PROBLEM AND PROSPECT OF INDUSTRIAL RELATION IN COAL INDUSTRY WITH SPECIAL REFERENCE TO C.C.L, RANCHI

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1 Pinnacle Research Journals 1 PROBLEM AND PROSPECT OF INDUSTRIAL RELATION IN COAL INDUSTRY WITH SPECIAL REFERENCE TO C.C.L, RANCHI ABSTRACT PALLAVI KUMARI* *Lecturer, Biju Patnaik Institute of Information Technology & Management Studies, India. In a growing and labour-abundant economy like India, industrial relations have special significance, particularly in public sector enterprises which play a dominant role in the industrial economy of India. This study is relevant because industrial harmony now-a days is considered as a pre-condition for sustained economic development and growth of any type of economy. The present study is carried out with the purpose to explore the industrial relation problem in the coal industry. The focus of this paper is to analyze the importance and challenges of the industrial relation in public sector undertaking.as a result, first of all, I review the relevant literature to find out the impact of industrial relation in a coal industry. The data were collected mainly from secondary sources. This paper suggests a professional approach on modern day IR practices and concludes that healthy industrial relation in an enterprise generates attitudes which stabilize democratic institutions. KEYWORDS: Industrial relation, economic development, industrial democracy. INTRODUCTION Industrial relation is not merely the management-employee relation and the union management relation but it involves the relation with the state or the government also. Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. Industrial relations involve setting up machinery to solve problems confronted by management and employees through mutual agreement to which both these parties are bound. This results in banning of the unfair practices being used by employers or trade unions. Industrial relations mean settling employee s problems through collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management and employee s unions. Healthy and orderly industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. Coal is the primary source of energy. Coal accounts for over 50% of India's commercial energy consumption and about 78% of domestic coal production is dedicated to power generation. The inventory of Coal in India are estimated to be around billion tonnes (as on 1st April, 2011), which constitute about 0.8% of the Global Coal reserves, whereas it's production contribution is around 7%. Coal mining can and does provide a significant direct contribution to

2 Pinnacle Research Journals 2 economic development at a local level, particularly in the poorer parts of the world. Large-scale mines are often the biggest source of income for rural communities. Coal India Limited (CIL) - a Schedule MAHARATNA Public Sector Undertaking under Ministry of Coal, Government of India, is the single largest coal producing company in the world and the largest corporate employer with approximately 3.8 lakh employees, contributing around 81% of the total coal production in India. CIL produce non-coking coal and coking coal of various grades for diverse applications. It operates 471 mines in 21 major coalfields across eight states in India (West Bengal, Jharkhand, Orissa, Madhya Pradesh, Maharashtra, Chhattisgarh, Uttar Pradesh and Assam). The Company is also undertaking mining operations abroad and joint ventures. The turnover for April to December 2012 was 48,398 crores. Coal India Ltd. (CIL) has now 8 subsidiaries viz. Bharat Coking Coal Limited (BCCL), Central Coalfields Limited (CCL), Eastern Coalfields Limited (ECL), Western Coalfields Limited (WCL), South Eastern Coalfields Limited (SECL), Northern Coalfields Limited (NCL), Mahanadi Coalfields Limited (MCL) and Central Mine Planning and Design Institute Limited (CMPDIL).One of the major problem confronted by the coal companies is strike which can be remove through healthy IR practices. TABLE 1: STRIKES AND BANDHS DETAILS OF CIL No. of strikes Mon days Lost Production Lost (in tones) * 6+1* 22** 3+3* Nil 2 +2* 1+1* Nil Nil ,10,542 2 * IS =Industrial Strike ** BB = Bangla Band Up (Source: Government of India Annual Report , Ministry of Coal,website: INTERPRETATION In this table we can see that if the number of strike is NIL, the Mandays lost is also NIL and hence production lost is also NIL. But in contrast we can see that in all the years except is followed by industrial strike and band and hence that year is suffered with Mandays lost and also loss in production in tonnes. Thus it is quite clear that industrial relation effect the production of the company. THE INDUSTRIAL RELATIONS IN SCCL: The Singareni Collieries Company Limited is a Government of Andhra Pradesh Enterprise in which Government of Andhra Pradesh and Government of India hold equity capital shared in the ratio of 51:49 respectively. As per Tripartite agreement The Industrial Relations Scenario in SCCL for the year (upto December, 2011) recorded 03 (three) Strikes. Out of these, two strikes were in connection with the ongoing agitation demanding separate Telengana State. TABLE 2: DETAILS OF STRIKES, MANDAYS LOST & PRODUCTION LOST IN SCCL

