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Unit - I

A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.

This definition is very exhaustive as it includes associations of both the workers and employers and the federations of their associations. Here, the relationships that have been talked about are both temporary and permanent. This means it applies to temporary workers (or contractual employees) as well. Then this definition, primarily, talks about three relationships. They are the relationships between the:  workmen and workmen,  workmen and employers, and  employers and employers. Thus, a trade union can be seen as a group of employees in a particular sector, whose aim is to negotiate with employers over pay, job security, working hours, etc, using the collective power of its members. In general, a union is there to represent the interests of its members, and may even engage in political activity where legislation affects their members. Trade unions are voluntary associations formed for the pursuit of protecting the common interests of its members and also promote welfare. They protect the economic, political and social interests of their members. Features of trade unions: 1. o It is an association either of employers or employees or of independent workers. They may consist of :Employers’ association (eg., Employer’s Federation of India, Indian paper mill association, etc.)

o

General labor unions

o

Friendly societies

o

Unions of intellectual labor (eg, All India Teachers Association)

2.

It is formed on a continuous basis. It is a permanent body and not a casual or temporary one. They persist

throughout the year.

3.

It is formed to protect and promote all kinds of interests –economic, political and social-of its members. The

dominant interest with which a union is concerned is, however, economic.

4.

It achieves its objectives through collective action and group effort. Negotiations and collective bargaining

are the tools for accomplishing objectives.

5.

Trade unions have shown remarkable progress since their inception; moreover, the character of trade

unions has also been changing. In spite of only focusing on the economic benefits of workers, the trade unions are also working towards raising the status of labors as a part of industry.

6.

7.

UNIT – III Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs.[1] The union may negotiate with a single employer (who is typically representing a company's shareholders) or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement. A collective agreement functions as a labor contract between an employer and one or more unions. Collective bargaining consists of the process of negotiation between representatives of

a union and employers (generally represented by management, in some countries[which?] by an employers' organization) in respect of the terms and conditions of employment of employees, such as wages, hours of work, working conditions, grievance-procedures, and about the rights and responsibilities of trade unions. The parties often refer to the result of the negotiation as a collective bargaining agreement (CBA) or as a collective employment agreement (CEA). The shortcomings or the weakness of the trade union movement in India are as follows: 1. Lack of Balanced Growth Trade unions are often associated with big industrial houses. A vast majority of the working population is without any union backing. The entire agricultural sector is highly unorganized in India. The agricultural workers are subject to all kinds of exploitation. The same is true with respect to those working in small scale and cottage industries. Lack of balanced growth of trade unions in all sectors is one of the majorweakness of the trade union movement in India. 2. Low Membership Trade unions , with the exception of few have low membership. This is because many employees are not willing to join unions although they are ready to enjoy the benefits arising out of the union actions. The reasons for the hesitation of employees to join unions include, among others, the need to take pat in strikes and such other programmes, fear of pay cut and fear of punishment. 3. Poor financial Position Low membership is one of the reasons for the poor financial position of the unions. Moreover, the subscription payable by every member is kept low. Some members may not even make a prompt payment of the small amount of subscription. These are also not very many sources from which unions can get funds. They may probably depend on contributions from philanthropists. The poor financial position can only weaken the trade union movement. 4. Political Control Most popular trade unions in India are affiliated to certain political parties. These political parties are only keen on making every grievance of the working class a political issue to attain political gains. As a result the problem only gets wide publicity and remains unsolved. 5. Multiplicity of Unions Often there exists more than one union within the same industry each backed by a political party. These various unions have conflicting ideology. If one union comes out with a strike proposal another union may work against it. As a result, none of the unions is actually able to solve the problems of the workers. 6. Inter-Union Rivalry The existence of many unions within a particular industry paves way for what is called inter-union rivalry. These unions do not work together for the cause of the workers. Each union may adopt a different approach to the problem. The inter-union rivalry may become a more serious problem of the workers. As a result, the employees are unable to derive the benefits of collective bargaining. 7. Lack of able Leaders Another barrier to the growth of trade unions is the lack of able leaders. Some union leaders give a strike call even for petty problems that can easily be resolved through talks. On the other hand, there are leaders who have secret pact with the management. They get bribes from the government and work against the interests of the employees. Some leaders don’t convene a meeting of the general body at all even when a crisis develops. They take unilateral decisions that are thrust on the employees. 8. Lack of Recognition Most management is not prepared to recognize trade unions. This happens because of any of the following reason.

