NAME & ROLL NO.: Shehzarin A.

Lahewala 29

SUBJECT : INDUSTRIAL RELATION

SEMESTER : M.H.R.D. Semester-III

SUBMITTED TO: Adv.B.P.Srivastav

Ans. 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. Therefore, it is in the interest of all to create and maintain good relations between
employees (labor) and employers (management).

Concept of Industrial Relations:

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers
to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By
“relations” we mean “the relationships that exist within the industry between the employer and his
workmen.”

The term industrial relations explains the relationship between employees and management which
stem directly or indirectly from union-employer relationship. Industrial Relations also includes the
processes through which these relationships are expressed (such as, collective bargaining, workers’
participation in decision-making, and grievance and dispute settlement), and the management of
conflict between employers, workers and trade unions, when it arises.

Definitions:

In the words of Lester, "Industrial relations involve attempts at arriving at solutions between the
conflicting objectives and values; between the profit motive and social gain; between discipline and
freedom, between authority and industrial democracy; between bargaining and co-operation; and
between conflicting interests of the individual, the group and the community”.

The National Commission on Labor (NCL) also emphasize on the same concept. According to
NCL, industrial relations affect not merely the interests of the two participants- labor and
management, but also the economic and social goals to which the State addresses itself. To regulate
these relations in socially desirable channels is a function, which the State is in the best position to
perform.
 *Factors Affecting Industrial Relations In Industries:
The industrial relation system of an organization is influenced by a variety of factors. A few
important are:

1) Institutional factors
2) Economic factors
3) Social factors
4) Technological factors
5) Psychological factors
6) Political factors
7) Enterprise-related factors
8) Global factors

These inter-related and interdependent factors determine the texture of industrial relations in any
setting. In fact, they act, interact, and reinforce one another in the course of developing the industrial
relations.

1) Under Institutional Factors are included items like state policy, labour laws, voluntary codes,
collective bargaining agreements, labour unions, employer’s organizations/federations etc.

2) Under Economic Factors are included economic organizations, (socialist, communist, capitalist)
type of ownership, individual, company- whether domestic or MNC, Government, co-operative
ownership) nature and composition of the workforce, the source of labour supply, labour market
relative status, disparity of wages between groups, level of unemployment, economic cycle.
These variables influence industrial relations in myriad ways.

3) Under Social Factors items like social group (like caste or joint family) creed, social values,
norms, social status (high or low) - influenced industrial relations in the early stages of
industrialization. They gave rise to relationship as master and servant, haves and have-nots, high
caste and low caste etc. But with the acceleration of industrialization, these factors gradually lost
their force but one cannot overlook their importance.

4) Under Technological Factors fall items like work methods, type of technology used, rate of
technological change R & D activities ability to cope with emerging trends etc. These factors
considerably influence the patterns of industrial relations, as they are known to have direct
influence on employment status, wage level, collective bargaining process in an organization.

5) Under Psychological Factors fall items pertaining to industrial relations like owners attitude,
perception of workforce, workers attitude towards work, their motivation, morale, interest,
alienation, dissatisfaction and boredom resulting from man-machine interface. The various
psychological problems resulting from work have a far-reaching impact on workers job and
personal life, that directly and indirectly influences industrial relation system of an enterprise.

6) The Political Factors are political institutions, system of government, political philosophy,
attitude of government, ruling elite and opposition towards labour problems. For instance, the
various communist countries prior to the adoption of new political philosophy, the industrial
relations environment was very much controlled by the Government ever since change has
altered considerably like other capitalist economics. There too, unions are now at the helm of
labour activities, the industrial relations and is marked by labour unrest. Most of the trade unions
 are controlled by political parties, so here the industrial relations are largely shaped by the
gravity of involvement of political parties in trade union activities.

7) Under Enterprise-related Factors, fall issued like style of management prevailing in the
enterprise, its philosophy and value system, organizational climate, organizational health, extent
of competition, adaptability to change and the various human resources management policies.

8) Under Global Factors, the various issues included are international relations, global conflicts,
dominant economic-political ideologies, global cultural milieu, economic and trading policies of
power blocks, international trade agreements and relations, international labour agreements (role
of I.L.O) etc.