3 Pinnacle Research Journals 3 S.NO Year No. of Strikes Mandays lost Production lost (in tonnes) ,30,798 6,47, ,02,942 1,21, ,818 57, ,40,403 1,10, ,587 9, NIL Nil Nil ,065 19, ,430 4, ,68,760 4,22, (up to Dec., 11) 03 16,27,057 40,11,091 (Source: Government of India Annual Report , Ministry of Coal,website: INTERPRETATION In , the number of strikes is Nil and hence the Mandays lost and the production lost both is Nil. Instead we can see that there is strikes in all the years and consequently it faced Mandays lost and Production lost in tonnes. THE INDUSTRIAL RELATIONS IN CCL: Industrial relations constitute one of the most delicate and complex problems of the present day industrial enterprises. Central coalfield limited is not an exception to that. It has been a challenging task for the management of CCL to maintain harmonious industrial relations in its collieries and other establishment.the external forces backed with political overtones not only create law and order problems but also cause work stoppage, obstruction and many other problem in the various collieries and establishment of CCL.Such situation pose immense industrial relation problem before the company. TABLE 3. POSITION OF INDUSTRIAL DISPUTES IN CCL AS ON S.No Details Number of cases 1 Labor and industrial disputes pending before 668 different courts, authorities and industrial tribunals 2 Disputes added during the year (up 249 to ) 3 No of disputes disposed off 86 4 Total cases remain pending Cases of compassionate appointments under Para to dependents 602 Source : ( self complied from Annual Report of C.C.L, p. 23 ) INTERPRETATION At the beginning of the years , 668 Cases relating to labor and industrial disputes were pending before different courts, authorities and industrial tribunals. While 249 cases of labor and industrial disputes were added, 86 cases were disposed off during the year. Thus 831 cases in

4 Pinnacle Research Journals 4 total remained pending on With a view to maintaining harmonious industrial relation as well as to serve the society as a responsible Corporate citizen, C.C.L has approved a total of 602 cases of compassionate appointments under Para to dependents during Apart from this, 13 nos. of employees were selected to the post of Mining Sirdar. STATEMENT OF THE PROBLEM Myers Charles (1985) conducted a study on the scene of Industrial Relation in public sector undertaking has not been wholesome on account of several reasons. It is facing serious problems which are constraints in its smooth functioning. One of the most important problems is that the approach in utilizing human resources and in dealing with labour problems is still characterized by authoritarianism and paternalism. The relationship that exists between the employers and employees has unfortunately not been developed on a scientific basis. S.D. Punekar,(1952) found that there are many defects in the industrial relation system in India and among them the main defects is the lack of co-operation at the lowest level.i.e. between an individual employer and his employees. Secondly, the employer s and employer s organization have also not developed equally. The employer s have organized themselves into powerful bodies having certain advantages over the workers. On the other hand, workers are poor and they come from different cultural backgrounds and are led by politicians, who have conflicting ideologies. Worker s association i.e. trade union in India has not reached such a position to contribute effectively to the development of harmonious relation in the industrial sphere. N.F. Dufty, (1964) found that Industrial democracy, which is claimed to be an effective instrument in establishing and maintaining harmonious industrial relation in increasing production, has proved to be a farce and even the industrial organization run by the public sector have failed to achieve a successful implementation of this new industrial institution. Monga (1980) studied that, one of the most potent reasons responsible for doleful state of industrial relation perhaps is the pseudo-perception of self by employer, that is, they consider themselves superior to common man, for they formulate policies, execute decisions, guide and control activities and the work place is theirs, the material is their, the machinery is their, the product are their so consequently is the risk of losing all these. S.D. Punkar, (1969) found that the weakness of industrial relation lies in the lack of uniformity and inadequacy of labour legislation. Multiplicity of unions and lack of close contact between trade union leaders pose additional problems to the harmonious relationship between employers and employees. Thus we may say that a loop hole is present in the industrial relation which is needed to be checked. REVIEW OF LITERATURE A numbers of research work have been done by eminent persons in the coal Industry and industrial relations. George, (1984) believes through his study in Mahanadi coalfields Ltd that Industrial relation has a great impact not only in the productivity of the company but has a significant impact on social and economic condition of the workers. Gajre,(1986) found that there must be a provision of continuous personnel research which keeps the management equipped with the recent development and trends which are essential to take sound decisions without any further delays as regards to personnel matters. Chattoraj, (1991) did his work on the topic Human Resource Management - A case study of Central Coalfield Limited in Ranchi.He has also thrown light on the importance of Industrial relation in Human Resource Management.

