180
ANNEXURES
1. LIST OF COMPANIES WHERE SURVEY AND INTERVIEWS WERE CONDUCTED 2. SPECIMEN LETTER (RESPONDENTS) 3. QUESTIONNAIRE 4. MAIN RECOMMENDATION OF THE SECOND NATIONAL COMMISSION ON LABOUR, 1999. 5. INFORMATION ABOUT PUNE DISTRICT 6. BIBLIOGRAPHY 181
ANNEXUREI List of Companies Sr. Name Of The Address Phone No. No. Companies 1. Spica Plastics 22/2 Hadapsar Industrial 020-26870051 Estate Pune 411013 2. Kirloskar Brothers Udyog Bhavan Tilak Road 020-24444444 Ltd. Pune 411002 3. Finolex Industries Plot No lOMlDC 020-27474381 Chinchwad Pune 411019 4. Elite Industries Chinchwad 020-4113242 Pune 411019 5. Poona Radiators & Manjri Hadapsar 020-26990320/30 Oil Coolers Pune 411028 6. Deepak Fertilizer & MIDC Talaja 022-27412411 Petrochemical Raigad Maharashtra Corporation Ltd. 7. Amrit Capacitors MIDC Bhosari 020-4113686 Pune 411026 8. Unity Bushes & Rasta Peth 020-26121890 Tools Pune 411011 9. Nothern Credit Siddharth House 020-26689797 Collection Pvt. Ltd. Pune 411006 10. S. S. Maniyar & Pune411030 020-24477329 Company 11. Trinity Forgers MIDC Bhosari 020-27120873 Limited Pune 411026 12. Ramani Industries MIDC Chinchwad 020-4111737 Pune 411019 182
13. Pioneer Enterprises Mundhwa 020-26812337 Pvt. Ltd. Pune 411036 14. Taiab Engineering Manjri Budruk 020-26990330 Co. Pune 411028 15. Garda Meditech Pvt. Pune 411001 020-26132292 Ltd. 16. P. G. Joshi & Parvati Gaon 020-24443959 Company Pune 411030 17. Rajmata Group Of Salunke Vihar 020-26832156 Super Markets Pvt Pune 411048 Ltd. 18. Alfa Bulbs Mundhwa 020-26816909 Industries Pune 411036 19. Krishna Industries Kharadi 020-26353442 Pune 411014 20. Expertease India Pvt Boat Club Road 020-26127812 Ltd. Pune 411001 21. Exide Industries MI DC Chinchwad 020-4114466 Pune 411019 22. KSB Pupms MIDC Chinchwad 020-27409281 Pune 411019 23 Orbit Coatings Pvt. Markal Road Alandi. 952135-232362/3 Ltd. Pune-412105 24 Goyalka Sadashiv Peth Kumthekar 020-24458102 Manufacturers Road Pune-411030 25 Hindustan Paper MIDC Chinchwad 020-27472994 Products Pune 411019 26 Standard Meter Hadapsar Industrial Estate 020-26872099 Manufacturing Pune 411013 Company 183
27 Dyna Filters Pvt. Hadapsar Industrial Estate 020-26872772 Ltd. Pune 411013 28 Superior Engineers Kasarwadi 020-27827459 Pune 411018 29 Lutf Foods Pvt. Ltd. Kondhwa Budruk 020-26930149/50 Pune 411048 30 A. B. Industries Kondhwa Budruk 020-26932768 Pune 411048 31 PDSYS Pimpri 020-27452174/5 Technologies Pune 411018 32 Jani Candies & Mundhwa 020-26818104/5 Toffies Pune 33 Vishay Components Loni Kalbhor 020-26913285 India Pvt. Ltd. Pune 412201 34 Leonora Credit Shivaji Nagar 020-25535795 Control Pune 411005 35 Ferrarc Engineers Bhosari 020-2790771 Pvt. Ltd Pune 411026 36 Murphy Batteries Hadapsar Industrial Estate 020-4011919 Pune 411028 37 Sandeep Enterprises Dattanagar Ambegaon 020-24301233 Pune 411046 38. Telco Pimpri Pimpri 020-27403286 Pune 411018 39. Weikfield Products Nagar Road 020-26633111/2 Pune 411014 9422024463 40. J.K. Industries Off Boat Club Road 020-26125425 (Tyres) Pune 411001 41. Industrial Metal Nagar Road 020-26633690 Powders Pune 411014 184
42. Karla Engine Kamshet 02114-262314 Components Pvt Pune 410401 Ltd. 43. A. G. Industries Kondhwa Industrial Estate 020-26872801 Pune 411040 44. Sudarshan Wellesly Road 020-26127334 Chemicals Pune 411001 45. Eagle Flask Talegaon 02114-222321 Industries Pune 410507
46. Kinetic Engineering D I Block MIDC Chinchw^ad 020-27474301 Pune 411019 5 Lines 47. Shree Precoated Sanaswadi Nagar Road 020-26631439 Steel Ltd. Pune 4112208 48. STS Chemicals Ltd. Pimpri 020-27425645 Pune 411018 5 Lines 49. Ashwamegh Motors Pune Satara Road 020-24210006/7 Pvt. Ltd. Pune 411037 50. Incab Industries Hadapsar Industrial Estate 020-2687011 Pune 411013 51. Hoganas India Ltd. Koregaon Park 0204030171 Pune 411001 52. Tata Tele Services Shivaji Nagar 020-4005455 Pune 411005 53. Kirioskar Power 5/4 Nagar Road 020-26991385 Equipment Ltd. Pune 411014 54. Safe Auto Parts Pvt. MIDC Chinchwad 020-27472055 Ltd. Pune 411019 55. SKF Bearings Co. Chinchwad 020-27278569 Ltd. Pune 411019 185
56. Baker Gages India 37/40 Nagar Road 020-26633888 Ltd. Pune 411014 57. Bajaj Auto Ltd. Akurdi 020-27472881 Pune 411035 58. Atlas Automotive MI DC Chinehwad 020-27473856 Components Pvt. Pune 411019 Ltd. 59. Kirloskar Mcquay Purandhar Dist 02115-223257 Pvt. Ltd. Pune 412301 60. Amfarge Industries MIDC Chinchwad 020-27474482 Ltd. Pune 411019 61. Mahindra Ugine Maval Taluka 02114-255289 Steel Co. Ltd. Pune 412106 62. Nulife MIDC Pimpri 020-27477346 Pharmaceuticals Pune 411018 Ltd. 63. Mohan Plastic MIDC Pimpri 020-27475922 Industries Pune 411018 64. Crompton Greaves Pimpri 020-27272955 Ltd. Pune 411018 65. Divgi Metal Wares Erandwana 020-25678926 Pvt. Ltd. Pune 411004 186
ANNEXURE II PROF. DANIEL J PENKAR Symbiosis College of Arts and Commerce, Pune-411004 And DR. P. C. PARDESHI. Research Guide, University of Pune Pune 411007
Date:
To,
