Chapter-5:

Industrial Relations
Participation Committee
1. The employers shall form a participation committee in an establishment having 50 or
more workers employed.
2. Such committee shall be formed with the representative of the employers and the
workers.
3. The number of workers representative shall not be less then the representatives of the
employer.
4. Workers representatives shall be nominated by the trade union in the establishment. But
if there is no trade union, in that case, the worker’s representatives shall be chosen from the
workers.

Function of Participation Committee

1. To develop sense of belongingness and worker commitment (such as helping the
worker who are badly affected in flood, providing small gifts during main religious festival
etc.)
2. Try to establish healthy relationship between the workers and the employer (by
sincerely listening to the worker’s problems/grievances and solving it immediately ,if legal
and logical)
3. To ensure application of labor laws (by helping the management to implement all the
legal requirement so that there is no violation of laws concerned with the worker)
4. To encourage sense of discipline (by arranging award for the worker who is never late in
a year etc.)
5. To improve and maintain good working condition in terms of safety and occupational
health ( by ensuring that all the workers always use PPE, never spit on the floor or wall,
maintain their machine guards properly etc.)
6. To encourage training such as vocational , educational and family welfare etc. Arrange
adult education program training on women rights, marriage law etc.
7. To improve welfare services for the worker and their families (arrange picnic every year ,
sports, cultural program , if possible allow family members of the workers in those programs
)
8. To Improve productivity and quality (by providing training to build up the skill and arrange
reward for the worker who has the highest level of productivity along with the quality etc.)

How to form a Participation Committee (Section 205,BLL’06)

1) Participation Committee consists of representatives from both workers and the
management
2) The number of worker’s representatives must be at least same or more than the
number of management representatives
3) Minimum number of participation committee shall be 06 and maximum 30
4) Head of the department shall be selected as management representative by the
employer.
 5) Workers representatives shall be appointed by the trade union.
6) If there is no trade union , workers representatives shall be selected by the workers
7) The owner of the factory will be the Chairman of Participation of the committee.
8) The vice chairman shall be elected by the workers representatives.

9) The personnel Officer or Labor Welfare Officer shall act as Member Secretary from
employer‘s representatives.

Example of Formation of Participation Committee

 Chairmen (Head of Establishment)
 Vice Chairmen( Elected by Workers Representatives)
Worker Representatives (WR) Management Representatives (MR)
[Link](Cutting man ) 1. Member Secretary (Personal officer)
[Link] (Sr. Sewing Machine operator ) 2. MR (Head of Cutting section)
[Link] (Sewing operator ) 3. MR (Head of Swing section)
[Link]. (Iron man ) 4. MR (Head of Finishing section)
[Link] (Quality Inspector ) 5. MR (Head of Quality section )
[Link] (Folder) 6. MR (Head of Admin & HR)
[Link] (Packer ) 7. MR (Head of Accounts)

Participation Committee Meetings (Section 207 of BLL’06)

The participation committee shall meet at least once in every two months to discuss,
exchange view, and recommend measures for performance of the functions.

Election Procedure
 The employer shall give adequate publicity among the workers for election.
 The employer shall constitute an ‘Election Committee’ of the equal number of
representatives from both employer and workers and the election committee shall:
(a) fix a date for nomination of candidates within 07 days after the notice of election.
(b) fix a date for election by secret ballot within
Qualification of candidates as workers representatives:
1. Any worker of 21 years of age and
2. Minimum one (01) year of service period in the establishment

Qualification of voters for election of workers representatives:

Any worker (other than ‘casual’ and ‘badli’) whose service period is minimum 03 months.

Participation Committee: Issues for Discussion (examples)

Issues for Discussion:

Management 1. No canteen facility
Worker
Representatives [Link] child care facility Representatives
Recommendation by the Participation Committee (examples):

1. Canteen facility should be provided

2. Child care facility should be provided immediately

3. Training on occupation health and safety should be provided at least once every month
so that all workers including the new worker can get training .