5 Pinnacle Research Journals 5 Shankaraiah,(1991) has also studied the various aspect of industrial relation factors which affect the higher productivity system in Singareni Colleries Company Ltd. Masthan, (1993) has revealed that there is a negative influence of political leaders on trade unions which are working in the industry. Trade union leaders forget their true aims and indulge in politics, thus it affect the productivity of the organisation. Anantapura. Kumari, (1993) has found that most grievances seriously disturb the employees and effect their morale, productivity and willingness to cooperate with the organization, so there must be an involvement of trade union to intervene in the procedure to handle the problems of aggrieved employees. Singh,(1995) found in his study that voluntary organizations of workers in coal mining industry of Bihar can successfully promote, maintain and improve the condition of employment through collective action. They can put up a united resistance against the exploitation of the employer. Prasad, (2001) in their study of Andhra Pradesh state found that in running any PSU efficiently the management has look into the various welfare aspect of its employees.jacob, (2002) has also studied that industrial relation is a important area of practice in which there is a integration of people into the work situation in a way that motivates them to work together to enhance productively, cooperatively and with economic,psychological and social satisfaction. Thalavai,(2003) has concluded in his study that participatory management of industrial relation ensure effective consultation and develop the awareness of the problems among the workers. Singh, (2004) reports that mining operation in Korba Coalfield give rise to significant level of pollution in the atmosphere which affect the quality of the life in the mining area.hence he suggested that there is a urgent need of air quality monitoring stations with a particulars standards to be followed. Mandal, (2009) has focussed light on alarming agenda of the occupational health situation in India.He found that severe death and disability is causing due to the threats which are identified in the working environment and a sign of poor Industrial relation. Dotson, Edward, (1971) has done a research on Conflict within the house of labour: A case of the relation between labour and union and their office employees. D.Bhattacherjee, (1999) has found significant aspect of Industrial Relation in Cement Companies through his work Industrial Relation in associated cement companies: A case study of Sindri unit in B.H.U,Vanarasi. Snigdharani. SIGNIFICANCE OF THE STUDY Industrial relations has become one of the most delicate and complex problems of modern industrial society. This is because of the fact that level of education among workers has improved which has led them more conscious of their rights. With growing wages, their standard of living has changed and now, they view the management from different perspective. Even a slight change in the policy of the management may invite labor problem and the situation may become volatile.in fact, Industrial relation has become a very fragile issues which is needed to be handled careful. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees and employers. OBJECTIVES OF THE STUDY 1. To know the problem of industrial relation in public sector in India 2. To study the history, evolution and growth of industrial relation in public sector.

