Chapter4897 PDF
Chapter4897 PDF
Chapter4897 PDF
INDUSTRIAL RELATIONS
AND
LABOUR LAWS
(With Study Materials)
(For Law and Commerce Students/Professionals and Recruitment Tests by
Public Sector Undertakings, Banks, and Private Limited Companies,
UGC NET, Company Secretary (CS), Interviews and Review of the Subject)
Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,
“Ramdoot”, Dr. Bhalerao Marg, Girgaon, Mumbai - 400 004.
Phone: 022-23860170, 23863863; Fax: 022-23877178
E-mail: himpub@bharatmail.co.in; Website: www.himpub.com
Branch Offices :
New Delhi : “Pooja Apartments”, 4-B, Murari Lal Street, Ansari Road, Darya Ganj,
New Delhi - 110 002. Phone: 011-23270392, 23278631; Fax: 011-23256286
Nagpur : Kundanlal Chandak Industrial Estate, Ghat Road, Nagpur - 440 018.
Phone: 0712-2721215, 3296733; Telefax: 0712-2721216
Bengaluru : Plot No. 91-33, 2nd Main Road, Seshadripuram, Behind Nataraja Theatre,
Bengaluru - 560 020. Phone: 080-41138821; Mobile: 09379847017, 09379847005
Chennai : New No. 48/2, Old No. 28/2, Ground Floor, Sarangapani Street, T. Nagar,
Chennai - 600 017. Mobile: 09380460419
Lucknow : House No. 731, Shekhupura Colony, Near B.D. Convent School, Aliganj,
Lucknow - 226 022. Phone: 0522-4012353; Mobile: 09307501549
Ahmedabad : 114, “SHAIL”, 1st Floor, Opp. Madhu Sudan House, C.G. Road, Navrang Pura,
Ahmedabad - 380 009. Phone: 079-26560126; Mobile: 09377088847
Ernakulam : 39/176 (New No. 60/251), 1st Floor, Karikkamuri Road, Ernakulam,
Kochi - 682 011. Phone: 0484-2378012, 2378016; Mobile: 09387122121
Kolkata : 108/4, Beliaghata Main Road, Near ID Hospital, Opp. SBI Bank,
Kolkata - 700 010. Phone: 033-32449649; Mobile: 07439040301
1 TRADE UNIONISM
I NTRODUCTION
The trade union is an association, either of employees or employers or of independent workers.It
is an association of workers engaged in securing economic benefits for its members.
“With all their faults, trade unions have done more for humanity than any other organization of
men that ever existed. They have done more for decency, for honesty, for education, for the betterment
of the race, for the developing of character in man, than any other association of men.” — Clarence
Darrow (The Railroad Trainman, Nov. 1909).
This popular quote may apply to all type of trade unions as many Trade Unions have proved to be
very effective in different countries.
According to Section 2(b) of the Trade Union Act of 1926, “a trade union is any combination
of persons, whether temporary or permanent, primarily for the purpose of regulating the relations
between workers and employers, or between workers and workers and for imposing restrictive conditions
on the conduct of any trade or business, and includes the federation of two or more trade unions.”
1
2 MCQs in Industrial Relations And Labour Laws
Permanent Body: A trade union is usually a permanent body. Members may come and go but the
trade union remains.
Common Interest: The member of a trade union have common interest like job security, better
pay and working conditions and so on, which bring them together.
Collective Action: Even when an individual employee has any grievance over certain management
decisions, the matter is sorted out by the intervention of the trade union. Employees are able to initiate
collective action to solve any problem concerning any particular employee or all the employees.
Secure welfare of employees: It secures welfare of employees through group schemes which
give benefit to every employee.
Rapport with the Management: The trade union seeks to improve relations between the
employees and employers.
Legal assistance: Trade union assist with legal advice on employment issues, some unions give
help on personal matters, like housing, wills and debt.
Financial discounts: People can get discounts on mortgages, insurance and loans from unions.
Education and training: Most unions run training courses for their members on employment
rights, health and safety and other issues. Some unions also help members by offering courses on basic
skills and courses leading to professional qualifications.
Provide adequate advisory services for their members and in particular assist them to understand
the terms and conditions of their employment.
2. Fraternal Function
Another function performed by trade union is to provide help to it’s members in needy times, and
increasing their efficiency. Trade unions attempt at nurturing a spirit of co-operation, mutual aid and
promote friendly relationships and sharing of knowledge and culture among their colleagues through
fraternal functions.They take up welfare measures for improving the morale of workers and generate
self confidence among them. Besides these, they undertake many welfare measures for their members,
e.g., school for the education of children, library, reading-rooms, indoor and outdoor games, and other
recreational facilities. Some trade unions even undertake publication of some magazine or journal.This
obviously depends on the availibility of capitals.