   

The existence of low membership that reduces the bargaining power of the union. The existence of more unions within the same industry. Inter-union rivalry. The indifferent attitude of the employees themselves towards trade unions. 9. Opposition from Employers Apart from the fact that most employers are not prepared to recognize trade unions, they also do not let their employees from a union. This the employers are able to achieve by adopting certain punitive measures like intimidating employees victimizing union leaders, initiating disciplinary action against employees indulging in union activities and so on. Some employers also start rival unions with the support of certain employees. Sometimes, they may go to the extent of bribing union leaders to avert a strike or such similar show of protest by employees. The employers fail to understand that the union enables the employees to express their grievances in a democratic manner and can also be used as a means of promoting better labor management relationships. 10. Indifferent Attitude of the Members Union leaders alone cannot be blamed for the weakness of the trade union movement. The indifferent attitude of the members of certain unions is also a barrier. Some members do not even make a prompt payment of the subscription amount. The treasurer of the union has to go behind them, remind and persuade them to pay the subscription that is often a very small amount. There are on the other hand, members who do not attend the general body meetings nor do they bother to know what is discussed in such meetings. There are still others who do not take part at all in any of the programmes of the union organized to press the demands of the employees like slogan shouting procession, demonstration, hunger strike etc. Members generally expect the office-bearers to do all that is necessary to achieve the demands.

Presentation Transcript
Collective Bargaining : Collective Bargaining According to Dale Yoder, “Collective bargaining is the term used to describe a situation in which the essential conditions of employment are determined by bargaining process undertaken by representatives of a group of workers on the one hand and of one or more employers on the other.” In the words of Flippo, “Collective bargaining is a process in which the representatives of a labour organisation and the representatives of business organisation meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer-union relationship.”

Features of Collective Bargaining : Features of Collective Bargaining I. It is a collective process. The representatives of both workers and management participate in bargaining. II. It is a continuous process. It establishes regular and stable relationship between the parties involved. It involves not only the negotiation of the contract, but also the administration of the contract. III. It is a flexible and dynamic process. The parties have to adopt a flexible attitude through the process of bargaining. IV. It is a method of partnership of workers in management

Subject Matter of collective bargaining : Subject Matter of collective bargaining The Indian Institute of Personnel Management suggested the following subject matter of collective bargaining: I. Purpose of agreement, its scope, and the definition of important terms II. Rights and responsibilities of the management and of the trade union III. Wages, bonus, production norms, leave, retirement benefits, and terms and conditions of service IV. Grievance re-dressal procedure V. Methods and machinery for the settlement of possible future disputes VI. Termination clause.

Importance of Collective Bargaining : Importance of Collective Bargaining Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees. It increases the strength of the workforce, thereby, increasing their bargaining capacity as a

group. Collective bargaining increases the morale and productivity of employees. It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance of Collective Bargaining : Importance of Collective Bargaining Importance to employers It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. Collective bargaining plays a vital role in settling and preventing industrial disputes.

