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MCQs IN

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)

Ms. Juli Verma


MBA – HR, LL.B
Ms. Mili Verma
B.A. (Hons.)

ISO 9001:2015 CERTIFIED


© Auth ors
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording and/or otherwise without the prior written permission
of the authors and the publisher.

First Edition : 2019

Published by : Mrs. Meena Pandey for Himalaya Publishing House Pvt. Ltd.,
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Dedicated To
Our Loving Parents
K.P. Verma
And
Rupam Verma
“Take up one idea. Make that one idea your life – think of it, dream
of it, live on that idea. Let the brain, muscles, nerves, every part of
your body, be full of that idea, and just leave every other idea alone.
This is the way to success.”
Swami Vivekanand
P REFACE
This book will cater to the need of Law, Human Resource Management, Commerce and
Company Secretary Students. It will be very useful for students preparing for recruitment tests by
Public Sector Undertakings, Banks, Private Limited Companies, UGC NET, Company Secretary
and the related Interviews.
This book is so designed that it can also serve the purpose of Human Resource and Law
Professionals and Union Leaders who want to have a book in which they can get their Industrial
Relations (IR) related answers.
The book contains 24 Chapters. The subject matter has been planned by keeping in mind the
general requirements of competitive examinations. Brief introduction about the important topics for
quick recapitulation and ready reference and points to remember has been included in each chapter.
This is followed by a large number of multiple choice questions. The answer to each question is
given but it is advised that students at first try to arrive at the correct answer on their own and then
compare it with the answer provided in the book. It will improve critical thinking ability which is a
pre-requisite for every manager, and will be helpful in cracking the competitive examinations and
interviews successfully.
Ms. Juli Verma
Ms. Mili Verma
A CKNOWLEDGEMENT
This book would not have seen light of the day but for the seeds of legal inquisitiveness that
were sowed and nurtured by the family. Each and every member of our family have contributed
significantly in their own capacity which has resulted in this book. Foremost contributor to this book
has been Aditya, who provided constant encouragement and support during the entire process of
writing this book.
We would also like to thank our teachers, who provided us quality education and friends for
constant encouragement and support. We would also like to thank the entire team at Himalaya
Publishing House Pvt. Ltd. for being so professional and friendly throughout the process of publishing
the book.
Authors
CONTENTS
1. Trade Unionism 1–16
Introduction 1
Definition of Trade Union 1
Salient Features of Trade Unions 1
Functions of Trade Union 2
Role of Trade Unions 4
Classification of Trade Unions 4
Theories of Trade Unionism 6
Points to Remember 10
Questions for Review 10
Certain Questions Answered 10
Objective Questions 11
2. Trade Union Movement in India – Before Independence 17–27
Introduction 17
The First Phase (1875-1918) 17
The Second Phase: Birth of a Trade Union (1918-26) 18
The Third Phase (1927-34) 20
The Fourth Phase (1935-50) 21
Points to Remember 22
Questions for Review 23
Certain Questions Answered 23
Objective Questions 24
3. Trade Union Movement in India – After Independence and Five Year Plan 28–41
Introduction 28
Industrial Policy Resolutions 28
Trade Union Movement in Different Periods 31
Five Years Plans 32
Points to Remember 36
Questions for Review 36
Certain Questions Answered 36
Objective Questions 37
4. Trade Union Act, 1926 42–53
Introduction 42
Chapter I – Preliminary [Sections 1 to 2] 42
Chapter II – Registration of Trade Unions [Sections 3 to 14] 43
Chapter III – Rights and Liabilities of Registered Trade Unions
[Sections 15 to 28] 46
Chapter IV – Regulations [Sections 29 to 30] 49
Chapter V – Penalties and Procedure under Trade Union Act, 1926
[Sections 31 to 33] 49
The Trade Union Amended Bill, 2019 49
Points to Remember 49
Questions for Review 50
Certain Questions Answered 50
Objective Questions 50
5. Industrial Relations and Grievance Management 54–63
Introduction 54
Forms of Grievance 57
Steps in Grievance Procedure 58