6 Pinnacle Research Journals 6 3. To suggest the measure for smooth functioning of IR in PSU RESEARCH METHODOLOGY Available secondary data is extensively used for the study. Different news articles, books and magazines were used.the required data for the present study has been collected from different websites also. CONCEPT OF INDUSTRIAL RELATION According to Casselman (1960) the term industrial relation refer to industry and industry means any productive activity in which an individual is engaged and relation means the relations that exist in the industry between the employer and his workmen. The Labour Dictionary defines IR as the relations between employer and employees in industry. The Encyclopaedia Britannica (1961) explain that IR has been extended to denote the relations of the state with the employers, workers and their organizations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their place of work; collective relations between employers and their organizations and trade unions; and the part played by the state in regulating these relations. Singh,V.B (1968) has define it as a a set of functional interdependence involving historical, economic, social, psychological, demographic, technological, occupational, political and legal variables. According to Kapoor (1968) describes the concept of industrial relations as developing and dynamic concept and does not limit itself nearly to the complex of relations between the union and management but also refer to the general verb of relationship normally obtaining between employees- a web much more complex than the simple concept of labour capital conflict. To quote Yoder(1970), IR describes the relationship between managements and employees or among employees and their organizations that characterize or grow out of employment. Professor Clegg(1970) has defines Industrial relations in the broadest terms as encompassing the rules governing the employment, together with the ways in which the rules are made and changed and their interpretation and administration. NATURE OF INDUSTRIAL RELATIONS Industrial relations are concerned with the organization and practice of multi-pronged relationship between the workers and the union in an industrial enterprise. Such relationships may be either in organized form or unorganized plants. Industrial relation do not function in a vacuum but multi-dimensional in nature and are conditioned with three determinants (i) Institutional factors (ii) Economic factors (iii) Technological Factors. 1.Under institutional factors are included items such as state policy, labor laws, voluntary codes, collective agreements, laborers unions and employers organization, social institution like the community, caste, joint family, creed, system of beliefs, etc, attitudes of work, systems of power status, relative nearness to the centers of power; motivation and influence and industrial relations.

7 Pinnacle Research Journals 7 2.Under economic factors are included economic organization (socialist, capitalist, communist, individual ownership, company ownership, government ownership) power of labor and employers, the nature and composition of the labor force and the sources of supply and demand in the labor market. 3.Under technological factors come the techniques of production, modernization and rationalization schemes, capital structures etc. DOMINANT ASPECT OF INDUSTRIAL RELATION The main aspects of Industrial Relations are as follows i. Labour Relations, i.e. relations between union and management. ii. Employer-employees relations, i.e. relations between management and employees. iii. Group relations, i.e. relations between various groups of workmen. iv. Community or Public relations, i.e. relations between industry and society. v. Promotions and development of healthy labour-managements relations. vi. Maintenance of industrial peace and avoidance of industrial strife vii. Development of true industrial democracy. HISTORY OF INDUSTRIAL RELATION Industrial relations have its roots in the industrial revolution which created the modern employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers. As society wrestled with these massive economic and social changes, labor problems arose. Low wages, long working hours, monotonous and dangerous work, and abusive supervisory practices led to high employee turnover, violent strikes, and the threat of social instability. Intellectually, industrial relations was formed at the end of the 19th century as a middle ground between classical economics and Marxism, with Sidney Webb and Beatrice Webb s Industrial Democracy (1897) being the key intellectual work. Institutionally, industrial relations were founded by John R. Commons when he created the first academic industrial relations program at the University of Wisconsin in Early financial support for the field came from John D. Rockefeller, Jr. who supported progressive labormanagement relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg. Industrial relations were formed with a strong problem-solving orientation that rejected both the classical economists laissez faire solutions to labor problems and the Marxist solution of class revolution. It is this approach that underlies the New Deal legislation in the United States, such as the National Labor Relations Act and the Fair Labor Standards Act.

