Industrial Relation and Labor

Law

Presented by
Dr. Gandhi Pandit
Associate Professor of Law
Nepal Law Campus
 What is The Role of
Industrial Relations?
Good industrial relations form the backbone of our modern
industrial society.
Without the proper structures and processes in place, modern
industrial relations would crumble as we know it.
But what does “industrial relations” really mean, and why couldn’t
our current economic or industrial construct function without it?
 
 What is Industrial Relations and
what does it mean?
 Let’s break down the concept:
 “Industry”: Industry refers directly to productivity – when one or many
individuals are engaged in a productive task we call those people “industrious”.
 
 “Relations”: In the context of “Industrial relations”, the word refers to any
relationship that exists within a productive sphere between an employer and his
employees and the union that represents them.
 Industrial Relations: Industrial relations then refers to the relationship between
employers and employees.
 This needs to be a good relationship, the divisions need to be working together
as efficiently as possible, in order to maximize economic gain and the potential
for industrial growth.
 Continue…….
 In other words – without cooperation between these two divisions (employer and employee) –
industrial progress and economic gain would grind to a halt.
 Furthermore – the relationship between employer and employee may be directly or indirectly
influenced by the union representing the workers.
 Therefore – Industrial relations are essentially the interactions and relationships between
employers, employees and the government, and the institutions and associations through
which such interactions are mediated.
 While Industrial Relations used to refer broadly to the relationships between employer and
employees and as such encompassed functions such as HR Management, as well as union-
management, the term has morphed and become more specific.
 It is now referring only to issues of trade-unionism and labour-management relations while
HR Management has become a separate but still fundamental function dealing with non-union
employment relationships and company policy.
 
 Industrial Relations important?

 1. Continuity of Production
 The most vital function of industrial relations is ensuring uninterrupted production.
 This means that all positions of employment, from managers to workers, are always filled so that full-
scale production is ongoing.
 I also means a steady income stream for all involved.
 Industries rely on one another.
 The goals of industrial relations then is to ensure that there is never a breakdown in communication or
degradation of an industrial relationship leading to a stall in productivity and thus a stall in economic
gain.
 This leads us to the second reason good industrial relations are vital.
 2. Minimize the occurrence of Industrial Disputes
 Good industrial relations aim to minimize, if not eradicate, the occurrence of strikes, go-slows, lockouts
and grievances which hamper industrial activity.
 3. Minimize Wastage
 Good industrial relations help increase and ensure continuous production.
 Good industrial relations thus help minimize wastage of labour and material resources
Industrial Relation from The Employee’s Perspective
 How does “Industrial Relations” benefit the employee?

Union Representatives
Trade and/or labour unions resist the exploitation
of employees by employers through equal
bargaining power, and represent workers’
interests in the employment relationship.
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 It is the union (rep), on behalf of the worker, who ensures that the employee
benefits from Industrial Relations and aim to secure the workers by helping
them to have:
 Better wages that is sustainable for the future of the employee.
 Improved working conditions so that the employee can be productive, safe and
happy.
 Mutual respect by ongoing conversation between the employer and their
employees to keep the work relationship healthy.
 The proper
Training and Skills Development to keep up with trends in the workplace so the
employee will be able to progress within their career.
 Union reps then ensure that the process of Industrial Relations benefits the
employee, and protects the interests of the employee during negotiations and
similar relations with the employer.
 How does “Industrial Relations” benefit the
employee?
Union Representatives
Trade and/or labour unions resist the exploitation of employees by employers through
equal bargaining power, and represent workers’ interests in the employment
relationship.
It is the union (rep), on behalf of the worker, who ensures that the employee benefits
from Industrial Relations and aim to secure the workers by helping them to have:
Better wages that is sustainable for the future of the employee.
Improved working conditions so that the employee can be productive, safe and happy.
Mutual respect by ongoing conversation between the employer and their employees to
keep the work relationship healthy.
The proper
Training and Skills Development to keep up with trends in the workplace so the emplo
yee will be able to progress within their career.
Union reps then ensure that the process of Industrial Relations benefits the employee,
and protects the interests of the employee during negotiations and similar relations
with the employer.
 How do Unions help employees benefit from
Industrial Relations?

 1 – Collective Bargaining
 Ever heard the saying “there’s strength in numbers”?
 Labour unions represent the interests of a body of employees by means
of a united front.
 This allows the employees’ voices to be heard more effectively than if
employees made the same requests or voiced the same concerns one by
one in their individual capacity.
 Unions have the power to organize strikes, boycotts, go-slows, sit-ins and
formal protests in order to get the employers’ attention and urge them to
consider matters from the perspective of the employees that the trade
unions represent.
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 2 – Employee Welfare
 Unions look out for the best interests of their members.
 Unionized workers, for example, earn higher wages than their
non-unionized counterparts, and they automatically have an
intermediary who will step in for them during negotiations
with employers about work schedules, income, safety etc.
 Unions also exist in order to protect employees’ basic rights
such as the right to access healthcare and be protected from
accident and injury in the workplace.
 The Role of Employer in Industrial Relations

 How does “Industrial Relations” benefit the employer?

