union, through its leadership, bargains

    with the employer on behalf of union members and negotiates labour

    contracts (collective bargaining) with employers. Often Trade Unions

    affiliate to one or more national centres but they may also represent

    particular occupations, industries or general sectors of the economy.

    Tradeunions are generally classified as follows:

    General union- These represent workers from several firms from the

    same industry. They are also called industrial union.

    Craft union- These represent skilled workers in a particular field such as

    carpentry or welding.

    Industrial union- They represent workers in one industry or sector, for

    example steel or car workers.

    White-collar unions They represent workers in clerical and

    administrative jobs.

    ROLE OF TRADE UNIONS

    The core objective of the free trade union movement is the definition,

    promotion and implementation of the collective interests and rights of the

    workers, particularly in relation to employers, but also in relation to the

    state and as part of the broader civil society. Trade unions also provide

    their members with many social and welfare services.

    Trade unions have also frequently been in the forefront of wider strugglesfor political change, democracy and social justice. This has led to their

    5

    http://en.wikipedia.org/wiki/Labour_and_employment_lawhttp://en.wikipedia.org/wiki/Labour_and_employment_lawhttp://en.wikipedia.org/wiki/Collective_bargaininghttp://www.investorwords.com/5014/trade.htmlhttp://www.investorwords.com/5156/union.htmlhttp://www.businessdictionary.com/definition/classified.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/industry.htmlhttp://www.businessdictionary.com/definition/industrial-union.htmlhttp://www.businessdictionary.com/definition/field.htmlhttp://en.wikipedia.org/wiki/Labour_and_employment_lawhttp://en.wikipedia.org/wiki/Labour_and_employment_lawhttp://en.wikipedia.org/wiki/Collective_bargaininghttp://www.investorwords.com/5014/trade.htmlhttp://www.investorwords.com/5156/union.htmlhttp://www.businessdictionary.com/definition/classified.htmlhttp://www.investorwords.com/1967/firm.htmlhttp://www.businessdictionary.com/definition/industry.htmlhttp://www.businessdictionary.com/definition/industrial-union.htmlhttp://www.businessdictionary.com/definition/field.html
  • 8/6/2019 Group9 EREC Final

    6/24

    engagement in a range of activities such as campaigning and advocacy,

    education and awareness raising, policy development and the

    development of mutual financial institutions.

    Trade Unions play various important roles to safeguard the interests ofthe workers. Some of these roles are as follows:

    Negotiate-They negotiate the wages paid as well as the working

    condition terms.

    Regulating Relations- They also play a key role in regulating the

    relations between the workers and the employers.

    Collective Bargaining-With the help of Collective Bargaining, Trade

    Unions take collective action in ensuring that their terms are enforced.

    Raise new demands-They raise new demands on the behalf of the

    workers.

    Grievance- It helps in settling the various grievances of the employees.

    HISTORY OF TRADE UNIONS IN INDIA

    Trade union is a result of Industrialization. It is a recent development. The

    foundation of modern industry in India was laid in the period of 1850

    1870. Prior to that trade was confined to individuals and families.

    Specialized skills were passed from one generation to another. After

    Industrial revolution, these people started losing their individual identities

    and had to join factories to earn their livelihood and compete with massproduction. It was then that trade unions came into being.

    .

    The first phase 1850 - 1900

    poor in industries. The Indian Factories Act was enacted in 1881 to

    regulate the working The inception of trade took place during this phase.

    The working hours of labour were long and working and living conditionswere poor. Capitalists were only interested in their productivity and

    6

  • 8/6/2019 Group9 EREC Final

    7/24

    profitability. Wages were low and general economic conditions were hours

    and other service conditions of the Indian textile labourers. Employment

    of child labour was prohibited. Many strikes took place in the two decades

    following 1880 in all industrial cities. These strikes taught workers tounderstand the power of united action even though there was no union in

    real terms. Small associations like Bombay Mill-Hands Association came

    up.