Subject: “An analytical study of industrial relations in selected industrial units in and around Pune region during the period 1998 - 2002.” Dear Sir / Madam,
I am a registered student of the University of Pune, studying for my Doctoral Degree under the guidance of Dr. P.C. Pardeshi with the following subject:
‘An analytical study of industrial relations in selected industrial units in and around Pune region during the period 1998 - 2002. ”
Though it is academic research we fell that whatever conclusions we are going to draw, should depend upon the practical experience. Accordingly, we have prepared a questionnaire we request you to fill the questionnaire and answer the questions. 187
Kindly note that the research work is purely academic and if you wish we will not disclose your name in the thesis. So it would not create difficulties for you.
We hope Sir, that you would grant our request and answer our questionnaire without any reservations which is most valuable for our study
Looking for your kind co-operation.
Thanking You,
Yours Sincerely,
Dr. P.C. Pardeshi Prof. Daniel J. Penkar (Research Guide) (Research Student)
• • • 188
ANNEXURE III
QUESTIONNAIRE
ON
INDUSTRIAL RELATION 189
QUESTIONNAIRE ON INDUSTRIAL RELATIONS
Q. 1. Name o f the Company/ Industry Q. 2. Address
Phone ; Q.3. Year of Establishment: Q.4. Main Products Manufactured Q.5. Total Number of Workers : Male Female Total Q.6. Name of The Trade Union Q.7. Name of the Personnel i) Manager Experience Qualification Address
Phone Name of the HRD i)____ Executive Experience Qualification Address
Phone 190
Name of the Labour i) Officer Experience Qualification Address
Phone
Q.8. How would you define ‘Industrial Relations’?
Q.9. What according to you are the principles of Industrial Relations ?
Q. 10. Please specify the scope of Industrial Relations? 191
Q. 11. Explain the philosophy and rationale of Industrial Relations?
Q.12. Why is it said that Industrial Relations issues are complex and dynamic? Please explain.
Q. 13. What is the basis of Industrial Relations?
Q.14. Do you agree with the view that “Industrial Relations develop the skills and methods of adjusting to and co-operating with each other”? Why? 192
Q. 15. Please explain the Historical Background or Evolution of Industrial Relations?
Q. 16. What are the prominent objectives of the Industrial Relations policy?
Q.17. What are the main aspects of handling Industrial Relations at the undertaking / plant level?
Q18. Explain the role of collective bargaining in resolving differences between management and workers and in reconciling conflicting interests? 193
Q. 19. What are the main elements of the system of collective bargaining?
Q.20. Which issues are arising out of, or relating to collective bargaining in India?
Q.21. Do you agree with the view that “Workers participation in management may be looked upon as a way of re-humanising industrial work by creating opportunities for them to gain social and psychological satisfaction”. Why?
Q.22. “The efforts of ensuring workers participation in management have not made much progress in the Indian environment” What are the reasons for this? Please Specify. 194
Q.23. What measures do you suggest to make schemes of participation successful?
Q.24. Which of the following methods do you use for resolving industrial disputes ? Why? i) Negotiation ______ii) Conciliation ______iii) Mediation ______iv) Arbitration ______v) Any other (please specify with the reasons)
Q.25. Do you think that “Code of discipline and/or code of conduct is/are best to maintain harmonious interunion relations”? Why? 195
Q.26. Do you agree with the view that “Fragmentation and multiplicity are the weaknesses of Indian trade unions”? Why?
Q.27. What are the reasons for dissatisfaction amongst the owners and workers in the small scale sector? Do you think that there are no harmonious and cordial relations between the two parties?
Q.28. “Low wages, bad working conditions, insecure service conditions, fear of victimisation, loss of employment, negligence of workers interest are the main reasons for exploitative unstable relations” Please elucidate. 196
Q.29. Please explain the role I LO (International Labour Organisation) on the building up of industrial relations in India.
Q.30. How far proper handling of grievances can help in maintaining good industrial relations?
Q.31. Do you agree with a view that “organised labour welfare programmes or work for betterment of the workers can make valuable contribution in maintaining harmonious industrial relations”? How?
Q.32. Which methods do you suggest for maintaining good industrial relations? 197
Q.33. In last few years, are there any conflicts taken place between the workers and the management? If yes on what grounds? How the problems were solved?
Q.34. Do you get threatening from the workers for not providing certain facilities to them? What measures do you take in such situations?
