National Commission on Industrial Relations

industrial RELATION & cut into LAWS Assignment case National commission on Industrial Relation Recommendation Submitted by J. Mary Smile MBA-Final Year NATIONAL COMMISSION ON INDUSTRIAL RELATIONS The eldest National Labour missionary station 1929, had promised lot in the direction of well-disposed security, social welf be, net incomes, social insurance, industrial dealing, industrial adjudication, corporal dicker etc,. In sequel to the pep upations made in the report of the first national commission on beat back series of hollow commandments were passed.After the breach of almost 72 years the Second National Labour Commission has been constituted and submitted its report in the year 2002 to the Government of India. At the starting line the terminal figures of commendation to the commission be as at a lower place 1. To paint a picture rationalization of compriseing laws relating to labour in the organised sector, 2. To suggest an umbrella legislation for ensuring a token(prenominal) level of protection to the computeers in the uncoordinated sector.Methodology Before penning down the report, the Commission followed the following methodology * set consultation / conferences in the major cities of India to get the opinion of the Industry, public, educationalists and so on institutions * circulated a questionnaire across the industry and the society in name of the reference * surveys conducted both in organised and unorganised sector General Recommendations 1.We recommend that the primal Government and the State Government should possess a render policy on holidays, only 3 national holidays be gazetted namely Independence Day, Republic Day and Gandhi Jayanti Day, cardinal more days may be added to be dictated by each State harmonize to its own tradition and apart from these each person moldiness be every(prenominal)owed to avail of 10 restricted holidays in the year, Government holidays should be delinked from holidays to a lower place the Negotiable Instruments Act. (5. 29) 2. Flexibility in the hours of work per week and honorarium for over fourth dimension. 5. 32) 3. tackle to change the basis of tenure in all jobs (permanent as easy as non-permanent) to contractual and for stipulated periods, involves a basic change in view and notion. If transforming the basis of all employment is a social necessity because it has work economic necessity for industrial and commercial enterprises, then, it is equally necessary to get social acceptability for the change and the social institutions that female genitalia take allot of the consequences. (5. 34 35).The fundamental change of this type has to be preceded by i) growth of socially certain consensus on the new perceptional jobs ii) the evolution of a transcription of constant up-gradation of employability by dint of training in a wide spectrum of sixfold learnings iii) the setting up of a system of social security that includes unemployment insura nce and provisions for medical facilities and iv) the institution of a mandatory system of two contracts one, an individual contract and two, a collective contract with doers union. . The commission recommends that governing may l forethought down list of highly paid jobs who atomic number 18 presently deemed as workman category as being outback(a) the purview of the laws relating to workman and included in the proposed law for protection of non-workmen. some other alternative is that the Govt. fix a cut off limit of fee which is substantially high enough, in the present context much(prenominal) as Rs. 25,000/- p. m. beyond which employee will not be treated as mine run workman. 6. 19) wage ceiling of Rs. 25000/- 5. Further the Commission recommended that it would be logically to keep all the supervisory personnel, irrespective of their wages / salary, alfresco the come out of actor and keep them out of the purview of labour law meant for workers. entirely such superviso ry category of employees should be clubbed along with the category of persons who make 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 expect management to take care of the interest of supervisory staff as they will now be part of managerial fraternity. (6. 20) Modified definition of worker 6. Existing set of labour laws should be broadly grouped into four or quintuple groups of laws pertaining to * Industrial transaction * Wages * Social security * Safety * Welfare and running(a) conditions and so on 7.The Commission is of the view that the coverage as well as the definition of the term worker should be the same in all break of laws theatre of operations to the stipulation that social security benefits must be functional to all employees including administrative, managerial, supervisory and other excluded from the category of workmen and others not treated as w orkmen or excluded from the category of workmen I. APPROACHES IN DRAFTING THE LAW ON LABOUR MANAGEMENT RELATIONS Firstly, the Commission would prefer the gender neutral rule worker instead of the currently used word workman.Secondly, the law will follow through uniformly to all such stimulatements. Thirdly, we recognize that today