Industrial Relation

Definition

“ Industrial relations deal with either the relationships between the state and employers’ and the workers’ organization and the relation between the occupational organizations themselves.”

International Labor Organization (ILO)

Industry relations are the relations of all those associated inproductive work including industry, agriculture, mining,commerce, finance, transport and other services. The mainaspects are the establishment of the conditions under which theproceeds of the work are divided as dividends, salaries and wagesbetween shareholders, employers, management and work peopleof various grades- manual, clerical and technical.

Parties to IR

Employer-Employee Relations

Employees

Employee Associations

Government Courts & Tribunals

Employer Associations

Employers

Industrial Relations

Employees

Employers

Government Courts & Tribunals

Employer Associations

Trade Union

Objectives of Industrial Relations

To safe guard the interests

To avoid industrial conflict

To establish and maintain the

growth

To raise productivity

To establish government

control

OBJECTIVES1. To safeguard the interest of labor and

management by securing the highest level ofmutual understanding and good-will amongall those sections in the industry whichparticipate in the process of production.

2. To avoid industrial conflict or strife anddevelop harmonious relations,.

3. To raise productivity to a higher level in anaera of full employment by lessening thetendency to high turnover and frequencyabsenteeism.

4. To improve the economic conditions of workers in theexisting state of industrial managements and politicalgovernment

5. To Protect management and labor interests by securing mutual relations between the two groups.

1. To Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased.

2. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits.

3. To Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum.

4. To bring about government control over plants where losses are running high, or where products are produced in the public interest.

Actors in Industrial Relations

Workers (Trade Union)

Government(Society)

Employers ( Employers

Association)

Industrialrelations

(IR)

So it is concerned with managing inter relationship among the three major actors.

• a. Workers represented by trade unions.

• b. Employers represented by employers associations.

• c. Society represented by the government and various pressure groups.

Employee relations or industrial relations are relations between the employer and the labor. Labor relations refer to the tripartite (Involving three parties) relations of workers (employees) employers, and lately government

Emerging concepts in Industrial Relation

Change in definition and concept:Wide meaning, relation between employer, employee and government

Increase in professional unions:Trade union to professional union,

Change in the role of government:Guardian rather then active player,

Change in functioning pattern:Past formative and fighting stage, present fraternal and fusion stage,

Change in coverage and scope:Freedom of association and protection right

Change in contents of IRs:Functional, interdependent, and involve historical, demographic, technological, occupational, political, legal

CAUSES FOR POOR IRThe main reasons are as follows:

• An attitude of contempt towards the workers on the part of the management.

• Inadequate fixation of wages or improper wage structure.

• Indiscipline

• Unhealthy working conditions at the workplace.

• Lack of human relations skills on the part of supervisors and managers.

• Desire of workers for higher bonus, wages or daily allowances.

• Desire of employers to pay as little as possible to its workers.

• Inadequate welfare facilities.

• Dispute on sharing the gains of productivity.

• Retrenchment, dismissal and lockouts by the management.

• Strikes by the workers.

• Inter-union rivals.

• General economic and political environment such as rising prices, strikes by others and general indiscipline having their effect on the employees attitudes.

• Mental inertia on the part of the management.

II. Issues in industrial relations

Issues in industrial relations- Industrial relations is the management of work-

related obligations and entitlements between employers and their employees. - Learning about these problems is a good place to start gaining a better understanding of how the modern world's economic interrelations function.- . Knowing the factors affecting industrial relations will help you to properly calibrate this relationship.

1. CommunicationCommunication acts as a key factor in industrial relations. Two-way communication between labor and capital allows workers to stay fully informed of workplace expectations as well as changes that affect them.

2. Unions

- Unions affect industrial relations in a number of

complex ways. When a union comes to a workplace, individuals no longer bargain on their own, and they are represented collectively by a third party. - It can also provide a means to collectively arbitrate labor disputes. Employees also have a means to register discontent with parts of their job through the grievance procedure. - Unions can also complicate matters by bringing the concerns of a third party--i.e. the union--into the negotiation process.

3. Wages and Benefits- This is perhaps the most obvious factor affecting industrial relations.- It can help employees to feel more appreciated. - Keeping wages and benefits in line with industry standards--or above--helps keep a lid on worker discontent.

4. Ideology

Every company has an ideology as part of its corporate culture. This ideology will necessarily include a component about how management relates to labor. The attitude that a company has towards its employees and how to deal with them--for example whether there is a greater emphasis on rewards or punishments--necessarily has an effect on industrial relations.

5. Achieving Competitiveness

- One of the central problems of industrial relations in the modern world is how to achieve competitiveness. - The modern globalized economy requires more than ever that each individual achieve his maximum level of competitiveness. - The primary problem is how companies manage to achieve the levels of innovation and flexibility required by the global economy.

