Industrial Relations

Introduction to Industrial relations

Presented by;
Dr. Ibrahim Kaleem
School of Business and Law
UDS, Wa Campus

Source: Trade unions and industrial relations in Ghana, Accra, October,

2012
 Introduction
• Industrial relations has become one of the
most delicate and complex problems of
modern industrial society.

• Industrial progress is impossible without

cooperation of labours and harmonious
relationships.

• Therefore, it is in the interest of all to create

and maintain good relations between
employees (labour) and employers
(management).
 What is Industrial Relations?
• The term ‘Industrial Relations’ comprises
of two terms: ‘Industry’ and ‘Relations’.

• “Industry” refers to “any productive activity

in which an individual (or a group of
individuals) engaged”.

• By “relations” we mean “the relationships

that exist within the industry between the
employer and his workmen.”
 Defining of Industrial Relations
• The term ‘Industrial Relations’ has been variously
defined:

• Industrial relations are viewed here as the “ process by

which people and their organization interact at the place
of work to establish the terms and conditions of
employment.

• J.T. Dunlop defines industrial relations as “the

complex interrelations among managers, workers and
agencies of the governments”.

• According to Dale Yoder “industrial relations is the

process of management dealing with one or more unions
with a view to negotiate and subsequently administer
collective bargaining agreement or labour contract”.
 Defining of Industrial Relations
(contd..)
• Leo (2010) defines industrial relations as a
discipline that studies of the laws, conventions and
institutions that regulate the workplace.
▫ Industrial relations shape our working life, society and
national economy and can be looked at from four different
perspectives: workers, employers, the society and the
government.

• Shultz (1968) sees industrial relations as “a

problem – based”. It is not a discipline in itself but
rather draws on many disciplines for theory and
technique to understand and help solve the
problems in the workplace, in the labour market
and at the bargaining table.
Importance of Industrial Relations
• It establishes industrial democracy based on
labour partnership in the sharing of profits
and of managerial decisions

• It contributes to economic growth and

development

• It ensures optimum use of scare resources

• It prompts enactment of sound labour

legislation

• It improves morale of the workforce

Importance of Industrial Relations
(contd..)
• It discourages unfair practices on the part
of both management and unions

• It ensures uninterrupted production.

• It reduces the industrial disputes.

• It has brought a mental revolution.

• It helps in reducing wastages

 Objectives of Industrial Relations
• To safeguard the interest of labour and
management

• To avoid industrial conflict or strife and develop

harmonious relations

• To raise productivity to a higher level in an era of

full employment

• To establish and promote the growth of an

industrial democracy based on labour
partnership
Objectives of Industrial Relations
(contd..)
• To eliminate or minimize the number of
strikes, lockouts etc.

• To improve the economic conditions of

workers

• Socialization of industries by making the

state itself a major employer

• Vesting of a proprietary interest of the

workers in the industries in which they are
employed.
 Elements of Industrial Relations

• The main elements of industrial relations

include:
▫ collective bargaining

▫ settlement of industrial disputes

▫ avoidance or prevention of disputes

▫ workers participation in decisions at the

workplace
The major aspects of the industrial
relations system
• Five major aspects of features:
• The actors
▫ (workers and their organizations, management, and
government).

• Contextual or environmental factors

▫ (labour and product markets, technology, and community)
(see Dunlop, J.T., 1958)

• Processes for determining the terms and conditions

of employment
▫ (collective bargaining, legislation, judicial processes and
management decisions, among others).
 The major aspects of the industrial
relations system (contd..)
• Ideology or a minimal set of shared beliefs
▫ such as the actors' mutual acceptance of the
legitimacy of other actors and their roles, which
enhances system stability.

• Outcomes including wages and benefits,

rules about work relations
▫ (e.g., standards for disciplinary action against
workers), job satisfaction, employment security,
productive efficiency, industrial peace and conflict
and industrial democracy.
 Current issues in Contemporary
Industrial Relations (contd..)
• Industrial relations is a set of functional
interdependence involving;
▫ historical, economical, social, psychological,
psychological, demographic, technological,
occupational, political and legal variables.

• With the coming of globalization, the 40

year old policy of protectionism proved
inadequate for the industry to remain
competitive.
 Current issues in Contemporary
Industrial Relations (contd..)
• The number of local and enterprise level
unions has increased and there is a
significant reduction in the influence of the
unions.

• Under pressure some unions and federations

are putting up a united front e.g. banking.

• Another trend is that the employers have

started to push for internal unions i.e. no
outside affiliation.
 Current issues in Contemporary
Industrial Relations (contd..)
• HR policies and forms of work are emerging that
include, especially in multi-national companies,
multi-skills, variable compensation, job rotation etc.
These new policies are difficult to implement in
place of old practices

• HRM is seen as a key component of business

strategy.

• Training and skill development is also receiving

attention in a number of industries, especially
banking and information technology.
•Thank you!!