    The second phase 1900 1947

    This phase saw the development of organized trade unions and political

    movements of the working class. It also witnessed the emergence of

    militant trade unionism. The Russian revolution of 1917 and The First

    World War (1914-1918) gave a new turn to the Indian trade union

    movement. Organized efforts were made by workers to form trade unions.

    The AllIndia Trade Union Congress (AITUC) was established in 1920. Many

    of the leaders of this organization were leaders of the national Movement.

    In 1926, trade union law came up. Mr. N N Joshi was the leader of the

    movement.

    The third phase 1947

    It began with the emergence of independent India. The Government

    sought the cooperation of the unions for planned economic development.

    The movement of the working class was politicized along the lines of

    political parties. Indian national trade Union Congress (INTUC) is the trade

    union arm of the Congress Party, The AITUC is the trade union arm of the

    Communist Party of India. White-collar employees, supervisors and

    managers are also organized by the trade unions, as for example in the

    Banking, Insurance and Petroleum industries.

    OBJECTIVES OF TRADE UNIONS

    7

  • 8/6/2019 Group9 EREC Final

    8/24

    Steady employment:- One of the major objectives of trade unions is to

    provide steady employment to workers. Trade unions ensure that it is

    not easy for the management to lay off workers.

    Rationalisation of personnel policies:- The financial security of an

    employee is determined not only by level of wages and duration of his

    employment but also by managements personnel policies - in its

    selection of employees for lay off, transfer and promotion etc. If these

    decisions are based on subjective evaluation, there is no security for

    workers. If such decisions are governed by rules and rational policies,

    there is greater assurance for workers.

    Voice in decisions affecting workers:- Workers have a greater voice

    in decisions affecting them. Trade unions can negotiate with the

    management for decisions related to wages, transfers etc.

    Gaining legislative enactments:- To Provide legal sanctions to its

    demands, the unions attempt to get these framed in form of Acts so

    that they become permanent features of the contract between

    employers and workers.

    Miscellaneous Services:- Modern trade union also engage in providing

    educational, medical, recreational and other facilities for development

    and welfare of their members. Trade unions express the needs, wishes,

    aspirations and attitudes of the working class. A union functions

    collectively to protect and promote the interests of its members within a

    given socio-economic system.

    RECENT HAPPENINGS IN INDIA:

    Several disputes have arisen in domestic and multinational companies inIndia since 2008. We can not surely say if these disputes are just a

    8

  • 8/6/2019 Group9 EREC Final

    9/24

    manifestation on the toppling of the global economic body or a permanent

    change in the relations between management and trade unions. Various

    organisations that represent the labor community ranging from local trade

    unions to officers associations were continuously engaging themselves instrikes and protests citing a plethora of faults with their employers. 70 %

    of the Indian economy which is dependent on the service sector will surely

    be affected by this. While Indias age old labor laws stand safeguarding

    the interests of the supposedly less powerful employee community with

    a few amendments over years, the labor unrest is growing in the country.

    Over the past few years, a series of agitations by trade unions indicate

    that the ride could get bumpy for the industry in the days ahead. Alarm

    bells went off once again last month after thousands of workers sat in

    protest to condole the death of an employee with RICO, an auto parts

    maker. Ajit Kumar Yadav was killed, in a skirmish allegedly with the

    security guards of the company.

    The conflict is said to have been caused after workers here sought to

    register a trade union, a move that was opposed by the management. At

    the core of many conflicts in this industrial hub is said to be the workers

    basic right to form unions and a wary industry determined to not allow it.

    Most companies, particularly multinationals, are now increasingly

    employing casual workers, says a labour expert. Casual workers are not

    entitled to employee benefits such as provident fund and cannot

    unionise.