Model Grievance Procedure 58
Grievance Management in India 58
Discipline 58
Suspension 58
Dismissal and Discharge 59
Points to Remember 59
Questions for Review 59
Certain Questions Answered 59
Objective Questions 60
6. The Industrial Disputes Act, 1947 64–92
Introduction 64
Enactment of Industrial Disputes Act, 1947 64
Chapter 1 – Preliminary [Sections 1 to 2] 64
Chapter II – Authorities under This Act [Sections 3-9] 67
Chapter IIA – Notice of Change [Sections 9A to 9B] 69
Chapter IIB – Grievance Redressal Machinery [Section 9C] 69
Chapter III – Reference of Disputes to Boards, Courts or Tribunals
[Section 10-10A] 70
Chapter IV – Procedure, Powers and Duties of Authorities [Sections 11 to 21] 70
Chapter V – Strikes and Lock-outs [Sections 22 to 25] 72
Chapter VI – Penalties [Sections 26 to 31] 77
Points to Remember 78
Industrial Disputes (Amendment) Act, 2010 80
Questions for Review 80
Certain Questions Answered 81
Objective Questions 82
7. Industrial Disputes and Strikes 93–99
Introduction 93
Forms of Industrial Disputes 93
Machinery for Prevention and Settlement of Disputes 94
Points to Remember 97
Questions for Review 97
Certain Questions Answered 97
Objective Questions 98
8. Collective Bargaining 100–107
Introduction 100
Steps Involved in Collective Bargaining 100
Functions of Collective Bargaining 101
Importance of Collective Bargaining 101
Bargaining Theories 102
Types of Collective Bargaining 103
Bargaining Levels 103
Collective Bargaining Agreements 104
Points to Remember 104
Questions for Review 105
Certain Questions Answered 105
Objective Questions 105
9. The Payment of Bonus Act, 1965 108–119
Introduction 108
Enactment of the Payment of Bonus Act, 1965 108
Important Definitions 110
Calculation of Bonus 111
Penalties [Section 28] 113
Points to Remember 113
Questions for Review 114
Certain Questions Answered 114
Objective Questions 115
10. The Contract Labour (Regulation and Abolition) Act, 1970 120–134
Introduction 120
Enactment of the Act 120
Chapter I – Preliminary [Section 1-2] 120
Important Definitions [Section 2] 121
Chapter II – The Advisory Boards [Sections 3-5] 122
Chapter III – Registration of Establishments Employing
Contract Labour [Sections 6-10] 123
Chapter IV – Licensing of Contractors [Sections 11-15] 124
Chapter V – Welfare and Health of Contract Labour [Sections 16-21] 125
Chapter VI – Penalties and Procedure [Sections 22-27] 126
Chapter VII – Miscellaneous [Sections 28-35] 127
Points to Remember 128
Questions for Review 128
Certain Questions Answered 129
Objective Questions 130
11. The Factories Act, 1948 135–162
Introduction 135
Enactment of Factories Act, 1948 135
Chapter I – Preliminary [Sections 1 to 7] 135
Chapter II – The Inspecting Staff [Sections 7A to 10] 138
Chapter III – Health [Sections 11 to 20] 139
Chapter IV – Safety [Sections 21-41] 141
Chapter IV – A Provisions Relating to Hazardous Processes [Sections 41A-41H] 143
Chapter V – Welfare [Sections 42-50] 143
Chapter VI – Working Hours of Adult [Sections 51-66] 143
Chapter VII – Employment of Young Person [Sections 67-77] 144
Chapter VIII – Annual Leave with Wages [Sections 78-84] 146
Chapter IX – Special Provisions [Sections 85-91A] 146
Chapter X – Penalties and Procedure [Sections 92 to 106A] 148
Chapter XI – Supplemental [Sections 107-120] 149
Points to Remember 151
Questions for Review 153
Certain Questions Answered 153
Objective Questions 154
12. The Payment of Wages Act, 1936 163–178
Introduction 163
Applicability of the Act [Section 1] 163
Enactment of the Payment of Wages Act, 1936 163
A Few Important Definitions [Section 2] 164
Penalty for Offences under the Act [Section 20] 170
Points to Remember 172
Questions for Review 173
Certain Questions Answered 173
Objective Questions 174
13. The Minimum Wages Act, 1948 179–193
Introduction 179
Enactment of the Minimum Wages Act, 1948 180
A Few Important Definitions [Section 2] 180
Penalties under the Minimum Wages Act, 1948 185
Points to Remember 187
Questions for Review 188
Certain Questions Answered 188
Objective Questions 189
14. The Equal Remuneration Act, 1976 194–202
Introduction 194
Chapter I – Preliminary [Sections 1 to 3] 194
Chapter II – Payment of Remuneration at Equal Rates to Men and
Women Workers and Other Matters [Sections 4 to 7] 195
Chapter III – Miscellaneous [Sections 8 to 18] 196
Penalties for Offences under the Equal Remuneration Act, 1976 [Section 10] 197
