Synopsis . Ppt

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Study on Industrial Relationsin India

Synopsis by :Neha YadavRoll No - 642
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Page 2

Outline of presentation

Introduction

Literature Review

Relevance and Scope of Research Objectives of Research

Research Methodology

Hypothesis Case Study

Data Sources
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Introduction


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Introduction

The term Industrial Relationscomprises of two terms:Industryand Relations. Industry refers to any productive

activity in which an individual or a group of individuals are

engaged. By relations we mean the relationships that

exist within the industry between the employer and his

workmen. The term industrial relations explain the

relationship between employees and management which

stem directly or indirectly from union-employer

relationship.

Industrial relations also includes the processes throughwhich these relationships are expressed such as, collective

bargaining, workers participation in decision-making, and

grievance and dispute settlement, and the management of

conflict between employers, workers and trade unions,

when it arises.
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Labor relations during 1950-1990

States which amended India's Industrial Disputes Act in a pro-worker, greater labor inflexibility manner saw more labor relationsproblems, more lost man-days and experienced lowered output,employment, investment, and productivity in organized sector orformal manufacturing.

Between 1950 and 1970, labor disputes nearly tripled in India,

from an average of 1000 labor disputes per year, to an average of3000 labor disputes per year. The number of labor relations issueswithin a year peaked in 1973 at 3,370 labor disputes. The numberof workers who joined labor disputes within the same year, andstopped work, peaked in 1979, at 2.9 million workers. The numberof lost man-days from labor relation issues peaked in 1982 at 74.6

million lost man-days, or about 2.7% of total man-days inorganized sector. While the 1970s experienced a spike in laborunions and disputes, an sudden reduction in labor disputes wasobserved during 1975-1977, when Indira Gandhi, then primeminister, declared an emergency and amongst other thingssuspended many civil rights including the worker's right to strike.


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Union membership is concentrated in the organized sector, and

in the early 1990s total membership was about 9 million.

The government recorded 1,825 strikes and lockouts in 1990.

As a result, 24.1 million workdays were lost, 10.6 million to

strikes and 13.5 million to lockouts. More than 1.3 million

workers were involved in these labor disputes. However, thefigures for 1990 and preliminary data from 1991 indicate

declines from levels reached in the 1980s, when between 33 to

75 million workdays per year were lost because of labour

disputes. In 1999, the government of India recorded about 927

strikes and lockouts, or about half of those for 1990. Thenumber of lost man-days were about the same for 1999 and

1991, even though Indian economic output and number of

workers had grown significantly over the 1990s.


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Between 2004 and 2011, India has experienced a decline in

unionized labor. The number of labor disputes has dropped to

400 annually over the same period, compared with over 1,000

in the 1990s. The annual number of man-days lost to labor

disputes in early 1990s averaged around 27 million; by 2010,

while Indian economy has grown significantly and Indian laborforce has expanded, the average number of man-days lost has

dropped by about 30%. The downward trend continues both

in terms of number of disputes and lost man-days per dispute.


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Literature Review


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Literature Review

Study on Labor Disputes and the Economics of FirmGeography

By : Paroma Sanyal & Nidhiya Menon

Brandeis University

This paper considers various measures of labor disputes, andinvestigates whether these have detrimental effects on thelocation choice of new domestic investment across thevarious states of India.

Conventional wisdom holds that an increase in measures suchas the number of strikes, the number of man-days lost inwork-stoppages, and the percentage of unionized workers,would hinder the location of new projects.


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Cont

The results of this paper strongly support the hypothesis thatlabor conflict and pro-worker regulations have significant

negative effects on new investments and location choice

probabilities. It is done using panel data and a fixed effects

methodology that controls for the effect of state-specific

unobservables.

Also disaggregation by industrial classifications shows that

although labor disputes continue to exert negative effects,

location choices are also conditioned on factors such as

proximity to raw materials and minerals.