    Honda Motors and Scooters India (HMSI)

    In October 2009 after the violent strike in 2005, the workers at HMSI went

    on a three month Go Slow Strike which reduced production by 50

    percent. Honda Motorcycle and Scooter India Vice-President General

    Affairs Mohan Depak threatened to shut down the Manesar plant. We

    interviewed Mr. Harbhajan Singh, IR Chief from HMSI (Refer to Interview

    #1 ) who said that he supported the existence of Trade Unions however

    the trade unions should understand that companies can recognize only

    one Trade Union.

    9

  • 8/6/2019 Group9 EREC Final

    10/24

    Auto belt in Gurgaon - About 80,000 workers from 60 odd companies in

    this industrial hub stayed away from work Tuesday to protest the death of

    the worker in an automobile firm in Gurgaon. Work was affected in many

    companies in the GurgaonManesar industrial belt as workers did not turnup Tuesday morning. They supported the strike called by All India Trade

    Union Congress (AITUC). RICO, an auto parts manufacturing unit, has

    been seeing labour unrest for the past one month. Late Sunday, a clash

    broke out in the factory between workers who were on strike and those

    who wanted to get back to work. The situation spun out of control and left

    one worker dead and several others injured.

    Rico Auto

    In Nov, 2006 the 40-day old strike at component maker Rico Auto came to

    an end with the workers and the management agreeing to resolve

    differences at the earliest. Representatives of workers and the

    management met and had one-on-one discussions to resolve their issues

    and broadly agreed on four points to take forward their talks. "The

    management reassured that they were never opposed to the registration

    of the workers' union, which the management recognises as the right of

    the workers," Rico Auto said in a statement.

    Bosch Ltd.

    Bosch Ltd., a unit of German engineering giant Robert Bosch GmbH,

    declared a lockout of its plant at Naganathapura, near the southern Indian

    city of Bangalore, where workers have been on strike since March 9th,

    2010

    However, the management has decided to lift the lockout, adding that it

    was taken at a conciliatory meeting chaired by a state labor official, who

    advised the management to consider lifting the lockout and also asked

    the recognized union in the plant to restore normalcy in production.

    Considering the assurances given by the union, Bosch decided to lift the

    lockout at its plant, "pending discussions on all issues of Charter of

    Demands, submitted by the union, for an amicable settlement," it said.

    Bosch said workers at its factories at Bangalore and Naganathapura, both

    10

  • 8/6/2019 Group9 EREC Final

    11/24

    in the southern Karnataka state, are demanding a hike of around 45% in

    their current average monthly total salary of INR36,000.

    JET AIRWAYS:

    Eight major trade unions have asked the airline management to take backthe two pilots it had sacked and recognise the national aviators guild,

    which is spearheading the stir. The trade unions said that it was not an

    industrial dispute over pay or conditions of work but a matter of removal

    of employees from service for forming a Trade Union. The eight trade

    unions are All India Trade Union congress, Bhartiya Mazoor Sangh , Hind

    Mazoor Sabha, Indian National Trade Union congress, Centre of Indian

    Trade Unions, United trade Union Congress, Union trade union centre, All

    India Central Council of Trade Unions. The Jet pilots have been reporting

    sick en-masse protesting the sacking of two of their colleagues for forming

    the National Aviators' Guild, their union body. The trade unions said that it

    was not an industrial dispute over pay or conditions of work but a matter

    of removal of employees from service for forming a trade union. While Jet

    Airways pilots went on a strike for five days, there were millions of

    passengers who landed up in trouble. This resulted in the bad reputation

    for the company and employees plus great monetary loss.

    AIR INDIA:

    The union successfully negotiated with the management on the decision

    by the latter to cut wages and performance linked incentives (PLI) of the

    pilots. The civil aviation ministry had called the union for negotiation.

    Trade union activity in the airline industry has seen rapid progress with

    talks of a 50,000 member strong trade union being planned with members

    being from the different aviation companies operating in India. According

    to the Union, the demands include wage revision that has been pending

    since January 1997, parity between career progression and wages of the

    two airlines, pension scheme pending since 1994, parity in placement and

    redeployment of staff, equal opportunity to the workforce, formulation of

    future policies and rules for wages, incentives, promotions and other

    matters. The demands also include consultations with ACEU during the

    11

  • 8/6/2019 Group9 EREC Final

    12/24

    merger process between Air India and Indian Airlines and making it part of

    the decision-making process.

