Commerce Optional (UPSC-IAS)

Determining factors of industrial relations
Good industrial relations depend on a great variety of factors. Some of the more obvious
ones are listed below:

1. History of industrial relations – No enterprise can escape its good and bad history of
industrial relations. A good history is marked by harmonious relationship between
management and workers. A bad history by contrast is characterized by militant strikes
and lockouts. Both types of history have a tendency to perpetuate themselves. Once
militancy is established as a mode of operations there is a tendency for militancy to
continue. Or once harmonious relationship is established there is a tendency for harmony
to continue.

2. Economic satisfaction of workers – Psychologists recognize that human needs have a
certain priority. Need number one is the basic survival need. Much of men conducted are
dominated by this need. Man works because he wants to survive. This is all the more
for underdeveloped countries where workers are still living under subsistence conditions.
Hence economic satisfaction of workers is another important prerequisite for good
industrial relations.

3. Social and Psychological satisfaction – Identifying the social and psychological urges
of workers is a very important step in the direction of building good industrial relations.
A man does not live by bread alone. He has several other needs besides his physical needs
which should also be given due attention by the employer. An organization is a
joint venture involving a climate of human and social relationships wherein each
participant feels that he is fulfilling his needs and contributing to the needs of others. This
supportive climate requires economic rewards as well as social and psychological rewards
such as workers’ participation in management, job enrichment, suggestion schemes, redressal of grievances etc

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The Characteristics of trade unions
1. Trade unions have a statement specifying that organization is a trade union.
2. Trade unions have a statement of its principle objectives.
3. Registration with Registrar of Trade Union.
4. Independence from employer, which may be evident from the certificate issued by the
Registrar of Trade Union.
5. Affiliation with central trade union organization.

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Commerce Optional (UPSC-IAS)

Obstacles in the future growth of trade unions
Our trade unions are not so developed as in the western countries due to following
reasons:-
1) Outside Leadership: In India Trade unions have been dominated by outside leadership.
It is a notable feature of Trade Union in India. Now a- days these leaders are professional
political Leaders. Hence, they exploit the sentiments of people for their political purpose.

2) Low membership: Though the number of Trade Unions in India has considerably
increased but membership per union has declined. With the help of these data it can be
proved. That in 1927-28 the average number of members per union was near about 3500. it
was reduced to about 1400 in 1946-47 and further it decreased to 675 in 1985. The union
having low membership would not be more effective.

3) Uneven growth of Trade Unions:- The degrees of unionization varies from Industry to
industry in coal industry it is 6.1%, cotton textile 56%, tobacco manufacturing 70%,
Electricity and gas it is 39% , hence, it can be said that In India Trade Unison activities are
concentrated in large scale Industries but in small scale industries it is nominal.
4) Multiplicity of Trade Unions: It is also a major problem of Trade Union in India. It has
been generally seen that there are many Trade Union in the same Industry. There are
sometime as many as 20 unions in the same plant. As the Trade Union act, 1926 permits
that any association of seven workers can be registered as unions. Multiplicity of unions
instead solving the problems of workers is fighting among themselves. So, the purpose of
Trade Unions Fails.

5) Absence of paid office Bearers: In India, majority of Trade Unions do not have whole
time paid office bearers. Many of them work on honorary basis. Since, they are not paid.
They devote only limited time and energy to Trade Union activities.
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6) Weak financial position: In India, most of the Trade Union’s financial positions is very
weak because their average yearly income is inadequate, as subscription rates are very
low. The reason for weak financial position is also multiplicity of unions

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Commerce Optional (UPSC-IAS)

Measures to improve the Trade Unions
1) There should be a strong base to develop the Trade Union by safeguarding the interest
of the members and by achieving the target of production.
2) To make effective unionism there should be one union in one industry.
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3) As most of the unions are influences by political parties. Hence, there interference
should be eliminated.
4) There should be training programmes to develop the internal leadership.
5) It will be more effective if office bearers of the Trade Unions are well paid.
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6) As most of the Trade Unions in India are financially weak. This problem can be solved
by raising the membership and collecting more funds for unions.
7) Most of the unions are engaged in industrial disputes they do not undertake economic,
social and cultural activities which are equally important for raising welfare of the
working class. As a considerable number of Trade Unions are not recognized. Hence, the
proper recognition of unions will make them more effective.

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Commerce Optional (UPSC-IAS)

Workers’ Participation in Management
The concept of workers’ participation in management is a broad and complex one.
Depending on the socio-political environment and cultural conditions, the scope and
content of participation may change. Various terms have come to be used to denote
different forms and degree of participation.
For example, joint consultation, labour-management cooperation, codetermination, joint
decision making, workers’ participation in industry and workers’ participation in
management. These terms or their variants have been interpreted and explained
differently. In any case, a common thread running through all interpretations is the idea
of associating employees in managerial decision- making.
The International Institute for Labour Studies defined WPM as “the participation resulting
from practices which increase the scope for employee’s share of influence in decisionmaking at different tiers of organizational hierarchy with concomitant assumption of
responsibility”.

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