*Characteristic/features of industrial relations system in India:

There are certain basic characteristics of the Indian Industrial Relation System that distinguishes
it from those of other developed and developing countries. These characteristics would become
more apparent as the various issues of industrial relations are unfolded in subsequent chapters,
but here authors have found it desirable to acquaint readers with certain peculiar aspects of the
system.

(1) Employer/ Management in Retrospect and Historically used to Consider Trade Unions as
a Necessary Evil of the Industrial System:

Though it is the moral responsibility of trade unions to fight for the cause of its members,
unfortunately, in the country under the guise of this right, the trade unions have adopted a
militant posture/attitude towards the employers. They often create trouble for the employers on
one or the other pretext. As the law does not permit employers to oppose unions they have half-
heartedly accepted them. But most of employers adopt a variety of “union busting” techniques
to check the growth of the unions or to undermine their authority.

(2) The Trade Unions Perceive their Main Task is to Challenge and Oppose Decisions of
Employer/Management:

The very passive acceptance of unions by the employer defalcates the ego of trade unions and
its
workers. So they resent the decision of employers which affect their security and welfare. It is
generally held by the trade unions of the country that the various decisions taken by the
employer aim at undermining their solidarity and the well-being of workers. This negative
attitude of trade unions towards employers is reflected in violent strikes and gherao.

(3) Trade Unions are Poorly Organized in the Country:

One of the most glaring features of the industrial relations system of the country is that its trade
unions are poorly organized. Though there are five central unions in the country to which
various plant unions are affiliated the entire movement is in the grip of political parties. The
unions have small-size, run in acute financial crises, dominated by the outside leadership on the
top, there are found small groups organized on the basis of caste, religion, ideology etc.

(4) The Parties are Largely in Disagreement over the Scope of Collective Bargaining and
Various Issues to their Negotiation Process:

The system of collective bargaining is feebly developed in the country which is obvious from
the fact that only at a few big industrial centers, parties have entered into agreement; otherwise,
 in most of the cases, for the management of crucial industrial relations problems, parties bank
on compulsory arbitration.

(5) Bargaining between Employers and Unions is very much Centralized:

In India, the collective bargaining agreements are not so much comprehensive as it tends to
involve multiple agreements i.e. agreements are concluded at the shop level, plant level,
industry level, and at the national level. It is in sharp contrast to American collective bargaining
system which is highly centralized.

(6) The Employers are Highly Organized:

The employers in India are highly organized and have a definite edge over workers and trade
unions. Not only this they also play a major role in shaping the country’s wages and labour
policies, whereas the trade unions are improperly organized, fragmented, marked by inter-union
rivalries, etc. that is why collective bargaining agreements at industry level are not so common.
The employees in general have impact on the economic matters in the country and the
governments have to take into consideration their say in the matters relationship to policy and
labour legislation.

(7) The Ideological Orientation:

Most of Indian Unions are highly conservative, which is in contrast to moderate ones of
America and Europe.

(8) The Indian Industrial Relations System is Slowly Changing Over Time:

The country’s industrial relations scene for a pretty long was marked by industrial conflicts,
militant trade unions and authoritarian employers. Ever since the adoption of liberalized
economic policies, it has witnessed radical changes, unthinkable even decade ago. A remarkable
typical trend that is now gaining momentum in India industries includes voluntarily retirement
scheme (V.R.S) free collective bargaining, lesser resistance to change, super-specialization,
increasing sectoral wage disparities, increasing co-operation of union and management etc.

Conclusion:

It has been increasingly realized that industrial system has brought about a number of
complexities which have rendered the management of people in an organization more difficult
and complicated than why it was earlier. The modern industrial societies pose a variety of
complex and ever-changing problems for the people at various levels of management, besides
shop-floor employees.

The modern industrial relations system represent a blending of older systems with innovation
introduced, as society has changed through the ages. Some features of early system even now
persist, while other features are the result of the Industrial Revolution, they, represent sharp
breaks with traditions, creating challenging problems for the management and the workers.

The employment relationships are not static but dynamic. The most important characteristic is
the persistence of change. The have changed, are changing and will continue to change. The
technological advances eliminate long-established jobs and create opportunities that require
sharply different patterns of experience and education. The higher living standards encourage
demands for new products and services. The economic prosperity permits great economic
security, and public regulation makes the assurance of that security a problem for managers. All
these changes have made the present system of employment relationships very complex.