Unit 1
Unit 1
Unit 1
Industrial Relation do not emerge in vacuum they are born of employment relationship in an
industrial setting. Without the existence of the two parties, i.e., labour and management, this
relationship cannot exist.
It provides the environment for industrial relations.
Industrial Relation are characterized by both conflict and co-operations.
The focus of Industrial Relations in on the study of the attitudes, relationships, practices and
procedure developed by the contending parties to resolve or at least minimize conflicts.
To safeguard the interest of labor and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in
the process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
To establish and promote the growth of an industrial democracy based on labor partnership
in the sharing of profits and of managerial decisions, so that ban individuals personality may
grow its full stature for the benefit of the industry and of the country as well.
To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
To improve the economic conditions of workers in the existing state of industrial
managements and political government.
Socialization of industries by making the state itself a major employer
Vesting of a proprietary interest of the workers in the industries in which they are employed.
Scope of industrial relations
Protecting the interest of the employees
Providing reasonable wages to employees
Providing safe and hygienic working conditions
Providing social security measures
Maintaining strong Trade Unions
Collective bargaining
High morale
Good industrial relations improve the morale of the employees. Employees work with great
zeal with the feeling in mind that the interest of employer and employees is one and the
same, i.e. to increase production.
Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of both.
It is the business of leadership in the ranks of workers, employees and Government to work
out a new relationship in consonance with a spirit of true democracy.
New Programmes
New programmes for workers development are introduced in an atmosphere of peace such
as training facilities, labor welfare facilities etc. It increases the efficiency of workers
resulting in higher and better production at lower costs.
Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition of each
other. It will help increase production. Wastages of man, material and machines are reduced
to the minimum and thus national interest is protected.
Since industrial relations is a functional staff service, it must necessarily derive its authority
from the line organization. This is ensured by providing that the industrial relations director
should report to a top line authority to the president, chairman or vice president of an
organization.
Sound Personnel Policies:
These constitute the business philosophy of an organization and guide it in arriving at its
human relations decisions. The purpose of such policies is to decide, before any emergency
arises, what shall be done about the large number of problems which crop up every day
during the working of an organization. Policies can be successful only when they are
followed at all the level of an enterprise, from top to bottom.
To ensure the organizational policies and practices are properly implemented and carried
into effect by the industrial relations staff, job supervisors should be trained thoroughly, so
that they may convey to the employees the significance of those policies and practices. They
should, moreover, be trained in leadership and in communications.
Follow-up of Results:
The term ―Industrial Relations‖ is different from ―Human Relations‖. Industrial relations
refer to the relations between the employees and the employer in an industry. Human
relations refer to a personnel-management policy to be adopted in industrial organizations to
develop a sense of belongingness in the workers improves their efficiency and treat them as
human beings and make a partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement between
employees and employers. On the other hand, problems of human relations are personal in
character and are related to the behavior of worker where morale and social elements
predominated. Human relations approach is personnel philosophy which can be applied by
the management of an undertaking. The problem of industrial relations is usually dealt with
a three levels – the level of undertaking, the industry and at the national level. To sum up the
term ―Industrial Relations‖ is more wide and comprehensive and the term ―Human
Relations‖ is a part of it.
Suggestions to Improve Industrial Relation
Both management and unions should develop constructive attitudes towards each other
All basic policies and procedures relating to Industrial Relation should be clear to everybody
in the organization and to the union leader. The personnel manager must make certain that
line people will understand and agree with these policies.
The personnel manager should remove any distrust by convincing the union of the
company‘s integrity and his own sincerity and honesty. Suspicious, rumors and doubts
should all be put to rest.
The personnel manager should not vie with the union to gain workers‘ loyal to both the
organization. Several research studies also confirm the idea of dual allegiance. There is
strong evidence to discard the belief that one can owe allegiance to one group only.
