Description
Industrial Relations & Labour Laws
Sep 2025 Examination
Q1. A large manufacturing company in India has recently witnessed the formation of a new trade union representing a significant portion of its workforce. Tensions have escalated as the union demands higher wages and improved working conditions, while management is concerned about rising costs and productivity. Previous attempts at negotiation have failed, leading to threats of strikes and potential lockouts. The HR manager is tasked with finding a solution that aligns with the principles of industrial relations and labour legislation, particularly considering the pluralist perspective. Based on the scenario, how should the HR manager apply the pluralist perspective to resolve a conflict between management and a newly formed trade union over wage negotiations, ensuring both parties” interests are addressed and industrial harmony is maintained? (10 Marks)
Ans 1.
Introduction
The emergence of a new trade union in a large Indian manufacturing company presents a complex industrial relations challenge. The union’s demand for higher wages and improved working conditions has clashed with management’s concern over rising operational costs and productivity. As negotiations have failed and threats of strikes or lockouts loom, industrial harmony is at risk. This situation necessitates a balanced approach rooted in established labour laws and the principles of industrial relations. The pluralist perspective, which views an organization as a coalition of diverse interest groups, offers a framework for managing such conflicts constructively. The HR manager must leverage this perspective to mediate between
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Q2. A large Indian manufacturing company has experienced recurring strikes and lockouts over the past five years, leading to significant production losses. The management is divided on which approach to adopt for improving industrial relations: some advocate for a unitarist approach focusing on shared goals, others support a pluralist model that legitimises trade unions, while a few suggest a radical (Marxist) critique of power imbalances. The board seeks your evaluation of these perspectives to inform their strategy. Evaluate the strengths and limitations of the pluralist, unitarist, and radical perspectives in managing industrial relations within a large manufacturing company facing frequent industrial disputes. Which perspective would you recommend as most effective in the Indian context, and why? (10 Marks)
Ans 2.
Introduction
Industrial relations (IR) in a large Indian manufacturing company are often shaped by complex dynamics involving management, employees, and trade unions. The recurrence of strikes and lockouts over the past five years indicates a deeply rooted conflict that cannot be resolved through ad hoc measures. To address this situation, the company’s board is considering different theoretical perspectives—unitarist, pluralist, and radical—to guide long-term industrial relations strategy. Each framework offers unique assumptions about workplace conflict, authority, and resolution mechanisms. An informed evaluation of these approaches is
Q3 (A). With the rise of the gig economy in India, millions of workers are now engaged in flexible, short-term jobs through digital platforms. Traditional trade unions have struggled to represent these workers, who often lack formal employment contracts and legal protections. There is growing concern about exploitation, lack of social security, and absence of collective bargaining mechanisms. Propose a new model for collective bargaining in the Indian gig economy, where traditional trade unions have limited influence. How would your model protect workers’ rights while accommodating the flexible nature of gig work? (5 Marks)
Ans 3a.
Introduction
The gig economy in India has grown rapidly with the expansion of digital platforms like Swiggy, Zomato, Ola, and Urban Company. While this model provides flexible work, it also exposes workers to exploitation due to the absence of formal contracts, job security, and collective representation. Traditional trade unions have largely failed to address the unique needs of gig workers. There is a pressing need to develop a new model of collective bargaining
Q3 (B) A rapidly growing start-up in the unorganised sector employs fewer than 10 workers and is not legally required to comply with most Indian labour laws. However, the founders wish to voluntarily adopt best practices from labour legislation to attract talent and build a positive reputation. They are concerned about maintaining business flexibility while ensuring fair treatment and protection for their workers. Design a policy framework for a start-up in the unorganised sector to voluntarily adopt best practices from Indian labour legislation, despite not being legally obligated. How would you ensure the framework balances worker protection with business flexibility? (5 Marks)
Ans 3b.
Introduction
Start-ups in the unorganised sector often function outside the purview of strict labour regulations due to their small size. However, socially responsible founders may wish to voluntarily adopt key principles from Indian labour legislation to attract skilled talent, foster loyalty, and build a strong brand reputation. Designing a flexible but fair policy framework is