Importance of Collective Bargaining : Importance of Collective Bargaining Importance to society Collective bargaining leads to industrial peace in the country It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably. The discrimination and exploitation of workers is constantly being checked. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

Pre-requisites for collective bargaining: : Pre-requisites for collective bargaining: effective negotiations and enforcement requires a systematic preparation of the base or ground for bargaining which involves the following three steps: Recognition of the Bargaining Agent. The management should give recognition to the trade union for participating in the collective bargaining process. In case there is more than one union, selection could be done through verification of membership by a government agency giving representation to all the major unions through joint consultations. Thus, the bargaining agent of the workers should be properly identified before initiating any action. Deciding the Level of Bargaining. Whether the dealings are confined to enterprise level, industry level, regional or national level should be decided as the contents, scope and enforcement agencies differ in each case. Determining the Scope and Coverage of Bargaining. It would be better to have a clear understanding of what are the issues to be covered under bargaining. Many a time, bargaining is restricted to wage and working conditions related issues but it would be advantageous for both the management and union to cover as many issues as possible to prevent further friction and disputes. Therefore, all the important and interrelated issues are to be taken for consideration.

Problems of Collective Bargaining : Problems of Collective Bargaining I. Due to the dominance of outsiders in trade unionism in the country, there is multiplicity of unions which are weak and unstable, and do not represent majority of the employees. Moreover, there are inter-union rivalries, which further hinder the process of collective bargaining between the labour and the management. II. Since most of the trade unions are having political affiliations, they continue to be dominated by politicians, who use the unions and their members to meet their political ends. III. There is a lack of definite procedure to determine which union is to be recognized to serve as a bargaining agent on behalf of the workers IV. In India, the law provides an easy access to adjudication. Under the Industrial Disputes Act, the parties to the dispute may request the Government to refer the matter to adjudication and the Government will constitute the adjudication machinery, i.e., labour court or industrial tribunal. Thus, the faith in the collective bargaining process is discouraged. V. There has been very close association between the trade unions and political parties. As a result, trade union movement has leaned towards political orientations rather than collective bargaining.

Five-Year plans of India
From Wikipedia, the free encyclopedia

This article may require cleanup to meet Wikipedia's quality standards. No cleanup reason has been specified. Please help improve this article if you can. (October 2007)
The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission. The eleventh plan completed its term in March 2012 and the twelfth plan is currently underway.[1] Prior to the fourth plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption of the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans. [2]

Contents
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          

1 First Five-Year Plan (1951–1956) 2 Fourth Five-Year Plan (1969–1974) 3 Fifth Five-Year Plan (1974–1979) 4 Sixth Five-Year Plan (1980–1985) 5 Seventh Five-Year Plan (1985–1990) 6 Eighth Five-Year Plan (1992–1997) 7 Ninth Five-Year Plan (1997–2002) 8 Tenth Five-Year Plan (2002–2007) 9 Eleventh Five-Year Plan (2007–2012) 10 References 11 External links

[edit]First

Five-Year Plan (1951–1956)

The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on December 8, 1951.This plan was based on the Harrod-Domar model. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention.[3] The total planned budget of 2069 crore was allocated to seven broad areas: irrigation and energy (27.2

percent), agriculture and community development (17.4 percent), transport and communications(24 percent), industry (8.4 percent), social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent).[4] The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problems—deficiency of capital and low capacity to save. The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6%[5] The net domestic product went up by 15%. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8%. National income increased more than the per capita income due to rapidpopulation growth. Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam. The World Health Organization, with the Indian government, addressed children's health and reduced infant mortality, indirectly contributing to population growth.

