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1) Industrial Relations Policy of Government of India has shifted from regulation, to protection, to enabling. Terms of reference of National commission are set in view of the emerging economic scenario. Trace Government Policy formation and paradigm shifts therein over the years.

2) What are usual causes of Industrial Disputes in India? Has Industrial Relations Machinery in India served the desired purpose of prevention and settlement of Industrial disputes over the years? Demonstrate with two instances that might bring about adequacy or otherwise of the present provisions.


Case Study

ABC industries ltd

ABC industries ltd, has the work force of more than 1200 employees, engaged in manufacture of cotton yarn of various counts. It has modernized its plant and to maintain good human relations, ABC Industries has extended more than customary facilities to its employees, and they enjoy better wages and benefits as compared to industries engaged in similar activities.

CEO of the Company and executives in charge of various areas comprise management cadre. IR department is headed by Manager (IR). Employees are represented by four trade Unions; say A, B, C, and D unions. Union A and B are recognized by the management for purposes of negations, otherwise all unions maintain cordial relations with management, individually and collectively.

Company had been distributing bonus to workers at rates more than statutory minimum prescribed under Payment of Bonus Act, 1965. Last year, for declaration of rate of bonus, management had the series of meetings/ discussions with recognized unions and at last announced a bonus which was in turn agreed upon by all recognized unions.

Next day, when management prepared settlement and presented it before the union representatives for signatures leader of Union B refused to sign and walked out, stating that the rat of bonus declared was not sufficient. Next day Union B issued a strike notice to the management asking of higher bonus. Management tried its level best to avoid unpleasant situation, but in vain. Members of Union B went on strike; they were joined by members of Union D.

During its efforts to know reasons for deviant behaviour of leader from Union B, it found that leader of Union A, soon after the first meeting had stated to a group of workers that the management had agreed to declare bonus at the present rate because of his efforts and that leader of Union B had miserably failed in its talks with management. This observation by leader of Union A reached the leader of Union B, and he felt insulted. On identifying the reason for Union B’s strike call, the IR manager brought about a compromise between the leaders of the Union A and B. The workers on strike thereafter resumed work and the settlement was signed for the same amount of bonus as agreed upon earlier in the meeting.


1) What should be the management’s long term strategy for avoiding recurrence of such inter-union differences?

2) How would you handle this IR situation, if you were manager IR, when Union B resorted to strike?

Business Law & Ethics, Finance

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