IR LL For Sem III For Students PDF

1.
Industrial Relations :
Concepts, Nature, Evolution and Growth
Prof. T.K. Goon 1

Industrial Relations : Evolution and Growth
• Features associated with changes of relations between

employer and workmen in a unit or industry:
• Segmentation : Blue-color and White-collar Roles
• Specialization : Horizontal Differentiation
• Hierarchical levels : Vertical Differentiation
• A New Relationship Interface : A Range of Interface,

Maximization of production, Technological Transformation &
Innovations
Prof. T.K. Goon 2

• Changes in workplace relationships include:

• Increase in capital-labor ratio;
• Work specialization
• Fragmentation of work
• Repetitive work to increase efficiency;
• Fragmentation of work led to formation of groups and
employees and employers;
• New perspective of an inter-group relationship;
• Growing sense of insecurity required a collective effort to
counter any management initiative for retrenchment, dismissal,
etc.
Prof. T.K. Goon 3

• Changes in workplace relationships brought more players

associated:
• Groups of workmen / employees in the unit / industry;

• Association of employers;
• States to regulate public interest, social welfare
• Hence Industrial Relations is “Social Relations in Production”
• And, two dominant aspects of IR:

• Cooperation (among all stake holders); and
• Conflict
Prof. T.K. Goon 4

2. Objectives & Features of IR
Approaches; Role of State, TUs, Employers
Organizations and ILO
Prof. T.K. Goon 5

Industrial Relations : Objectives & Features
• INDUSTRIAL RELATIONS : SOCIAL RELATIONS:
• This term is generally associated with relations between

Employer and Employees in a Unit or Industry
• Mass Production post Industrial Revolution, coupled with a

laissez faire approach led to Employers adopting a Mechanistic
approach to work and labor as a commodity and a factor of
production
• Trade Unions emerged out of a necessity to restore some

balance in the relationship between powerful capital and weak
labor
Prof. T.K. Goon 6

• Conflicting interests and ideological orientation conveyed an

adversarial and strife-torn relationship
• The State sought to gain cooperation of the two partners in

industry supporting economic growth and development
through an improvement in the quality of work life (QWL).
Prof. T.K. Goon 7

• DEFINITION OF IR MUST TAKE THE FOLLOWING INTO

ACCOUNT:
• IR is about relationship
• The origin is in the relationship of employment
• Employer – Employee relationship pertains to all kinds of
organizations
• There are actors other than employer and employee who
influence the relationship
• The relationships are shaped by actors, structures, rules, law,
technology etc.
• The impact of social, economic, political and technological
features of the context on the shaping of these relationships.
Prof. T.K. Goon 8

SCOPE of Industrial Relations
• SCOPE OF IR:
• Management – Union Relationship
• Employer – Employee Relationship
• Relationships amongst various Groups of Employees
• Effects of extraneous factors (State, Socio-Political-Economic

factors) on workplace relationships
Prof. T.K. Goon 9

Scope of IR
• IR deals with management of relationships, mainly with and

within groups or agencies like:
• 1. Employees:
• Relationship among / between employees and their superiors
• 2. Union – Management or Labor Relations

• Collective Relations between TUs and Management
• 3.Government – Management – Union:

• Collective Relationship between various organizations of
employers and employees who represent management, the
workforce and the State
• 4.Community or Public Relations

Prof. T.K. Goon 10
Scope of IR
• COMMUNITY OR PUBLIC RELATIONS:

• Relations between an industry and the society.
• This explains importance of CSR which has become a part of
their work culture
• SUBJECT MATTER OF SUCH RELATIONSHIP:

• Desirable working conditions
• Establishment and maintenance of good personal relations
• Developing a sense of belonging by ensuring closer contact
between persons from various rungs of industrial hierarchy
• Developing situations characterized by mutual concern and
sense of responsibility for improve performance
• Maximization of social welfare
• Maintenance of industrial peace and avoidance of industrial
disputes.
Prof. T.K. Goon 11
Aims of IR
1. To promote and develop congenial labor-management

relations
2. To maintain industrial peace and avoid industrial conflicts

and disputes
3. To improve performance and productivity by minimizing

losses on account of industrial strife and conflict, manifested
in the form of strikes, go slow etc.
4. To safeguard interests of labor and management by securing

highest possible level of mutual understanding and respect
5. To enhance economic status of workers by improving wages

and benefits
6. To establish industrial democracy by strengthening

employee partnership
Prof. T.K. Goon 12
Aims of Industrial Relations
7. To ensure organizational discipline
8. To boost morale of workers and create a sense of

organizational pride
9. To enable workers to solve problems through mutual

negotiations and consultations with management
10. To encourage and develop TUs in order to increase workers’

strength and institutionalize process of collective bargaining
11.To correct imbalances in socio-economic order arising out of

industrial development associated with complex relationships
and conflicting interests.
Prof. T.K. Goon 13

Objectives of Industrial Relations
• OBJECTIVES OF IR:
• Different at enterprise / unit, industry and National levels
• AT INDUSTRY OR ENTERPRISE LEVEL:
• Healthy relationship
• Mutual trust and understanding
• Dysfunctional conflict free environment
• Gain in productivity for mutual benefits
• Minimizing loss of man-hour due to accidents, strife or
absenteeism
• Reduced attrition environment
• Participative working on principles of industrial democracy
• Enhancing quality of life and work-life balance
Prof. T.K. Goon 14

Objectives of Industrial Relations
• AT THE STATE LEVEL:
• Promoting industrial harmony and peace

• Safeguard rights of both labor and management
• Enlist cooperation and collaboration from both
parties
• Improve economic conditions of labor through
various legislations prescribing minimum
guaranteed wages, welfare benefits and social
security.
• Control industrial establishments through
regulations in terms of engaging and disengaging
employees.
• Safeguarding public interest.
Prof. T.K. Goon 15
Features of Industrial Relations
• Arises out of employment relationship
• Sets complex rules and regulations for the participants to

ensure industrial peace and harmony
• Hinges on a cooperative spirit between all partners thereby

emphasizing the need for adjustments and accomodation in the
interest of growth and development.
• Comprise employees and their organizations, employers and

their associations, and the government as participants.
Prof. T.K. Goon 16

Maintenance of Sound Industrial Relations
• MAINTENANCE OF SOUND IR NEEDS:
• Strong, well organized and democratic unions for balance of

power to facilitate promotion and maintenance of uniform
personnel policies among various org.
• Strong employers’ organization
• Belief in cooperative collective bargaining
• Sound HR policies
• Sound preventive systems
• Management support to IR functions
• Well-trained IR staff / supervisors
• Systematic effort at building a collaborative culture
Prof. T.K. Goon 17