At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started as major technical institutions. The University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country.[6] Contracts were signed to start five steel plants, which came into existence in the middle of the second fiveyear plan. The plan was successful. Target Growth: 2.1% Actual Growth: 3.6%[5] ==Second Five-Year Plan (1956–1961)== The second five-year plan focused on industry, especially heavy industry. Unlike the First plan, which focused mainly on agriculture, domestic production of industrial products was encouraged in the Second plan, particularly in the development of the public sector. The plan followed the Mahalanobis model, an economic developmentmodel developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth . It used the prevalent state of art techniques of operations research and optimization as well as the novel applications of statistical models developed at theIndian Statistical Institute. The plan assumed a closed economy in which the main trading activity would be centered on importing capital goods.Jalal Alamgir, India's Open-Economy Policy: Globalism, Rivalry, Continuity (London and New York: Routledge 2008), Chapter 2.Baldev Raj Nayar, Globalization And Nationalism: The Changing Balance Of India's Economic Policy, 1950–2000 (New Delhi: Sage, 2001) Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. Coal production was increased. More railway lines were added in the north east. The Atomic Energy Commission was formed in 1958 with Homi J. Bhabha as the first chairman. The Tata Institute of Fundamental Research was established as a research institute. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power. The total amount allocated under the second five-year plan in India was Rs. 4,600 crore. This amount was allocated among various sectors:

   

Power and irrigation Social services Communications and transport Miscellaneous

[edit]Fourth

Five-Year Plan (1969–1974)

At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation in East Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took Funds earmarked for the industrial development had to be diverted for the war effort. India also performed the Smiling Buddha underground nuclear test in 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against attacking West Pakistan and extending the war. Target Growth: 5.7% Actual Growth: 3.3%[5]

[edit]Fifth

Five-Year Plan (1974–1979)

Stress was by laid on employment, poverty alleviation, and justice. The plan also focused on self-reliance in agricultural production and defence. In 1978 the newly elected Morarji Desaigovernment rejected the plan. Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission. [citation needed]

The Indian national highway system was introduced and many roads were widened to accommodate the increasing traffic. Tourism also expanded. Target Growth: 4.4% Actual Growth: 5.0[5]

[edit]Sixth

Five-Year Plan (1980–1985)

The sixth plan also marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increase in thecost of living. This was the end of Nehruvian Plan and Rajiv Gandhi was prime minister during this period. Family planning was also expanded in order to prevent overpopulation. In contrast to China's strict and binding one-child policy, Indian policy did not rely on the threat of force[citation needed]. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate. Target Growth: 5.2% Actual Growth: 5.4%[5]

[edit]Seventh

Five-Year Plan (1985–1990)

The Seventh Plan marked the comeback of the Congress Party to power. The plan laid stress on improving the productivity level of industries by upgrading of technology. The main objectives of the 7th five-year plans were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment. As an outcome of the sixth five-year plan, there had been steady growth in agriculture, control on rate of Inflation, and favourable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth. The 7th Plan had strived towards socialism and energy production at large. The thrust areas of the 7th Five year plan have been enlisted below:

       

Social Justice Removal of oppression of the weak Using modern technology Agricultural development Anti-poverty programs Full supply of food, clothing, and shelter Increasing productivity of small- and large-scale farmers Making India an Independent Economy

Based on a 15-year period of striving towards steady growth, the 7th Plan was focused on achieving the pre-requisites of self-sustaining growth by the year 2000. The Plan expected a growth in labour force of 39 million people and employment was expected to grow at the rate of 4 percent per year. Some of the expected outcomes of the Seventh Five Year Plan India are given below:



Balance of Payments (estimates): Export – 33,000 crore (US$6.2 billion), Imports – (-) 54,000 crore (US$10.2 billion), Trade Balance – (-) 21,000 crore (US$4 billion)

 

Merchandise exports (estimates): 60,653 crore (US$11.5 billion) Merchandise imports (estimates): 95,437 crore (US$18 billion)



Projections for Balance of Payments: Export – 60,700 crore (US$11.5 billion), Imports – (-) 95,400 crore (US$18 billion), Trade Balance- (-) 34,700 crore (US$6.6 billion)

Under the Seventh Five Year Plan, India strove to bring about a self-sustained economy in the country with valuable contributions from voluntary agencies and the general populace. Target Growth: 5.0% Actual Growth: 5.7%[5]

[edit]Eighth

Five-Year Plan (1992–1997)