    ROLE OF TRADE UNIONS IN INTERNATIONAL ENVIRONMENT

    Over the last three hundred years, many trade unions have developed

    into a number of forms, influenced by differing political and economic

    regimes. In order to understand the role of trade unions in the

    international environment, we focus our attention on Europe and USA,

    where the evolution of labour unions took place.

    UNITED STATES OF AMERICA

    In USA, the trade union movement started only after the formation of

    republic. The trade union movement can be broadly divided into two eras

    demarcated by the American Civil War.

    The Pre-Civil War Era:

    During this period, the scarcity of large-scale industry was mainly

    responsible for limiting the growth of labour unions. During 1790s, unions

    were formed by the carpenters and shoemakers of Philadelphia, the tailors

    of Baltimore, Md., the printers of New York City, and groups of crafts

    workers in other large cities.

    In 1827, several trade unions in Philadelphia banded together to form the

    Mechanics' Union of Trade Associations, the first U.S. labour

    organization to unite workers in different crafts. The National Trade Union

    was founded in 1834 which was again short-lived. The economic crisis of

    1857 resulted in drastic declines in trade union membership and in the

    dissolution of several national unions.

    The Post-Civil War Era:

    In this period, the industrialisation took place. The National Labor Union

    (NLU), a federation of national and local unions, was founded in 1866.

    Following the decline of the NLU, the Knights of Labor became the

    leading countrywide union in the 1860s. The knights believed in the

    12

    http://en.wikipedia.org/wiki/Knights_of_Laborhttp://en.wikipedia.org/wiki/Knights_of_Labor
  • 8/6/2019 Group9 EREC Final

    13/24

    greatest good to the greatest amount of people. Many knights left KOL

    and joined American Federation of Labor (AFL), formed in 1881. Later

    a Congress of Industrial Organisations (CIO) was formed by Lewis.

    And after some more evolution, The AFL-CIO came into existence.

    THE MAJOR TRADE UNIONS IN US:

    The National Labor Union (NLU) - It was the first national labor

    federation in USA.

    Knights of Labor It was founded by nine tailors from Philadelphia

    in 1869. It was led by Uriah Stephens.

    American Federation of Labor (AFL) It was one of the first

    federations oflabor unions in the United States.

    Congress of Industrial Organisations (CIO) It was a federation

    ofunions that organized workers in industrial unions in the United

    States and Canada from 1935 to 1955.

    The American Federation of Labor and Congress of Industrial

    Organizations (AFL-CIO) It is the largest federation ofunions in

    the USA and Canada. It is made up of 56 national and international

    unions. It is especially concerned with global and trade unions.

    LAWS MONITORING THE POWER OF TRADE UNIONS:

    Fair Employment Act (1942):

    On June 25, 1941, President Roosevelt signed an Act to

    prohibit racial discrimination in the national defence

    industry. It was the first federal law to promote equal

    opportunity and prohibit employment discrimination in

    the United States.

    Taft-Hartley Act (1947):

    It outlawed the concept of closed shops. It permitted

    union shops unless the state govt. chose to prohibit it. It

    overrided the slave-labor bill. The amendments

    13

    http://en.wikipedia.org/wiki/National_trade_union_centerhttp://en.wikipedia.org/wiki/National_trade_union_centerhttp://en.wikipedia.org/wiki/Knights_of_Laborhttp://en.wikipedia.org/wiki/Philadelphiahttp://en.wikipedia.org/wiki/Uriah_Stephenshttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_Stateshttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_Stateshttp://en.wikipedia.org/wiki/Industrial_unionismhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_Stateshttp://en.wikipedia.org/wiki/National_trade_union_centerhttp://en.wikipedia.org/wiki/National_trade_union_centerhttp://en.wikipedia.org/wiki/Knights_of_Laborhttp://en.wikipedia.org/wiki/Philadelphiahttp://en.wikipedia.org/wiki/Uriah_Stephenshttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_Stateshttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_Stateshttp://en.wikipedia.org/wiki/Industrial_unionismhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Labor_unions_in_the_United_States
  • 8/6/2019 Group9 EREC Final

    14/24

    enacted in Taft-Hartley added a list of prohibited

    actions, or "unfair labor practices". The act required

    unions and employers to give 60 days notice prior to

    any strike.