Schematic Interplay of Industrial Relations
LEGISLATURE
E Protective Performance /
Compensation
X
E
C Employees Employees
U and Groups WELFARE JOBS WELFARE and Groups
representing Representing
T Employees Employees
I
V
E Regulatory (Terms and
Regulatory (Rights) conditions of employment)
JUDICIARY
A Schematic Interplay amongst the main variables in IR 18

Approaches to Industrial Relations
• SIX APPROACHES TO IR:

1. The unitary approach
2. The Systems Approach : Dunlop (Input – Transformation –

Output)
3. The Conflict Approach: Pluralism & Post Capitalism
4. Weber’s Social Action Approach – individual and society
5. The Gandhian Approach or Trusteeship approach
6. The Marxian or Radical approach
Prof. T.K. Goon 19

• 1. UNITARY APPROACH:
• Unity in structure
• Unity in purpose
• Having a single source of authority
• Having a cohesive set of participants
• HENCE :
• Only one source of authority : Management
• Single / Unified loyalty
• Prerogative of Management to make business decision and
employee related decisions.
Prof. T.K. Goon 20

• UNITARY APPROACH LEADS TO:

• Predominantly managerially oriented
• CB and TUs are perceived as being anti-social and anti-
managerial
• Prefer union-less environment
• KRA of HR Manager : To prevent unionization
Prof. T.K. Goon 21

2. System Approach:
Dunlop’s Framework of Industrial Relations System
Inputs Processes Outputs
Actors Bargaining
Conciliation
Arbitration
Lawmaking
Rules
Environmental
etc
Contexts
Ideology
Feedback
Prof. T.K. Goon 22

• The Actors
• Managers & their representatives
• Workers & their Organizations
• Specialized Government Agencies concerned with workers,
enterprises and their relationships
• The Context
• Technological characteristics of the workplace and work
community
• Product and factors markets or budgetory constraints that
impinge on the actors
Prof. T.K. Goon 23

• The ideology
• A body of common ideas
• Ideas that defines role and place of each actor
• Ideas each actors hold towards place and function of others in
system
• Ideology of a stable system – compatibility among all in the
system
• The Network or Web Rules

• Concerns procedures for establishing rules, regulations,
decisions, orders, collective bargaining agreements, customs,
traditions of workplace and community
Prof. T.K. Goon 24

• Some limitations of Systems Frame Work:
• Consumers and Community not included
• Talks about Roles and not People
• Behavioral aspects like human motivations and preferences not

emphasized
Prof. T.K. Goon 25

Modification of System Framework
Top tier : Strategic Decision

Making
Middle Tier : Collective

Bargaining and/or HR
policy making
Bottom Tier:
Workplace,
individual and
organizational
relationships
Prof. T.K. Goon 26

Approaches to IR – Six Perspective
• 3. CONFLICT APPROACH – PLURALISM & POST CAPITALISM
• Organization is composed of individuals
• Individuals make up distinctive groups, each with its own

interests, objectives and leaderships
• Hence give rise to tensions, competition (intra and inter)
• Pluralism – a belief of existence of more than one ruling

principle giving rise to conflict of interests
• Hence, conflict is inevitable but containable through various
institutional arrangements
Prof. T.K. Goon 27

Approaches to IR - Six Perspective
• 3. CONFLICT APPROACH – PLURALISM & POST CAPITALISM
• Post Capitalist-society - viewed as an open society in which

political, economic and social power is increasingly dispersed
• Hence regulation of industrial and political conflict are of

necessarily dissociated
Prof. T.K. Goon 28

• 4. MAX WEBRER’S SOCIAL ACTION APPROACH
• Social Action is behavior having subjective meaning for

individual actors, with social action theory focusing on
understanding particular actions in industrial relations
situations rather than on just observing explicit industrial
relations behavior control;
• Maruti – Manesar labor unrest?
Prof. T.K. Goon 29

• 5. TRUSTEESHIP APPROACH
• Propounded by Mahatma Gandhi
• Implies stewardships without ownership
• Company accepts its total responsibility – towards consumers,

workers, shareholders and community
• Mutual responsibilities to one another
• Management’s role is to balance all claims delivering justice
Prof. T.K. Goon 30

• 6. RADICAL APPROACH
• Also known as Marxian Perspective
• Capital system – notion is production system is privately owned

and is motivated by profits;
• Control over production is exercised by Managers who are

agents of Owners
• Conflict is inevitable which cannot be contained or controlled as

long as capitalism prevails
• Role of Trade Unions in protesting exploitation is inevitable
• Favors transformation of TUs into revolutionary organizations

Prof. T.K. Goon 31
2. Role of State, Trade Unions, Employer’s
Organization and International Labor
Organization (ILO)
Prof. T.K. Goon 32

Role of Government
• Varies – depending upon stage and level of development and

strategy of industrialization
• Types of government interventions in labor market depends

upon the purpose;
• Major State Interventions in IR:
• Policies : Peace, Cooperation and Competition
• Legislation : Central and State
• Institutions : Facilitative, Executive and Judicial
Prof. T.K. Goon 33

Role of Government
• Transition from planned economy to market economy resulted

in major shifts in state intervention in IR in the fields of:
– Legislation
– Trade Unions
– Wage setting
– Collective Bargaining,
– WPM; and
– Employment Security and Welfare
Prof. T.K. Goon 34

Role of Government
• Relationship between state and multinational corporation is

often caught between different historical paradigms – liberal,
neo-liberal and neo-imperial traditions.
• Maruti-Suzuki : Haryana and Gujarat
• Center – State relations affecting:

• Relative distribution of power and authority regarding policy
making, legislation and enforcement of labor laws; and
• Competition between states results in pluralism and diversity;
• Gujarat, Bihar, West Bengal
Prof. T.K. Goon 35

Role of Employers’ Organizations (EO)
• These are formal groups of employers

• Can be registered under the Trade Union Act, 1926 or The
Indian Companies Act, 1956 or the Societies Act, 1860
• Main Aims and Objectives:

• To defend, represent or advise affiliated member-employers
that may be necessary for promoting, supporting, opposing
legislative and other measures affecting or likely to affect
directly or indirectly industry, trade and commerce in general
or particular interest
• To strengthen position of such member-employers in society at

large with respect to labor matters as distinct from economic
matters.
Prof. T.K. Goon 36

Role of Employers’ Organizations (EO)
• AIOE – All India Organization of Indian Employers

• CIE – Council of Indian Employers
• ASSOCHAM – Associated Chamber of Commerce
• FICCI – Indian Chamber of Commerce & Industry
• EFI – Employers Federation of India
• AIMO – All India Manufacturers Organization
• SCOPE – Standing Conference of Public Enterprises
• CIE – Council of Indian Employers