1989–91 was a period of economic instability in India and hence no five-year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis inForeign Exchange (Forex) reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh (currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatisation and liberalisation in India. Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt. Meanwhile India became a member of the World Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan model of Economic development. The major objectives included, controlling population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building, tourism management, Human Resource development, Involvement of Panchayat raj, Nagar Palikas, N.G.O'S and Decentralisation and people's participation. Energy was given priority with 26.6% of the outlay. An average annual growth rate of 6.78% against the target 5.6%[5] was achieved. To achieve the target of an average of 5.6% per annum, investment of 23.2% of the gross domestic product was required. The incremental capital ratio is 4.1.The saving for invetsment was to come from domestic sources and foreign sources, with the rate of domestic saving at 21.6% of gross domestic production and of foreign saving at 1.6% of gross domestic production. [7]

[edit]Ninth

Five-Year Plan (1997–2002)

Ninth Five Year Plan India runs through the period from 1997 to 2002 with the main aim of attaining objectives like speedy industrialization, human development, full-scale employment, poverty reduction, and self-reliance on domestic resources. Background of Ninth Five Year Plan India: Ninth Five Year Plan was formulated amidst the backdrop of India's Golden jubilee of Independence. The main objectives of the Ninth Five Year Plan of India are:

    

to prioritize agricultural sector and emphasize on the rural development to generate adequate employment opportunities and promote poverty reduction to stabilize the prices in order to accelerate the growth rate of the economy to ensure food and nutritional security. to provide for the basic infrastructural facilities like education for all, safe drinking water, primary health care, transport, energy



to check the growing population increase



to encourage social issues like women empowerment, conservation of certain benefits for the Special Groups of the society



to create a liberal market for increase in private investments

During the Ninth Plan period, the growth rate was 5.35 per cent, a percentage point lower than the target GDP growth of 6.5 per cent. [8]

[edit]Tenth
    

Five-Year Plan (2002–2007)

Attain 8% GDP growth per year. Reduction of poverty ratio by 5 percentage points by 2007. Providing gainful and high-quality employment at least to the addition to the labour force. Reduction in gender gaps in literacy and wage rates by at least 50% by 2007. 20 point program was introduced.

Target growth:8.1% Growth achieved:7.7%

[edit]Eleventh

Five-Year Plan (2007–2012)

The eleventh plan has the following objectives: 1. Income & Poverty



Accelerate GDP growth from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016–17

    

Increase agricultural GDP growth rate to 4% per year to ensure a broader spread of benefits. Create 70 million new work opportunities. Reduce educated unemployment to below 5%. Raise real wage rate of unskilled workers by 20 percent. Reduce the headcount ratio of consumption poverty by 10 percentage points.

2. Education

 

Reduce dropout rates of children from elementary school from 52.2% in 2003–04 to 20% by 2011–12 Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality

  

Increase literacy rate for persons of age 7 years or above to 85% Lower gender gap in literacy to 10 percentage point Increase the percentage of each cohort going to higher education from the present 10% to 15% by the end of the plan

3. Health

    

Reduce infant mortality rate to 28 and maternal mortality ratio to 1 per 1000 live births Reduce Total Fertility Rate to 2.1 Provide clean drinking water for all by 2009 and ensure that there are no slip-backs Reduce malnutrition among children of age group 0–3 to half its present level Reduce anaemia among women and girls by 50% by the end of the plan

4. Women and Children

 

Raise the sex ratio for age group 0–6 to 935 by 2011–12 and to 950 by 2016–17 Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are women and girl children



Ensure that all children enjoy a safe childhood, without any compulsion to work

5. Infrastructure

 

Ensure electricity connection to all villages and BPL households by 2009 and round-the-clock power. Ensure all-weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015



Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012



Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016–17

6. Environment

   

Increase forest and tree cover by 5 percentage points. Attain WHO standards of air quality in all major cities by 2011–12. Treat all urban waste water by 2011–12 to clean river waters. Increase energy efficiency by 20%

Target growth:8.33% Growth achieved:7.9%

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