the extent of unionization is low and even this low level is being eroded, and that it is time that the deliver was reversed and collective negotiations encouraged. Where mark offments and understanding between two parties is not possible, there, gum elastic to the assistance of a third party should as far as possible be through arbitration or where adjudication is the preferred mode, through Labour Courts and Labour Relations Commissions of the type be proposed later in this regard and not governmental intervention.A settlement entered into with accepted negotiating agent must be binding on all workers. Fourthly, we consider that provisions must be made in the law for determining negotiating agents, particularly on behalf of workers. Fifthly, the law must add for authorities to identify the negotiating agent, to adjudicate disputes and so on, and these must be provided in the shape of labour philanders and labour relations Commissions at the State, Central and National levels.Sixthly, The Commission is of the view that changes in labour laws be accompanied by a well defined social secuirty package that will benefit all workers, be they in organised or unorganised sector and should also cover those in the administrative, managerial and other categories which have been excluded from the purview of the term worker. II. INDUSTRIAL RELATIONS AND TRADE UNIONS 1. It is necessary to provide token(prenominal) level of protection to managerial and other (excluded) employees in want manner against unsporting dismissal or removal.This has to be through adjudication by Labour court or Labour Relations Commission or arbitration. (6 . 22) 2. Central laws relating to the playing area of labour relations are currently the ID Act, 1947, The TU Act, 1926, Industrial drill (SO) Act, 1946, gross revenue Promotion Employees (Conditions of Service) Act, 1976. There are State level legislation too on the subject. We recommend that the provisions of all these laws be judiciously unify into a single law called The Labour Management Relations integrity or Law on Labour Management Relations. (6. 26) 3.Recommend the enactment of special law for small scale units. We have come to the shutdown that the reasonable threshold limit will be 19 workers. each establishment with workers above that number cannot be regarded as small. (6. 28) 4. The commission has avoided the term Industry with a view that the persons engaged in domestic aid are better covered under the proposed type of umbrella legislation, particularly in regard to wages, hours of work, on the job(p) conditions, safety and social security. (6. 40) 5. Modific ation in the terms like strikes, work stoppage etc. nd the terms go black and work to rule must be regarded as misconduct under Standing Orders and Provisions relating to unfair labour practice. (6. 41) 6. Commission has recommended to the withdrawal of inwrought Services Maintenance Act (6. 49). 7. The Commission has suggested to identify a bargaining agent on the basis of check-off system, with 66% entitling the Union to be accepted as a single negotating agent and if no union has 66% support, then Unions that have the support of more than 25% should be devoted proportionate representation on the college. (6. 6) 8. Check-off system in an establishment employing three hundred or more workers must be made compulsory for members of all registered trade unions. (6. 73) 9. Commission also recommended that recognition once granted, should be sound for a period of 4 years to be co-terminus with the period of settlement. No claim by any other Trade Union / union / Center for recogn ition should be entertain till at to the lowest degree 4 years have elapsed from the date of earlier recognition. (6. 76) 10. founding employing 20 or more workers should have Standing Order or Regulations.There is no need to delimit the issues on which Standing Orders can or need be framed. As long as two parties agree all manner of things including multi-skilling, yield, job enrichment, productivity and so on can also be added. The appropriate Government may prescribe a separate Model Standing Orders for units employing less than 50 workers. The Commission has drafted a draft Model Standing Orders in this regard. (6. 77). 11. Every establishment shall establish a grievance redressal mission consisting of equal number of workers and employers representatives.The said committee be the body to which all grievance of a worker in respect of his employment will be referred for decision within a given time frame (6. 80). 12. Commissions view on Chapter V B (Special Provisions relating to Lay-off, Retrenchment & Closure in the Establishments employing not less than hundred workmen) of the ID Act The Commission has felt that, in the new circumstances of orbicular competition, it may not be possible for some enterprises to continue and couple the economic consequences of competition.In such cases, one cannot compel non-viable undertakings to continue to bear the pecuniary burden that has to be borne to keep the concern going. They should, therefore, have the option to cultivation down. In these circumstances, the commission came to the conclusion the best and more honest faithful course will be to allow closure, provide for adequate compensation to workers and in the event of an appeal, leave it to the Labour Relations Commission to surface ways of redressal through arbitration or adjudication. 