Q.35. Do you get guidelines from the Government from time to time regarding industrial relations? Do you implement the same? 198
Q.36. Which conditions should exist for the maintenance of harmonious industrial relations in modern days?
Q.37. How to maintain permanent industrial peace in an organisation?
Q.38. Are there any cases pending in civil, district or sessions courts on account of Industrial relations? Why?
Q.39. What are the special aspects of industrial relations? 199
Q.40. Do you think that industrial relations in the industrial units situated in Pune region are peaceful in the context of global competition? What are the reasons?
Q.41. What are your suggestions for improving industrial relations in an industry like vours in the new millennium?
Signature of the officer
Date Name and seal of the company 200
ANNEXURE IV
MAIN RECOMMENDATIONS OF THE SECOND NATIONAL COMMISSION ON LABOUR, 1999 201
MAIN RECOMMENDATIONS OF THE SECOND NATIONAL COMMISSION ON LABOUR 1999 The Government of India had set up by a resolution dated 15th Oct, 1999, the second National Commission or Labour Minister at the centre and one full time member and seven part time members. The terms of reference of the commission were as follows: a. To suggest rationalization of existing laws relating to labour in the organized sector and; b. To suggest an “umbrella” legislation” for ensuring a minimum level of protection to the workers in the unorganized sectors.
While developing the framework for its recommendations, the commission may take into account the following: i. Follow up implications of the recommendations made by the Commission set up in May 1998 for review of various administrative laws governing industry. ii. The emerging economic environment involving rapid technological changes, requiring response in terms of change in methods, timings and conditions of work in industry, trade and services, globalization of economy, liberalization of trade and industry and emphasis on international competitiveness and the need for bringing the existing laws in tune with the future labour market needs and demands. iii. The minimum level of labour protection and welfare measures and basic institutional frame work for insuring the same, in the manner which is conductive to a flexible labour market and adjustments necessary for furthering technological change and economic growth. iv. Improving the effectiveness of measures relating to social security, occupational health and safety, minimum wages and linkages of wages with productivity and in particular the safeguards and facilities required for women and handicapped persons in employment. The commission framed several sub group eminent persons from employers organization. Trade unions, government representatives. Institutions involved in Research on Labour Problems, Industrial Relations, Educational Institutions involved in Education on Labour, persons from Legal 202
profession, etc. The Commission met several persons, representatives, throughout India to collect their views. The Commission submitted its report in 2 volumes which are exhaustive and has made several recommendations on the subjects referred to it. The report of the Commission is unanimous except one part time member Shri. C.K. Narayanan from Kerala, who submitted a note of dissent. The observations and the recommendations of the Commission have been mentioned in this chapter in brief Under the main headings of; a. Globalisation and its impact on Indian Industry, Trade and Services. b. Approach to review and recommendations on labour laws. c. Views on Trade Unions. d. Suggested machinery for administration of labour laws, resolving industrial disputes. e. Views of the Labour Commission on new methods of work in the competitive markets, and role of trade unions / employees in the changed scenario arising out of liberalization. Globalisation, Technological changes industry. Trade, services.
The recommendations of The Commission are in keeping with the current trend in markers economies and policies of the Government, the environment prevailing due to intense competition in providing goods and services to the members of the society, protecting the interests of working people at all levels in India.
It is now for the government to take necessary steps in implementing all or some of the recommendations of the Commission in the interest of the society ; 1. Globalisation of the economy and its impact on Industry Trade Services in India due to liberalization. Broad features of Economic reforms, introduced by the Government of India. Government opens major sector of the economy to the private sector. i. Foreign investment was invited in all these sectors. ii. Restrictions on entry of private sector into the field of infrastructure and strategic industries removed. iv. More freedom for financial institutions. 203
V . Cuts in CRR and SLR, more ftinds have been made available to the banks by Reserve Bank of India. vi. Private Capital and Foreign investments allowed in areas like construction of roads, ports, airports, telephone services. vii. Import restrictions have been reduced. viii. Government decides to reduce its investments in Public sector enterprises. ix. Subsidies are being cut, tax rates are being reduced, and entire fiscal system is being streamlined. X . The Controller of Capital Issues stands abolished.
The impact of this policy has resulted in post reform growth which has been at least marginally better than average rate of growth in pre-reform in period. It had been observed that the strength of India’s external sector management has turned out to be among the most noteworthy success of the structural reforms undertaken since 1991. In the global context India’s indebtedness position has improved over the years. The new economic policy has not, however, succeeded in promoting exports on a sustainable basis and improving our international competitiveness.
Foreign collaborations first increased their shares from 40% to 51% and then took over the entire management of the economy. As a result, the management of majority of foreign collaborated companies went into the hands of foreign companies. There has been growth in Mergers and Acquisitions. However, now foreign companies are not interested in mergers, but are interested in acquisions thus eliminating the Indian management.
The growing competition from cheap imported goods, and the goods produced locally by MNC’s in India has put Indian entrepreneur into a state of stupor and indecisiveness. A large MNC can acquire most of our large Indian companies.
These overseas investors can manipulate and also create problems for Indian economy. 204
Thus the new economic poHcy seems to be resulting in the closure or disappearance of many Indian companies especially those engaged in the consumer goods industry. Since all this may lead to survival of the fittest and consumers get a better product. But in the process, India seems to be losing the indigenous breed of entrepreneurs and innovators who once played an important role in developing Indian industry. It appears that the days of importing technology and collaborating with a foreign company are over. Since a foreign company can export its goods freely to India, manufacturing in India is probably a second consideration for such a company. During the last few years MNC’s have started acquiring the entire equity of their Indian subsidiaries through open offers and then de-listing the companies from the stock exchanges.