• Represent large scale industry in India
• Ensures closer cooperation and coordination between AIOE,
EFI and SCOPE
Prof. T.K. Goon 37

Role of Trade Unions
• Major Aims, Objectives & Role of Trade Unions
• To promote and protect workers interest through collective

action
• To ensure security of workers
• To obtain better economic returns
• To Improve working conditions
• To ensure health, safety and welfare of workers at the work
place
• Power to influence management
• Power to influence government
Prof. T.K. Goon 38

2. International Labor Organization (ILO)
Prof. T.K. Goon 39

International Labor Organization (ILO)
• Created in 1919
• Fundamental Principles :
• Labor is not a commodity
• Freedom of Expression and of association are essential to
sustain progress
• Poverty anywhere constitutes danger to prosperity everywhere
• War against want requires to be carried on with unrelenting
vigor within each nation and by continuance and concerted
international effort in which the representatives of workers and
employers, enjoying equal status with those of governments,
join with them in free discussion and democratic decision with
a view to promotion of common welfare.
Prof. T.K. Goon 40

• General Conference – 26th session at Philadelphia in 1944

• Affirms:
• All human beings, irrespective of race, creed or sex, have right

to pursue their material well-being and spiritual development in
conditions of freedom and dignity, of economic security and
equal opportunity;
• Member countries’ central aim would be to attain the above

through national and international policy
Prof. T.K. Goon 41

• Assist Member countries to recognize:

• Full employment and raising standards of living
• Minimum wages, hours of work, wages and earning for living
• Effective recognition of collective bargaining
• Cooperation of management of labor in continuous
improvement of productive efficiency
• Extension of social security measures
• Adequate protection of life and health of workers
• Provision of child welfare and maternity protection
• Equality of education and vocational opportunity
Prof. T.K. Goon 42

• ILC – International Labor Conference:

• Supreme body of ILO
• Each member country send 4 delegates – 2 from State and 1
each representing employers and workers
Prof. T.K. Goon 43

International Labor Organization
• INDIA AND THE ILO:

• India is one of the founding members of ILO
• ILO activities have impacted IR in India in two important ways:
• Ratification of the ILO conventions and/or recommendations

formed the basis for many labor legislations
• Requirement of the ILO to have representation from non-

government delegates helped to organize the employee and
employer groups
Prof. T.K. Goon 44

• CORE CONVENTIONS OF THE ILO:

• ILO has made a total Eight Conventions as Core Conventions
or Human Rights Conventions.
• INDIA HAS RATIFIED FOUR OF THE EIGHT CORE

CONVENTIONS:
• Forced Labor Convention (No.29)
• Equal Remuneration Convention (No.100)
• Abolition of Forced Labor Convention (No.105)
• Discrimination (Employment Occupation) Convention (No.111)
Prof. T.K. Goon 45

• OTHER CORE CONVENTIONS OF THE ILO YET TO BE

RATIFIED BY INDIA:
• Freedom of Association and Right to organize (No.87)
• Right to Collective Bargaining (No.98)
• Minimum Wage Convention (No.138)
• Worst Form of Child Labor Convention (No.182)
• IN RESPECT OF OTHER CONVENTIONS:

• By 2004, India has ratified 39 including 4 Core Conventions of
the 184 Conventions
Prof. T.K. Goon 46

• International Labor Standards and their influence on Indian

Labor Legislation:
• Conditions of work
• Hours of work in:
• Industry, Mines, Road Transport, Commerce and Offices and
Other Establishments
• Weekly Rest
• Holidays with Pay
• Wages
• Protection of wages
• Minimum wages
Prof. T.K. Goon 47


Labor Legislation:
• LABOR ADMINISTRATION AND INSPECTION
• EMPLOYMENT OF CHILDREN AND YOUNG PERSONS:

• Minimum age of employment
• Medical Examination
• Night Work
• Preparation of employment
• Worst form of child labor
Prof. T.K. Goon 48


Labor Legislation:
• EMPLOYMENT OF WOMEN
• Maternity Protection
• Night work
• Employment in unhealthy processes
• Equal Pay
• HEALTH, SAFETY AND WELFARE
• Safety
• Industrial Hygiene and Health
• welfare
Prof. T.K. Goon 49


Labor Legislation:
• SOCIAL SECURITY
• Workmen’s Compensation
• Sickness Insurance
• Invalidity, Old Age and Survivor’s Insurance
• Unemployment Provision
• EMPLOYMENT AND UNEMPLOYMENT
• Employment Offices
• Forced Labor
Prof. T.K. Goon 50

• Problems of Ratification:
• Member countries can be grouped as:
• Countries with Higher Labor Standards
• Countries having Federal Set-up
• Countries where subject matter of Conventions are regulated
by Collective Agreements; and
• Industrially Back-ward countries
Prof. T.K. Goon 51

3. Industrial Relations in India
Phases of IR in India & IR
Machineries In India
Prof. T.K. Goon 52

Industrial Relations in India
• PHASE OF IR IN INDIA :
1. Pre- independence Phase
2. The protective phase (1947 – 56)
3. The consolidation phase (1956-65)
4. The conflict – ridden phase (1965 -1977)
5. The directionless phase (1977 – 1980)
6. The productivity - Efficiency- Quality-orientation phase (1981 –
1990)
7. The competitive phase (post 1990)
Prof. T.K. Goon 53

• FORCES SHAPING IR SYSTEM IN INDIA:

• The colonial history
• Government’s role in IR – preventive and regulatory
• India being a founder member of ILO
• Political movement for Freedom and labor participation
• “Worker-centric” State policies
• Protection of domestic industries – important substitution
• Multiplicity of TUs and political affiliation of TUs
• Labor in concurrent list in COI
Prof. T.K. Goon 54

• BASIC CHARACTERISTICS OF IR SYSTEM IN INDIA:

• Overall control through regulatory provisions
• Regulated primarily through legislations
• Though the laws promulgated are extensive, they are
confounded with serious ambiguities and gaps
• Unionization largely restricted to organized sector
• Most unions have political affiliations
• Multiplicity of unions and external leadership
• State intervention has continued to prevail since time of
Independence, although in the last decade, it has shown a
declining trend
Prof. T.K. Goon 55

• Basic Characteristics of IR System in India:

• Marked difference in labor management relations in different
states, organized and unorganized sectors, private and private
enterprises and multinationals and domestic companies
• There is no National IR policy
• Collective Bargaining is more a matter of optional practice with
no statutory backing
• The changes brought in by the New Economic Policy have
resulted in changes in the IR structure
• The heterogeneity of the emerging workforce has made it
difficult to establish standards or uniform IR practices in the
Indian industry.
Prof. T.K. Goon 56

