Industrial Relations

Industrial relationmeans the relationship between employers and employees in course of employment in industrial organizations.Industrial relation is used to denote the collective relationships between management and the worker. IR is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers participation in management , discipline and industrial disputes.Definition:According to J.T. Dunlop, Industrial relations are the complex interrelations among managers, workers and agencies of the government

CONCEPT OF INDUSTRIAL RELATIONSThe understanding between employees and management in an industrial organisation is commonly called industrial relations.According to Dale Yoder, IR is a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment processes of industry. IR is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat their employees.

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CONCEPT OF INDUSTRIAL RELATIONSIR can be defined as a coin having two faces: co-operation and conflict. This relationship undergoes starting with co-operation soon changes into conflict and after its resolution again changes into co-operation. This changing process becomes a continuous feature in industrial system and makes IR concept as dynamic and evolving one.

Evolution of Industrial Relations in India

The protective phase(1947-1956)Conflict Ridden Interventionist phase(1967-1980)The productivity-, Efficiency-. Quality-orientation phase(1981-1991)The consolidation Phase(1956-1965)The post reform decade(1992-till now)

Evolution of IR In India :Pre-Independence :

Hired and FiredPoor Employment wagesDue to strikes and disturbances, government enacted the Trade Dispute Act, 1929. (based on British Industrial Court Act 1919. but there was no machinery for settling dispute.)In 1938, Bombay government enacted Bombay Industrial relations Act. First time with machinery (Industrial court)

IR in Post-Independence periodEnactment for Industrial Dispute Act, 1947.Setting up of Indian Labour Conference (ILO), a tripartite body to look into IR problems in India. (co-operation between government, labour and organization)Many Labour Laws enacted to protect industrial workerduring 1947 to 1956.

In 1956 emphasis shifted from legal enactment to voluntary arrangements

Establishment of work committees, joint management councils, recognition of unions,workers participation schemes1966,National Commission of labor was appointed by the government to look into labor matters and make recommendations. It submitted the report in 1969. The recommendations were never implemented though few were in the implementation stage.

A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and industry.

MAIN ASPECTS OF INDUSTRIAL RELATIONSPromotion and development of healthy labor- management relations.

Maintenance of industrial peace and avoidance of industrial conflict.

Development and growth of industrial democracy.

SCOPE OF INDUSTRIAL RELATIONSLabour relations, i.e. relations between labour union and management.Employer- employee relations,i.e. relations between management and employees.The role of various parties in maintaining industrial relations.The mechanisms of handling conflicts between employers and employees, in case conflicts arises.

OBJECTIVES OF INUSTRIAL RELATIONSEstablish and foster sound relationship between workers and management by safeguarding their interests. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties.Keep, as far as possible, strikes, lockouts at bay by enhancing the economic status of workers.

OBJECTIVES OF IRProvide an opportunity to the workers to participate in management and decision making process.Raise productivity in the organization to curb the employee turnover and absenteeism.To improve the bargaining capacity of the workers through trade unions.To ensure discipline in the organization and in the industry.Improvement of economic conditions of workers.

OBJECTIVES OF IRTo safeguard the interests of the labor and the management by preventing one of the players from getting a strong hold over the other.

To develop & Secure mutual understanding & good relationships among all the players in the industrial set-up.

To maintain industrial peace & harmony by preventing industrial conflicts.

OBJECTIVES OF IRTo improve the standard of living of the average worker by providing basic and standard amenities.

To increase productivity by minimizing industrial conflicts and maintaining harmonious industrial relations.

To provide a basic framework for the management & the employees to resolve their differences.

IMPORTANCE OF IRFoster industrial peace.Promote industrial democracy.Benefit to workers.Benefit to management.Improve productivity.

PARTIES TO IREmployeesEmployersGovernment

Various Approaches proposed by the industrial relations scholars as per their research

Unitarist perspective

In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application.Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry.

Pluralist perspective

In pluralism, the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralist perspective are the management and trade unions.Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channelled towards evolution and positive change.

DUNLOPS APPROACHDunlop defines an industrial relations system in the following way:

An industrial relations system at any one time in its development is regarded as comprised of certain actors, certain contexts, an ideology, which binds the industrial relations system together, and a body of rules created to govern the actors at the workplace and work community.