With their exit the markets will be poorer. The Indian share holders will no longer be able to participate in the prosperity of these MNC’s. One of the characteristics of the new economic policy of liberalization is that the policy has concentrated on the private sector and in particular in attracting foreign investment and trade liberalization. The reform process has practically bypassed the public sector enterprises. The new policy of economic liberalization neither specified more useful and efficient. Because of global competition most of the Indian and foreign collaborated Indian companies have reduced their labour force to remain competitive. Since 1992 Indian companies have started downsizing by restoring to voluntary retirement schemes (VRS). A large number of workers have lost their jobs as a result of VRS, retrenchment and closures. Employment is not growing in the organized sector. Globalisation is affecting collective bargaining and has also had negative impact on a variety of sectors of Indian economy promote bilaterism based on mutual interest and universally accepted fiandamental rights and norms. The legal system should therefore promote bilaterism. Where differences persist the law must be enable contending views to be settled through mediation and arbitration including compulsory arbitration where dispute may lead to disruption of social life affecting public health, sanitation, drinking water, supply medical facilities and transport and cause suffering to large section of people who are unrelated to the disputes.
Process of adjudication must be quick, expeditious and inexpensive. 205
The ILO declaration of fundamental principles and rights at work adopted by International Labour Conference in June 1998, declares inter alia, that all member states whether they have ratified the relevant conventions or not have an obligation to respect to promote and to realize the principles concerning the fundamental rights which are the subject of those conventions namely - a) Freedom of association and the eflFective recognition of the right to collective bargaining. b) The elimination of all forms of forced or compulsory labour. c) The effective abolition of child labour and d) The elimination of discrimination in respect of employment and occupation.
From the commitments of the Government of India it can be deducted that the following rights of workers have been recognized as inalienable and must therefore accrue to every worker under any system of labour laws and labour policy. These are: a. Right to work of one’s choice. b. Right against discrimination. c. Prohibition of child labour. d. Just and human conditions of work. e. Right to social security. f Protection of wages including right to guaranteed wages. g. Right to redress of grievances. h. Right to organize and form trade unions and right to collective bargaining. i. Right to participation in management.
Keeping all these in view it would appear that perhaps the safest approach in the converge under labour laws would be to define the organized sector as consisting of establishments which have a minimum employment limit of 19 workmen. 206
The commission considered the question whether there should be any salary limit above which the protection of labour laws will not be available or there should not be any such limit for coverage of workers under the labours laws.
Relatively better off section of employees categorized as workmen like Airline Pilots etc. do not merely carry out instructions from superior authority but also require and empowered to take various kinds of on the spot decisions in various situations and particularly in emergencies. The ftinction cannot be merely categorized as those of ordinary workmen. The commission therefore recommends that Government may lay down a list of such highly paid jobs who are presently deemed as workmen category as being outside the purview of the laws relating to workmen and included in the proposed law for protection of non workmen. Another alternative is that the Government fix a cut off limit of remuneration which is substantially high enough in the present context such as Rs. 25,000 p.m. form beyond which employees will not be treated as ordinary workmen”.
It would be logical to keep all supervisory personnel irrespective of their wages / salary outside the rank of worker and keep them out of the purview of the labour laws meant for worker. All such supervisory category of employees should be clubbed along with the category of persons who discharge managerial and administrative functions. The commission would also recommend that such a modified definition of worker could be adopted in all the labour laws. We except management to take care of the interests of supervisory staff as they will now be part of the managerial fraternity.
Existing labour laws should be broadly grouped into four or five groups of laws pertaining to: Industrial Relations. i. Wages. ii. Social Security, v. Safety and, V. Welfare and working conditions and so on. 207
The commission is of the view that the coverage as well as the definition of the term “worker” should be the same in all groups of laws subject to the stipulation that social security benefits must be available to all employees including administrative, managerial supervisory and others excluded from the category of workmen and other not treated as workmen or excluded form the category of workmen.
Laws relating to Labour Relations: Currently, central laws relating to the subject of labour relations are: i. The Industrial Disputes Act, 1947; ii. The Trade Unions Act, 1926; and iii. The Industrial Employment (standing ordersO Act, 1946 and others.
There are state level legislations too on the subject. We recommend that the provisions of all these laws be judiciously consolidated into a single law called the Labour Management Relation law or the law on the Labour Management Relations. However, we would carve out a section of those workers who are employed in establishment with employment size of 19 and below for a different kind of dispensation. We would recommend the enactment of a special law for small scale and tiny units. We have come to the conclusion that the reasonable threshold limit will be 19 workers. Any establishment with workers above that number cannot be regarded as small. The composite law suggested by us for small enterprises has provisions for registration of establishments (provisions pertaining to) safety health, welfare of the workers house of work leave payment of wages, payment of bonus, compensation in case of lay off, retrenchment and closure, resolution of individual and collective dispute by workers etc. The law suggested by us has provisions of social security also.
We are adopting certain approaches in drafting the law on Labour Management Relations: i. The commission would prefer the gender neutral expression “worker” instead of the currently used word workman that we find in the Industrial Disputes Act and some other Acts. 208 ii. The (proposed) law will apply uniformly to all such establishments. iii. We recognize that today the extent of unionization is low and even this low level is being eroded and that it is time this trend was reversed and collective negotiations encouraged. Where agreement and understanding between the two parties is not possible be through arbitration or where adjudication is the preferred mode, through labour courts and labour relations commissions of the types we propose, and not the government intervention. A settlement entered into with a recognized negotiating agent must be binding on all workers. iv. Provisions must be made in the flow for determining negotiating agents particularly on behalf of workers. V . Law must provide for abilities to identify the negotiating agent, to adjudicate disputes and so on. Provisions must be made to have labour courts, labour relations commissions at the state, central and national levels, vi. The commission is of the view that change in the labour laws be accompanied by a well defined social security package that will benefit all workers including workers in the unorganized sector, and those in administrative, managerial and other categories.