Points to Remember 198
Questions for Review 198
Certain Questions Answered 199
Objective Questions 200
15. Industrial Employment (Standing Orders) Legislation 203–212
Introduction 203
Applicability of the Act 203
Important Definitions 204
Penalties under the Industrial Employment (Standing Orders)
Act, 1946 [Section 13] 206
Points to Remember 207
Questions for Review 207
Certain Questions Answered 208
Objective Questions 208
16. The Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 213–226
Introduction 213
Objective of the Act 213
Chapter I – Preliminary [Sections 1 to 3] 213
Chapter- II – Constitution of Internal Complaints Committee [Section 4] 216
Chapter- III – Constitution of Local Complaints Committee [Sections 5 to 8] 216
Chapter IV – Complaint [Sections 9 to 11] 217
Chapter V – Inquiry into Complaint [Sections 12 to 18] 218
Chapter VI – Duties of Employer [Section 19] 219
Chapter VII – Duties and Powers of District Officer [Section 20] 220
Chapter VIII – Miscellaneous [Sections 21 to 30) 220
Penalty for Non-compliance with Provisions of Act [Section 26] 220
Points to Remember 222
Questions for Review 223
Certain Questions Answered 223
Objective Questions 224
17. The Workmen’s Compensation Act, 1923 227–242
Introduction 227
Applicability of the Act 227
Penalties [Section 18A] 234
Points to Remember 236
Questions for Review 236
Certain Questions Answered 237
Objective Questions 237
18. The Maternity Benefit Act, 1961 243–254
Introduction 244
Applicability of the Act [Section 2] 244
Penalty for Contravention of Act by Employer [Section 21] 248
The Maternity Benefits (Amended) Act, 2017 249
Other Schemes for Maternity Benefit by the Government of India 249
Points to Remember 250
Questions for Review 251
Certain Questions Answered 251
Objective Questions 252
19. The Employees’ State Insurance Act, 1948 255–279
Enactment of the Employees’ State Insurance Act 255
Chapter I – Preliminary 256
Chapter II – Corporation, Standing Committee and Medical Benefit
Council [Sections 3-25] 258
Chapter III – Finance And Audit [Section 26-37] 260
Chapter IV – Contributions [Sections 38-45] 261
Chapter V – Benefits [Sections 46-73] 262
Chapter VA – Transitory Provisions [Sections 73A-73I] 266
Chapter VI – Adjudication of Disputes and Claims [Sections 74-83] 267
Chapter VII – Penalties [Sections 84-86A] 264
Chapter VIII – Miscellaneous [Sections 87-100] 268
Key Amendments 269
Other Schemes 269
Points to Remember 270
Questions for Review 270
Certain Questions Answered 271
Objective Questions 273
20. The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 280–301
Introduction 280
Enactment of the Employees’ Provident Fund Act, 1952 280
Applicability of the Act [Section 1] 281
Contribution by Employer and Employee in EPF 283
A Few Important Definitions [Section 2] 284
Other Schemes 290
Points to Remember 291
Questions for Review 291
Certain Questions Answered 292
Objective Questions 293
21. The Payment of Gratuity Act, 1972 302–316
Introduction 302
Enactment of Payment of Gratuity Act, 1972 302
Applicability of the Act 303
Definitions [Section 2] 303
Calculation of Gratuity [Section 4(2)] 305
Penalties under the Payment of Gratuity Act, 1972 309
Time-limit for Payment of Gratuity 310
Points to Remember 310
Questions for Review 311
Certain Questions Answered 311
Objective Questions 312
22. Child Labour (Prohibition and Regulation) Act, 1986 317–331
Introduction 317
Enactment of the Act 318
Non-governmental Organisations 318
Objective of the Act 319
Constitutional Provisions and Programmes on Child Labour in India 320
Part II – Prohibition of Employment of Children in Certain
Occupations and Processes [Sections 3 to 5] 321
Part III – Regulation of Conditions of Work of Children [Sections 6 to 13] 322
Part IV – Miscellaneous [Sections 14 to 26] 323
Points to Remember 326
Questions for Review 327
Certain Questions Answered 327
Objective Questions 327
23. The Trade Union Movement in Great Britain 332–344
Early Trade Unionism 332
Rapid Trade Union Growth (1850-1900) 334
Trade Union Movement after Second World War 339
Thatcher and 1980s 339
1990s and 2000s 339
Tony Blair and Trade Unionism 1997-2007 340
White Paper 340
Trade Union after 2007 340
Questions for Review 341
Certain Questions Answered 341
Objective Questions 341
24. Miscellaneous Questions 345–395
Bibliography 394
CHAPTER