Trade Unionism 3
3. Social Functions
A. To co-operate in and facilitate technological advancement by broadening workers’
understanding of underlying issues.
B. The trade unions also try to arrange educational facilities for the children of the workers.
C. The economic conditions of the industrial workers in India are very poor. The standard of
living is very low. A majority of industrial workers in India are illiterate or semi-literate. It is
the responsibility of the trade unions to get them proper housing facilities and promote the
socio-economic welfare of the labourers.
D. In many factories or industries, workers are not able to express their grievances before
their employers, and even the management does not know the difficulties faced by the
workers.The trade unions play an important role in bringing to the notice of the employers
the difficulties and grievances of the employees. They try to arrange face-to-face meetings
and thus try to establish or sort out the issues between the employees and the employers.
E. Trade unions promote friendliness and unity among the workers. Besides this, the trade
unions also discuss the problems, which are common to all the workers. It is a platform
where workers come together and know each other. The trade unions also provide some
kind of entertainment and relaxation to the workers.
F. Publication of periodicals, news letters or magazines for establishing communication with
their members, making the latter aware of union policy and stand on certain principal issues
and personnel matters concerning members, such as births, deaths, marriages, promotion
and achievements.
4. Political Functions
In a democratic country like India,Trade Union plays an important role in the politics of the
country. They made their representation to the legislative assembly and parliament to safeguard the
interest of workers.
work environment and to inform them about issues concerning them, particularly those regarding their
rights and responsibilities and regarding procedures and systems that exist in the workplace for redressing
grievances.
(iv) Research: Union negotiators need updated information to be systematically collected and
analysed at the bargaining table. They also need to backup their wage demands with knowledge of the
industry, of productivity, and of comparative industry practices. Many unions conduct their own
research to this effect, laying emphasis on practical problems, especially day-to-day affairs at work.
P OINTS T O R EMEMBER
1. Sometimes, the closed shop is also called the ‘Hiring Hall.’
2. According to Taft-Hartley Act of 1947 closed shop agreements are banned in USA.
3. The term “white collar” is credited to Upton Sinclair, an American writer.
4. The term blue collar was first used in reference to trades jobs in 1924, in an Alden, Iowa
newspaper.
5. Webb’s book ‘Industrial democracy’ is the Bible of trade unionism.
6. G.D.H. Cole’s views of a trade union are given in his book “World of Labour”, 1913. His
opinions are somewhere in between Webb and Marx.
7. The Ahmedabad Textile Labour Association, a unique and successful experiment in Gandhian
trade unionism, implemented many of his ideas.
8. The first organised labour movement in India was in 1884 by N.M.Lokhande.
9. Shri. N.M. Joshi is the father of modern trade unionism in India, and he introduced the Trade
Union Bill in the Assembly in 1921.
10. Registration of a trade union is not mandatory, it is advisable to register the trade unions as
the registered trade unions are entitled to get several benefits.
Q UESTIONS F OR R EVIEW
1. What is a Trade Union? What are the functions of a Trade Union?
2. What are the objectives of Trade Union? Summarise different theories of Trade Union.
3. Why an employee should become a member of Trade Union ? What are it’s benefit?
4. What are the methods of recognizing a Trade Union?
5. Explain Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers. How is this
different from Marx Theory?
6. Explain roles and classification of Trade Union.
7. What may be the reasons for an employee not joining Trade Unions?
O BJECTIVE Q UESTIONS
1. Functional Classification of Unionism was given by Ans.: (a)
(a) Hoxie (b) Marx (c) Perlman (d) Simon
2. Theory of Monopolistic, anti-Democratic Trade Unionism was given by Ans.: (d)
(a) Hoxie (b) Marx (c) Perlman (d) Simon
3. Theory of the “Scarcity Consciousness” of Manual Workers was given by Ans.: (c)
(a) Hoxie (b) Marx (c) Perlman (d) Simon
4. Which union is focused on making the skills of its members valuable and not easily Ans.: (c)
replaceable in organisations?