One of the most important steps in the rationality and simplifying the existing labour laws is in the area of simple common definitions of terms that are in constant use such as “worker”, “wages”, and “establishment”. It is desirable to define the two terms, “wages” and “remuneration”. Term retrenchment should be defined precisely to cover only termination of employment arising out of reduction of surplus workers in an establishment, such surplus having arisen out of one or more or several reasons. There are some industries or services where the effects of industrial action create situations which threaten the lives and normal and essential needs and activities of the vast majority. One’s liberty has to be seen in the light of the equal rights that everyone else has to demand and enjoy liberty. Social intervention thus becomes justified and necessary to protect the interests of all concerned. 209
The commission therefore recommends that in the case of socially essential services like water supply, medical services, sanitation, electricity and transport, when there is a dispute between employers and employees in an enterprise and when the dispute is not settled through mutual negotiations, there may be strike, it should be taken that the strike has taken place and the dispute must hence forths will be referred to compulsory arbitration.
The Trade Unions Act, 1926 It would have been desirable if the Act had also provided for a ceiling on the total number of trade unions of which an outsider can be member of executive bodies. Amendments made in Section 4 recently appear to disentitle workers in the unorganized sector from getting their trade unions registered. To overcome this difficulty a specific provision may be made to enable the workers in the unorganized sector to form trade unions and get them registered even where an employer employee relationship does not exist or it is difficult to establish and the provision stipulating 10% membership shall not appearing in their case.
The commission recommends federation of trade unions as also central organizations of trade unions and federations should be covered within the definition of trade union and be subject to the same discipline as primary trade union. The same dispensation will apply to employer’s organization and employees’ organization. An unregistered organization shall not be entitled to any privileges, immunities and rights —
We strongly believe in the role that bilateral interaction, dialogue and negotiations can play in promoting harmonious industrial relation. In a sense, bilateralism is the recognition of the stake that workers and the management have in the viability and success of the undertaking. The commission recommends that a Negotiating Agent should be selected for recognition on the basis of the check off system with 66% support bilateralism unions that have support of more than 25% should be given proportionate representation on the college. 210
Secret ballot even on a restricted basis is logistically and financially a difficult process in industries like railways, banks, post offices, coal mines and other undertakings operating in a number of states.
Check off system in an establishment employing 500 or more workers must be made compulsory for members of all registered trade unions. Though check off system will be preferred in the case of establishments employing less than 300 persons too, the mode of identifying the negotiating agent in these establishments may be determined by the Labour Relations Commissions.
We would also recommend that recognition once granted should be valid for a period of 4 years to be coterminous with the period of settlement. No claim by any other trade union / federation / centre for recognition should be entertained till at least 4 years have elapsed form the date of earlier recognition. The individual worker’s authorization for check off should also be coterminous with the tenure of recognition of the negotiating agent or college.
Standing Orders Establishments employing 20 or more workers should have standing orders or regulations. There is no need to delimit the issues on which standing orders can or need be framed. As long as the two parties agree, all matter of things including multi skilling, production, job enrichment, productivity and so on can be added. These standing orders will be prepared by the employer(s) in consultation with recognized union federations / centres depending upon the coverage and where there are any disagreements between the parties the disputed matter will be determined by the - certifying authority having jurisdiction, to which either of the parties may apply. The appropriate Government may prescribe separate Model Standing Orders for units employing less than 50 workers. The appropriate Government may also frame model standing orders including the classification of acts of misconduct as major and minor and providing the nature and gravity of the misconduct and publish them in the official gazette. 211
Grievance Redressal Every establishment shall establish a Grievance Redressal Committee consisting of equal number of workers and employers’ representatives. The Grievance Redress Committee shall be the body to which all grievances of a worker in respect of his employment including his non employment will be referred for decision within a given frame work.
INDUSTRIAL DISPUTES ACT-RECOMMENDATION IN RESPECT OF LAY OFF, RETRENCHMENT, CLOSURE AND COMPENSATION TO BE PAID Lay - off and Retrenchment: Prior permission is not necessary in respect of lay off and retrenchment in an establishment of any employment size. Workers will, however, be entitled to two months notice pay in lieu of notice in case of retrenchment.
We also feel that the rate or retrenchment compensation should be higher in a running organization which is being closed than in an organization which being closed. We are of the view that the scale of compensation may vary for sick units and profit making units even in cases of retrenchment. We would, however, recommend that in the case of establishment employing 300 or more workers where lay-offs exceeds a period of one month, such establishments should be required to obtain post - facto approval of the appropriate government.
We recommend that while lay off compensation could be 50% of the wages as at present in case of retrenchment. Chapter V A of the Act may be amended to provide for sixty days notice for both retrenchment and closure or pay in lieu of thereof
Closure: We are aware that Chapter VB or writeflil Act has aroused intense debate. The answer lies in finding a fine balance because efficiency is essential for social progress and the protection and generation of employment are also imperative for social justice and social progress. Leaving matters of this nature solely to bilateralism at this juncture may lead to widespread unrest, strikes lay offs and closures of industrial establishments. 212
The alternative then is to pay adequate compensation, offer outsourced jobs to the retrenched workers or their cooperatives; if any enterprise decides to close down gives to workers or Trade Union a chance to take up the management of the enterprise before the decision to close down in being given effect to, underwrite facilities for medical treatment, educating of children etc., provide for third party or judicial review of the decision without affecting the right of the management to decide what economic efficiency demands. The provisions for permission to close down an establishment employing 300 or more workmen should be made a part of Chapter VA and Chapter VB should be repeated.