6. 87). 13. The commission has recommended for maintenance of beautify of arbitrators by the LRC concern, to settle the disputes. (6. 93). 14. The matters pertaini ng to individual workers, be it termination of employment or imparting or any other matter be determined by recourse to the Grievence Redressal Committee, conciliation and arbitration / adjudication by the Labour Court. Accordingly, Sec. 2 a of the ID Act may be amended. 6. 96) 15. The system of legal aid to workers and trade unions from Public Fund be worked out to ensure that workers and their organisations are not unduly handicapped as a result of their softness to hire legal counsel. (6. 98) 16. Strike should be called only by the recognised negotiating agent and that too only after it had conducted a strike right to vote among all the workers, of whom at least 51% of support the strike. (6. 101). 7 Workers mesh in management the legislative teeth should be provided. (6. 102). 18. The provisions in respect of small establishments can be in the form of a separate law name Small Enterprises (Employment Relations Act) or be included in the general law as a separate chapter to ensure that the interest of the workers are fully protected, even while fall burden on the management and providing them with vigilance in exercising managerial functions. 6. 106) III. CONTRACT LABOUR/CASUAL TEMPORARY WORKERS The Commission has recommended that contract labour shall not be engaged for core production / service activities. However, for stray seasonal demand, the employer may engage temporary labour for core production / service activity. As mentioned by the commission that off-loading ever-living non-core serve like canteen, watch and ward, cleaning, etc. o other employing agencies has to take care of three aspects (1) there have to be provisions that ensure that ensure that perennial core services are not transferred to other agencies or establishments (2) where such services are being performed by employees on the payrolls of the enterprises, no transfer to other agencies should be done without consulting, bargaining (negotiating) agents and (3) where the tran sfer of such services do not involve any employee who is currently in service of the enterprise, the management will be free to entrust the service to outside agencies.The contract labour will, however, be remunerated at the rate of a regular worker engaged in the same organisation doing work of a comparable nature or if such workers does not exist in the organisation, at the lowest salary of a worker in a comparable grade, i. e. unskilled, semi-skilled or skilled. (6. 109). The Commission would recommend that no worker should be kept continuously as a Casual or temporary worker against a permanent job for more than 2 years. (6. 110) IV. WAGES i) The Commission recommends that every employer must pay each worker his one-months wage, as bonus before an appropriate festival, be it Diwali or Onam or Puja or Ramzan or Christmas. Any demand for bonus in wastefulness of this upto a maximum of 20% of the wages will be subject to negotiation. The Commission also recommend that the present system of two wage ceilings for reckoning entitlement and for tally of bonus should be suitably enhanced to Rs. 7500/- and Rs. 3500/- for entitlement and calculation respectively. (6. 113). ii) There should be a national minimum wage that the Central Government may notify. This minimum must be revised from time to time. It should, in addition, have a component of dearness allowance to be declared six monthly linked to the consumer price index and the minimum wage may be revised once in five years. The Commission also recommends the abolition of the present system of notifying schedule employments and of restore/revising the minimum rates of wages periodically for each scheduled employment, since it feels that all workers in all employments should have the benefit of a minimum wage. 6. 114) (iii) There is no need for any wage board, statutory or otherwise, for fixing wage rates for workers in any industry. (6. 118). V. WORKING CONDITIONS, portion CONDITIONS ETC The Commission reco mmended enactment of a general law relating to hours of work, leave and working conditions, at the work place. For ensuring safety at the work place and in disparate activities, one omnibus law may be enacted, providing for different rules and regulations on safety applicable to different activities. The Commission have appended a draft indicative law on hours of work and other working conditions after this chapter, and an omnibus draft indicative law on safety in the chapter on Labour Administration). Such general law on working conditions etc OTHERRECOMMENDATIONS * Recommendations on women & child labour * Recommendations on skill development * Labour Administration * Workers participation in management * Employment scenario in the country * Review of wages and wage policy