• BIPARTISM:
• A system of IR where social and labor issues are discussed
between Employee Groups (Trade Unions) and Employer/
Employers’ Groups (Management) usually at the Enterprise
level
• TRIPARTISM:
• A system of Consultations amongst three actors of IR:
• Employers, Employees and the State
• Can take place at either or both macro and micro level;
• A binding spirit of mutuality and reciprocity
• Tripartism is an important feature and cornerstone of the IR
system and Policy in India
• To give shape to this element of policy, a number of bodies
were created:
Prof. T.K. Goon 57
• Important tripartite bodies in India:

• Indian Labor Conference (ILC)
• Standing Labor Committee (SLC)
• Committee on Conventions
• The Industrial Committees
Prof. T.K. Goon 58

Industrial Relations Machineries in India
• Central Level:
• Ministry of Labor
• Central Labor Commissioner (CLC) and its offices in various
Regions (RLC) and ALC
• Conciliation Officers
• State Level
• Ministry of Labor
• State Labor Commissioner and ALC
• Labor Enforcement Officers (LEOs)
• Conciliation Officers
Prof. T.K. Goon 59

• UNDER VARIOUS LABOR LEGISLATIONS:
• Conciliation Officer
• ALC and RLC
• Board of Conciliation
• Labor Courts
• Regional PF Commissioner
• Commissioner under Employees’ Compensation Act
• Chief Factories Inspector under the Factories Act
• Authorities as prescribed under PoW Act, Minimum Wages Act,
Gratuity Act, Shops & Establishments Act, ESI Act, Contract
Labor Act etc.
Prof. T.K. Goon 60

• JUDICIAL MACHINERIES:
• District Court
• High Court
• Supreme Court
Prof. T.K. Goon 61

Actors in IR
• Employees including labor

• Employees’ Representatives viz Union, Federation of unions
• Employers
• Association of Employers (CII, ASSOCHAM, FICCI, AIMO) or
Federation of Employers (e.g. Banks)
• Government / State – Central as well as State
• Judicial Courts – District Courts, High Courts & Supreme
Courts
• Industrial Courts like Labor Courts,
• Tribunals including National Tribunal
• Wage Boards
Prof. T.K. Goon 62

4. Global Industrial Relations
Major Industrialized Economies
Prof. T.K. Goon 63

Global Industrial Relations
• In most industrialized countries, initial primary goal of IR

system was to maintain labor peace and more generally
industrial stability
• In many countries, IR system began to be institutionalized only

in post-war period, coinciding with independence of some of
the countries
• Factors affecting across industrialized work:

• Decentralization of bargaining
• Movement towards increased flexibility in wages, labor
deployment and workplace practices
Prof. T.K. Goon 64

Global Industrial Relations
• FACTORS INFLUENCING IR FRAME WORK IN MAJOR

ECONOMIES:
• Globalization
• Impact of Information Technology
• Changing demographic profile of workers
• Restructuring of industrial enterprises
• Emergence of knowledge economies and knowledge workers
• Outsourcing of non-core activities
• Uncertainty in trade union movement
• LEADING TO:
• Decentralization of Bargaining
• Increased flexibility in wages, labor deployment and workplace
practices.
Prof. T.K. Goon 65

IR in UK
• Early 20th Century:

• Largely shaped around challenge of staple industry
• Resulted in industry level collective bargaining to take care of
the twin problem
• Post war period:

• Bargaining took place more and more at industry level
• Hardly any scope of CB at enterprise level
• Post 1979 and Thatcherism:

• Industrial Chaos & Strong-arm tactics of Tus
• Passing of Employment Relations Act (1979)
• Marget Thatcher’s Economic and Political Philosophy of
reduced state intervention, Free Market and Entrepreneurism
Prof. T.K. Goon 66
IR in UK
• Post 1979 and Thatcherism:

• Passing of Employment Relations Act (1979)
• Margaret Thatcher’s Economic and Political Philosophy of
reduced state intervention, Free Market and Entrepreneurism
• Resulted in:
• Industrial Chaos & Strong-arm tactics of Tus
• Characteristics of Tus in Britain:

• Tradition of Voluntarism
• Representation of workers through TU Officers at workplaces
in the form of shop steward;
• TU membership on occupational rather than industrial lines.
Prof. T.K. Goon 67

IR in EU
• EC attempting a pooling of research on IR structures,

processes, laws and practices in Member Countries with a view
to bring in gradual uniformity on larger policy matters
pertaining to IR
• Characteristics of TUs in EU:

• Distinct movement towards TU organization at pan-EU level;
• Some diversity in National level, efforts are on at some sort of
integration. ETUC set up in that direction
• Unions in most member countries are organized on a sectoral
or occupational basis;
• Blue-collar union losing influence and white collar unions
gaining significance.
Prof. T.K. Goon 68

IR in USA
• National and Business Culture : Ethnocentric

• IR in USA parallels in development of TUs, organized labor and
labor legislations, as it does elsewhere;
• Major Legislations:
– The Norris LaGuardia Act, 1932
– The Wagner Act, 1935
– The Taft Hartley Act, 1947
– The Landrum Griffin Act, 1959
• Trade Unions in USA:

• AFL-CIO : American Federation of Labor And Congress of
Industrial Organizations (1955); largest federations of unions in
USA
Prof. T.K. Goon 69

IR in Australia
• Both Federal and State Governments can legislate on labor

matters;
• Oldest legislation : Conciliation and Arbitration Act, 1904;

• This was replaced in 1988 with Industrial Relations Act, 1988
• This act requires federal trade unions to register themselves

with registrar to be able to take assistance of arbitration
process and other legal rights flowing from the act.
• Most significant is Workplace Relations Act 1996 – objective to

settlement of conflicts and disputes at workplace itself.
Prof. T.K. Goon 70

IR in China
• Historically main characteristics of the IR System includes:

– State owner ship of industrial enterprises;
– Implicit guarantee of employment for workers;
– Centralized wage structure;
– A rigid labor market with little inter-enterprise or inter-regional mobility;
– Absence of price- or efficiency-driven controls over the industry
• Post 1978, system is in a state of ferment, more particularly

since 1983;
• Government enacted a new labor law in 1994 essentially to

create a new IR System within the “socialist market economy”
but implementation has not been uniform.
Prof. T.K. Goon 71

IR in Japan
• IR System is an institutionalized one

• Historically it focused :
– Enterprise Unions
– Lifetime- employment systems,
– Broad based training; and
– Seniority based wages
• Key outcome of IR System is simultaneous achievement of

stability in labor-market and considerable functional flexibility
in workplace –level IR
• Then came sudden and dramatic increase in outsourcing within