Management should encourage right kind of union leadership. While it is not for the
management to interfere with union activities, or choose the union leadership, its action and
attitude will go a long way towards developing the right kind of union leadership.
―Management gets the union it deserves‖ is not just an empty phrase.
Public Enterprise
Company whose shares are available and traded on the stock market or other over-
thecounter market. Subject to more regulation than a privately owned company, a public
enterprise has greater access to financing. Shareholders own a percentage of the company
based on the amount of stock they own.
Wage differentials
It is an area where comparison between the public and private sectors is becoming
common.The policy of settlement of wage structure,equal pay for equal work,wage
differentials due to levels of responsibilities etc are all the issues that concern the labour in
public enterprises.
Industrial relations
―Industrial Relations is a developing and dynamic concept and such no more limits itself
merely to the complex relations between the unions and management but also refers to the
general web of relationships normally obtaining between employees – a web much more
complex than the single concept of labour capital conflict‖.
Surplus labour
This problem is the outcome of indiscriminate recruitment on account of political
pressures,reduction of activities,structural changes and improvement in technology.
Over centralization
Management decisions taken at local shop level are turned down by the higher
authorities.This type of over centralization the local management lose the prestige and
confidence.
Multipricing of unions
The existence of multiple union has brought the evils of inter union rivalaries.
Political and bureaucratic influence
Public enterprises are highly prone to be influenced by political and bureaucratic set
up.Generally political people influenced decision making process
Trade Union
In the words of Indian Trade Union Act, 1926, ―A trade union is any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations
between workmen and employers, or between workmen and workmen, between employers
and employers, or for imposing restrictive conditions on the conduct of any trade or
business, and includes any federation of two or more trade unions‖.
Define Trade Union.
According to Dale Yoder defined as ―A trade union is a continuous association of wage –
earners for the purpose of maintaining or improving the conditions of their working lives‖.
The growth and development of the labour movement, and for that part of the trade unions,
in India, can be divided into following periods, each of them revealing different tendencies
that mark it from others.
A code of conduct is a set of rules outlining the social norms and rules and responsibilities
of, or proper practices for, an individual, party or organization. Related concepts include
ethical, honor, moral codes and religious laws
Four Parts
Part 1: Contains the duties and responsibilities of employers, workers, and the government
in maintaining discipline in industry
Part 2: Enlists the common obligations of Management and unions
Part 3 : Deals with obligations of management only
Part 4: Relates to those unions only
Part1: To maintain Discipline in Industry ( Both in public and Private sector)
Recognition of employers and workers must be defined by laws and agreements.
Proper and willing discharge by either party of its obligation consequent on such
recognition.
Part2: To Ensure Better discipline in Industry , Management and Union(s) Agree No
Unilateral action should be taken
Existing machinery for settlement of dispute.
No strike or lockout without notice
Must follow the democracy principles by mutual negotiation, conciliation and voluntary
arbitration
Must promote constructive cooperation
In Grievance based speedy and full investigation must be followed.
Educate the Management and workers regarding obligations
Part3: Management Agrees
Not to increase workloads
Not to support or encourage any unfair labor practice as interference, discrimination,
victimization
To take prompt actions as settlement of grievance Implementation of settlements, awards,
decisions and orders
To take appropriate disciplinary action against officers and members in which they are
responsible for indiscipline among employees.
Warning, reprimand, suspension will appeal through normal grievance procedure.
Must follow the rules of Indian Labor conference held in May 1958.
Part4:Union(s) Agree
Not to encourage any form f physical duress
Not to Permit demonstrations
Unless law, agreement or practice the employee must not engage in any union activity
during working hours
Discourage unfair labour practices as damage to property, careless operation To take
prompt action to implement awards , agreements and decisions.
To display the rules in local languages at important places in union offices.
Moral sections of code of conduct
To ask the unit to explain the infringement of the code
To give notice to the unit within specific period
Not to give countenance to non members who did not observe the code
A dispute must not be referred for strikes and lockouts