In the new circumstances of global competition, it may not be possible for some enterprises to continue and meet the economic consequences of competition. In such case one cannot compel non - viable undertakings to continue to bear the financial burden that has to be borne to keep the concern going. They should have the option to close down.
We recommend that the provision of Chapter VB pertaining to permission for closure should be more applicable to all establishments to protect the interest of workers in establishments which are not covered at present by this provision it they are employing 300 or more workers. Necessary changes in Chapter VA in regard to retrenchment and closure will have to be made accordingly.
Every employer will have to ensure, before a worker is retrenched or the establishment is closed irrespective of the employment size of the establishment, that all dues to workers, be it arrears of wages earned, compensation amount to be paid for retrenchment or closure or any other amount due to the workers are first settled as a precondition to retrenchment or closure.
These provisions are not for industrial disputes being raised against lay off or retrenchment or closure. The Commission would like to recommend the compensation per completed year of service at the rate of 30 days on account of closure in case of sick industry which has continuously run, into losses for the last three years or has failed to 213 file an application or bankruptcy or winding up or for other and at the rate of 45 days wages for every completed year for retrenchment by such sick industry or body where retrenchment is done with a view to becoming visible. It would recommend higher retrenchment compensation at the rate of 60 days becoming visible. It would recommend higher retrenchment compensation for closure at 45 days wages for profit making organizations. For establishments employing less than 100 workers half of the compensation mentioned above in terms of number of days wages way be prescribed. We are recommending the restoration of the original threshold limit for prior permission, giving the workers right to veto, judicial review by the LRC in case of disputes and make it obligatory for employers to purchase insurance or cover for employees.
Arising out of the above, we recommend that while that the lay off compensation would be 50% of the wages as at present, in the case of retrenchment. Chapter VA of the Act may be amended to provide for sixty days notice for both retrenchment and closure or pay in lieu thereof In case of closure of such an establishment which is employing 300 or more workers, the employer will make an application for permission to the appropriate Government 90 days before the intended closure and also serve a copy of same on the recognized negotiating agent. If the permission is not granted by the appropriate Government within 60 days of receipt of application, the permission will be deemed to have been granted.
ARBITRATION, ADJUDICATION, LABOUR COURTS, LABOUR RELATIONS COMMISSION We feel arbitration is better than adjudication and would like arbitration to become the accepted mode of determining disputes which are not settled by the parties themselves. In fact, it would be desirable if in every settlement there I clause providing for arbitration by a named arbitrator or panel of arbitrations of all disputes arising out of interpretation and implementation of the settlement and any other disputes. A panel of arbitration may be maintained and updated by the LRC concerned. We recognize that in the area of determination of industrial disputes in bargaining and inbuilt arbitration will result in the bulk of the disputes between the parties being settled expeditiously. We envisage a 214 system of labour courts lok adalats and Labour Relations Commissions as the integrated adjudication system in labour matters.
The Labour Relations Commission at the State, the centralized National level will be preferably bodies that have as presiding officers a sitting judge or retired judge of the high court or a person who fulfils the qualification for being appointed as High Court Judge. The National Labour Commission may also have as presiding officer a sitting or retired Judge of the Supreme Court or a person who fulfils the qualification for being appointed a Supreme Court Judge.
The Central and the State Labour Commission should be declared as set up under Article 323 - B of the Constitution. The National Commission should be empowered with the power of the Supreme Court of India.
Jurisdiction of civil courts be banned in respect of all matters for which provision is contained in the relevant labour laws.
Strike: A strike should be called only by recognized negotiating agent and that too only after it had conducted a strike ballot amongst all workers of whom at least 51% support the strike.
Lockout: An employer will not be allowed to declare a lockout except with the approval at the highest level management or in cases of actual or grave apprehension of physical threat to the management or to the establishment.
The appropriate government will have the authority to prohibit a strike or a lockout by a general or special order and refer for adjudication the issue leading to the strike or lockout. The general provisions like giving of notice of not less than 14 days, not declaring or strike or lockout over a dispute which is in conciliation or adjudication and so on will be incorporated in the law. 215
Workers* Participation: We feel that the time now come how to legislatively provide for a scheme of workers’ participation in management. It may be initially applicable to all establishment employing 300 or more persons. For smaller establishments a non statutory scheme may be provided.
Wage Board: There is no need for any wage board, statutory or otherwise for fixing wage rates for workers in any industry. Casual or Temporary Worker: We recommend that no worker should be kept continuously as a casual or temporary worker against a permanent job for more than 2 years.
Minimum Wage: There should be a national minimum wage that the Central Government may notify. The minimum wage must be revised form time to time. It should, in addition have a component of dearness allowance, to be declared six months linked to consumer price index and the minimum wage be revised once in 5 years. This will be a wage below which no one who is employed anywhere, in whatsoever occupation, can be paid.
General Law Relating to Working Hours, Leave, Working Conditions: The Commission recommends a General Law relating to these. It also recommends one omnibus safety laws at work places and different activities.
Child Labour: The Commission has suggested a new law on the subject of child labour in place of the present law.
Bonus Act: The Commission recommends that every employer must pay each worker his one month wage as bonus, before an appropriate festival be it Diwali or Onam or Puja or Ramzan or Christmas. Any demand for bonus in excess of this up to maximum of 20% of the wages will be subject to negotiation. We also recommend that the present system of two wage ceilings for reckoning entitlement and for calculation of bonus should be 216 suitably enhanced to Rs. 7500/Pm and Rs. 3500/Pm for entitlement and calculation, respectively.