4. Workers should use personal protective equipment for their safety.

5. Worker should wear ID card during working hours.

Trade union
A trade union is an organization of workers who have come together to achieve common
goals such as improving safety standards, achieving higher pay and benefits such as health
care and retirement, increasing the number of employees an employer assigns to complete
the work, and better working condition.
Trade unions are the controller of the labor force of an industry which works for the
betterment of the country’s trade by ensuring the right of the labor force.
The trade union, through its leadership, bargains with the employer on behalf of union
members and negotiates labor contract with employers.
Section 176 of BLL’06 states that -------- All workers have the right to:

- Form of a trade union in order to regulate the relations between worker and employers or
workers and workers

- To join a trade union of their own choice subject to the constitution of the union
concerned

Requirements of registration (Section 179 of BLL)

In order to get registered, trade union needs to provide the information as required in this
section; such as:
- The name and address of the trade union

- The objective for formation of trade union

- Procedure regarding how to become a member

- The source of funds of the trade union

- The number of executive members (in which shall be minimum 05 and maximum 35 as
per the rules)

- The procedure for expressing want of confidence (suspicion, hesitation, mistrust, solicitude
etc.) in any officer of the trade union

- Number of trade union members (minimum membership is 30% of the total number of
workers employed in the establishment)

- No more than 3 trade union shall be registered in any establishment

Disqualification of Trade Union Members

Disqualification of trade union members and officers:

no person shall be entailed to be, or to elected as a member or an officer of a trade union,

if

- s/he has been convicted of an offence involving moral turpitude or an offence under
section 196(2)***

- s/he is not an employee in the establishment in which the trade union is formed.

*** Compel or attempt to compel the employer to sing a memorandum of settlement or to

accept or agree to any demand by using intimidation, coercion, pressure, threat,
confinement to or eradication from a place, dispossession, assault, physical injury,
disconnection of telephone, water or power facilities or such other methods.

Transfer of Trade Union Members

No President, General Secretary, members of any trade union shall be transferred from one
place to another without his/her consent. (Section 187of BLL’06)

Trade Union Registration

No unregistered trade union or whose registration has been cancelled shall not function as
a trade union. (Section 192 of BLL’06)

Registration on Dual Membership

No worker or employer shall be entitled to enroll him/herself to be a member of more than
one trade union at the same time. (Section 193 of BLL’06)

Cancellation of Registration (Section 190 of BLL’06)

The registration of a trade union may be cancelled by the Director of Labor, if the trade
union has ---------

- applied for cancellation of registration

- obtained registration by fraud of by misrepresentation of facts
- contravened any of the provisions of constitution
- committed any unfair labor practice
- a membership size fallen short of the number required under this act
Contravened any of the provision of this act of or the rules, the Director of
Labor shall submit an application to the Labor Court praying for permission to cancel such
registration. Within 30 days, after getting the permission from Labor Court, the Director of
Labor shall cancel the registration.

Unfair of Labor Practices by the Employer (Section 195 of BLL’06)

A. Following acts are unfair labor practice on the part of the employer:

1. to impose any condition in employment contract to restrain the right to join a trade union
or continue membership of a trade union

2. to refuse to employ any person on the ground that such person is a member or officer of
the trade union

3. to refuse to continue to employ any person on the ground that such person is not a
member or officer of the trade union

4. to discriminate against any member or officer of a trade union in employment

5. to dismiss or remove from employment or threaten to dismiss or remove from

employment

6. to induce any person to refrain from becoming, or to cease to be a member or officer of a

trade union, by conferring or offering any advantage for such person or any person

7. to interfere in any way to influence the election provided for in this act

8. to recruit any new worker during the period of strike under this act

9. to fail deliberately to take any communications made by the collective bargaining agent
***(CBA) in respect of any industrial dispute

10. to transfer the president, general secretary, members of any registered trade union
11. to fail to give reply to any communication made by the collective bargaining agent in
respect of any industrial dispute

*** Collective Bargaining Agent (CBA) in relation to an establishment means the trade
union of workers which (under chapter XIII) is the agent of the workers in the establishment
in the matter of collective bargaining.