    FAMOUS STRIKES: THE MOST FAMOUS LABOR STRIKES IN USA

    Throughout the history of organised labour, the price for higher wages and

    better working conditions has been chronicled by power struggles of epic

    proportions. Some of the notable strikes in the history of organised labour

    are as follows:

    Pullman Strike (1893 - 1894):

    During this period, the demand for Pullman luxury cars

    decreased due to recession. This led to lowered wages. As a

    result, a strike erupted among Pullman workers and quickly

    spread to other railroad workers.

    The Homestead Strike (1892):

    This strike between the Amalgamated Association of Iron and

    Steel Workers and the Carnegie Steel Company erupted over

    proactive attempts to break the union. When asked for a wage

    increase, the management decreased the wages. This led to

    the employees going on a strike. The strike ended in defeat

    for the union members.

    Lawrence textile strike (1912):

    It was a strike of immigrant workers

    in Lawrence, Massachusetts. It was led by the Industrial

    Workers of the World (IWW). This strike defied the

    assumptions of conservative unions in the AFL. It lasted for

    two months.

    Paterson silk strike (1913):

    14

    http://en.wikipedia.org/wiki/Unfair_labor_practicehttp://en.wikipedia.org/wiki/Lawrence,_Massachusettshttp://en.wikipedia.org/wiki/Massachusettshttp://en.wikipedia.org/wiki/Unfair_labor_practicehttp://en.wikipedia.org/wiki/Lawrence,_Massachusettshttp://en.wikipedia.org/wiki/Massachusetts
  • 8/6/2019 Group9 EREC Final

    15/24

    It was a strike of the silk mill workers in Paterson, New Jersey.

    It was led by the Industrial Workers of the World (IWW). The

    labour union demanded an eight-hour working day and better

    working conditions.

    THE MAJOR TRADE UNIONS IN EUROPE:

    The European Trade Union Confederation was set up in 1973 to promote

    the interests of working people at the European level and to represent

    them in the European Union institutions. It is recognized by the European

    Union, the Council of Europe, and the European Free Trade Association as

    the only representative cross-sectoral trade union organization at the

    European level.

    Some countries, such as Germany, Belgium, Sweden, Finland, and the

    other Nordic countries, have strong, centralized unions, where every type

    of industry has a specific union, which are then gathered in large national

    union confederations. The largest union confederation in Europe is the

    German Confederation of Trade Unions. Usually there are at least two

    national union confederations, one for academically educated and one for

    branches with lower education level. The largest Swedish union

    confederation is Swedish Trade Union Confederation

    (Landsorganisationen, or LO). The LO has almost two million members,

    which is more than a fifth of Sweden's population. Finland's equivalent is

    the Central Organisation of Finnish Trade Unions, with about one

    million members out of the country's 5.2 million inhabitants. In addition,

    there are two other Finnish union confederations for more educated

    workers, with combined membership of approximately one million.

    In comparison, France has one of the lowest union densities in Europe,

    with only about 10% of the workers belonging to unions. Generally,

    several unions are represented inside large companies or administrations,

    normally with one from each of the main national confederation of unions

    and possibly independent unions. Union membership, however, tends to

    be concentrated in some specific areas, especially the public sector.

