Que

sti
on1I
ndus
tri
alRe
lat
ions
Def
ini
ti
on:
 The 
Indust
ri
alRel
ati
ons or
 I
R encompassesther
elat
ionshipbet
weent he
managementandworkmenandt herol
eofar egul
ator
ybodytoresolveanyindustr
ial
di
sput
e.

Asthenamei mplies,Indust r
yRelati
onscompr i
sesoft wowor ds, 
Industry,and
Rel
ations.Whereindust rycoverstheproductionact i
vit
yinwhi chthegr oupof
wor
kmeni sengagedi n,whi l
etherelat
ionsshowt herelati
onshipbetweent he
managementandt hewor ker
swi t
hintheindustry.IRplaysasi gni
ficantrol
eintoday’
s
wor
kingscenar i
owher ethehar moniousrelat
ionshipbet weentheempl oyersand
employeesisneededt ohaveanuni nterr
uptedpr oducti
on.TheI ndustri
alRelat
ions
mai
nlycovert hefoll
owi ng:

 Regul
ator
ybodyt
oresol
vei
ndust
ri
aldi
sput
es.
 Col
lect
iveBar
gai
ning.
 Ther
oleofmanagement
,uni
onsandgover
nment
.
 LaborLegi
slat
ion
 Wor
ker
’sGr
ievanceRedr
essalsyst
em.
 Di
sci
pli
nar
ypol
icyandpr
act
ice.
 I
ndust
ri
alRel
ati
onsTr
aini
ng.

I
mpor
tanc
eofI
ndus
tri
alRe
lat
i
ons
1.IncreasedPr oduct ivit
y: 
Wi t
hami cableindust r
ial rel
ati
onsbot hthewor kersand
manager scontinuet owor kont heirrespect i
veposi ti
onandcont r
ibutet owar dst he
overallproductivityoft hefirm.Thus, I
Rensur est hecontinui
tyofpr oduct i
on.
2.ReducedI ndustrialDisputes: Anef fecti
veIRhel psinther educti
onofi ndustrial
disputesasbot ht hemanagementandt hewor kersmai ntai
nharmoni ousr el
at i
onswi t
h
eachot herandwor ki
nuni sontowar dstheaccompl i
shmentofpr oduct i
onobj ective.
3.IncreasedMor ale: Thepeacef ulindust r
ialrel
at i
onsboostt hemoralel eveloft he
empl oyeesast heyf eelthattheirinterestcoinci deswiththatoftheempl oyer’
s, and
theireffort
swi l
lr esultintheover allprofit
abili
tyoft hef i
rm.
4.Mi ni
mi zati
onofWast age: 
AgoodI Rensur esr educedwast ageast her esources–Man,
Machi nery,Mat erialarefullyuti
lizedandar eef fecti
velycontri
buti
ngt owar dst he
overallproductivityoft hefirm.

Thus, aneffect
iveIRisrequir
edtoensurehigherpr
oducti
onatlesscostandi ncr
eased
prof
its.Itcover
st hesystem,rul
es,andprocedur
estoprot
ecttheint
erestofthe
workmenandt heempl oyersandtoregul
atethebehavi
oroftheemployeri.
e.theway
hetreatshiswor kmen.
I
ndust
ri
alRel
ati
onsVer
susEmpl
oyeeRel
ati
ons

Cr
eat
ingadi
sti
nct
ionbet
weeni
ndust
ri
alr
elat
ionsandempl
oyeer
elat
ionsi
saf
undament
al
concepti
nthi
sar
ea.I
ndust
ri
alr
elat
ionsgener
all
yref
erst
othel
aws,
dut
iesandempl
oyerandl
abor
uni
onobl
igat
ionsi
nauni
onwor
kenvi
ronment
.Empl
oyeer
elat
ionst
ypi
cal
lyr
efer
stol
aws,
dut
ies
andempl
oyerobl
igat
ionsi
nanonuni
onwor
kenvi
ronment
. 

Empl
oymentLawsVer
susLaborLaws

ManyHRpr
act
it
ioner
sandl
awyer
smaket
hedi
sti
nct
ionbet
weenempl
oymentl
awsandl
aborl
aws.
Laborl
aws-
-suchast
heNat
ionalLaborRel
ati
onsActof1935,
theTaf
t-
Har
tl
eyActof1947andt
he
Labor
-ManagementRepor
ti
ngandDi
scl
osur
eActof1959-
-ar
emostappl
icabl
etoi
ndust
ri
al
r
elat
ionsmat
ter
s.Bot
htypesofl
awsappl
ytouni
onandnonuni
onwor
kenvi
ronment
s,buti
na
uni
oni
zedwor
kenvi
ronment
,laborl
awsar
eof
tenmor
erel
evanti
nresol
vingl
abor
-management
i
ssues.Despi
tet
hedi
sti
nct
ion,
thet
erms"
laborl
aws"and"
empl
oymentl
aws"maybeused
i
nter
changeabl
ytor
efert
oal
lwor
kpl
acel
awsandr
egul
ati
ons.