Japan, termed as “work commissioning”;
• Result:
– Increase in wage flexibility
– Resulting into reduced power of trade unions
Prof. T.K. Goon 72
IR in South Korea
• Greatly influenced by USA;

• Prior to 1990, conflict prevention and conflict avoidance were
stated objective;
• Overall goal of maintaining stability in IR was a part of
economic development and political control;
• Example: Government’s efforts to control wage costs
• Legal changes mandated formation of Enterprise Unions which
are bound to be a member of FKTU, a union federation created
under mandate of government.
• IR system restructured due to competitive forces;
• Asian currency crisis hastened process of fundamental
changes with Tripartite involvement in policy;
• However, IR system is still in transition phase.
Prof. T.K. Goon 73

IR in Singapore
• IR System is well known for its distinctive Tripartite feature

which is considered both functional and flexible;
• State provides fund and training on development issues so as
to lay foundation for “responsible unionism”
• To ensure that dispute does not result in strikes, legislation
provided for (a) secret ballots on strikes; (b) a notice period;
and © withdrawal of strike once the dispute was under
mediation or conciliation proceedings;
• At the workplace level, a few contentious issues that impacted
operational flexibility and efficiency are out of bargaining,
examples:
– Transfers; Promotions; Termination, Hiring etc.
• Employers provided with flexibility and substantial control
over “operational decisions”
– Result : scope of disputes reduced.
Prof. T.K. Goon 74

EMERGING INTERNATIONAL TRENDS IN IR:
• Decline in union membership and union density
• Consolidation and merger of trade unions
• Variations in collective bargaining practices
• A shift in the relationship from employers’ organizations and

trade unions to employer and an individual employee
• Organization restructuring and emergence of “atypical” forms

of employment.
Prof. T.K. Goon 75

5. Changing Characteristics
of
Industry and Workforce in India
Prof. T.K. Goon 76

Changing Characteristics of Industry and Workforce in India
• MAJOR FORCES DRIVING INDUSTRIAL CHANGE:

• Computerization
• Automation
• Rationalization
• Globalization
• EFFECT OF INDUSTRIAL CHANGE ON LABOR MARKET:

• Changed occupational structure
• Changed nature of work
• Integrated job markets leading to a global occupational
structure
• Improved education facilitating economic growth.
Prof. T.K. Goon 77

• RESULT OF CHANGES IN TECHNOLOGY:

• Mechanization
• Automation
• Information-based services
• Disintermediation
• ABOVE IN TURN IS FORCING:

• Rationalization of manpower
• Labor substitution in case of automation
Prof. T.K. Goon 78

• Participation rate:
• Proportion of people in labor force out of total cohort
population:
• In 1999-2000:
• 7.32% of labor force i.e. 26.58 million were unemployed
• A large proportion of those employed are in subsistence

employment
• Only 8% of those employed are in organized sector
• Education and skill profile of current workforce is still poor.
Prof. T.K. Goon 79

• MAIN CHANGES IN LABOR DEMOGRAPHICS:

• Decline in participation rates across age groups
• Entry of the younger age groups into labor force
• More active participation of older people in labor force
• A reduction in differentials between male and female

participation
• Relatively low education and skill levels
• An attitudinal change towards Technical and Vocational

courses.
Prof. T.K. Goon 80

• MAJOR TRENDS IN UNORGANIZED SECTOR

• 93% of employees in unorganized sector
• Absence of an institutionalized IR system
• Labor legislations not for smaller establishments
• Social security --->out of reach
• Absence of unions does not provide any opportunity for
collective bargaining
Prof. T.K. Goon 81

• TRENDS IN INDUSTRY:
• Profit and market leadership are prime drivers, not social
objectives
• Changes on market ad technology are throwing up newer
competency requirements
• Large employment opportunities in private sector
• Public sector employment faces stagnation and decline
• Government employment is practically NIL
• More opportunities in tertiary sectors
Prof. T.K. Goon 82

• Growing internationalization of business and workforce has its

impact on HRM in terms of:
• Problems of unfamiliar laws;
• Languages,
• Practices,
• Attitudes,
• Management styles,
• Work ethics and more
• HR & IR professionals’ Challenge :

• To deal with more and more heterogeneous sets of workers;
and
• More involvement in employee’s personal life
Prof. T.K. Goon 83

• Liberalization has led to Large scale reorganization of business

in terms of:
• Expansions
• Mergers and Acquisitions (M&A);
• Joint ventures (JVc);
• Takeovers
• Internal restructuring of organizations
• Situation is “dynamics” as well as “uncertain” and the

challenges for HR & IR professionals :
• To manage employee’s anxiety, uncertainties, insecurities and
fears.
Prof. T.K. Goon 84

• There are signs of changing demographics of the workforce

reflected in:
• Age and Qualification mix;

• Dual career couples;
• Large chunk of young blood with contrasting ethos of work;\
• Growing number of women in workforce;
• Working mothers;
• More educated and aware workers;
• Growing number of able superannuated workforce
Prof. T.K. Goon 85

6. Trade Unionism and Trade Unions
Prof. T.K. Goon 86

Trade Unionism and Trade Unions
• Trade Unionism, developed as an effort of the laborers to

organize during the Industrial Revolution era, promoted the
Factory System of Production and a laissez-faire approach of
the State towards participants of Factory System
• BASIC THEORIES EXPLAINING TRADE UNIONISM:

• Revolutionary – Ownership based
• Industrial – Democracy, Rights based
• Business – Economic Power
• Socio-psychological belongingness
Prof. T.K. Goon 87

• REASONS FOR JOINING A TRADE UNION:

1. To attain economic security
2. To be able to improve bargaining power
3. For ventilation of workers grievances
4. For an information medium
5. To protect unexpected economic needs
6. To satisfy social needs
7. For securing power

Prof. T.K. Goon 88
• TOOLS OF TRADE UNIONISM:
• Mutual insurance
• Collective Bargaining
• Legal enactment
• Direct action
Prof. T.K. Goon 89

• LINK BETWEEN POLITICS AND TRADE UNIONS:
• Politically committed members account for 15-20% of total

membership in a union, but their influence is high
• Political parties and unions function in close cooperation, but

there is an essential difference between the two
• TUs in India are fragmented due to their allegiance to different

political parties
Prof. T.K. Goon 90

• RIGHTS OF TUS:
• ILO recognized the rights of association through Freedom of

Association and Protection of the Rights to Organize
Convention (Convention No.87)
• Many countries have not ratified this convention
Prof. T.K. Goon 91