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.”

DEFINITION OF T RADE U NION


There are numerous definitions of Trade Union. A few of them are:
According to Sydney and Beatrice Webbs, Trade union is a “continuous association of wage
earners for the purpose of maintaining and improving the conditions of their working lives.”
According to G.D.H. Cole, “A trade union means an association of workers in one or more
occupation — an association carried on mainly, for the purpose of protecting and advancing the members’
economic interests in connection with their daily work”.
According to Edwin B. Flippo, “A labour union or trade union is an organisation of workers
formed to promote, protect and improve, through collective action, the social, economic, and political
interests of its members.”
Thus ,Trade union is an association or an organisation of workers which regulate the working life
of workers.

S ALIENT F EATURES OF T RADE U NIONS


Protect and promote interests: It is formed to protect and promote all kinds of interests i.e;
economic, political and social of its members. The dominant interest with which a union is concerned
is, however, economic.
Association of employees: A trade union is essentially an association of employees belonging to
a particular class of employment, profession, trade or industry. For example, there are unions for
teachers, doctors, film artistes, weavers, mine workers and so on.
Voluntary Association: An employee joins the trade union out of his free will. A person cannot
be compelled to join a union.

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.

F UNCTIONS OF T RADE U NION


Trade unions perform a number of functions in order to achieve the objectives. These functions
can be broadly classified into four categories:

1. Militant Functions or Fighting Functions


One of a trade union’s main aim is to protect and advance the interests of it’s members in the
workplace. When the union fails to accomplish their aims through collective bargaining and negotiation,
in extreme conditions they adopt drastic measures in the form of go-slow, strike, boycott, work
sabotage etc. to make the management react and reconsider their requests. Therefore, these functions
of the trade unions are known as Militant or Fighting functions.
Thus, the Militant functions of trade unions can be summed up as:
(a) To achieve higher wages and better working conditions.
(b) To raise the status of workers as a part of industry.
(c) To protect labours against victimization and injustice.

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.

5. The Regulatory Function


This enables trade unions to actively participate in rule-making over the workplace. This can be
done either:
(a) directly – multi-employer collective bargaining e.g. through the Joint Industrial Council
(b) indirectly – through regulatory legislation
The government function and public administration function – trade unions engage with the
government to assure that they can accomplish their respective function within the law. These new
functions of trade unions (also called ancillary functions [Monappa, 2000]) can be categorised into
the following groups:
(i) Communication: Many large unions publish a newsletter or a magazine, with the main aim of
clarifying their policy or stance on certain principal issues, as well as to pass on information about their
activities.
(ii) Welfare activities: Many unions are engaged in a number of welfare activities, such as
providing housing and organising cooperative societies to improve the quality of workers’ lives. The
Textile Labour Association (TLA), Ahmedabad, for example, has ventured to organise self-employed
women (in the Self Employed Women’s Association [SEWA]) and has even started banking activities
for this purpose.
(iii) Education: Education helps to make workers aware of their surrounding environments.
Unions make efforts to launch educational programs for workers to enhance their knowledge of the
4  MCQs in Industrial Relations And Labour Laws

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.

R OLE OF T RADE U NIONS


Adopting the model of Prof Clark Kerr, Unions assume the following role:
 Sectional Bargainer: It specifies the interests of the particular section of workers at plant,
industry, national level – multiplicity of unions, crafts unions, white collar union, etc.
 Class Bargainer: Here, unions representing the interest of the class as a whole. For example,
in France Agricultural Unions, Federations of Unions, Civil Servants Union, etc.
 Agents of State: As in erstwhile U.S.S.R., unions ensure targets of production at fixed
price. In the 1974 Railway strike, INTUC stood behind the Government and its agent.

CLASSIFICATION OF T RADE U NIONS


A. Classification Based on Ideology
(i) Revolutionary Unions: They believe in destruction of existing social/economic order and
creation of a new one. They want a change in power and authority and use of force – Left Unions.
(ii) Reformist or Welfare Unions: These work for changes and reforms within the existing
socio-political framework of the society like a European Model.
(iii) Uplift Unions: They believe that scope of extensive reforms well beyond the area of working
condition, i.e., change in taxation system, elimination of poverty, etc.