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Cont Impact of globalisation on industrial relations in the EU

and other major economies

By : Institute of Economics, University of Tartu

The purpose of this research is to analyse the pressures ofglobalisation on national industrial relations models of theEU Member States, in particular examining the globalpressures from competitive countries and the challengesfacing industrial relations, especially in the EU countries.

Economic changes and globalisation processes directlyaffect labor market developments and social cohesion inthe countries studied. In terms of labor marketdevelopments, the most significant effects of globalisationinclude labor market flexibility, increasing labor migration,the rise of atypical employment forms, as well as changesin work content and working conditions. At the same time,globalisation brings about greater job skills mismatches and

the need topromote lifelong learning and multi-skilling.


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Relevance and Scope of ResearchThe scope of industrial relations is quite vast. The main issuesinvolved here include the following:

Labor disputes and Labor relations

Trade Unions

Gender inequality

Child labor

Labor laws

Industrial relations is relevant as :

To safeguard the interest of labor and management bysecuring the highest level of mutual understanding and good-will among all those sections in the industry which participatein the process of production.

To avoid industrial conflict or strife and develop harmoniousrelations, which are an essential factor in the productivity ofworkers and the industrial progress of a country.

To raise productivity to a higher level in an era of fullemployment by reducing the tendency of high turnover andhigh absenteeism.


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Objectives of Research

To observe the industrial relation operation and

satisfaction level of the employees.

To observe the working conditions inside the organization.

To observe the different welfare schemes provided by the

companies.

To observe the grievance handling procedure inside theorganizations.

To study the level of labor disputes in different states in

India.

To predict the level of improvement in handling disputes in

past 10 years. To analyze which parts of the country has the highest level

of child labor.

To analyze the impact of industrial disputes on companies

production and revenue.


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Primary Research

A primary research would be conducted to know about the

current status of the problems of labor and the trade unions.

Procedure: It will include preparing relevant questionnaires

and getting it filled by the workers. On the basis of first hand

data, we will do the analysis.

Secondary Research

To achieve the objective of studying industrial relations in

India; we chose this methodology. The reason for selecting

this mode of research is that its the quickest and most

economical way to find possible hypothesis and to take

advantage of the data already available.

Procedure: All the data will be selected after rigorous

analysis of articles from internet, newspapers and journals.


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Wage model

A state-wise analysis of the factors that affect thewages of workers.

Y = Average wages of workers

X1 =Number of strikes and lockouts

X2 = Labor friendly laws

X3= Number of males and females

X4= Number of trade unions


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Hypothesis

Test for significant difference between average wages of

workers in different states.

H0 = There is no significant difference between average wages

of in different states.

H1 = There is significant difference between average wages ofin different states.

Test for significant difference between average

wages of males and females in different states.

H0 = There is no significant difference betweenaverage wages of males and females.

H1 = There is significant difference between average

wages of males and females.


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Test for significant difference in revenue and production due

to strikes and lockouts in Maruti Suzuki.

H0 = There is no significant difference in revenue and

production due to strikes and lockouts.H1 = There is significant difference in revenue and production

due to strikes and lockouts.


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Case Study


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Case StudyMaruti Suzuki Manesar plant

Maruti is the largest automobile manufacturer in India yet thecompany does not appear to have been able to developmature relationships with its employees. Starting from 2000 rightup to 2012, the company has faced labor trouble, strike, workstoppages and disruptions from time to time.

A 13 day strike during July2011, partial work stoppages anddisruptions during September 2000 to January 2001, resumptionof confrontation during August 2005, and changes in the union, itsname or its character, emergence of another union are some ofthe problems faced by Maruti.

The reason for the strike was the right to form a union which saw3,000 employees of MarutisManesar plant in Haryana strikingwork on June 3. The plant workers wanted to register a newunionthe Maruti Suzuki Employees Union (MSEU)and hadalready applied for registration, something the management wasopposed to.


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Labor participation rate, male female(%

of population ages 15+)


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GDP per person employed (constant1990 PPP $)


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Data Sources

Indiastat.com

www.labour.nic.in

censusindia.gov.in

ISID Library

dbie.rbi.org.in

data.worldbank.org


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Synopsis . Ppt