    15

    http://en.wikipedia.org/wiki/Paterson,_New_Jerseyhttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/European_Trade_Union_Confederationhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Council_of_Europehttp://en.wikipedia.org/wiki/European_Free_Trade_Associationhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Nordic_countrieshttp://en.wikipedia.org/wiki/German_Confederation_of_Trade_Unionshttp://en.wikipedia.org/wiki/Confederationhttp://en.wikipedia.org/wiki/Swedish_Trade_Union_Confederationhttp://en.wikipedia.org/wiki/Central_Organisation_of_Finnish_Trade_Unionshttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Paterson,_New_Jerseyhttp://en.wikipedia.org/wiki/New_Jerseyhttp://en.wikipedia.org/wiki/European_Trade_Union_Confederationhttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Council_of_Europehttp://en.wikipedia.org/wiki/European_Free_Trade_Associationhttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Belgiumhttp://en.wikipedia.org/wiki/Swedenhttp://en.wikipedia.org/wiki/Finlandhttp://en.wikipedia.org/wiki/Nordic_countrieshttp://en.wikipedia.org/wiki/German_Confederation_of_Trade_Unionshttp://en.wikipedia.org/wiki/Confederationhttp://en.wikipedia.org/wiki/Swedish_Trade_Union_Confederationhttp://en.wikipedia.org/wiki/Central_Organisation_of_Finnish_Trade_Unionshttp://en.wikipedia.org/wiki/France
  • 8/6/2019 Group9 EREC Final

    16/24

    Unions in some sectors, such as public transportation(e.g. SNCF and

    RATP), are likely to enter well-publicized strikes.

    European Trade Union Confederation (ETUC) It was

    established in 1973 to promote the interests of people at European

    level. It is a 74 member organisations from 34 countries and 11

    industry federations, making a total of 60 million members. The

    umbrella organisation for national trade union confederations in

    Europe.

    Union Network International (UNI) - A grouping of 900 trade

    unions representing a total of 15 million individual union members

    around the world. Its regional section in Brussels is UNI-Europa.

    International Confederation of Free Trade Unions (ICTFU) It

    came into being in 1949. It has 234 organisations in 152 countries

    which represent a total of 148 million individual union members. A

    campaigning body concerned about 'globalisation' and involved in

    monitoring the activities of multinational enterprises.

    16

    http://en.wikipedia.org/wiki/SNCFhttp://en.wikipedia.org/wiki/RATPhttp://en.wikipedia.org/wiki/SNCFhttp://en.wikipedia.org/wiki/RATP
  • 8/6/2019 Group9 EREC Final

    17/24

    INDUSTRY INTERVIEWPart 1. Management Perspective

    Name of Interviewee: Sh. Varun ShrivastavOrganization: Tata Steel

    Designation: Operations Manager

    1. What is the relationship between union and management inyour organization?The relationship between Union & the Management is very healthyand amiable.

    2. Would management approach union as a partner in businessgrowth?

    Management has always taken Union as a partner in the businessgrowth. Of all the decisions taken, union was taken into confidence. Tata Steel was able to face the tough time of slow economybetween 1990-2003 because of union support. We had to cut wagesand union was involved in the decision. We are proud to have such asupportive union.

    3. How is the environment within the trade union ?The environment within the Trade Union is political from outside &

    family type inside the company. Intra union meetings are veryfriendly and even management has good relationship with theunion. However, the union has political impact on the national level.The Union is affiliated to Confederation of Union which is directlycontrolled by political party.

    4. What is the amount of trust level in your company ofworkers in union leaders?Management has been able to build a trust in the union. Union has afeeling that the management will never take a decision neglectingthe employees of the company. In fact, in every house ofJamshedpur, you can get positive feedback about the company andmanagement.

    17

  • 8/6/2019 Group9 EREC Final

    18/24

  • 8/6/2019 Group9 EREC Final

    19/24

    Please tick your level of satisfaction for each

    Working Conditions

    1.

    How do you rate your place ofwork?

    High Moderate

    poor

    2.How do you rate the Cleanlinessat your working place?

    High Moderate

    Poor

    3.How do you rate the Lightingconditions at your work place?