6. Employer FlexibilityEmployer flexibility is another problem faced in modern industrial relations, especially in developing countries. employers must learn how to marry traditional cultural values such as respect for authority with a greater amount of openness and respect in how employers deal with their workers. the requirements of modern business include more flexible management and work organization, focusing on creating a smarter and more motivated work force and culturally sensitive management techniques. With few exceptions, employers can both hire and fire workers. They can also adapt to the latest technologies without the workers' approval, even though it may result in a diminished workforce. It can also consolidate its operation into another entity, relocate and merge with others without labor's approval.

7. Role of Government and Unions

- Governments are faced with the task of deciding how to best encourage foreign involvement in their economies that will benefit their own nations but still be attractive to the foreign companies. - Each state and federal government has labor laws that affect both management and workers within its jurisdiction. - Each of them regulates the relationship between labor and management and promulgates laws in support of unity between the two parties.

8. Ethical Theory- Ethical theory is another extremely important area of industrial relations, and presents some of the field most pressing and demanding problems. - The collisions and relationships between these different systems of thought are very important to modern industrial relations.

9. Technology

- It can create ethical quandaries in industrial relations. Industrial relations takes on the task of figuring out how to balance technical innovation with fairness to the humans affected by it.- With globalization and the strides made with computers, the Industrial Relations field has become very complex. But when you cut all that away, you still have the basic players: industry, labor and the government of whatever country is home to that company. And the goals, though more complex as well, are the same as they were at the dawn of the Industrial Revolution: the maintenance of good relations between labor and management.

10. LaborThe labor-force should always look for improvements in their working conditions and the terms of their employment. Where possible, they are empowered to share decisions with management as well as make their grievances known. They also can form unions to represent them. Those unions have the tacit approval of workers that evens the playing field in their negotiations.

11. Inherent Adversarial PositionsThere will always be conflicting points of view between management and its workers. Management is motivated by profit and workers by social gain. However, when there is specific conflict, industrial relations procedures aim to find a solution that is acceptable to both employers and employees. Negotiators prepare and develop their information (such as financial data) and agendas in order to support their strategies.

Industrial

Action

Industrial Action

Definition

Types

Solutions

What is

Industrial

Action?

of the work by employees

Restriction

Limitation

Delay

Of employees to attend for work

Failure

Refusual

What is notIndustrial

Action?

Actions

• are authorized / agreed to by the employee

• were based on a reasonable concern by the employee

• were complied with a direction of employers

stop work meeting

work bans

Industrial Action

Types Protected

Unprotected

ProtectedIndustrial Action

Staffare permitted to take

Staff

can not be sued, unless the industrial action involves

• Wilful, reckless destruction

• Unlaw fully taking/keeping/using property

Staffmust not be subject to adverse action by another person

What isUnprotectedIndustrial Action?

Industrial action occurs and the requirements of the FW Act with

respect to protected industrial action have not been satisfied

The industrial action is not

protected

In unprotectedIndustrial Action

Staff may be subject to disciplinary proceedings including termination of employment

An affected party may also apply to the count for an injunction, damages

Employers, employees, union can be subject to penalties under FW Act

Solutions

Procedure for staff

Procedure for

managers

Procedure for

payments to staff

Procedure for

staffSt

aff

Intending to take protected industrial action should seek clarification

Must not take adverse action against a person who organizes or engages in protected

industrial action

Must not engage in industrial action that is not protected

Procedure for managers

Managers have a responsibility during periods of industrial action to ensure the company's operational requirements is continued and staff who are not participating in the industrial action can attend for work

Procedure for managers

Advising staff of their rights and responsibilities

Ensure the staff will be correctly paid during periods of industrial action

Reporting as directed on any aspect of the industrial action to the relevant company authorities

Notifying other relevant managers and Human Resources about staff who have participated in industrial action to ensure the company is able to satisfy its legislative obligations

• Managers must not take adverse action against a person who is engaged in protected industrial action

• Managers must not engage in industrial action that is not protected industrial action

Procedure for managers

Procedure for payment

to staff

• It is unlawful for the company to pay the staff members in relation to the duration of the period of both the protected and unprotected industrial action

NO WORK NO PAY, NO ACCEPTANCE

Procedure for payment

to staff

• The company will refuse to accept the performance of any work until the staff are prepared to perform all of their normal duties

NO WORK NO PAY, NO ACCEPTANCE

Procedure for payment

to staff

• The company will reduce payments by a proportion in accordance with the proportional payments rules

NO WORK NO PAY, NO ACCEPTANCE