Legislation relating to social security: These recommendations relate to a. Workmen’s Compensation Act. b. The Provident Fund Act. c. The Payment of Gratuity Act. d. The Employees State Insurance Scheme (ESI). e. Welfare Funds. f Unemployment Insurance Scheme
Our Commission accepts the need to consider social security as a fundamental human right- We recommend a system in which the State bears the responsibility for providing and ensuring an elementary or basic level of security and leaves rooms for partly or wholly contributory schemes. The Workmen’s Compensation Act should be converted fi-om an employer’s liability scheme to a social insurance scheme. Its coverage should be progressively extended to more employments and classes of employees and the restrictive clauses in schedule II of the Act should be removed.
The term “workman” may be replaced by the term employee so as to make the Workmen’s compensation Act applicable to all categories of employees, the term employee may be defined to mean any person employed in any employment specified in Schedule II, The entries in Schedule II may be revised so as to make it applicable to all classes of employees progressively.
Maternity Benefit Act: There are many classes of establishments where women are being employed increasingly to which Maternity Benefit Act is not applicable. We reconnmend 2!7 that those classes may be brought within the scope of the Act on a priority basis by following the National Industrial Classification.
The ESI Scheme: The National Health Policy assigns a minor role to heahh insurance to supplement the public services. The running of five medical services by the ESIC. parallel to the National Health Service might have been a historical necessity at the time when ESI scheme was introduced. The object and scope of the scheme need to be reviewed in the current context when public as well as private medical services have increased. The study group on social security urged that the benefit structure of the ESI scheme be unpacked and provision be made for extension of the scheme for one or more benefits separately or in groups. The study group has further suggested that immediate steps be taken to extend, the scope of the Act for purposes of employment, injury' benefit and maternity benefit throughout the country without waiting for the corresponding provision for medical benefit. The Commission agrees with the view of the study group.
Casual and Contract workers may be covercd for limited benefits at reduced rates of contribution as recommended by various committees and the ILO, Exemptions may be granted from the ESI. in cases where establishments provide similar or superior benefits. The management of the ESI scheme should be professional. WTiile tripartite body may remain the general body, day to day administration may be cntnisted to a body of expects who should constitute the governing body.
Provident Fund: A law to place all the provident ftinds under a common regime seems to be called for. The PF Act be made applicable to all classes of establishments subject to such exception as may be considered necessary for specified reasons.
Regarding applicability of the PF Act. the employment thcreholds should be brought in the down to 10 immediately to 5 day the next 3 -5 \cars and to one within a short time frame thereafter. 2!8
We suggest that appropriate provision be made in the Act to enable the organisation to frame dilTerent scheme with dilTerent contributor}' and benefit packages for application to different classes of establishments, employees and persons. This is particularly necessary to make the act applicable to self - employed people.
The Commission is of the opinion that the provision for premature withdrawal of funds should be restricted.
All the ambiguities with interpretation of the employees Pension Scheme be referred to an Actuary and the scheme may be amended suitably as per his advice.
The Payment of Gratuity: may be integrated w ith E.P.F. Act and converted into a social insurance scheme. Integration of the Payment of Gratuity Act and the EPF Act will ensure automatic extension of the Payment of Gratuity Act to all establishments to which the EPF Act applies.
An unemployment scheme could play a substantial role in coping with the unacceptable levels of unemployment remitting from the implementation of the structural adjustment programmes and other economic reforms. The scheme should preferably be implemented through employees provident fund organization and be applicable to all establishments and employees to which the EPF Act is currently applicable.
The unemployment schcmc should be financed by a tripartite contribution to be determined actuarially.
Welfare Funds: These can be transformed into instruments of social security by expanding the coverage of the funds, broadening the range of benefits, modifying the financial managements for pro\'iding benefits and decentralizing the administration of the funds. Employers are not a\ersc to contributing to a welfare fim.d or which would provide all the K'nefits including social security to workers through a tripartite hoard 219
The quantum of maternity benefits may be raised to a minimum of Rs. 2000/-.
Review of Wages and Wage Policy Our Commission feels that the Government of India should appoint an expert committee to study the proctors of the national minimum wage and make suitable recommendation for combination of such a current national minimum wage.
A national wage policy must bring within its purview problems of workers in the unorganized sectors who are not unionized and therefore have no bargaining strength. The entire emphasis of Government wage policy should be fixing minimum wages and implementing them for the workers in the unorganized sector.
We feel that the State Government should specify minimum wages for an unskilled category of worker and these wages should be the same for all industries.
The minimum wages committee may fix minimum wage for a region and the minimum wage for a region can be made applicable to all employments in that region.
Skill Development: There is an increasing demand for skilled labour. This is or account of globalization, changes in technology as well as work processes.
The seven key existing and future challenges for Indian Labour are Challenge of globalization i. Labour competitiveness vis-a-vis China and other nations, ii. Of redeployment of surplus manpower from agriculture and manufacturing to service and trade of recognizing labour as human capital rather than as a cost, iv. Of continuous employability of labour. V. Of enlarging and utilizing effectively the infrastructure for education and training and of absorption of new technologies by labour by using education and training. 220
In order that skill development and training get due focus, it is a fact that fiscal incentives should be extended to industry and other providers of training.
In order to provide for retraining of workers, rendered surplus, obsolete by lay offs, retrenchment and Voluntary Retirement Schemes, early separation schemes, and training of labour in unorganized sector we recommend the establishment of a Skill Development Fund (SDF).