B. Classification Based on Trade


Craft Unions: A craft union is an organization of workers engaged in a single occupation or
craft. Examples of craft unions are unions of carpenters, electricians, weavers, truck-drivers, pipe
fitting, carpentry, clerical work and so on. It came to be known as an industrial union in a horizontal
arrangement; their strengths include: (i) effectiveness in developing solidarity, (ii) compactness and
stability of relationship among members, (iii) capability in providing better services to members,
(iv) greater power to exert pressure, and (v) strong bargaining position.
Their main weaknesses are: (i) proneness to being broken up by the employer, especially in the
case of small unions; (ii) reduced capability of organizing joint action; (iii) danger of extinction in the
face of rapidly changing technology; (iv) divisive influence on trade union movement and encouragement
to multiplicity of unions; (v) danger of unfair practices by unions of craftsmen on strategic positions.
General Unions
At the other extreme, in terms of the range of workers represented in the general union, which
has members drawn from all trades. Most unions in India and Sri Lanka are in this category. Such
unions may be formed at the local, regional or national level. An example is the Transport and General
Workers’ Union which is one of the strongest trade unions of Great Britain.
Trade Unionism  5

Blue-Collar/White Collar Unions


Another common demarcation of unions, based on trades or crafts, is so-called blue-collar workers
and white-collar workers. Unions which are representing workers employed on the production floor or
outdoor trades such as in construction work, are called blue-collar unions.The term blue collar was
first used in reference to trades jobs in 1924, in an Alden, Iowa newspaper.The phrase stems
from the image of manual workers wearing blue denim or chambray shirts as part of their uniforms.
The term “white collar” is credited to Upton Sinclair, an American writer, in relation to contemporary
clerical, administrative, and management workers during the 1930s, though references to white-collar
work appear as early as 1935. A white-collar worker is a person who performs professional, managerial,
or administrative work.
Industrial Unions
An industrial union organizes into one homogenous organic group all workers—skilled, semi-
skilled, unskilled — engaged in a particular establishment or industry. Such a union may be formed at
the plant, region or industry level.
The strengths of industrial unions are: (i) encouragement to solidarity among members, (ii)
convenience in negotiations and effectiveness in collective bargaining, (iii) retaining power in the face
of fast changing technology, (iv) greater effectiveness in industrial action and (v) capability of engaging
in political activities.
Their weaknesses include: (i) limitations in satisfying all the different groups of members, (ii)
undue emphasis on the protection and promotion of large groups of members at the cost of those of
smaller groups, (iii) difficulties in negotiations and bargaining owing to heterogenous membership and
(iv) encouragement to the formation of rival unions.

C. Classification Based on Agreement


Trade Unions can also be classified based on agreements:
(i) Closed Shop: A closed shop is that business enterprise which has an agreement with the 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.
According to Taft-Hartley Act of 1947 closed shop agreements are banned in USA, although
they still exist in the construction and printing trades. Sometimes, the closed shop is also called the
‘Hiring Hall.’
(ii) Union Shop: A union shop is that business establishment which has an agreement with the
union that a worker shall become a member of the union within a specified period of his securing
employment and that he must continue his membership in order to retain his job.
(iii) Preferential Shop: When a union member is preferred in filling a vacancy, such an agreement
is called preferential shop.
(iv) Maintenance Shop: In this type, there is no compulsory membership in the union before or
after recruitment. However, if the employee opts to become a member after recruitment, his membership
remains compulsory right throughout his tenure of employment with that particular employer. This is
called a maintenance of membership shop or maintenance shop.
(v) Agency Shop: A business establishment in which the union and the employer enter into an
agreement laying down that union membership is a part of terms and conditions of employment and a
worker, who objects to joining the union, will have to pay appropriate contribution to the union in lieu
of membership or an equivalent contribution to a charity.
(vi) Open Shop: Membership in a union is in no way compulsory either before or after recruitment.
This is the least desirable form for unions. This is referred to as an open shop.
6  MCQs in Industrial Relations And Labour Laws