8 Pinnacle Research Journals 8 DETERMINING FACTORS OF INDUSTRIAL RELATIONS Baljit (1970) observe that the development of industrial relations has not been the result of any single factor or cause, but has been determined by the conditions existing on the eve of the Industrial Revolution in Western Europe, and the social, economic and political situations obtaining in different countries. From the earliest days, the changes that took place did not follow a uniform pattern in every country but reflected such economic and social forces as had, for a long time, shaped the principles and practices of industrial relations in Western European countries succinctly summarizes these event: From the earliest phases of industrialization, when workers, formerly working with their own tools entered power driven factories. To the breakdowns arising out of the industrial conflicts of a later day and then to industrial peace, and hence to the human relations approach to raise productivity in an era of full employment in which the threat of a sack was no longer real, and finally to industrial democracy based on labour partnership not only for a share in profits but also in managerial decisions- this has been a long journey indeed. Good industrial relations depend on a great variety of factors. Some of the more obvious ones are listed below: 1. HISTORY OF INDUSTRIAL RELATIONS: No enterprise can escape its good and bad history of industrial relations. A good history is marked by harmonious relationship between management and workers. A bad history by contrast is characterized by militant strikes and lockouts. Both types of history have a tendency to perpetuate themselves. Once militancy is established as a mode of operations there is a tendency for militancy to continue. Or once harmonious relationship is established there is a tendency for harmony to continue. 2. ECONOMIC SATISFACTION OF WORKERS: Psychologists recognize that human needs have a certain priority. Need number one is the basic survival need. Much of men conducted are dominated by this need. Man works because he wants to survive. This is all the more for underdeveloped countries where workers are still living under subsistence conditions. Hence economic satisfaction of workers is another important prerequisite for good industrial relations. 3. SOCIAL AND PSYCHOLOGICAL SATISFACTION: Identifying the social and psychological urges of workers is a very important step in the direction of building good industrial relations. A man does not live by bread alone. He has several other needs besides his physical needs which should also be given due attention by the employer. An organization is a joint venture involving a climate of human and social relationships wherein each participant feels that he is fulfilling his needs and contributing to the needs of others. This supportive climate requires economic rewards as well as social and psychological rewards such as workers participation in management, job enrichment, suggestion schemes, re-dressal of grievances etc. 4. OFF-THE-JOB CONDITIONS: An employer employs a whole person rather than certain separate characteristics. A person s traits are all part of one system making up a whole man. His home life is not separable from his work life and his emotional condition is not separate from his physical condition. Hence for good industrial relations it is not enough that the worker s factory

9 Pinnacle Research Journals 9 life alone should be taken care of his off-the-job conditions should also be improved to make the industrial relations better. 5. ENLIGHTENED TRADE UNIONS: The most important condition necessary for good industrial relations is a strong and enlightened labour movement which may help to promote the status of labour without harming the interests of management, Unions should talk of employee contribution and responsibility. Unions should exhort workers to produce more, persuade management to pay more, mobilize public opinion on vital labour issues and help Government to enact progressive labour laws. 6. NEGOTIATING SKILLS AND ATTITUDES OF MANAGEMENT AND WORKERS: Both management and workers representation in the area of industrial relations come from a great variety of backgrounds in terms of training, education, experience and attitudes. These varying backgrounds play a major role in shaping the character of industrial relations. Generally speaking, well-trained and experienced negotiators who are motivated by a desire for industrial peace create a bargaining atmosphere conducive to the writing of a just and equitable collective agreement. 7. PUBLIC POLICY AND LEGISLATION: When government regulates employee relations, it becomes a third major force determining industrial relations the first two being the employer and the union. Human behaviour is then further complicated as all three forces interact in a single employee relation situation. Nonetheless, government in all countries intervenes in management union relationship by enforcing labour laws and by insisting that the goals of whole society shall take precedence over those of either of the parties. 8. BETTER EDUCATION: with rising skills and education workers expectations in respect of rewards increase. It is a common knowledge that the industrial worker in India is generally illiterate and is misled by outside trade union leaders who have their own axe to grind. Better workers education can be a solution to this problem. This alone can provide worker with a proper sense of responsibility, which they owe to the organization in particular, and to the community in general. GROWTH OF INDUSTRIAL RELATION IN PUBLIC SECTOR The entry of public sector in the economic sphere is post-independence development. Prior to 1947, public sector investment was limited to the railways, posts and telegraphs department, the ordnance factories, and a few State-managed factories like salt manufacturing, etc. the philosophy and programme of public sector undertakings are incorporated in the Industrial Policy Resolutions of 1984 and The Industrial Policy Resolution of 1984 declared that a dynamic national policy must be directed to a continuous increase in production by all possible means, side by side with measures to secure its equitable distribution. The problem of State participation in industry and the condition in which private enterprise should be allowed to operate must be judged in this context. (20). consequently, expansion in public sector began after this period. The Industrial Policy Resolution of 1956 stated that The adoption of the socialist pattern of society as the national objective as well as the need for planned development requires that all industries of basic and strategic importance or in the nature of public utility