Concer
tedAct
ivi
ty

TheNat
ionalLaborRel
ati
onsActpr
otect
sther
ight
sofuni
onandnonuni
onempl
oyeest
oengage
i
norr
efr
ainf
rom concer
tedact
ivi
ty.Concer
tedact
ivi
tyr
efer
stoempl
oyeesaddr
essi
ngt
hei
r
concer
nsasagr
oup-
-regar
dlessofwhet
hert
heyhaveuni
onr
epr
esent
ati
on-
-rat
hert
han
i
ndi
vidual
ly.Theactpr
otect
sther
ight
sofempl
oyeeswhowantuni
onr
epr
esent
ati
onaswel
last
he
r
ight
sofempl
oyeeswhowoul
drat
herhandl
ewor
kpl
acei
ssueswi
thoutuni
onr
epr
esent
ati
on.

Col
lect
iveBar
gai
ning

Col
lect
ivebar
gai
ningi
sthepr
ocesst
hatl
aboruni
onsandempl
oyer
spar
ti
cipat
eint
onegot
iat
ea
l
aboruni
oncont
ract
.Thesecont
ract
sal
soar
ecal
ledcol
l
ect
ivebar
gai
ningagr
eement
s.Theyar
e
negot
iat
edf
oraf
ini
teper
iod,
usual
l
ytwot
ofouryear
s,andi
ntendedt
ober
enegot
iat
edupon
expi
rat
ionoft
hemul
ti
yeart
erm.Theempl
oyer
,laboruni
onandempl
oyeesar
eboundbyt
het
erms
andcondi
ti
onsofal
aboruni
oncont
ract
,whi
chset
soutempl
oyees'
wages,
benef
it
s,wor
king
condi
ti
onsandseni
ori
ty-
basedmat
ter
s.

Quest
ion2I
ndust
ri
alDi
sput
es:Def
ini
ti
on,
For
msandTypes!
Conceptofi
ndust
ri
aldi
sput
es:
I
ncommonpar
lance,
disput
emeansdi
ff
erenceordi
sagr
eementof
st
ri
feoversomei
ssuesbe¬t
weent
hepar
ti
es.Asr
egar
dsi
ndust
ri
al
di
sput
e,si
ncei
tsset
tl
ementpr
oceedsaspert
hel
egalpr
ovi
¬si
ons
cont
ainedi
nthe‘
I
ndust
ri
alDi
sput
es’
Act
,1947,
hencei
tseems
per
ti
nentt
ost
udyt
heconceptofi
ndust
ri
aldi
sput
esf
rom al
egal
ist
ic
angl
e.

Accor
dingt
oSect
ion2(
k)oft
heI
ndust
ri
alDi
sput
esAct
,1947,
the
t
erm‘
i
ndust
ri
aldi
sput
e’means“
anydi
sput
eordi
ff
erencebet
ween
empl
oyer
sandempl
oyer
sorbet
weenempl
oyer
sandwor
kmen,
or
bet
weenwor
kmenandwor
kmen,
whi
chi
sconnect
edwi
tht
he
empl
oymentornon-empl
oymentort
het
ermsofempl
oymentand
condi
ti
onsofempl
oymentofany 
per
son.

Thef
oll
owi
ngpr
inci
plesj
udget
henat
ureofani
ndust
ri
aldi
sput
e:
1.Thedi
sput
emustaf
fectal
argenumberofwor
kmenwhohavea
communi
tyofi
nter
estandt
her
ight
soft
hesewor
kmenmustbe
af
fect
edasacl
ass.

2.Thedi
sput
emustbet
akenupei
therbyt
hei
ndust
ryuni
onorbya
subst
ant
ialnumberofwor
kmen.

3.Thegr
ievancet
urnsf
rom i
ndi
vidual
compl
ainti
ntoagener
al
compl
aint
.

4.Ther
emustbesomenexusbet
weent
heuni
onandt
hedi
sput
e.

5.Accor
dingt
oSect
ion2Aoft
heI
ndust
ri
alDi
sput
esAct
,1947,
a
wor
kmanhasar
ightt
orai
seani
ndust
ri
aldi
sput
ewi
thr
egar
dto
t
ermi
nat
ion,
dischar
ge,
dismi
ssal
,orr
etr
enchmentofhi
sorher
ser
vice,
event
houghnoot
herwor
kmanoranyt
radeuni
onof
wor
kmanoranyt
radeuni
onofwor
kmenr
aisesi
tori
sapar
tyt
othe
di
sput
e.