(a) Industrial union (b) General union (c) Occupational union (d) White collar union
5. Economic Protection was given by Ans.: (d)
(a) Hoxie (b) Marx (c) Perlman (d) John Mitchell
6. book ‘Industrial democracy’ is the Bible of trade unionism. Ans.: (b)
(a) Hoxie’s (b) Webb’s (c) Perlman’s (d) Simon’s
7. Which of the following is not a characteristic of trade union? Ans.: (d)
(a) voluntary association (b) common goals (c) intermediary (d) individual actions
8. Which of the following is not a characteristic of trade union? Ans.: (d)
(a) association of workers (b) higher bargain power
(c) Common objectives (d) No punishment
9. Classification of trade union based on ideology includes all except Ans.: (c)
(a) Revolutionary Unions (b) Uplift Unions
(c) Craft Unions (d) Reformist or Welfare Unions
10. Classification of trade union based on Trade includes all except. Ans.: (d)
(a) Industrial Unions (b) General Unions
(c) Craft Unions (d) Reformist or Welfare Unions
12 MCQs in Industrial Relations And Labour Laws
11. The concept of unions came into existence as a result of employees. Ans.: (b)
(a) problem of communication (b) dissatisfaction among workers
(c) longing for belongingness (d) change in technology
12. A is that business enterprise which has an agreement with the union Ans.: (b)
that a worker must be a member of the union at the time of his employment and
continue to do so in order to retain his employment.
(a) Preferential Shop (b) Closed shop
(c) Union Shop (d) Reformist or Welfare Unions
13. This is the least desirable form for unions. Ans.: (d)
(a) Preferential Shop (b) Closed shop (c) Open Shop (d) Maintenance Shop:
14. Which of the following labour welfare measures can be put under the category Ans.: (a)
of extramural activities?
(a) Provision of housing facilities (b) Improvement in working conditions
(c) Provision of rest pauses (d) Adequate wages
15. Under which of the following situations may a union refuse to admit a person or Ans.: (a)
expel a member?
(a) Because of misconduct. (b) Because of their current state of health.
(c) Because they do not feel that they are a suitable member.
(d) Because of their financial means.
16. Which of the following best explains the term ‘union ballots’? Ans.: (b)
(a) A ballot is the method by which a union expels members.
(b) A ballot is the system by which union members vote for, e.g. industrial action.
(c) A ballot is the system by which union members put forward information for ‘listing’.
(d) A ballot is the method by which a union recruits new members.
17. Employees join unions to fulfill their needs. Ans.: (d)
(a) social (b) economic (c) esteem (d) All of these
18. Theory of Man Vs Machine (1951) was given by Ans.: (b)
(a) Hoxie (b) Tannenaum (c) Perlman (d) Simon
19. Which union is focused on making the skills of its members valuable and not Ans.: (c)
easily replaceable in organisations?
(a) Industrial union (b) General union (c) Occupational union (d) White collar union
20. Classification of Trade Union Based on Agreement includes all except. Ans.: (d)
(a) Preferential Shop (b) Closed shop
(c) Union Shop (d) Reformist or Welfare Unions
21. Recognition by management is a voluntary method of recognition of Trade union. Ans.: (a)
(a) True (b) False
22. The process allows union subscriptions to be paid by an employer Ans.: (b)
direct to a union on behalf of its employees via salary deductions.
(a) check-off (b) Recognition by Management
(c) verification of Union membership
Trade Unionism 13
23. process is carried out by the labour directorate, which on the invitation Ans.: (c)
of unions and management of an organisation or industry, collects particulars of
all unions in a plant, with regard to their registration and membership.
(a) check-off (b) Recognition by Management
(c) verification of Union membership
24. Trade Unions in India are associated with International Trade Union Ans.: (c)
Federations.
(a) World Federation of Trade Unions (WFTU)
(b) International Confederation of Free Trade Unions (ICFTU)
(c) Both (a) and (b) (d) Neither (a) nor (b)
25. When a union is recognized, there should be no change in its position Ans.: (b)
for a period of
(a) 3 years (b) 2 years (c) 1 years (d) six months
26. A union may claim to be recognized as a representative union for an industry in Ans.: (a)
a local area if it has a membership of at least of the workers of that
industry in that area.
(a) 20% (b) 25% (c) 50% (d) 49%
27. Where there are several unions in an industry or establishment, the one with Ans.: (a)
the membership should be recognized.
(a) largest (b) smallest
(c) maximum number of female (d) maximum number of male
28. are considered to be the modem objectives of trade unions. Ans.: (b)
(a) Education and training (b) Negotiations and collective bargaining
(c) Wages and welfare benefits (d) Both (a) and (c)
29. Which of the following is not a reason for joining trade unions? Ans.: (c)
(a) Greater bargaining power (b) Minimize discrimination
(c) Good contacts with politicians (d) Higher Negotion power
30. Which of the following is/ are the objectives of trade union? Ans.: (d)
(a) Wages/salaries (b) Sense of security
(c) Negotiating machinery (d) All of the above
31. A trade union is an organisation that represents . Ans.: (b)
(a) The views and interest of workers
(b) a group of people working towards a common aim
(c) the aims of managers (d) the goals of a business
32. Which of the following labour welfare measures can be put under the category of Ans.: (d)
Intra-mural activities?