10 Pinnacle Research Journals 10 services should be in the public sector. (21).According to R.C Dutta, (1974) after Independence, the public sector has become an integral and definite part under the leadership of our first Prime Minister Jawaharlal Nehru, The Industrial Policy Resolution first in 1948 and later in 1956 defined this position and the successive five year plans, specially from the second plan onwards, sought to implement the policy Resolution by outlining programmes of public sector development and clarifying, where necessary, the plan objectives. The speech delivered by Mrs. Indira Gandhi, (1966)state that the Industrial Policy Resolution of 1977 announced by the Union Industries Minister, Mr. George Fernandes also given emphasis on Public Sector. Mrs Indira Gandhi has narrated the importance of public sector in her own words, We advocate public sector for three reasons to gain control of the commending heights of the economy, to promote critical development in terms of social gain on strategic value rather than primarily on consideration of profits and to provide commercial surpluses with which to finance further economic development. The First Five Year Plan, Planning Commission(1961) different five year plans have also realized the importance of industrial relation for the rapid growth of industrialization and made suitable recommendations. The First Five Year Plan expressed the importance of Industrial Peace as a positive step for economic progress, the need for legal machinery for the settlement of Industrial disputes and also essential for the closest class collaboration. The Second Five Year Plan, Planning Commission (1956) emphasized establishment of Industrial Relation through mutual agreement of self imposed obligation like Code of Discipline, Code of conduct, Workers participation in management, settlement of wage disputes through wage boards and training of workers under the Worker s Education Scheme. The Fifth Five Year Plan, Plan contended that, Industrial relation in India could be developed when a fair and just approach would be taken during negotiations between workers and management. The Sixth Five Year Plan has given that, A good industrial relation should be developed by developing a sense of partnership of belonging and participation has received common acceptance among workers. The seventh Five Year Plan has given emphasis on congenial Industrial relation for bringing growth with stability. On the public sector, the new industrial policy (1991) envisaged that their role would have pre-eminence in only right turn Industries, the sick units would be referred to the Board of Industries and the Financial Reconstruction (BIFR). A social security mechanism would be created to protect the interest of the workers likely to be affected by the rehabilitation package and a part of public sector equity would be offered to mutual funds and general public. A greater role is given to private sector. CAUSES OF POOR INDUSTRIAL RELATIONS The following are the main causes of poor industrial relation 1. ECONOMIC CAUSES: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labour. Unauthorised deductions from wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance etc. 2. ORGANISATIONAL CAUSES: Faulty communications system, unfair practices, nonrecognition of trade unions and labour laws are also some other causes of poor relations in industry.