For
msofI
ndust
ri
alDi
sput
es:
Thei
ndust
ri
aldi
sput
esar
emani
fest
edi
nthef
oll
owi
ngf
orms:
St
ri
kes:St
ri
kei
sthemosti
mpor
tantf
orm ofi
ndust
ri
aldi
sput
es.A
st
ri
kei
saspont
aneousandconcer
tedwi
thdr
awalofl
abourf
rom
pr
oduct
ion.TheI
ndust
ri
alDi
sput
esAct
,1947def
inesast
ri
keas
“
suspensi
onorcessat
ionofwor
kbyagr
oupofper
sonsempl
oyedi
n
anyi
ndust
ry,
act
ingi
ncombi
¬nat
ionoraconcer
tedr
efusalora
r
efusalunderacommonunder
standi
ngofanynumberofper
sons
whoar
eorhavebeensoempl
oyedt
ocont
inuet
owor
koraccept
empl
oyment
”.

(
i) Pr
imar
ySt
ri
kes:
(
ii
)

Thesest
ri
kesar
egener
all
yai
medagai
nstt
heempl
oyer
swi
thwhom
t
hedi
sput
eexi
sts.Theymayi
ncl
udet
hef
orm ofast
ay-
awayst
ri
ke,
st
ay-
in,
sit
-down,
pen-
downort
ool
s-down,
go-
slowandwor
k-t
o-r
ule,
t
okenorpr
otestst
ri
ke,
cat
-cal
lst
ri
ke,
picket
ingorboycot
t.

(
ii
) 
Secondar
ySt
ri
kes:
Thesest
ri
kesar
eal
socal
ledt
he‘
sympat
hyst
ri
kes’
.Int
hisf
orm of
st
ri
ke,
thepr
essur
eisappl
i
ednotagai
nstt
heempl
oyerwi
thwhom
t
hewor
kmenhaveadi
sput
e,butagai
nstt
het
hir
dper
sonwhohas
goodt
rader
elat
ionswi
tht
heempl
oyer
.

Lock-
Out
s:
Lock-
outi
sthecount
er-
par
tofst
ri
kes.Whi
lea‘
str
ike’
isanor
gani
sed
orconcer
tedwi
thdr
awaloft
hesuppl
yofl
abour
,‘l
ock-
out
’is
wi
thhol
dingdemandf
ori
t.Lock-
outi
stheweaponavai
labl
etot
he
empl
oyert
oshut
-downt
hepl
aceofwor
kti
llt
hewor
ker
sagr
eet
o
r
esumewor
kont
hecondi
ti
onsl
aiddownbyt
heempl
oyer
.The
I
ndust
ri
alDi
sput
esAct
,1947def
inedl
ock-
outas“
thet
empor
ary
shut
ti
ngdownorcl
osi
ngofapl
aceofbusi
nessbyt
heempl
oyer
”.

Gher
ao:
Gher
aomeanst
osur
round.I
tisaphysi
cal
blockadeofmanager
sby
enci
rcl
ementai
medatpr
event
ingt
heegr
essandi
ngr
essf
rom andt
o
apar
ti
cul
arof
fi
ceorpl
ace.Thi
scanhappenout
sidet
he
or
gani
sat
ionalpr
emi
sest
oo.Themanager
s/per
sonswhoar
e
gher
aoedar
enotal
lowedt
omovef
oral
ongt
ime.

TypesofI
ndust
ri
alDi
sput
es:
TheI
LO’
hascl
assi
fi
edt
hei
ndust
ri
aldi
sput
esi
ntot
womai
ntypes.

Theyar
e:
1.I
nter
estDi
sput
es

2.Gr
ievanceorRi
ghtDi
sput
es.

Theyar
edi
scussedonebyone:
1.I
nter
estDi
sput
es:
Thesedi
sput
esar
eal
socal
led‘
economi
cdi
sput
es’
.Sucht
ypesof
di
sput
esar
iseoutoft
ermsandcondi
ti
onsofempl
oymentei
therout
oft
hecl
aimsmadebyt
heempl
oyeesorof
fer
sgi
venbyt
he
empl
oyer
s.Suchdemandsorof
fer
sar
egener
all
ymadewi
thavi
ew
t
oar
ri
veatacol
lect
iveagr
eement
.Exampl
esofi
nter
estdi
sput
esar
e
l
ay-
off
s,cl
aimsf
orwagesandbonus,
jobsecur
it
y,f
ri
ngebenef
it
s,et
c.

