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My project is based on INDUSTRIAL RELATION at Indian Oil

Corporation Limited, BARAUNI.

INDUSTRIAL RELATION Analysis is a post mortem of the organizations

Industrial relation system. It measures the ability of the organization tomeet the requirement of both employers and employees efficiently or not.

Its helps in understanding the actual condition of workers in BARAUNI

REFINERY.

In this project, I analyzed the different aspects of industrial relation at

Barauni Refinery. My prime objective is to interpret the policies and

procedures adopted in maintaining the industrial relation.

In this study, I had used Descriptive Research Design. This research

design is about the characteristics of particular things. The engraved data

is collected from various websites, manuals, monthly periodicals and

different time periods.

My analysis of the study undertaken is quite satisfactory which shows that

refinery has proper system of maintaining industrial relation.

The report includes the concepts of industrial relation, the causes of

different grievances in the organization and the methods and procedures

of their redressal with the help of different laws of Indian Government.

Industrial Relation System in Barauni Refinery

An industrial relations system consists of the whole gamut of relationships

between employees and employees and employers which are managed by the

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means of conflict and cooperation.A sound industrial relations system is one in

which relationships between management and employees (and their

representatives) on the one hand, and between them and the State on the other,

are more harmonious and cooperative than conflictual and creates an

environment conducive to economic efficiency and the motivation, productivity

and development of the employee and generates employee loyalty and mutual

trust.

Actors in the IR system:

Three main parties are directly involved in industrial relations

Employers: Employers possess certain rights vis--vis labors. They have theright to hire and fire them. Management can also affect workers interests by

exercising their right to relocate, close or merge the factory or to introduce

technological changes.

Employees: Workers seek to improve the terms and conditions of their

employment. They exchange views with management and voice their

grievances. They also want to share decision making powers of management.

Workers generally unite to form unions against the management and get support

from these unions.

Government: The central and state government influences and regulates

industrial relations through laws, rules, agreements, awards of court and the like.

It also includes third parties and labor and tribunal courts.

INDUSTRIAL RELATIONS MACHINERY



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Cordial industrial relations and lasting industrial peace require that the causes of

industrial disputes should be eliminated. In other words, preventive steps

should be taken so that industrial disputes do not occur. But if preventive

machinery fails then the Government should activate the industrial Settlement

machinery because non-settlement of disputes proves to be harmful not only for

the workers, but also the management and the society as a whole. The

machinery for handling the industrial disputes has been shown in the following

figure:

MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN BARAUNI

REFINERY

Preventive Machinery

(Voluntary or Non-statutory)

Settlement Machinery (Statutory)

This is sure that all of us would have heard the saying that prevention is better

than cure. Keeping that in mind let us discuss the prevention machinery before

the settlement machinery. I hope all of you have understood the difference

between the two. If you have not, let me explain it to you. The preventivemachinery ensures that there are no disputes. It aims at creating an

environment in which the employees are allowed to participate and there are

very less chances of conflicts. It is thus proactive in nature. Now dont tell me

that you dont understand the meaning of pro activityAnyhow, pro activity

means that actions are taken before there is a problem. The settlement

machinery on the other hand is reactive in nature. After there is a problem or a

dispute, the settlement machinery comes into the picture.

Prevention of industrial disputes:

The preventive machinery has been set up with a view to creating harmonious

relations between labour and management so that disputes do not arise. It

comprises the following measures:

a) Schemes of workers participation in management such as works committees,

joint management councils and shop councils and joint councils.



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b) Collective bargaining.

c) Tripartite bodies

d) Code of discipline.

The schemes of workers participation and collective bargaining will be discussed

in greater detail as a separate topic. As of now, please read something on these

schemes and we will discuss it in the due course.

Prevention of Industrial Disputes in Barauni Refinery

The consequences of an Industrial dispute will be harmful to the owners of

industries, workers, economy and the nation as a whole, which results in loss ofproductivity, profits, market share and even closure of the plant. Hence,

Industrial disputes need to be averted by all means. Prevention of Industrial

disputes is a pro-active approach in which an organisation undertakes various

actions through which the occurrence of Industrial disputes is prevented. Like the

old saying goes, prevention is better then cure.