THE INDUSTRIAL SOCIOLOGY APPROACHG. Margerison, an industrial sociologist, holds the view that the core of industrial relations is the nature and development of the conflict itself.

the ACTION THEORY APPROACHThe action theory approach takes the collective regulation of industrial labour as its focal point. The actors operate within a framework, which can at best be described as a coalition relationship.

THE HUMAN RELATIONS APPROACHIn the words of Keith Davies, human relations are the integration of people into a work situation that motivates them to work together productively, cooperatively and with economic, psychological and social satisfactions. According to him, the goals of human relations are: (a) to get people to produce(b) to cooperate through mutuality of interest(c) to gain satisfaction from their relationships.

THE GANDHIAN APPROACHWorkers should seek rebred of just and reasonable demands through collective actions.Trade unions should decide to go on strike taking ballot authority from all workers, and remain peaceful using non violent methods.Workers should avoid strikes to the extent possible.Strikes are to be the last resortWorkers should take recourse to voluntary arbitration where direct settlement fails.

CONFRONTING CHALLENGES FACED BY IR

NATURE OF WORKA good work i.e., work interesting to the employee fosters good IR. This result in job satisfaction. On contrary, a work not interesting to the employee breeds bad or poor IR.

DISSATISFACTORY COMPENSATIONEmployees works for compensation i.e., wages and salaries. Often, compensation as low and working conditions as poor viewed by employees become an important reason for poor IR. This worsen relationship between employees and management.

NON CONDUCIVE ORGANISATIONAL CLIMATE A conducive an supporting organizational climate helps employees integrate themselves with organization and enjoy a feeling of confidence and the opposite creates mistrust between employees and organization.

EMPLOYERS FLEXIBILITY In general, 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

DYFUNCTIONAL TRADE UNIONSTrade unions are meant to protect the interests of its members. The unions are used as a means to serve the purposes of a few leaders rather than working in the wider interest of the employees.

HOW TO BUILD SOUND IRDeveloping Trust Between Labor and Management

Existence of Sound and Democratic Trade Unions

Maintenance of Industrial Peace

Continuous Feedback and Monitoring

Professional Approach

NEED FOR INTEGRATED SYSTEMSThere is need for an integrated systems approach which would emphasis a direct relationship between the personnel management and industrial relations sub-systems and objectives of the company. The day to day individual and collective grievances negotiations with unions at shop level is like an effective preventive maintenance system which should be the principal ingredient of any industrial policy.

NEED FOR INTEGRATED SYSTEMSThis in turn will determine the firm` s ability to handle periodic and non- recurring crises, whether in the shape of work stoppages, strikes or wage disputes. In a democracy, there are and there have to be situations involving friction and even conflict, but an enlightened manager and a responsible union will work out systems to resolve such situations and conflicts.

Key Concepts in IRCollective BargainingThe ILO DefinesVoluntary negotiation between employers or employers organizations and workers organizations, with a view to the regulation of terms and conditions of employment by collective agreements.

StrikeCollective suspension of work, agreed upon by a number of workers with the purpose of reaching a certain end.

Lock-Out

Recognition of Trade UnionAn organization have many registered trade unions but the recognition of the union is decided by the employer. The word recognition is not motioned in the Trade Union Act 1926. Law is silent about it.

But for healthy IR, employer should recognize TU and negotiate with them

WHAT IS INDUSTRIAL RELATIONS?

IR is a relationship between management and employees or among employees and their organizations, that characteristics and grow out of employment.

IR may be defined as the complex of inter-relations among workers, managers and government.

CHARACTERISTICS OF IR:

An outcome of relationship in industry.

It create rules and regulations to maintain piece and harmony.

Important parts of IR are employees and their organization, employer and their association and government.

It has a role of management, union and government.

OBJECTIVE OF IR:

To promote and develop labor management relation.

To regulate the production by minimizing industrial conflicts

To provide opportunity to workers to involve in decision making process with management.

To encourage and develop trade unions in order to improve the workers' strength.