 Union Reps
 Trade and/or labour unions represent the employees in negotiations
with the employer.
 Because the union rep represents the multitudinous voices of the
employees, it allows the employer to hear only one clear and
concise argument on behalf of the workers instead of having to
field the same comments/concerns from hundreds of employees
who are all saying the same thing.
 Continune….
 Union reps save the employer time and thus money in this way.
 While the interest of the union rep lies with the worker; his/her
existence ultimately serves to benefit both parties; both
employee and employer.  
 Union reps then ensure that the process of Industrial Relations
benefits the employee, and protects the interests of the
employee during negotiations and similar relations with the
employer.
 It also saves the employer man-hours and communication
struggles by creating a platform for two-way communication
between a large group of employees and a usually smaller
group of employers.
 How do Unions help employers benefit from
Industrial Relations?
 1 – Collective Bargaining
 A trade union represents the multitudinous voices of
the employees and allows the employers to hear a
clear and concise message; namely, the demands or
concerns of the vast majority.
This streamlines conflict resolution and this is in the
best interest of the employer.
 Continue…..
 While trade unions have the power to organize strikes, boycotts, go-
slows, sit-ins and formal protests in order to get the employers’
attention, they also have the power to call them off as soon as an
agreement has been reached.
 This solves issues relating to vigilantism and individual employees
who hold out on returning to work or fulfilling their role in the
production cycle even though a respectable agreement between
employer and employees has been reached.
 Having set guidelines for conflict resolution serves both parties!
 Employee Welfare Watchdog
 Unions look out for the best interests of their members and said
members automatically have an intermediary who will step in for
them during negotiations with employers about work schedules,
income, safety etc.
 Unions also exist in order to protect employees’ basic rights such
as the right to access healthcare and be protected from accident
and injury in the workplace.
 Trade Unions therefor also help employers assess and meet their
legal obligations to their employees.
 Employers know that, should any legislation change or new
regulations be instituted, they will be informed through the proper
channels and they can work with the trade unions to facilitate and
convey to the employees any changes.
 The Role of Government in Industrial Relations
 What Role does the Government really play in Industrial Relations?
 My word is law:
 The industrial relations processes, and the relationships between
employees and employers, are influenced by the government and its
agencies through the government’s construction, passing and
implementation of relevant industrial relations law, policies, regulations
etc.
 The legal framework within which Industrial Relations must function is
determined by the government and/or its agencies, possibly in
consultation with other role-players in the industrial relations processes.
 These includes things such as trade union representatives, employers
and select employees.
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 The legal framework can be the legal limitations imposed on an
employer/employee relationship.
 For example such as the amount of hours an employee is allowed to
legally work per week and how much an employer is obligated to
pay an employee for a certain amount of work.
 In South Africa, for example, the BCEA (Basic Conditions of
Employment Act) can be seen as a governmental contribution to the
governing of the relationship between employers and employees,
and can as such be considered the government’s contribution to
guiding the processes of industrial relations.
 Continue….
Judge and jury:
The government can also become directly or indirectly
involved in the industrial relations processes when
boundaries are overstepped or negotiations go awry.
The government could become involved in, for example,
settling an industrial relations dispute in court, or adjusting or
amending a policy which has proven itself flawed, outdated
or newly irrelevant following the outcome of a certain case or
set of negotiations.
 How does the government benefit from
Industrial Relations?
 Basically, the government benefits from Industrial Relations in
that a safe working environment promotes employee and employer
satisfaction, which in turn helps maintain high employment rates
which reflects well on the government and directly addresses and
influences issues such as poverty and crime.
 Industrial Relations in Society and what Role
does it play
 – A Living Wage

Industrial Relations forms part of the process to ensure that

each and every employed individual in our country is
making a living wage.
The
minimum wage crisis should be of concern to every humani
tarian in our society.
Not only the poor and/or unskilled benefit from a living
wage – so do all industries and enterprises at large.
 If all our manual labourers earn a living wage they will have
more capital to cater to their basic needs and wants.
 This will essentially ensure that people have enough money
to spend in order to satisfy their basic human needs benefits
everybody, albeit indirectly at times, because it means more
money plugged back into our economy.  
 Equality of Opportunity
 Industrial Relations processes aim to achieve an equality of
opportunity within our country’s workplaces.
 Anybody who is not a heterosexual, cisgender, Caucasian, able-
bodied male stands to benefit from strides taken toward equality of
opportunity.
 Those who campaign, through Industrial Relations channels, for
equality of opportunity are campaigning for equal treatment and
opportunity in the workplace free from the effects of preference or
prejudice and unhampered by any artificial barriers (read: “glass
ceiling”).
 Rights of the Individual
 The Industrial Relations processes and channels that are in
place help protect the rights of the individual.
 This means that, even if you are not currently employed, the
IR processes are campaigning on your behalf, already
fighting for your rights to be respected, should you ever enter
an industry.
 – Work Life Balance
 A balance between work and your personal life is extremely
important to keep yourself up to high standards.
 Industrial relations aims specifically to create a balance between
being highly productive and enjoy the job you are in to the maximu
m.
 This will be beneficial to both the employee and employer in the
long term.
 When every business/employee relationship are balanced
optimally, it would have good consequences for the society in
general.
 Conclusion
 Absolutely everybody should know the who, what, when, where,
and why of labour relations and how industrial relations
management works.
 Knowledge is power, and the above should have adequately
equipped you to identify and address breakdowns in communication
and the subsequent halt in production or lapse in productivity.
 Whether you are an employee, an employer or a casual observer, it
is important that you know who to contact in the event of a
breakdown in communication or unfair treatment in the workplace.
Open lines of communication are vital to ongoing economic
and industrial growth; we hope this guide to navigating the
murky waters of industrial relations has taught you exactly
who you’ve got in your corner, and who to contact in a time
of crisis.
Industrial relations exist to serve and protect everybody
involved – from the employee, to the owner, to the public at
large and all the way through to the government.
If the lines of communication are open, and industrial
relations are undertaken, everybody wins.