INDUSTRIAL

RELATIONS
WHAT IS INDUSTRIAL
RELATIONS ?
 An act or art of controlling Human resources in
employment.
 Also referred as Human Relations, Employee
Relations, Legal Relations Etc.
 Essentially : Human Relations – Adjustment
Between Humans.
 Two Inseparable Limbs of organization body.
 Interest Apparently Conflict But Complimentary.
DEFINITION OF INDUSTRIAL
RELATION:
‘It is about the relationships and inter-relationship
between workers, groups of workers, managers
and employers, group of employers, industrial
tribunals and government.
Within these relationship and inter relations
participants seek to establish the terms and
conditions of employment and the way in which
the employment relationship is to operate’
 Industrial Relations comprises “all the
rules, practices and conventions governing
interactions between managements and
their workforces, normally involving
collective employee representation and
bargaining.”
(Graham and Bennett, 1998)
Employee Relations
Consists of all those areas of HRM that
involve general relationship with
employees through collective agreements
where trade union are recognized and
commonly applied policies for employee
involvement and communication.
(Armstrong 2000)
Ideally cordial IR is perfect harmony:
 But perfect understanding for all times - a
myth.
 humanly impossible to sink conflicts &
differences for ever & completely.
 people will have grievances, conflicts &
some differences.
 Good and cordial IR does not pre-
supposes total absence of conflicts.
 Thus : important : urge on the part of both
to settle conflicts by mutual understanding.
 If Poor IR - None Happy
 Several apprehensions
 Fears in mind
 Poor morale
 Tension
 Therefore, suffer
mentally & physically.

All dislike tension & conflicts.

Inherent desire & urge to end conflicts & tension.
This is important in handling IR.
Industrial Relations policy and practices covers these areas:

a. Procedures for setting terms and conditions of work, profit

sharing, training targets, equal opportunities policy and so
on.
b. Disciplinary and grievance procedures, both individual
and collective, including external arbitration and
conciliation.
c. Recognition of trade union to represent worker interests
through the processes of collective bargaining and
consultation
d. Development of added or alternative mechanisms for
employee representation and consultation.
e. Determination of the structure and scope of consultation
and employee involvement in decision making, within the
framework of collective bargaining agreements, works
councils, general HRM policies and so on.
EMPLOYEES EMPLOYERS

EMPLOYEES EMPLOYER – EMPLOYERS

ASSOCIATIONS EMPLOYEE ASSOCIATIONS
RELATIONS

GOVERNMENT COURTS AND

TRIBUNALS

PARTIES TO IR
A) Employee/Worker
 Person employed by another for salary, wage or commission
 Some countries make distinction between ‘worker’ and employee.
Former involved in manual work, day labour, weekly wages. Latter
includes clerical, supervisory, technical and professional worker
usually on a salary twice a month or monthly.
 Employees sometimes believed to be white collar personnel who
are too dignified to join unions. Wise employees soon discover that
such dignity cannot be eaten
B) Trade Unions

 Formal organisations that

represent individuals
employed in one organisation
throughout an industry or in an
occupation
 Traditional focus on pay rates,
conditions of work and job
security
 Legal protection and a
monopoly over representing
employee interest before
tribunals
 C) Employer Associations
 Represent employer interest
before tribunals and provide a
range of IR advisory services
including dispute handling and
how to counter union activity
 One of its main purpose is to
negotiate with Unions
 Where Unions are organised,
Employers are also organised
 Sometimes abuse the right of
association by forming a blacklist
of employers and also a national
or international cartels which
control prices, oppress workers ,
etc
D) Government

 Major Employer in most countries

 Responsible for establishing national objectives and
priorities
 Responsible for making and enforcing laws, not just in
respect to labour relations, but for the overall good order
of a country
 Through making Laws, policies it plays a significant role
in imposing philosophies of value bases, thus has strong
influence in circumstances in which people work and live
Importance of Industrial Relations
 Industrial Relations contributes to economic growth
and development
 Industrial Relations establishes Industrial democracy
 Industrial Relations ensures optimum use of scarce
resources
 Industrial Relations improves morale of the work
force
 Industrial relations facilitates change
 Discourages Unfair practices
 Promotes Enactments of sound labour legislations
Causes of Poor Industrial Relations
 Hours of Work
 Wages of Workers
 Climate of work place
 Non recognition of education of the workers
 Attitude of Management’s towards labour
 Role of Trade Union
 Conditions of work and safety
Industrial Relations Strategies or
Conditions for the Maintenance of
Harmonious Industrial Relations
 Industrial Harmony as goal
 Informal human relations
 Proactive approach to the management
 Job Security
 Healthy role of Trade Union
 Spirit of Collective Bargaining
 Proper Communication
 Liberal Attitude of Management
 Training and Education
 Maintenance of Industrial Peace – Resolution of
Industrial Disputes in Peace full Manner.
Scope of IR
 Administration
 Liaison
 Drafting rules & regulations
 Job Analysis
 Employment Testing
 Recruitment
 Placement, Induction
 Medical and Health Services
 Employment Record
 Public Relations
 Benefit, Retirement & Pension Programmes
 Suggestions Plans
 Group Activities
 Appraisals and rewards
What are Industrial Disputes?
 Industrial Dispute means any dispute or
differences between employers and
employers or between employers and
workmen or between workmen and workmen
which is connected with the employment or
non-employment or the terms of employment
or with the conditions of labour of any person
Resolution of Industrial Disputes
 Workers Participation in Management
 Works Committee.
 Joint Management counsel
 Suggestion Scheme
 Information Sharing
 BOD

 Collective Bargaining

 Conciliation

 Adjudication
 Industrial Tribunal
 Labour Court
Industrial Disputes: Preventive Machinery
Machinery for prevention and settlement of disputes



Voluntary Methods Government Machinery Statutory Measures

State Acts
Industrial Disputes Act, 1947
 Collective Bargaining Labour Administration  Works Committees

 Trade Unions Machinery  Conciliation

 Joint consultations  State Level (a) C. Officer

 Standing Orders  Central Level (b) C. Board

 Grievance Procedure  Arbitration

 Code of Discipline  Adjudication

(a) Labour Courts
(b) Industrial Tribunals
(c) National Tribunals
Industrial Disputes: Settlement Machinery
Conciliation
Conciliation is a process by which representatives of workers and employers
are brought together before a third person or a group of persons with a view
to persuade them to come to a mutually satisfying agreement.
Voluntary Arbitration
When conciliation proceedings fail to settle the dispute, the conciliation officer
may persuade the conflicting parties to voluntarily refer the dispute to a third
party known as Arbitrator, appointed by the parties themselves.
Adjudication
 Adjudication or compulsory arbitration is the ultimate remedy for the
settlement of disputes in India.
 The Industrial Disputes Act, 1947, provides a three-tier adjudication
machinery – namely Labour Courts, Industrial Tribunals and National
Tribunals – for the settlement of industrial disputes.