T HEORIES OF T RADE U NIONISM


Most of theories on Trade Unionism have been given by revolutionaries such as Marx and Engels
,Civil servants like Sydney Webb, academics like Common and Hoxie and labour leaders like
Mitchall. These are explained below:
I. Political Revolutionary Theory of Labour Movement of Marx and Engels: The theory is
based on Adam Smith’s theory of labour worth. This theory is also known as “the theory of class war
and dialectical materialism”. According to Marx “Large scale industries concentrate in one place a
crowd of people unknown to one another. Competition divides their interests. But the maintenance of
wages, this common interest which they have against their boss unites them in a common thought of
resistance combination”.
According to him, there are two classes.Both the classes are opposite to each other. One class
represents the capitalist,termed by him as the bourgeoisie while the second kind are free labourers,
whom he termed as the class of proletariat. After the industrial revolution when machines were used
for production, labourers or working class came under one roof as a measure of job security. Their
frequent gathering under the same roof starts automatically bringing them closer and closer. They
concentrated on the sale of their labour power, thus the unity started among labourers. In order to
understand Marx’s ideas we have to go-through following writings from the theory of trade union
point of view. In his books, Poverty of Philosophy (1847), the Communist Manifesto (1848) and
The Inaugural Address of the First International workingmen’s Association (1864) and his correspondence
with Engels and others.
“The proletariat went through various stages of development”. With its birth it began to struggle
with the bourgeoisie. At first the contest was carried on by individual labourers then by the work people
of a factory, then by the operatives of one trade, in one locality, against the individual bourgeoisie who
directly exploited them.
The proletariat increases in number with the development of the industry. The collision between
individual workmen and individual bourgeois took more and more the character of collision between
two classes. There upon the workers began in to form combinations which we can call trade unions
against bourgeoisie.
“This organization of the proletarians into a class is continuously being upset again by competition
between workers themselves. But it ever rises up again, stronger, firmer mightier”, such is the birth of
trade union because of the struggle between two classes of the bourgeoisie and the proletariat. Marx
also believed that every trade union or proletariat class consciously or unconsciously had to involve in
political action which was indispensable for achieving economic equality.The trade unions by the very
nature of their economic demands are compelled to take to political action; the political activities
themselves become the means to strengthen the trade union movement, one is dependent on the other.
The politics and the economics of trade unions are basically one and inseparable.To participate in
political movement, the workers must form a group of such people as are exploited by the capitalist
system.The alliance of these workers automatically add the strength to the working class movement.
By considering themselves champions and representatives of the whole working class, and acting
accordingly, the trade unions must succeed in rallying round themselves all workers still outside their
rank.
The capture of political power would be their next step.It was the ambition of Marx that working
class by achieving political power would abolish classes in the society.Marx aimed at political power
rather than achieving temporary economical gains. Marx’s vision is to establish classless society through
class struggle in which trade unions had to play a role.
Trade Unionism  7

II. Webb’s Theory of Industrial Democracy: Industrial Democracy is a book written by


British socialist reformers Sidney Webb and Beatrice Webb. It is concerned as Bible of trade
unionism.
Industrial Democracy is divided into three parts. The first part concerns the structure of trade
unions and concludes that “Trade Unions are democracies; that is to say their internal constitutions are
all based on the principle – ‘government of the people, by the people, for the people.’ The second part
focuses on the function of trade unions and specifically the method of collective bargaining. The third
part delves into the theory of trade unions.The imbalance of behaviour between employers and employees
was described by the Webbs are as follows:
“The capitalist is very fond of declaring that labour is a commodity, and the wage contract a
bargain of purchase and sale like any other. But he instinctively expects his wage-earners to render him,
not only obedience, but also personal deference. If the wage contract is a bargain of purchase and sale
like any other, why is the workman expected to tip his hat to his employer, and to say ‘sir’ to him
without reciprocity?
Webb considered collective bargaining as the process which reinforces labour.
III. Cole’s Theory of Union Control of Industry: G.D.H. Cole’s views has been given in his
book “World of Labour”, 1913. His opinions are somewhere in between Webb and Marx. He approves
the thought that ‘unionism is class struggle and the ultimate is the control of industry by labour and not
revolution as predicted by Marx’.
IV. Mitchell’s Economic Protection: According to John Mitchell, the explanation of trade
unionism lies in the economic protection it provides to the workers. It’s essence is the collective
bargaining, which gives the worker economic equality with his employer, frees him from fear, improves
his efficiency and establishes his citizenship in the industrial society. He was completely opposed to the
notion of class struggle and observed “ labour unions are for the workmen but against no one.”
VI. Simon’s Theory of Monopolistic, anti-Democratic Trade Unionism: He criticized trade
unionism as monopoly founded on violence and he reiterated monopoly power has no use, save abuse.
VII. Perlman’s Theory of the “Scarcity Consciousness” of Manual Workers: Perlman rejected
the idea of class consciousness as an explanation for the birth of the trade union movement but
substituted it with what he called job consciousness. According to him, ‘working people in reality felt
an urge towards shared control of their employment opportunities, but hardly towards similar control
of industry.’
VIII. Hoxie’s Functional Classification of Unionism: Professor Hoxie finds a few distinct
functional types (not to mention subvariants) which differ among themselves in aims, methods, and
attitude toward existing institutions.
(a) Business unionism, accepting the wages system as it is, seeks the best obtainable terms
of employment for its own membership. Its method is collective bargaining supplemented
by mutual insurance and occasional resort to strikes.
(b) Uplift unionism accepts, along with the wages system, the whole existing social order. Its
mission is the diffusion of leisure-class culture and bourgeois virtues among the workers.
(c) Revolutionary unionism aims at the overthrow of the extant socio-economic order by
and for the working class.
(d) Predatory unionism practices secret, rather than open, violence. It is lawless, and in so
far anarchistic.
8  MCQs in Industrial Relations And Labour Laws