• MAJOR OBJECTIVES OF TUS:
1. Ensure security of workers
2. Obtain better economic returns
3. Improve working conditions
4. Power to influence management
5. Power to influence government
Prof. T.K. Goon 92

Role of Trade Unions
• Major Aims, Objectives & Role of Trade Unions
1. To promote and protect workers interest through collective

action
2. To ensure security of workers
3. To obtain better economic returns
4. To Improve working conditions
5. To ensure health, safety and welfare of workers at the work
place
6. Power to influence management
7. Power to influence government
Prof. T.K. Goon 93

• BROAD AREAS OF TU FUNCTIONS:
• Organizational
• Economic
• Political-legal
• Welfare
Prof. T.K. Goon 94

• SPECIFIC TU FUNCTIONS:
1. Protect Economic interests of the members

2. Influence social relationships at the workplace
3. Influence policies at National level
4. Collective action for sectional interest
5. Collaboration for productivity and gain sharing
6. Enhancing professional status
7. Research
8. Communication, welfare and education
Prof. T.K. Goon 95

• FEATURES OF AN EFFECTIVE TU:
• Internally Democratic
• Have a strong leadership and large follower ship
• Exhibit a responsibility towards their workers members
• Committed to promote industrial peace and harmony
• Inclined towards collective bargaining that is collaborative and
not competitive
• Possess financial security
• Adaptable to change
• Trade unions may be classified on the basis of purpose and the
purpose of membership
Prof. T.K. Goon 96

• Features of an Effective TU:

• TRADE UNIONS MAY BE CLASSIFIED ON THE BASIS OF
PURPOSE AND THE PURPOSE OF MEMBERSHIP:
• ON THE BASIS OF PURPOSE:

• Regulatory
• Reformist
• Revolutionary
• ON THE BASIS OF MEMBERSHIP:

• Craft
• Industry
• Staff
Prof. T.K. Goon 97

6. Trade Unions in India
Prof. T.K. Goon 98

Trade Unions in India
• Indian TUs are very fragmented

• Early splits in Indian TUs tended to be on ideological grounds
• Recent fragmentations have centered on personalities and
occasionally on regional and caste considerations
• Trade union activities are restricted to industrial areas
• AITUC was formed in 1920 on a national basis
• PHASES IN THE GROWTH OF TUS:

• First post-independence growth phase
• Second post-independence growth phase (1960s -1980s)
• Pre-liberalization era (1980-1991)
• Post liberalization era (beyond 1991)
Prof. T.K. Goon 99

• UNION SECURITY:
• Through membership that is sought by providing benefits of

collective bargaining only to those who remain their members
• Union derives its meaning and strength from number of

members it has;
• Unions (and management) look for measures that enhance

security i.e. maintaining a healthy membership in comparison
to others
• Free riders are discouraged
Prof. T.K. Goon 100

• UNION SECURITY:
• CAN BE ACHIEVED THROUGH PRACTICES SUCH AS:
• Recognition (by management) as the sole bargaining agent
• Maintenance of membership (preferential shop, agency shop,

closed shop, open shop, union shop)
• Check-off system
Prof. T.K. Goon 101

• Central Trade Union Organizations:
• Presently there are 9 CTUOs with differet political affiliations:
• AITUC
• INTUC
• CITU
• HMS
• BMS
Prof. T.K. Goon 102

• MAJOR PROBLEMS FACED BY TUS IN INDIA:
• Outside or Political Leadership

• Multiplicity of unions and inter-union rivalry
• Small size of the unions
• Low membership
• Uneven growth
• Poor financial position
• Low level of knowledge of labor legislation
• Fear of victimization
Prof. T.K. Goon 103

• TRADE UNIONISM IN INDIA:

• Unionization according to Industry / Region / State
• 70,000 registered TUs, large number not registered
• 2% of workers unionized
• PSUs: Industry-level collective bargaining in coal / steel/oil and
gas – Enterprise wise elsewhere
• Private sector : Plant level Collective Bargaining
• Union density according to the size of the industry
• Craft unions in the government transport sector
• Low unionization in SMEs
• Twin battle against inter-union competition and assertive
management
• Unionization in India under recession
Prof. T.K. Goon 104

TRADE UNIONS IN INDIA
• REGISTRATION AND RECOGNITION

• 10% of workers members or 100, subject to a minimum of
seven, can apply for Registration of a union
• One-third of the office bearers can be outsiders;
• Trade Union can raise and maintain political funds as a

separate account;
• Office bearers of a Registered TU are exempt from civil and

criminal liability;
• But accountable under the Consumers Protection Act.
Prof. T.K. Goon 105

• REGISTRATION AND RECOGNITION

• Registration is with the Registrar of TUs to enjoy certain
privileges
• Recognition is by the management for collective bargaining

• TU Act does not have provision of Recognition of TU
• Certain State have enacted Law for Recognition viz Maharastra,
Gujarat, Rajasthan and UP
• Certain State have formulated recognition rules viz AP, Orissa
and WB.
• In India all registered TUs have de facto, not de jure
recognition. De facto means virtually and De jure means by law.
Prof. T.K. Goon 106

• PRIVILEGES OF RECOGNIZED UNIONS
• Right to represent their members’ grievances
• Right to collective bargaining / agreements on wages, working

conditions etc.
• May ask for special benefits like office space and

infrastructure, notice board, time off for union work as well as
financial and other support for education, training and other
non-bargaining activities
Prof. T.K. Goon 107

• CLOSED SHOP / OPEN SHOP

• Closed shop means union membership is pre-requisite for
employment.
• UK had it, now illegal under EU Law.
• Open Shop means joining union membership is after

employment within a specified period.
• CHECK OFF
• Means a system by which workers give in writing to deduct
union membership fees from their wages
• Neither TU Act nor Payment of Wages Act explicitly provides
for it.
• Not legal for employer to deduct union subscription without
members authorization and union’s request.
Prof. T.K. Goon 108
• CODE OF DISCIPLINE
• 15th Session of Indian Labour Conference (1957) laid down a
set of principles for maintaining harmonious inter-union
relationship:
• Every employee in an industry or unit shall have freedom and
right to join the union of his/her choice.
• No coercion shall be exercised in this matter.
• There shall be no dual membership of unions
• There shall be unreserved acceptance of and respect for the
democratic functioning of TUs
• There shall be regular and democratic elections of executive
bodies and office bearers of TUs
• Ignorance and backwardness of workers shall not be exploited
by an organization.
Prof. T.K. Goon 109