    High Moderate

    Poor

    4.How much is the level of freedomin decision making in relevantarea?

    High Moderate

    Poor

    5.What is the level of interactionwith your colleagues?

    High Moderate

    Poor

    6.

    What is the level of security atthe building entrances?

    High Moderate

    Poor

    7.What is the level of availability ofFirst aid treatment to treat anyinjury at work?

    High Moderate

    Poor

    8.How do you rate the quality offood provided in the workinghours?

    High Moderate

    Poor

    Compensation9.

    I feel, I am paid fairly consideringmy qualification, experience, andresponsibilities

    Yes No Cannotsay

    10.

    I feel, the amount of pay I receivefor my job is at par with othersdoing similar work in our

    industry.

    Yes No Cannotsay

    19

  • 8/6/2019 Group9 EREC Final

    20/24

    11.Besides salary, are the additionalbenefits provided by thecompany are upto your

    expectations

    Yes No Cannoysay

    12.I feel, the salary and benefits areadequate to meet my needs andthose of my family

    Yes No Cannotsay

    13.My salary is appropriate as permy experience & skills

    Yes No Cannotsay

    14. The recreation facilities providedby the company are up to themark

    Yes No Cannotsay

    15.

    The transport facility is readilyavailable

    Yes No Cannotsay

    Policies and Systems

    16.What is the amount of time inhours you work in the company?

    5-7hours

    7-9hours

    9-11hours

    17.Is cab facility made available bythe company? If not, should it beprovided?

    Already have

    Yes No

    18.Are you made to work overtime

    in the company?

    Yes No Cannot

    say19.

    Are you being paid for theovertime?

    Noovertime

    Yes No

    20.Are you aware of the Indian LaborLaws?

    Yes No

    21.How often you go on vacations ina year?

    Never Rarely Often

    22.

    20

  • 8/6/2019 Group9 EREC Final

    21/24

    In case of accidents, are theworkers compensated properly?

    Yes No Cannotsay

    23.Are you provided with paid sick

    leaves by the company? If yes,are they enough?

    No sick

    leaves

    Yes No

    24.Is the performance appraisalsystem transparent?

    Yes No Cannotsay

    25.Are you aware of the completeHR policy of your company?

    Yes No Cannotsay

    26.Would you like to work for a long

    period with TATA STEEL?

    Yes No Cannot

    say

    Further suggestions:

    Management has always taken care of our livelihood. Our only hope is

    that the same trust should be maintained in the coming years. The

    production capacity is going to expand and there is a lot of spending on

    technology. We expect management to continue its employee friendly

    policies and dont succumb to the financial pressure.

    Analysis: Tata Steel can be termed as an ideal organisation if the relationship

    between union and management is considered. Management is conscious

    about the brand TATA which ensures ethical behaviour, Corporate SocialResponsibility and welfare of people. Tata Steel management believes

    that considering the demands of the union will help in making the better

    work environment and hence better quality. Production will depend on the

    level of engagement of the workers and hence management is committed

    to ensure good livelihood of the workers.

    The interview of the junior level employee suggests that workers are

    really satisfied with the working conditions, company policy and the

    attitude of management. They have a trust on the company. They are

    21

  • 8/6/2019 Group9 EREC Final

    22/24

    moderately satisfied with the compensation and hope for more profit of

    the company and hence better salary. In this hope, they are ready to work

    more sincerely for the company. The awareness level of the employees is

    quite high. They know their rights and duties and the labour laws. In all,there is positive feeling from the side of the workers for the management.

    CONCLUSION

    Trade union movement is an offshoot of industrialisation. The growth of

    modern industrial organisations involving use of modern technology and

    employment of workers has been followed by growth of trade unions

    throughout the world.

    The workers feel threatened whenever there is some fear or threat, one

    comes closer. That applies to the Unions as well. The workers have the

    fear of being obsolete because of the increased use of technology. They

    form themselves into groups and feel that they can then not only

    overcome that fear but also fight better for their welfare.