Objectives of Collective Bargaining

Collective bargaining objectives among other are to:

a) settle disputes/conflicts relating to wages and working conflicts relating to wage and
working conditions

b) protect the interests of workers through collective action

c) resolve the differences between workers and management through voluntary negotiations
and arrive at a consensus

Unfair Labor Practices by Workers (Section 196 of BLL)

B. Following acts fall under unfair labor practices on the part of the worker:

Without the permission of the employer no worker shall be engaged in any trade union
activities (related to the participation in any committee, negotiation, conciliation under this
act) during the office hours, except:

1. Activities related to intimidate any person to become, or refrain from becoming a member
or officer of a trade union

2. to induce any person to refrain from becoming, or to cease to be a member or officer of a

trade union, by conferring or offering any advantage for such person or any person

3. Obstruction to transport or communication system or destruction of any property in

furtherance of any demand of a trade union

4. to compel or attempt to compel any worker to pay, or refrain from paying, any
subscription towards the fund of any trade union by using intimidation, coercion, pressure,
threat, confinement to a place, physical injury

5. To compel or attempt to compel the employer to sing a memorandum of settlement or

accept to any demand by using intimidation, coercion, pressure, threat or confinement or
eradication from a place, assault , physical injury, disconnection of telephone, water or
power facilities or such other methods
 6. To commence, continue an illegal strike or instigate or incite others to take part in an
illegal strike.

7. It is a unfair practice for a trade union to interfere with a ballot by the undue influence,
intimidation or bribery through its executive or through any other on acting on its behalf.

Worker’s Responsibilities

Worker should -----

- Not be member of more than one trade union at a time

- Not intimidate any person to become a member/officer of a trade union

- Not compel any worker to pay subscription to any trade union by using threat

- Not compel the employer to sign a memorandum of settlement or agree to any demand by
using threat, confinement to place, physical injury, disconnection of telephone or water or
power facilities etc.

- Not commence, continue an illegal strike

- Destruction of any property in furtherance of any demand of a trade union.

Few key differences between Trade Union (TU) and Participation

Committee (PC)

Trade union (TU) Participation Committee (PC)

1. Employer is not legally bound to from TU. 1. Employer is legally bound to form PC.

2. Registration is required. 2. No registration required.

3. No employer representatives can be the 3. PC consists of both workers and

member employer’s representatives.

4. Employer is not bound to implement the 4. Employer is bound to implement the

demand of TU recommendations of PC.

5. TU negotiates their demands and may 5. PC discusses the issues among the
need to go on strike to have demands members and make recommendations
fulfilled. which employer is bound to implement.
Grievance Procedure
1. a) Any worker (including a worker who has been laid off , retrenched, discharged,
dismissed or otherwise removed from employment) shall submit his /her grievance to the
employer in writing

b) the employer has to be informed about the grievance with 30 days from the date of the
cause of such grievance.

2. The employer shall -------

- Enquire the matter within 15 days

- Give the worker an opportunity to speak for him /her

- Communicate the decision in writing to the worker

3. If the employer does not give any decision or the worker is dissatisfied with the decision,
the worker may make a complaint in writing to the Labor Court within 30 days from the date
of the decision or from the last date by which employer was supposed to enquire into the
matter.

4. On receipt of the complaint, the Labor Court shall ----

- Hear both the parties after having given notice to them

- Make such orders as it may deem proper

5. The Labor Court may

- Give order to reinstate the complainant in service or

- Convert the order of dismissal, removal or discharge to any other punishment specified in
section 23(2) ***

*** Punishments mentioned under Section 23(2)

a) Demotion to a lower post, grade or scale of pay for a period not exceeding one year

b) Stoppage of promotion for a period not exceeding one year

c) Fine d) Censure or Warning

e) Suspension without wages and allowance for a period not exceeding seven days

6. Any worker aggrieved by an order of the Labor Court may appeal to the labor court
tribunal within 30 days of the order. The decision of the tribunal regarding such appeal
shall be final.

Consequence when “No grievance procedures” are in place

- Worker s grievances are not heard, no action can be taken to problems which have led to
workers grievances

- As a result, worker dissatisfaction with unresolved problems may rise

- Decrease of motivation among workers

- Decrease in productivity

- Risk of labor unrest