Primary Objectives. Promote and protect the interest of employers engaged in industry, trade and commerce in India. Study, analyse and disseminate information relating to labour policy, labour management relations, collective bargaining, etc. Offer advice concerning various aspects of labour policy. Liaise with Union Government and initiate steps that are representative and legislative in nature.
Secondary Objectives. Train and develop staff and members. Obtain data on wages and conditions of work in industries attached to them. Come out with surveys, research-based reports on issues of importance to both labour and management. Take up projects for social and family welfare. Deal with safety and health at work place and working environment. Initiate steps to improve public image and improve public relations. Educate the public regarding the character, scope, importance and needs of trade, industry and commerce represented by members.
At present EOs are organised at three levels:. They serve the interests of local businessmen. The Bombay Mill Owners Association, for example, has been formed to protect the local interests of manufacturing units operating within the city. Such bodies operate through the local chambers of commerce. They offer consultancy service; take care of training, safety and welfare measures on behalf of their members. They even have special committees for specific region or industry related problems.
The All India Organisation of Employers is a unitary type of organisation, setup in ; members hail from manufacturing, banking, insurance, commercial establishments; and has no sub-organisation on an industrial or geographical basis. The President is elected every year. The governing body formulates policies, the executive committee implements policies and the secretariat with its own permanent staff is responsible for carrying out the decisions of the governing body.
It had only four presidents in over 50 years. International Organisation of Employers, represents the interests of employers in all social and labour matters at the international level. The objectives of the Standing Conference of Public Enterprises cover a wider ambit. SCOPE looks upon its tasks as both internal and external to the public sector.
Internally, it would endeavour to assist the public sector in such ways as would help improve its total performance. Externally, it would help improve its total boundary role in conveying such information and assist the public sector in such ways as would help improve its total performance and advice to the community and the Government as would generally help the public sector in its role. The main object in setting up the Council of Indian Employers was to ensure closer co-operation and coordination between the two bodies which together represent particularly the interests of large-scale industry in India.
Its principal functions are:. The same point was emphasised differently in the list of objectives. To mention a few:. The principal objectives relating to the industrial relations aspects include:.
The rules and regulations of the AlOE thus seem to provide for trade related activities as well, though the preoccupation of the AlOE has always been in influencing labour policy and legislation and disseminating information and news to members. During the pre-independence era industry, trade and employer associations were divided on the basis of Swadeshi vs.
Foreign, large vs. The small and medium sectors have formed their own associations. There is also a plethora of sectoral associations. Employer-Employee With the proliferation of EOs the need for their unification began to find expression.
EOs could be registered in any of the following legal forms:. A quarter century later, it was reorganised as an unregistered Association, a position which continued till when it too was registered under the Indian Trade Unions Act. The main reason for the AlOE opting for registration under the Trade Unions Act was to allow it to take up test cases before the courts and industrial tribunals.
In the case of the EFI, the motivation was to overcome the burden of income-tax on its steadily rising income and surplus. The Constitution grants the right to organise, and so nobody including manager and officer, can be prevented from forming or joining any organisation, if he so desires.
The registered trade unions are protected, civil and criminal proceedings for bona fide trade union activities, including peaceful strike and picketing. The Trade Unions Act only provide for the right to organise, but not the right to bargain collectively, as there is no provision in the Act for the recognition of unions by the employers.
Only Bombay Industrial Relations Act, which has been adopted in Rajasthan and Madhya Pradesh and is application in Maharasthra, provides for compulsory recognition of unions as bargaining agent. This is a serious lacuna in our industrial relations system, which must be removed at the earliest, if union and management relations are to be improved.
However, many people think that it is unfair since they are forced to join — they should be able to make their own decisions. Single union agreement Some companies have a single union agreement , when a business only agrees to deal with a single union. Any employees who want to join a union can join this union. It is becoming more popular nowadays because many employees are becoming multi-skilled , and do not know which union to join.
Advantages to the employee: Discussions are clearer if there is only one union to deal with. The union has greater power. No disagreements between different unions. A better working relationship should develop between the union and the management.
Disputes are solved more quickly. Advantages to the employer: Discussions are clearer. A better working relationship should develop, meaning that there would be less industrial disputes , benefiting both employees and employers. It is easier to agree to changes. The structure of a trade union The structure of different unions vary, but most elect a President or General Secretary to work full-time for and get paid by the union.
They work at the union's headquarters. If the union is large, there will be union officials to take cared of members in different branches. Each branch represents its members in one work site , one factory, or one employer. Each branch has a representative. Unions are usually democratic and their union officers are voted up by the members. Like trade unions, employer associations are made up of businesses and employers and who all pay annual fees for their benefits.
Advantages of joining an employer association: They negotiate with trade unions on behalf of their members. They give advice on employment laws , health and safety , taxation laws etc… Strength in numbers, they want to influence government decisions. They can share ideas and research facilities. They can organise bulk buying for members and get discounts. Employer associations and the government.
Employer associations represent similar wants of businesses, and will try to influence the governments to give better conditions for businesses to prosper: They want the government to control things such as inflation, law and order, health and safety, and education for the workforce.
Lower taxes. More freedom for businesses. Fair competition. Good transport infrastructure. Access to overseas markets.
Reliable source of power. Collective bargaining This is when representatives of different interest groups negotiate and a collective agreement is made. The bargaining can be with businesses or with the government. Collective bargaining in businesses usually means that the representatives of one or more trade unions negotiate with one or more employers or employer associations to come up with a mutually acceptable agreement on conditions of employment.
Why trade unions want wage increases: Inflation. It is difficult to recruit qualified workers so pay them more! Pay differentials need to be maintained everybody's wages should rise when the minimum wage rises. Changes in the workplace, e. If there are increased productivity , wages should increase too. There are productivity agreements , when managers and trade unions agree to raise prices for increased productivity. Often agreements take place and the "middle path" is taken.
However, this does not always happen and if the workers and unsatisfied with the agreements, they will use industrial action. Industrial action There are various forms of industrial action that try to influence the decisions of employers.
Here are some of their most comment forms. Strikes Strikes are when workers stop working and leave the workplace to protest against things. Token strike: Stoppage for an hour, a few hours or half a day to show strong feelings.
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