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 Name of Institution

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Industrial Relations
 Meaning of IR Name of Institution

• Industrial Relations is the relationship

between management and employees or
among employees and their organization
that characterize and grow out of
employment.
• Industrial relations encompasses a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
 OBJECTIVES OF IR Name of Institution

• To enhance economic status of worker

• To avoid industrial conflicts and their consequences
• To extend and maintain industrial democracy
• To provide an opportunity to the worker to have a
say in the management decision making
• To regulate production by minimizing conflicts
• To provide forum to the workers to solve their
problems through mutual negotiations and
consultations with management
• To encourage and develop trade union in order to
develop workers collective strength
 History Of Industrial Relations Name of Institution

• Pre Independence

• Post Independence
 Background- IR Name of Institution

PRE INDEPENDENCE ERA-

➢ Hired and Fired
• Employer was in commanding position
➢ Wages were very poor
➢ Till the end of first world war trade unions
movement had not emerged
➢ Hardly any laws to protect the rights of
workers except Employers and Workmen
Dispute Act 1860 which was used to settle
wage disputes.
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After first world war:

• Workers started resorting to violence
and employers resorted to lockouts.
• Numerous strikes and disturbances
during 1928 and 1929
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• As a result Government enacted Trade Disputes

Act 1929 to enhance early settlement of industrial
dispute based on BRITISH INDUSTRIAL
COURTS(ACT) 1919
• But it did not provide for any standing machinery to
settle industrial disputes and also state and central
government made no adequate use of this law.
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• 1938 – To meet acute industrial unrest prevailing then,

• For the first time called was

established for settling disputes.

• This was replaced by BIR ACT 1946, which was amended in 1948, 1949, 1953 and
1956 and so on. Soon after the second world war, India faced many problems like
rise in cost of living, high population, scarcity of essential commodities,
unemployment and turbulent Industrial relations situation.
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• After independence significant step was

enactment of
• A permanent machinery to settle Industrial
disputes but also to make these awards
binding and legally enforceable.
• Besides this in
was held in India where an
appeal was made to labor and
management India in form of
to maintain industrial
peace and harmony.
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• Setting up of Indian Labour Conference, a

tripartite body.
• Objective:- Co-operation between employers,
trade Unions and Government..
• It met once a year to discuss problems relating
to labour-management relations.
• Various points are discussed and were
formulated into legislations.
• However since the early 1970 the ILC met only
sporadically depending upon the concerns and
issues of Labour Ministry.
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• Main characteristic feature of IR during

this period was change in Government’s
attitude towards labor and their problems.
• Many labour laws were enacted to protect
the interest of industrial workers during
1947 to 1956.
• These labour laws cover many issues
concerning labour, such as seniority, wage
rates, paid holidays, disciplinary matters,
social security.
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• As a result Code of Discipline was

introduced 1958. But it turned out to be
more of moral guideline than as a Legal
enactment.
• Tried to structure Plant Level IR
machinery in form of : Work Committees,
JMC(Joint Management Councils,
Recognition of TU, Grievance procedure for
workers, workers participation Schemes
etc.
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EVENTS: Political and National events that

affected the course of Industrial Relations.
1962: Chinese Aggression
1964: Nehru Passing away, Congress structure
started eroding.
1962-1971: Three wars that India fought one with
China and two with Pakistan.
1966: Appointment of National Commission of
Labour (NCL) by government to look into
matters and make recommendations . It
submitted its report in 1969
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• Significant recommendations of NCL

were processed by ILC and Standing
Labour Committee in 1970 and 1971
and major policy decisions were taken
for implementation:
• Statutory recognition of representative
Union as sole bargaining agent.
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• ILC did not meet from 1972to 1976. When

emergency was declared in June 1975, the
NATIONAL APEX BODY was set up in place
of tripartite ILC in consonance with
Government 20 point Programme.
• The NAB’s and SAB’s were bipartite in
composition.
• 23 members( 12 W, 11 E) –NAB
• Met six times during 1976 for reviewing IR
and Govt acted as an Arbitrator.
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• NAB and SAB’s were abolished

• Did not survive for long and was replaced by
ILC and it got revived again in May 1977
• There was a period of emergency declared
due to which there was tightening of discipline
in Industry.
• And after emergency and change in political
leadership, there followed a period of
reconciliation and trade Union activity.
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• Many committees were set up eg: Tripartite

committees , worker’s participation and draft
on IR bill to streamline persistent IR problems.
• 1970’s and 1980’s – IR characterized by
violence
• June 29 1981: President of HMS workers
union were beaten and murdered.
• July 24 1981: Managing Director of Bombay
Tyres Company was assaulted.
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• Due to these events they were loosing

confidence and getting impatient due to weaker
prevailing Collective bargaining situations.
• Other reasons:
Govt inability to maintain price levels.
Inability to provide effective settlement machinery.
Plethora of controls on production and its licensing
procedures , high rate of taxation , restriction on
imports that affected the profits
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• To meet industrial strife on 26th July 1981:

Government issued ordinance to ban
strikes.
• A new law called ESMA(Essential Services
Maintenance Act) was promulgated.
• This law incensed TU and result was
BHARAT BANDH on 19th Jan 1982.
Workers in industrial establishments,
banks, life insurance and general insurance
companies abstained from work on that
day.
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• ESMA act empowers the Government to ban

strikes, lay offs and lock outs in what it is
deemed to be essential services. It empowers
the government to punish any person who
participates or instigates a strike which is
deemed illegal under ESMA.
• There was huge production loss due to these
strikes and lockouts in 1980 was 12.53 crores
in 1980, 125.63 crores, 108.16 crores in 1979,
1978 respectively.
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• https://www.youtube.com/watch?v=lTjYF
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• https://www.youtube.com/watch?v=f_qJ
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• (negotiation process
• https://www.youtube.com/watch?v=tLT93
_AuPKA

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