1. Model Standing Orders: Standing orders define and regulate terms and

conditions of employment and bring about uniformity in them. They also

specify the duties and responsibilities of both employers and employees

thereby regulating standards of their behaviour. Therefore, standing

orders can be a good basis for maintaining harmonious relations between

employees and employers.

Under Industrial Dispute Act, 1947, every factory employing 100 workers

or more is required to frame standing orders in consultation with theworkers. These orders must be certified and displayed properly by the

employer for the information of the workers.

2. Code of Industrial discipline: The code of Industrial discipline defines

duties and responsibilities of employers and workers. The objectives of the

code are:

To secure settlement of disputes by negotiation, conciliation and

voluntary arbitration.



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To eliminate all forms of coercion, intimidation and violence.

To maintain discipline in the industry.

To avoid work stoppage.

To promote constructive co-operation between the parties

concerned at all levels.

3. Works Committee: The Industrial Dispute Act, 1947 has provided for the

establishment of works committees. In case of any industrial

establishment in which 100 or more workers are employed, a works

committee consisting of employees and workers is to be constituted; it

shall be the duty of the Works Committee to promote measures for

securing and preserving amity and good relations among the employees

and workers.

4. Joint Management Councils:

5. Suggestion Schemes:

6. Joint Councils:

7. Collective Bargaining: Collective Bargaining is a process in which the

representatives of the employer and of the employees meet and attempt

to negotiate a contract governing the employer-employee-union

relationships. Collective Bargaining involves discussion and negotiation

between two groups as to the terms and conditions of employment.

8. Labour welfare officer: The factories Act, 1948 provides for the

appointment of a labour welfare officer in every factory employing 500 or

more workers. The officer looks after all facilities in the factory provided

for the health, safety and welfare of workers. He maintains liaison with

both the employer and the workers, thereby serving as a communication

link and contributing towards healthy industrial relations through proper

administration of standing orders, grievance procedure etc.

9. Tripartite bodies: Several tripartite bodies have been constituted at

central, national and state levels. The India labour conference, standing

labour committees, Wage Boards and Industries Committees operate at



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the central level. At the state level, State Labour Advisory Boards have

been set up. All these bodies play an important role in reaching

agreements on various labour-related issues. The recommendations given

by these bodies are however advisory in nature and not statutory.

Machinery for settlement of Industrial Disputes in

Barauni Refinery

1. Conciliation: Conciliation refers to the process by which representatives

of employees and employers are brought together before a third party

with a view to discuss, reconcile their differences and arrive at an

agreement through mutual consent. The third party acts as a facilitator in

this process. Conciliation is a type of state intervention in settling the

Industrial Disputes. The Industrial Disputes Act empowers the Central &

State governments to appoint conciliation officers and a Board of

Conciliation as and when the situation demands.

Conciliation Officer: The appropriate government may, by notification in

the official gazette, appoint such number of persons as it thinks fit to be

the conciliation officer. The duties of a conciliation officer are:

a) To hold conciliation proceedings with a view to arrive at amicablesettlement between the parties concerned.

b) To investigate the dispute in order to bring about the settlement

between the parties concerned.

c) To send a report and memorandum of settlement to the appropriate

government.



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d) To send a report to the government stating forth the steps taken by

him in case no settlement has been reached at.

The conciliation officer however has no power to force

a settlement. He can only persuade and assist the parties to reach an

agreement. The Industrial Disputes Act prohibits strikes and lockouts

during that time when the conciliation proceedings are in progress.

2. Arbitration: A process in which a neutral third party listens to the

disputing parties, gathers information about the dispute, and then takes a

decision which is binding on both the parties. The conciliator simply assists

the parties to come to a settlement, whereas the arbitrator listens to both

the parties and then gives his judgement.

Advantages of Arbitration:

It is established by the parties themselves and therefore both

parties have good faith in the arbitration process.

The process in informal and flexible in nature.

It is based on mutual consent of the parties and therefore helps in

building healthy Industrial Relations.

Disadvantages:

Delay often occurs in settlement of disputes.

Arbitration is an expensive procedure and the expenses are to be

shared by the labour and the management.

Judgement can become arbitrary when the arbitrator is incompetent

or biased.