• CODE OF DISCIPLINE
• No organization shall make excessive or extravagant deamnds
• Casteeism, communalism and provincialism shall be
eschewed by all unions.
• There shall be no violence, coercion, intimidation or personal
vilification in inter-union dealings.
Prof. T.K. Goon 110

• CODE OF DISCIPLINE & CRITERIA FOR RECOGNITION OF TU

• Where there is more than one union, a union claiming
recognition should be of one year old. For one union, this
condition not apply;
• Membership of union should have at least 15% of the workers
• A representative union should have at least 25% of workers of
that industry in that area.
• Recognition should remain valid for 2 yrs
• Union with largest membership should be recognized
• If a TU is not affiliated to any of the four central organizations
of labor, issue of recognition would be dealt separately.
• In an industry in an area, if a union of that industry enjoys 50%
or more membership, that union will have right to deal with
issues of local interests
• Only unions which observed Code of Discipline would be
recognized. Prof. T.K. Goon 111
TRADE UNIONS IN INDIA - CHALLENGES
• INTERNAL CHALLENGES
• Low Membership Density – Formal and Informal Sector
• Declining Union Membership
• Reprentativity – AITUC, CITU, INTUC, BMS, HMS etc.
• Poor Finances
• Major sources and Uses of Funds
• Financial Strength of Trade Unions
Prof. T.K. Goon 112

TRADE UNIONS IN INDIA - CHALLENGES
• EXTERNAL CHALLENGES
• Global Competition
• Rapid Changes in Technology
• Shifting Attitudes of Government
• Managerial Strategies and HRM Policies
• Assertion of their Rights by the Community and Consumers
• ORGANIZATIONAL ISSUES
• Leadership
• Changing Demographics
• Internal Democracy
• Declining Union Power and Influence
Prof. T.K. Goon 113

• TRADE UNIONS ACT, 1926:

• Enacted mainly in deference to ILO Convention, in recognition
of the right of workers to organize and also to strengthen
bargaining power of workers
• Act aims to provide for registration of TUs and in certain
aspects, to define the law relating to registered TUs
• OBJECTIVES OF THE ACT:

• Lay down conditions governing registration of TUs
• 10% or 100 subject to minimum of seven members can apply
for registration.
• Define obligations of a registered TU

• Prescribe rights and liabilities of a registered TU
Prof. T.K. Goon 114

• SOME OBLIGATIONS & DUTIES OF REGISTERED TRADE

UNIONS:
• Not more than 1/3 rd outsiders can be office bearers;

• There has to be a separate fund for political purpose;
• Must encourage collective bargaining
• Must protect interest of its members
• PROTECTION TO OFFICE BEARERS OF REGISTERED TRADE

UNION:
• Office bearers are exempt from civil and criminal liability; but
accountable under Consumer Protection Act
Prof. T.K. Goon 115

• MANAGERIAL TRADE UNIONISM:
• TUs in Executive cadre like Civil services, doctors, electricity

board, bank officers, merchant navy officers etc.
• These associations among white-collared workers more

pronounced in public sector.
Prof. T.K. Goon 116

• RIGHTS OF RECOGNIZED TRADE UNIONS:

• Right to raise issue with the management
• Right to collect membership fees within the premises of the

organization
• Ability to demand check-off facility
• Ability to put up Notice Board on premises for union

announcements
• Ability to hold discussions with members at a suitable place

within the premises
Prof. T.K. Goon 117

• Rights of Recognized Trade Unions:
• Right to discuss members’ grievances with employer
• Ability to inspect beforehand a place of employment or work of

its members
• Nomination of its representatives on Committees formed by

Management for industrial relations purpose as well as
statutory bipartite committees
Prof. T.K. Goon 118

7. Conflict Management -
Causes, Approach & Leadership Style
Prof. T.K. Goon 119

Conflict Management
• Specific causes of conflict:

• Economic:
• Division of the fruits of industry
– Wage structure and demands for higher wages
– Methods of job evaluation
– Deductions from wages
– Incentives
– Fringe benefits
• Methods of production and physical working conditions

– Technology and machinery
– Working conditions
– Layouts
– Changes in products
– Terms of employment
Prof. T.K. Goon 120

Conflict Management

• Economic:
• Terms of employment
– Hours of work
– Shift working
– Promotion
– Demotion
– Layoffs
– Retrenchment
– Dismissal
– Job-security
– Retirement etc.
Prof. T.K. Goon 121

Conflict Management

• Institutional:
• Recognition of TUs
• Membership of TUs
• Subjects of CB
• Bargaining Unit
• Union Security
• Unfair practices
Prof. T.K. Goon 122

Conflict Management

• Psychological:
• Clash of personalities
• Behavioral maladjustment
• Demands for recognition of workers’ personality
• Authoritarian administration
• Lack of scope for self expression and participation
• Undue emphasis on disciplines
Prof. T.K. Goon 123

Conflict Management
• Denial of Legal and Contractual Rights:
• Non-implementation of labor laws and regulations, standing

orders, adjudication awards and so on;
• Violation of collective agreements, wage boards’

recommendations, customer rights and privileges and so on
Prof. T.K. Goon 124

Modes of resolving conflict
• AVOIDANCE MODES
• APPROACH MODE
Prof. T.K. Goon 125

• AVOIDANCE MODES
• Aims at avoiding or postponing conflicts in a variety
of ways
1. Resignation
2. Withdrawal
3. Defusion
4. Appeasement
Prof. T.K. Goon 126

• APPROACH MODE
• Take more aggressive or understanding forms by
using positive steps to confront conflicts and find
solutions by way of:
1. Confrontation
2. Compromise
3. Arbitration
4. Negotiation
Prof. T.K. Goon 127

Avoidance Mode
• 1. RESIGNATION
• Extreme avoidance of a conflict with a sense of helplessness
• Conflict is seen as a part of reality, arising out of unreasonable
stand of out-group, usually seen as hostile.
• Another form of Resignation is to ignore the conflict
• Also denying unpleasant situation in the hope that conflict will
get resolved itself in due course.
• Many organizations resigns to recurring conflicts with Trade
Unions and do not attempt to resolve them, hoping solutions
may emerge in due course of time and other will understand
some day.
Prof. T.K. Goon 128

Avoidance Mode
• 2. WITHDRAWAL
• Getting away from a conflict
• Out-group is seen as belligerent but still open to reason
• One way to get away from the conflict is to avoid situation of
potential conflict, by leaving the two groups to work together.
• Another way to withdraw from collaborative work with out-
group
• Another way is to withdraw from a conflict when it takes place.
• Physical separation is a third way to withdraw
• Fourth way of withdrawal is to define boundaries of interaction
with out-group and make arrangement to limit these.
• Psychological withdrawal – when one of the spouses stop
arguing and keep quiet whenever there is a difference of
opinion – do not sort out the difference but even leave the
house for sometime (physical withdrawal) herself
Prof. T.K. Goon 129