R EASONS F OR J OINING T RADE U NION


One of the most popular reasons to join a union is due to this concept of safety in numbers. A
union is a single entity that carries the weight of many individuals.When working with great numbers,
unions have greater bargaining power.The other reasons for joining Trade union are:
 Wages and Benefits: Economic research shows that unionized workers typically receive
higher wages than otherwise comparable non-union workers. The employees think that the
union can guarantee fair salaries with equivalence to their other coworkers, medical facility
benefits, pensions, vacations and holidays and paid sick leave.
 Better Training: Unions offer better opportunities for training advancement to its’ members.
 Working Conditions: Even though there are legislative provisions for providing the
employees with a safe work environment, they still believe it is more secure to know that
the union is directly engaged in the safety and health concerns associated with them.
 Legal assistance: When a member of a union has any legal concerns related to his or her
employment, the union legal representatives are there to offer assistance, advice, and/or
legal representation in Court.
 Minimize Discrimination: Employers can’t terminate a worker for discriminatory reasons
such as race, religion, age nor can they fire an employee for being a whistleblower and
certain other reasons.
 Sense of Belongingness: When you join a union it gives a sense of part of a legal group.

R EASONS F OR N OT J OINING T RADE U NION


There are many reasons for not joining Trade Union:
 Combative environment: In many places of employment, the presence of a labour union
creates an “us vs them” mentality. This reduces the benefits of collaboration between the
two parties. This mentality also applies to the worker and the union at times.
 Unions do not provide representation for free: Belonging to a union requires workers to
pay a portion of their salary for the benefits of representation.
 Employee Initiative is Stifled: Union rules base raises and promotions on seniority, not
performance. This kind of environment discourages employee creativity and individuality.
Therefore, the employer is deprived of improvements in productivity because the employee
has no incentive to do a better job. He gets nothing for doing better.
 Government legislations: Employees now turn to government, not unions, for basic
protections. Workers rely on the government for pensions, healthcare, protection against
discrimination and a whole variety of other benefits that were formerly provided exclusively
by unions.

Recognition of Trade Unions


The Trade Unions Act, 1926 provides for registration of the union but is silent on recognition of
the union. A few State Governments have enacted special statute or rules and has provided a mechanism
for recognition. Below are a few enactments:
1. Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act,
1971.
2. West Bengal Trade Unions Rules, 1998.
Trade Unionism  9

3. Kerala Recognition of Trade Unions Act, 2010.


4. Orissa Verification of Membership and Recognition of Trade Union Rules, 1994.
Generally, these rules provide that a union shall be recognized by the employer as the sole bargaining
agent of a group of workers if it receives a specified minimum percentage (usually a majority) of these
workers’ votes via secret ballot, organized by the Registrar. However, every trade union receiving a
smaller minimum percentage of votes (15% or 10%, depending on the type of industry) shall also be
recognized as constituents of a joint bargaining council as in the case of Kerala trade unions.

Methods Of Recognizing A Trade Union


Recognition by management
It is a type of voluntary recognition. For a trade union to be successful it should play an effective
role in collective bargaining.Collective bargaining in turn depends upon the willingness of the employer
to recognise the union. A union may be strong and stable unless it is recognised by the employer.
 Election by Secret Ballot: In this method, majority union is identified on the basis of
secret ballot conducted in the establishment. All workers who are on the rolls of the
management on a particular date (i.e. date of reckoning) are allowed to cast their votes in
favour of one union through secret ballot. Elections to be conducted by a neutral agent,
generally the Registrar of Unions, in a manner very similar to the conduct of general elections.
Once held, the results of the elections would remain valid for a minimum period, usually
two years.
 Check-Off method: The “check-off” process allows union subscriptions to be paid by an
employer direct to a union on behalf of its employees via salary deductions.The management
verifies the membership of a union on the basis of subscription given by the workers to
different unions operating in the establishments.
 Verification of union membership: This process is carried out by the labour directorate,
which on the invitation of unions and management of an organisation or industry, collects
particulars of all unions in a plant, with regard to their registration and membership.After
cross checking of records, physical sampling of workers, particularly in cases of doubt or
duplication, a final verified list is prepared for employers, unions and the government.