11 Pinnacle Research Journals SOCIAL CAUSES: Uninteresting nature of work is the main social cause of poor Industrial relations. Dissatisfaction with job and personal life culminates into Industrial conflicts. 4. PSYCHOLOGICAL CAUSES: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. 5. POLITICAL CAUSES: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country. EFFECTS OF POOR INDUSTRIAL RELATION Poor Industrial Relation produces highly disquieting effects on the economic life of the country. 1. MULTIPLIER EFFECTS: Modern industry and for that matter modern economy are interdependent. Hence although the direct loss caused due to industrial conflict in any one plant may not be very great, the total loss caused due to its multipliers effect on the total economy is always very great. 2. FALL IN NORMAL TEMPO: Poor Industrial Relations adversely affect the normal tempo of work so that work far below the optimum level. Costs build up. Absenteeism and labour turnover increase. Plants discipline breaks down and both the quality and quality of production suffer. 3. RESISTANCE OF CHANGE: Dynamic industrial situation calls for change more or less continuously. Methods have to be improved. Economics have to be introduced. New products have to be designed, produced and put in the market 4. FRUSTRATION AND SOCIAL COST: Every man comes to the work place not only to earn a living. He wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration. They reduce cordiality and aggravate social tension. FINDINGS Industrial relations are of great importance in industrial life. These relations have great bearing on the economic, social and political spheres of our society. If in an organization relations between labour and management are cordial, there will be industrial peace and interests of both the parties will be automatically safeguarded. However, organizations where industrial relations are strained, the organizations have to face lot of problems. The atmosphere of such organizations is always surcharged with industrial unrest leading either to strikes or lockouts. It is found out that in CIL and subsidiaries there are well established bi-partite forums consisting of the representatives of the Management and the 5 Central Trade Unions for interaction and redressal of issues related to the wages & service conditions, employment, safety, grievances and welfare etc.

12 Pinnacle Research Journals 12 The following joint bipartite forums are operating at different levels : 1. JBCCI at CIL 2. Apex Jt. Consultative Committee 3. Safety Board/ Safety Committee 4. Welfare Board/ Welfare Committee 5. Joint Consultative Committee s 6. Industrial Relation Meetings (Structural meetings with union). It is also found out that in SCCL the management has laid down clear Industrial Relations Policy providing mechanism to discuss the issues, with Recognized Union at Company and Area level and with Representative Status Union at Area level. By introducing reforms, harmonious Industrial Relations are being maintained through systematic co-operation between the labour and the Management and helps in reducing costs, increasing the production and productivity, improving quality of work and maintaining Industrial Peace & improvement in overall quality of life. In C.C.L Ranchi, efforts have been made to maintain a peaceful and harmonious Industrial Relations scenario throughout the year The sincere effort and approach were used in handling and resolving the workmen s disputes and grievances. There were regular bipartite meetings held with the representatives of different trade unions at unit, Area and Corporate level. Industrial Relation Machinery (IRM) consisting of JCC at company level, ACC at Area level and UCC at Unit level have sorted out major collective bargaining issues through discussions and this has created a lot of goodwill amongst the workers. Thus, the Organizations which ignore the importance of industrial relations face high cost of production. Adverse effect on efficiency, low-grade production, negligence in the execution of work, absenteeism among the workers, high rate of labour turn-over etc. are the evils that result from poor industrial relations. Lack of cordiality in industrial relations not only adversely affects the interests of the labourers and employers but also cause harm to different sections of society. They are faced with lot of difficulties and problems. Since the government has enacted a large number of legislations, which provide a protective shield to the workers, the subject of Industrial Relation is becoming increasingly technical day by-day. MEASURES FOR IMPROVING INDUSTRIAL RELATIONS Good and harmonious industrial relations create a sense of belongingness and groupcohesiveness among workers and also a congenial environment resulting in less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage. Good industrial relations, built-in mutual cooperation and common agreed approach motivate one to contribute one s best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers.