Avoidance Mode
• 3. DEFUSION
• Buying time for dealing with a conflict
• May take several forms
• Let the participants “cool down” before taking up the real issue
• Allow passage of time to settle down the emotions
• Best example – separate statehood of Telengana – PM allowed
time to defuse the situation
• Another way to appeal to good sense of both groups, to the
sentiment that both are part of a larger group and have
common interests, interdependence, mutuality etc
• Another way to develop temporary arrangement of interaction
through a third group – creating buffer to absorb excess
emotions.
Prof. T.K. Goon 130

Avoidance Mode
• 4. APPEASEMENT
• Providing some concessions in the hope that the out group will
be satisfied and the conflict will be over
• Main objective is to buy temporary peace.
• When conflict is embarrassing and disturbing, may agree to
some demands of out-group to postpone the conflict.
• Appeasement has same dynamics as payment in case of
blackmail
• Out-group get the message that the group is weak and
incapable of confronting issues.
• Conflict remain unresolved, demands of out-group increases,
its posturing gets stiffer and situation deteriorates further.
Prof. T.K. Goon 131

Approach Mode
• 5. CONFRONTATION
• Fighting out an issue to get a solution in one’s favor
• When in-group perceives the out-group to be both opposed to
its interests and unreasonable, confrontation is adopted,
• It may lead to “Win-lose Trap”
• It involves coercion and is likely to fail to reach a solution
• Long strikes by Trade Unions is a good example of
confrontation.
• Each party try to show their own strength by various ways.
Prof. T.K. Goon 132

Approach Mode
• 6. COMPROMISE
• A process of sharing the gain without resolving the conflict.
• Can be done by Bargaining
• Often used in conflicts between managements and unions
• If the out group is seen as being interested in peace (and hence
as reasonable), attempt is made to seek a compromise
• Example:
• If management is interested in fulfilling certain export orders,
they may agree to increase incentive for a particular period and
union may agree to work for longer hours for that time
Prof. T.K. Goon 133

Approach Mode
• 7. ARBITRATION
• A third party giving an award acceptable to both groups
• If out group is perceived as being belligerent and not interested
in peace, and yet not totally unreasonable, arbitration is
resorted to;
• Usually the conflict remains unresolved – it is only postponed
for a time
• In many management –union conflicts, arbitration by labor

commissioner is sought.
Prof. T.K. Goon 134

Approach Mode
• 8. NEGOTIATION
• Continuous interaction and dialogue between groups in order
to find a solution with maximum advantages to both
• Most satisfactory solution can emerge in confronting the
problem and exploring alternative solutions
• Possible when out group is perceived both as interested in
peace and as reasonable.
• Number of steps are involved in the process:
• Unfreezing, Being Open, Learning Empathy, Searching for
common themes, Generating Alternatives, Searching for a
solution, Breaking the deadlock, Committing to the solution
within the group, and Committing the Whole Group
Prof. T.K. Goon 135

Conflict Management Style
Mode Perception of Out-group Style
Avoidance Unreasonable Opposed to our Resignation

interest and
belligerent
Avoidance Open to reason Opposed to our Withdrawal
interest and
belligerent
Avoidance Unreasonable Having own Appeasement
interest but
interested in
peace
Avoidance Open to reason Having own Defusion
interest but
interested in
peace
Prof. T.K. Goon 136

Conflict Management Style
Mode Perception of Out-group Style
Approach Unreasonable Opposed to our Confrontation

interest, and
belligerent
Approach Open to reason Opposed to our Arbitration
interests, and
belligerent
Approach Unreasonable Having own Compromise
interests, but
interested in
peace
Approach Open to reason Having own Negotiation
interests, but
interested in
peace
Prof. T.K. Goon 137

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1.

Prof. T.K. Goon 1

• Features associated with changes of relations between

• Segmentation : Blue-color and White-collar Roles

• Specialization : Horizontal Differentiation

• Hierarchical levels : Vertical Differentiation

• A New Relationship Interface : A Range of Interface,

Prof. T.K. Goon 2

• Changes in workplace relationships include:

Prof. T.K. Goon 3

• Changes in workplace relationships brought more players

• Groups of workmen / employees in the unit / industry;

• Hence Industrial Relations is “Social Relations in Production”

• And, two dominant aspects of IR:

Prof. T.K. Goon 4

Prof. T.K. Goon 5

• INDUSTRIAL RELATIONS : SOCIAL RELATIONS:

• This term is generally associated with relations between

• Mass Production post Industrial Revolution, coupled with a

• Trade Unions emerged out of a necessity to restore some

Prof. T.K. Goon 6

• Conflicting interests and ideological orientation conveyed an

• The State sought to gain cooperation of the two partners in

Prof. T.K. Goon 7

• DEFINITION OF IR MUST TAKE THE FOLLOWING INTO

Prof. T.K. Goon 8

• Management – Union Relationship

• Employer – Employee Relationship

• Relationships amongst various Groups of Employees

• Effects of extraneous factors (State, Socio-Political-Economic

Prof. T.K. Goon 9

• IR deals with management of relationships, mainly with and

• 2. Union – Management or Labor Relations

• 3.Government – Management – Union:

• 4.Community or Public Relations

• COMMUNITY OR PUBLIC RELATIONS:

• SUBJECT MATTER OF SUCH RELATIONSHIP:

1. To promote and develop congenial labor-management

2. To maintain industrial peace and avoid industrial conflicts

3. To improve performance and productivity by minimizing

4. To safeguard interests of labor and management by securing

5. To enhance economic status of workers by improving wages

6. To establish industrial democracy by strengthening

7. To ensure organizational discipline

8. To boost morale of workers and create a sense of

9. To enable workers to solve problems through mutual

10. To encourage and develop TUs in order to increase workers’

11.To correct imbalances in socio-economic order arising out of

Prof. T.K. Goon 13

Prof. T.K. Goon 14

• Promoting industrial harmony and peace

• Arises out of employment relationship

• Sets complex rules and regulations for the participants to

• Hinges on a cooperative spirit between all partners thereby

• Comprise employees and their organizations, employers and

Prof. T.K. Goon 16

• MAINTENANCE OF SOUND IR NEEDS:

• Strong, well organized and democratic unions for balance of

Prof. T.K. Goon 17

A Schematic Interplay amongst the main variables in IR 18

• SIX APPROACHES TO IR:

2. The Systems Approach : Dunlop (Input – Transformation –

3. The Conflict Approach: Pluralism & Post Capitalism