There are two types of arbitration:

a) Voluntary Arbitration: In voluntary arbitration the arbitrator is

appointed by both the parties through mutual consent and the

arbitrator acts only when the dispute is referred to him.



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b) Compulsory Arbitration: Implies that the parties are required to

refer the dispute to the arbitrator whether they like him or not.

Usually, when the parties fail to arrive at a settlement voluntarily, or

when there is some other strong reason, the appropriate

government can force the parties to refer the dispute to an

arbitrator.

3. Adjudication: Adjudication is the ultimate legal remedy for settlement of

Industrial Dispute. Adjudication means intervention of a legal authority

appointed by the government to make a settlement which is binding on

both the parties. In other words adjudication means a mandatory

settlement of an Industrial dispute by a labour court or a tribunal. For the

purpose of adjudication, the Industrial Disputes Act provides a 3-tier

machinery:

a) Labour court

b) Industrial Tribunal

c) National Tribunal

a) Labour Court:The appropriate government may, by notification in theofficial gazette constitute one or more labour courts for adjudication of

Industrial disputes relating to any matters specified in the second

schedule of Industrial Disputes Act. They are:

Dismissal or discharge or grant of relief to workmen wrongfully

dismissed.

Illegality or otherwise of a strike or lockout.

Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for

adjudication, it shall hold its proceedings expeditiously and shall, within

the period specified in the order referring such a dispute, submit its report

to the appropriate government.



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b) Industrial Tribunal: The appropriate government may, by notification

in the official gazette, constitute one or more Industrial Tribunals for

the adjudication of Industrial disputes relating to the following matters:

Wages

Compensatory and other allowances

Hours of work and rest intervals

Leave with wages and holidays

Bonus, profit-sharing, PF etc.

Rules of discipline

Retrenchment of workmen

Working shifts other than in accordance with standing orders

It is the duty of the Industrial Tribunal to hold its proceedings

expeditiously and to submit its report to the appropriate government

within the specified time.

c) National Tribunal: The central government may, by notification in the

official gazette, constitute one or more National Tribunals for the

adjudication of Industrial Disputes in

Matters of National importance

Matters which are of a nature such that industries in more than

one state are likely to be interested in, or are affected by the

outcome of the dispute.

It is the duty of the National Tribunal to hold its proceedings expeditiously

and to submit its report to the central government within the stipulated

time.



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issues to be negotiated. By cultivating an atmosphere of friendliness,

mutual respect, trust, and cooperation, negotiators can encourage their

opponents to view issues largely in integrative terms and participate in

joint problem solving. This activity involves shaping and reshaping some

perceptions like trust/distrust, friendliness/hostility, co-operative/non-

cooperative between the labour and management. When there is a

backlog of bitterness between both the parties, attitudinal structuring is

required to maintain smooth and harmonious industrial relations.

4) Intra-Organisational Bargaining: It is a type of manoeuvring to achieve

consensus among the workers and management. Even within the union

there may be differences between different groups as may be the case

with the management. Intra-organisational consensus is required for the

smooth acceptance of the outcome of Collective Bargaining.

Objectives of Collective Bargaining:

1. To maintain cordial relations between the employer and employees.

2. To protect the interests of the workers through collective action and by

preventing unilateral actions from being taken by the employer.

3. To ensure the participation of trade unions in industry.

4. To avoid the need for government intervention as collective bargaining is

a voluntary collective process.

5. To promote Industrial democracy.

Characteristics of Collective Bargaining:

1. It is a group or collective action as opposed to individual action. It is

initiated through the representatives of the employees.

2. It is a flexible and dynamic process where-in no party adopts a rigid

attitude.



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3. It is a continuous process, which provides a mechanism for continuous

negotiations and discussions between management and the trade unions.

4. It is a voluntary process without any third-party intervention. Both workers

and management voluntarily participate in the negotiations, discuss and

arrive at a solution. That is why it is known as a bipartite process where

workers representatives and management get an opportunity for clear,

face-to-face communication.

5. It ensures industrial democracy at the workplace; it is a self-run

government in action.

6. It is a two-way process. It is a mutual give and take rather than a take

home allmethod of arriving at a solution to a dispute.


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