13 Pinnacle Research Journals 13 The following measures can be adopted for improving industrial relations in an organization. 1. SOUND PERSONNEL POLICIES: Policies and procedures concerning the compensation, transfer and promotion, etc. of employees should be fair and transparent. All policies and rules relating to Industrial relations should be fair and transparent to everybody in the enterprise and to the union leaders. 2. PARTICIPATIVE MANAGEMENT: Employees should associate workers and unions in the formulation and implementation of HR policies and practices. 3. RESPONSIBLE UNIONS: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to industrial relations. 4. EMPLOYEE WELFARE: Employers should recognise the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, and other necessary facilities for labour. Management should have a genuine concern for the welfare and betterment of the working class. 5. GRIEVANCE PROCEDURE: A well-established and properly administered system committed to the timely and satisfactory redressal of employee s grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers. 6. CONSTRUCTIVE ATTITUDE: Both management and trade unions should adopt positive attitude towards each other. Management must recognize unions as the spokesmen of the workers grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavour for good industrial relations. 7. Creating a proper communication channel to avoid grievances and misunderstandings among employees 8. Education and training should be imparted to the employees CONCLUSION Public sector has come to assume the commanding heights of the economy. It was monopoly in railways, communication and air transport; virtual monopoly in coal mining, power generation and petroleum industry etc. Public sector has played a significant role in the industrialization of the country. Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. India being a mixed economy, both public sector and private sectors exist. The government has shifted its emphasis from time to time due to change in economic policy of the big powers. Since industrial harmony now-a days, is considered as a pre-condition for sustained economic development and growth of any type of economy, efforts have been made in all countries of the world to eliminate or minimize conflicts between labour and management. Healthy industrial relation in an enterprise generates attitudes which stabilize democratic institutions. In fact, industrial relations play a very crucial role in establishing and

14 Pinnacle Research Journals 14 maintaining industrial democracy. However, the techniques of establishing industrial democracy differ from industry to industry and organization to organization in view of difference of objectives. REFERENCES 1.Bhattacherjee D. (1999). Industrial Relation in associated cement companies: A case study of Sindri unit in B.H.U,Vanarasi. 2.Chattoraj Kr.Ajay.(1991). Human Resource Management- A case study of Central Coalfield Limited. 3.Clegg H A. (1970). The system of Industrial Relations in Great Btritain, Blackwell, p.1 4.Dufty.N.F. (1964). Industrial Relation in India.Manager Publication,pp Dotson M.S.& Edward Thomas.(1971). Conflict within the house of labour :A case of the relation between labour and union and their office employees 6.Dutta R.C. (1974). Objectives of Public Sector, Lok Udog, Vol.10(6).p First Five Year Plan, Planning Commission, Govt of India.(1961). New Delhi.p Fifth Five Year Plan, Planning Commission, Govt of India. ( )Vol.:1. p George K.S.(1984). Impact of Industrialisation on the social condition of Singrauli,the energy capital of India. 10.Gajre Kr.Pramod.(1986). Personnel Management in Public Sector A case study of Bharat Coking Coal Limited. 11.Jacob K.K.(2002). Industrial Relation in Public sector,kerala in the university of Kerela,Thriuvananthapur. 12.Kapoor T.N.(1968). Personnel Management and Industrial Relation in India, Himalaya Publishing House. p Myers Charles.(1958). A Labour Problems in Industrialization of India. Harvard University Press, Cambridge, p Monga M.L. (Feb-1980) Managerial Prerogatives, A Union speaks his Mind. Indian Management, Vol:19, No.2,. p Masthan D. (1993). Impact of political union leadership on unionism and Industrial Relation in cement Industry in Cuddapah District of Andhra Pradesh in S.K.D. University,Anantapura.

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16 Pinnacle Research Journals Yoder Dale.(1970). Herbert G. Heneman, Jr.& Jhon G.Turnbull PersonnelAdministrative and Labour Relation,, Sage Publication, London.p