(a) Improvement in working conditions (b) Adequate wages
(c) Provision of rest pauses (d) All of the above
14 MCQs in Industrial Relations And Labour Laws
33. Which of the following is not a weakness of craft unions? Ans.: (b)
(a) Very easy to break as the members of the union belong to different establishment
(b) Craft union workers cannot be easily replaced
(c) Not easy to get the clear perspective of the craft unions
(d) Bargaining power
34. Which of the following are the examples of Industrial Union? Ans.: (c)
(a) The Rashtriya Mill Mazdoor Sangh (b) The Gimi Kamgar Union at Bombay
(c) Both (a) and (b) (d) None of the above
35. The Theory of Union Control of Industry was given by. Ans.: (b)
(a) Hoxie (b) G.D.H. Cole (c) Perlman (d) Simon
36. Classification of Union based on Agreement includes all except Ans.: (d)
(a) Closed shop (b) Union shop
(c) Preferential Shop (d) Blue collars uniom
37. Classification of Union based on Trade includes all except Ans.: (b)
(a) Craft union (b) Maintenance shop
(c) General union (d) White collars uniom
38. Classification of Union based on Trade includes all except Ans.: (b)
(a) Craft union (b) Maintenance shop
(c) General union (d) Industrial uniom
39. The term “white collar” is credited to Ans.: (b)
(a) Karl Marx (b) Upton Sinclair (c) Engles (d) Webb
40. The term Bourgeoisie and Poletariat in relation to labour was given by Ans.: (a)
(a) Karl Marx (b) Upton Sinclair (c) Engles (d) Webb
41. The book ‘Poverty of Philosophy’ was written by . Ans.: (a)
(a) Karl Marx (b) Upton Sinclair (c) Engles (d) Webb
42. work may be performed in an office or other administrative setting. Ans.: (a)
(a) White-collar (b) Blue-collar (c) Brown-collar (d) None of the above
43. Who said “Trade union is a “continuous association of wage earners for the Ans.: (a)
purpose of maintaining and improving the conditions of their working lives.”
(a) Sydney and Beatrice Webbs, (b) G.D.H.Cole
(c) Edwin B. Flippo (d) None of the above
44. Karl Marx aimed at political power rather than temporary economical gains. Ans.: (a)
(a) True (b) False
45. The Book “World of Labour” was written by Ans.: (b)
(a) Karl Marx (b) G.D.H. Cole (c) Engles (d) Webb
46. opinion of Trade unionism was somewhere in between webb and Marx. Ans.: (b)
(a) Karl Marx (b) G.D.H. Cole (c) Engles (d) Webb
47. The concept of Trusteeship was given by Ans.: (a)
(a) Mahatma Gandhi (b) G.D.H. Cole (c) Engles (d) Webb
Trade Unionism 15
62. process is carried out by the labour directorate, which on the invitation Ans.: (d)
of unions and management of an organisation or industry, collects particulars of
all unions in a plant, with regard to their registration and membership.
(a) Check-off (b) Election by secret Ballot
(c) Recognition by Management (d) Verification of union memberhip
63. Recognition by Management is voluntary in nature. Ans.: (a)
(a) True (b) False
64. When a union member is preferred in filling a vacancy, such an agreement is Ans.: (c)
called Shop.
(a) Union (b) Maintenance (c) Preferential (d) Agency
65. A shop is that business enterprise which has an agreement with the Ans.: (d)
union that a worker must be a member of the union at the time of his employment
and continue to do so in order to retain his employment.
(a) Union (b) Maintenance (c) Preferential (d) Closed
66. is also called as Hiring Hall. Ans.: (d)
(a) Union shop (b) Maintenance shop
(c) Preferential shop (d) Closed shop
67. Who said “A trade union means an association of workers in one or more Ans.: (b)
occupation an association carried on mainly, for the purpose of protecting
and advancing the members’ economic interests in connection with their daily work”.
(a) Sydney and Beatrice Webbs, (b) G.D.H.Cole
(c) Edwin B. Flippo (d) None of the above
68. In shop, if the employee opts to become a member after recruitment, Ans.: (a)
his membership remains compulsory right throughout his tenure of employment
with that particular employer.
(a) Union (b) Maintenance (c) Preferential (d) Closed
69. In shop,member has to pay appropriate contribution. Ans.: (c)
(a) Union (b) Maintenance (c) Agency (d) Closed
70. Classification of Union based on Agreement includes all except Ans.: (d)
(a) Agency shop (b) Maintenance shop
(c) Open Shop (d) White collars union
71. Classification of Union based on Ideology includes Ans.: (d)
(a) Welfare unionor Reformist (b) Uplift
(c) Revolutionary uniom (d) All of the above