• • • Table 1 General Informat on
1) Height Above the Sea Leva! 570 Meters 2) Distance from the Sea Shore 107.25 Km. 3) Latitude 18.31° N' rth 4) Longitude ■^•^.51=^ El '.t
POPULATION 2001 1991 Puno Municipal Corporation 2540069 Pimpri-Chinchwad Municipal Corporation 1006417 517083 Pune Cantonment Board 80191 82139 Kirkee Cantonment Board 76608 78323 Dehu Road Cantonment Board 47000 40555
POPULATION Sg. Kms Pune District (2001) 7224000 15642 111 Languages Spokeni. Marathi 2. Hindi 3. English 4.Gujarathi Table 2 Population Growth
Population Decade '■0 of D e c a d e Year Ai ea in So. Kr.-.s. Variation V ariation
Pune C ity 40000 1740 150000 +110000 275.00 1780 105000 -45000 3 0.00 1808 78915 -66085 -52.90 1822 73209 -5706 -7.23 1851 80000 +6691 9.27 1864 90346 + 1 04 3 6 13.05 1872 99622 +9186 10.15 1881 1 1 8 /9 0 +1 91 6 8 19.25 1891 111341 -7359 -6.10 1901 117456 +6115 5,49 1911 133227 + i s r / i 13.42 1921 165001 +2 67 7 4 21.60 1931 237546 + 7 55 4 5 45,63 1941 480942 +2 43 3 96 102,50 1951 595562 +116620 24,24 1961 132.09 856105 +25S 543 43,20 1971 138.85 1203351 +3^ ~ 24 6 +4 0,5 6 1981 138.76 1566651 ^ 36:^?00 30.1',) 1991 138.76 2540039 -^97;— IS 62.13 2001 430.00
B. Plmprl-Chinchwad Area 9522 1951 1961 52.43 27975 -■-V+3.7') 1971 G4.G5 > 19B
1981 64.81 2 2 0 i6 5 4 164,50 ' 13-101 1991 87,04 51 +2i": 1 + .ii r 2001 206.00 1 oo-:.--17 (94 G:' IlJjbosfWA L C 0 ¥ M ^ ^ A t * bf B E e f O R ^ ^
Sr. No. Items Unit Pune District Maharas! tra
Agriculture 4.1 Cultivatable Area '000' Ha 1115 23 78 4.2 Area Not Available for Cultivation '000' Ha 167 2914 4.3 Area Sown i) N et '000' Ha 1016 17732 li) G ross '0 0 0 'Ha 1259 22166 4.4 Area Irrigated i) Net '000' Ha 225 25. .' ii) G ross '0 0 0 'H a 278 3874 4.5 Area Under Forest '000'Ha 171 5370 4.6 Land Revenue Colleclion Lacks Rs. 82 7116 Actuals (99-2000) 326.09 9200
5. Animal Husbandry (1997) 5.1 Live Stock '000' No.'^ 2424 39793 5 .2 C attle '000' Nos 896 17949 5.3 Buffelows '000' Nos 286 8484 5.4 Sheeps & Goats '000' Nos 1198 14716 5.5 Poultry '000* Nos 3935
Industries (As on December 1999) 6.1 Working Factories (Regd.) Nos 3394 33626
7. Electricity (As on 31-3-2000) 7.1 No. ot Towns & Villages Electrified Nos 1896 39413
Co-operation (1999-2000) 8.1 Co-operative Societies (All Types) Nos 15787 152745
Medical & Public Health (1999-2000) 9.1 Hospitals Nos 38 887 9.2 Primary Health Centers Nos 90 1782 > ini AeVfwmB
Table 3
Pune District at Glance
5r. No. Items Unit Pune District Maharash''-a
1. Location 1.1 N orth Latitude Degree 17.5 to 19.2 16.4 to 22.!. 1.2 East Longitude Degree 73.2 to 75.1 72.6 to 80.9
2. Aret Population 'cccrding to 1991 Census) 2.1 Ai Sq. Kms. 15642 3 07713 2.2 No of Towns No 34 336 2.3 No of Villages No 1862 43027 i) Inhabited No 1844 40412 ii) U n-inhabited No 18 2615 2.4 Rural Population No '000' 2725 48396 2.5 Urban Population No'000' 2807 30542 2.3 Total Population No'000' 5532 78938 2.7 Sctieduled People No '000' 631 8758 2.8 Scheduled Tribe People No'000' 216 7318 2.9 Male No'000' 2861 40826 2.10 Female No'000' 2671 38112 2.11 MalQ - Fomalo Sex Ratioo Female /1000 Males 933 934 2.12 Density of Population Person / Sq. Kms 354 257 2.13Total Workers (1991)
I) As cultivators & Agri. Labours No. '000' 2051 I'l ;i ii) O thers No '000' 179 n.a, lii/'Non-Workers No. '00' 1854 n.ri 2.14 Literacy Percentage i) Total Percent 71.05 64.87 ii) M ale Percent 81.56 76.58 lii) F em ale Percent 59.77 52.32
3. C lim ate (1999) 3.1 Temperature a) Maximum (Absolute) Degree Celsius 38.6 47 / b) M inim um Degree Celsius 9.1 2.-'^ c) Pune Rain Fall mm 992.29 129;> Sr. No. Items Unit Pune District Maharashtra
10. Education (As on 1998-99) 10.1 Primap/Education i) Institutions Nos 4230 6 5338 II) S tudents '000' Nos 793 12232 ill) Teachers '000' Nos 21 314 10.2 Secondary Education (1998-99) i) Institutions Nos 883 14918 ii) S tudents '000' Nos 590 8748 iii) Teachers '000' Nos 18 240 10.3 Higher Education (1998-99)
i) Institutions Nos 104 1541 . ii) S tudents '000' Nos 112 928
11. Transport & Communication (As on 31-3-2000) 11.1 Total Railway Length Km s. 311 5396 11.2 Total Road Length Km s. 8695 213951
12. Local Self Government (As on 31-3-1999) 12.1 Villege Panchayats Nos 1374 27627 12.2 Municipalties (Including Corp.) Nos 13 239
Source - District Statistical Abstract 1999-2000
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