Advantage Of A Recognized Trade Union


The rights conferred on a recognized trade union are as follows:
1. The executive of the trade union is entitled to negotiate with employer regarding employment,
non-employment, terms of employment or conditions of labour of any person or of all, if
any dispute arises between the executive and the employer on these issues it must be
referred to then registar whose decision is final.
2. The executive of the recognized trade union is entitled to display the notices of the trade
union in the premises where the employees are employed and the employer must make
necessary arrangements.
3. A trade union can help a firm to bring in new working practices which increase labour
productivity.
4. To appear on behalf of any employee or employees in any domestic or departmental enquiry.
5. The recognised union alone is given the right to appoint its nominee to represent its workman
in the works commission under the Industrial Dispute Act 1947.
6. A trade union being the sole bargaining agent or a principal bargaining agent.
10  MCQs in Industrial Relations And Labour Laws

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?

CERTAIN Q UESTIONS A NSWERED


1. Which major factors motivate employees to join trade union?
Ans.: The major factors which motivate the employees to join trade union are:
(i) Increase in bargaining power
(ii) Lesser discrimination
(iii) Higher sense of security and belongingness
(iv) Stage for self expression
(v) Ability to participate in management activities giving a sense of involvement
2. Explain the three levels at which collective bargaining works?
Ans.: The three levels at which collective bargaining works are:
(i) National level
(ii) Sector/ Industry level
(iii) Company level
Trade Unionism  11

3. What services do trade union provide to it’s members?


Ans.: Trade unions provide following services to their members:
(i) They educate workers about their basic rights and train them with professional skills.
(ii) They provide legal assistance to the worker when needed.
(iii) They offer financial loans on mortgages to their members.
(iv) They offer financial help to members when they are invalid or unemployed.
4. Is it mandatory to register Trade Union?
Ans.: 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.
5. What is ‘Laissez-Faire’.
Ans.: Laissez-faire is an economic theory from the 18th century that opposed any government
intervention in business affairs.The driving principle behind laissez-faire, a French term that
translates as “leave alone” (literally, “let you do”), is that the less the government is involved in
the economy, the better off business will be – and by extension, society as a whole.

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

48. According to John Mitchell, the explanantion of Trade unionism lies


Ans.: (a)
in protection of workers.
(a) Economic (b) Social (c) Political (d) Legal
49. The essence of Mitchell Trade unionism is which gives the Ans.: (b)
worker economic equality with his employer.
(a) leagal assistance (b) collective bargaining
(c) unity (d) political power
50. Scarcity consciousness of Manual workers was given by Ans.: (d)
(a) Mitchell (b) G.D.H.Cole (c) Engles (d) Perlman
51. Hoxie’s had given functional classification of Unionism except Ans.: (d)
(a) Business unionism (b) Uplift Unionism
(c) Revolutionary Unionism (d) Legal unionsism
52. According to union performs role of Sectional bargainer, Class Ans.: (c)
bargainer and agents of state.
(a) Mitchell (b) G.D.H.Cole (c) Clark Kerr (d) Perlman
53. Militant functions are also known as fighting function. Ans.: (a)
(a) True (b) False
54. function of Trade union is to provide help to its member in times Ans.: (c)
of need.
(a) Social (b) Militant (c) Fraternal (d) Regulatory
55. When trade unions go on strike or work slow to fulfill their demands it is Ans.: (b)
called function.
(a) Social (b) Militant (c) Fraternal (d) Regulatory
56. Rule making function of Trade union is also known as . Ans.: (d)
(a) Social (b) Militant (c) Fraternal (d) Regulatory
57. function of Trade union is to safeguard the intereset of workers Ans.: (a)
through their representation to the legislative assembly and politics of the country.
(a) Political (b) Militant (c) Fraternal (d) Regulatory
58. The Book “Industrial Democracy” has been written by . Ans.: (d)
(a) Mitchell (b) G.D.H.Cole (c) Clark Kerr
(d) Sidney Webb and Betrice webb
59. Election by Seccret Ballot once held, remain valid for years. Ans.: (c)
(a) 5 (b) 3 (c) 2 (d) 1
60. The unions which do not follow code of discipline will not be granted recognition. Ans.: (a)
(a) True (b) False
61. The process allows union subscriptions to be paid by an employer Ans.: (a)
direct to a union on behalf of its employees via salary deductions.
(a) Check-off (b) Election by secret Ballot
(c) Recognitin by Management (d) None of the above
16  MCQs in Industrial Relations And Labour Laws

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



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