INDUSTRIAL RELATIONS MACHINERY IN INDIA:Preventive MachineryTrade UnionJoint ConsultationWork CommitteeJoint Management CouncilStanding OrdersGrievance ProcedureCode of Discipline

Settlement MachineryConciliationConciliation OfficerBoard of ConciliationCourt of InquiryVoluntary arbitrationCompulsory ArbitrationLabor CourtIndustrial TribunalNational Tribunal

THE INDUSTRIAL DISPUTE ACT, 1947.DEFINITION: The industrial dispute means any dispute or difference between:-(i) Employers and employers(ii) Employers and Workmen or(iii) Workmen and workmen, which is connected with

Industrial disputes may be said to be disagreement or controversy between management and labor with respect to wages, working conditions, other employment matters or union recognition.

TYPES OF INDUSTRIAL DISPUTESInterest disputes: arising out of deadlocks in negotiation for collective bargaining.

Grievance disputes: may pertain to discipline, wages, working time, promotion, rights of supervisors etc. also some times called interpretation disputes.

Unfair labor practices: those arising out of right to organize, acts of violence, failure to implement an award, discriminatory treatment, illegal strikes and lockouts.

Recognition disputes: over the rights of a TU to represent class or category of workers.

PROHIBITION OF STRIKES AND LOCK OUTSAccording to SEC 22 (1) No person employed with a public utility service shall go on strike in breach of contract Without giving the employer notice of strike, within six weeks before the strike. Before the expiry of date of strike specified in such notice. According to SEC 23; No employee of any industrial establishment shall go on strike during the period when proceedings in any disputes case is going on or when final judgment is awaited .

INDUSTRIAL DISPUTE RESOLUTION MECHANISM:*Works CommitteeConciliation officerIndustrial UndertakingCG/State Govt.Board Labour court Tribunal Arbitral Tribunal AWARD

SETTLEMENT WITHOUT STATE INTERVENTION:There are two ways in which the basic parties to an industrial dispute- the employer and the employees- can settle their disputes.

Collective bargainingVoluntary arbitration

SETTLEMENT UNDER THE INFLUENCE OF THE STATE:

VOLUNTARY ARBRITATIONIt is commonly viewed as less expensive and faster than resolving a dispute in court.

An arbitrator may be a single person ora panel.

Sometimes, however, the parties may agree to submit the dispute to an arbitrator but at the same time, reserve their right to accept orreject the award when it comes.

Amendments to Industrial Disputes Act, 1947:1. In case of individual dispute of workman related to discharge, dismissal, retrenchment or termination by any means, now the workman has the right to approach labour court directly without waiting for conciliation proceedings and Govt. reference. But he has to wait for three months for this direct action from the date of filling his application before conciliation officer if the Govt. is not able to complete the reference process within three months. Earlier there was no such direct option available to workman to approach labour court. (Except in some states like Karnataka where State govt. has provided for direct approach to Labour court within 6 months of termination)

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2. Such workman in case of individual dispute has to file claim within time limit period of three years. Earlier there was no such limitation period prescribed under the ID Act.

3. Wage ceiling of supervisor has been enhanced from Rs.1600/- per month to Rs. 10,000/- per month, which means now any person working in any industry doing any manual, unskilled, skilled, technical, operational, clerical or supervisory work drawing wages up to Rs. 10000/- will be a workman. Earlier this limit was up to Rs.1600/-By this amendment the coverage of workman has been increased and more people are covered now under the Act.

4. Definition of appropriate Govt. has been amplified. Now for the industry, corporation, PSEs owned or controlled by the Central Govt., the appropriate Govt. would be Central Govt.

5. In case of industry under the control of State Govt., appropriate Govt. would be State Govt.

6. Earlier to amendment only judicial officers were eligible to become the Judges (Presiding Officers) of labour court/ tribunal. Now with this recent amendment the Dy. Labour Commissioners/ Joint Labour Commissioners with degree of Law & having 7 years of experience can also become labour court/ tribunal judges.

7. Every industry employing 20 or more workmen is now under legal obligation to constitute and have a grievance redressal machinery in place in the organization to resolve the workers dispute at the first level. Earlier it was not legally essential. The related provisions which were brought in the ID Act in 1984 were never enforced.

8. Now a provision has been made to execute the labour court/ tribunal decision. Earlier there was no such provision in the Act and even after decision of the labour court/ tribunal there was no machinery to enforce its execution on the employer. Now the labour court/ tribunal shall transmit its award to concerned civil court which shall execute the award as if it is a decree passed by the court.

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