    This phenomenon has not only been observed in advanced countries of

    the world, but also in the developing economies like India. The emergence

    of trade unionism is spontaneous and inherent in the growth of capitalism.

    The origin of trade unionism lies in the industrial revolution, which

    disrupted the older way of life and created a new society forged by the

    shop, the factory, the mine and the industry.

    Management has to consult the union representatives while taking various

    decisions effecting labour such as wages, lay-off, transfer, discharge, etc.

    A trade union puts restriction on the discretion of employers for taking

    decisions involving welfare of employees. In certain organisations, unions

    have become so strong that they affect every aspect of management.

    Modern trade unions also take up political activities to achieve their

    objectives. Such activities may be related to the formation of a political

    party or those reflecting an attempt to seek influence on public policy

    relating to matters connected with the interests of working class.

    Future of Trade Unions: The mix of traditional roles will continue but

    certain new roles are going to assume significance. The most significant

    22

  • 8/6/2019 Group9 EREC Final

    23/24

    change in the IR scene over the years is the slow decline in unionisation

    and this trend will continue. The fertile soil for growth of trade unions is

    the extent of unskilled/semiskilled workforce in the organised sector and

    with more and more automation and privatisation this component is likelyto go down. Another serious dimension is the erosion of leadership in the

    trade union ranks and hence the average worker has lesser confidence on

    the unions of their capability for resolving the issues to their satisfaction.

    The personal image of many leaders has taken a beating and as such in

    many areas there are no role models. Though the fragmentation of unions

    continues and would continue further in future but there would be joint

    movement of two or more unions.

    Judiciary which had earlier lend a sympathetic ear to the union causes

    have turned the corner and now a more balanced perspective, keeping

    the interests of the industry as prime issue.

    The one cause for worry is the politicisation of unions and the political

    manipulations indulged by the union leadership. Managements have to be

    be-ware of the politician-bureaucrat nexus and their attempts to

    manipulate the situations.

    As more and more competition grows up most managements are likely to

    realise the futility of a confrontationist approach instead would opt for

    mutual compromises. Developing a 'win-win' formula would be the

    challenge for HR professionals.

    23

  • 8/6/2019 Group9 EREC Final

    24/24

    REFERENCES

    http://www.iisg.nl http://www.ris.org.in

    http://unuwider.com http://indialabourarchives.org/home.htm http://www.ilo.org/global/lang--en/index.htm www.wikipedia.org www.history.com www.fedee.com www.economictimes.indiatimes.com/ www.oxfordscholarship.com www.andrewbibby.com www.kluwerlaw.com

    Industrial Relations Venkata Ratnam http://www.citehr.com/6480-future-role-trade-

    unions.html#ixzz15f4x83Je

    http://www.iisg.nl/http://www.iisg.nl/http://www.ris.org.in/http://unuwider.com/http://indialabourarchives.org/home.htmhttp://www.ilo.org/global/lang--en/index.htmhttp://www.wikipedia.org/http://www.history.com/http://www.fedee.com/http://economictimes.indiatimes.com/http://www.oxfordscholarship.com/http://www.andrewbibby.com/http://www.kluwerlaw.com/http://www.citehr.com/6480-future-role-trade-unions.html#ixzz15f4x83Jehttp://www.citehr.com/6480-future-role-trade-unions.html#ixzz15f4x83Jehttp://www.iisg.nl/http://www.ris.org.in/http://unuwider.com/http://indialabourarchives.org/home.htmhttp://www.ilo.org/global/lang--en/index.htmhttp://www.wikipedia.org/http://www.history.com/http://www.fedee.com/http://economictimes.indiatimes.com/http://www.oxfordscholarship.com/http://www.andrewbibby.com/http://www.kluwerlaw.com/http://www.citehr.com/6480-future-role-trade-unions.html#ixzz15f4x83Jehttp://www.citehr.com/6480-future-role-trade-unions.html#ixzz15f4x83Je