2.Gr
ievanceorRi
ghtDi
sput
es:
Ast
henamei
tsel
fsuggest
s,gr
ievanceorr
ightdi
sput
esar
iseoutof
appl
icat
ionori
nter
pret
ati
onofexi
sti
ngagr
eement
sorcont
ract
s
bet
weent
heempl
oyeesandt
hemanage¬ment
.Theyr
elat
eei
thert
o
i
ndi
vidualwor
keroragr
oupofwor
ker
sint
hesamegr
oup.

Que
sti
on3Fac
tor
sofPr
oduc
tion–Labour
Labouractual
lymeansanyt ypeofphysi cal
orment alexert
ion.
Ineconomicterms,labour 
i
stheef for
tsexertedtoproduceany
goodsorservices.I
tincl
udesalltypesofhumanef forts–
physical
exert
ion,mentalexerci
se,useofintell
ect
,etc.donein
exchangeforaneconomi creward.Letusseet hefeaturesof
l
abourasaf actorofproducti
on.

Char
act
eri
sti
csofLabourasaFact
orofPr
oduct
ion
1]Per
ishabl
einNat
ure

Labourisper
ishableinnatur
e.Thissimplymeanst hatithasto
stor
agecapacity,
i.e.l
abourcannotbestored.Ifaworkerdoes
nottur
nupt owor kforoneshif
thislabourofthatshi
ftislost
completel
y.I
tcannotbest
oredandut i
li
zedthenextday.That
l
abourislostper
manentl
y.Alaborercannotstor
ehislabourto
useatanotherti
me.Sowesayl abour 
asaf act
orofproduct
ion
i
shighlyperi
shable.

2]Labouri
sInsepar
abl
efr
om t
heLabour
er

Thismeanst hephysi calpresenceofthelabor

eriscompulsory.
Tosellhisservicest
hel aborerhast obephysi
call
ypresentat
theplaceofpr oduct
ionofgoodsorser vi
ces.Wecannot
separatehim andhisl abourpower .Sowecannotexpecta
weldertodohi sworkf rom home, hehastopresentatt
hesite
ofthewor k.

3]HumanEf
for
t

Labouri sauniquef actorofproducti

onincompar isonwi t
h
others.Itisdi
rect
lyrelatedtohumanef for
t,unl
iket heothers.So
therear ecert
ainspecialfact
orswemustt akeintoconsi derati
on
wheni tcomestolabour .Fai
rtreat
mentofwor kers, r
estti
mes,
suit
abl eworkenvironment ,i
dleti
me,etcarejustsomesuch
factors.

4]Labouri
sHet
erogeneous

Wecannotexpectlabourtobeuni form.Everylaborerisuni
que
andsohislabourpowerwi l
lalsodiff
erfrom theothers.The
qual
it
yandt heeff
iciencyofthelabourwill
dependont heski
ll
s,
workenvi
ronment,incenti
vesandot heri
nherent qual
iti
esofthe
l
aborer
.

5]LabourhasPoorBar
gai
ningPower

Labourasaf
act
orofpr
oduct
ionhasaver
yweekbar
gai
ning
powerwi t
hthebuyeroftheservi
ces.Itcannotbestored,i
sn’
t
verymobileandhasnost andar
dorr eservepr
ice.Sogeneral
ly
l
aborersareforcedtoworkforwhateverwagest heemployer
off
ers.I
ncompar i
sont
otheempl oyer,t
helaborershavevery
l
itt
lebargai
ningpower.

Thereisalsotheprobl
em thatl
aborersdonothaveanyother
reser
vestofallbackon.Theyareusuall
ypoorandignor
ant.
Andthislabourworkisthei
ronlysourceofi
ncome.Sothey
acceptwhateverwagestheempl oyerof
fer
s.

6]NotEasi
lyMobi
le

Labourasafact
orofproducti
onismobile,i
.e.t
helaborer
scan
rel
ocatetot
hesit
eofwor k.Butt
herear
emanybar ri
erstothe
movementoflabourf
rom oneplacetoanother.Sowecansay
l
abourisnotasmobil
eassomeot herf
actorsofproducti
onli
ke
Capit
al.

7]Suppl
yofLabouri
srel
ati
vel
yInel
ast
ic

Atanygi venpointinti
me, t
hesuppl yofl abourinthemarketi
s
i
nelasti
c.Itcannotbeincr easedinst antl
ytokeepupwi t
hthe
demand.Sosayt hereisashor t
ageofski l
ledlabouri
nIndi
a,
ski
ll
edlabor er
s cannotbegener atedi naday, aweekorevena
year.Wemaybeabl etoimpor tsomel abour f
orashortperi
od.
Butgener al
ly,
thesupplyofl abouri sveryinelasti
c,si
ncewe
cannotincreaseordecr easeitinstantaneously.