Labor Law and Industrial

Relationship
Lecture – 4
BBIT (8th Semester)
Muhammad Aamir Nadeem
Recap of Previous Lecture

• Issues and challenges in industrial relationship

• Key Issues In IR
• Consequences of Key Issues
• Coping Strategies
ACTORS IN INDUSTRIAL RELATIONS

• The actors in Industrial Relations are:

• 1. Employees and Trade Unions
• Unions play a crucial role in organising the employees and mobilising them through a set of demands and also
engaging with employers through collective bargaining. Employees are represented by trade unions.
• 2. Employers and Employers Associations
• Employers desire harmonious industrial relations so that the productivity and profit of their organisation is not
affected. Employers desire the right to hire and fire employees; relocate the firm/factory in case of problem; and
also introduce modern technology to reduce their dependence on employees. Employers preferred unions so that
they can hear ‘one voice’ rather than listening to ‘multiple voices’ in the system.
• 3. Government
• Government plays a mediating role whenever the employer and employee are not able to arrive at a consensus
regarding any employment related issues. The role of government also changes based on the policies of the
political party. The government also plays a direct role in industrial relations through legislation, rules an.d
agreements. The state also plays a crucial role in conciliation and mediation.
All the three actors in Industrial Relations cannot act independently. They need the support of each
other for successful industrial relations practice.
ACTORS IN INDUSTRIAL RELATIONS
THEORIES IN INDUSTRIAL RELATIONS

• Dunlop’s Systems Approach

• Unitary Approach
• Pluralist Approach
• Radical/Marxian Approach
• Mahatma Gandhi’s Trusteeship Approach
Dunlop’s Systems Approach

• The system approach was developed

by J. P. Dunlop of Harvard University
in 1958.
• He considered industrial relations as a
part of society. Individuals are part of
an ongoing but independent social
system.
• According to Dunlps, IR comprises
input, process and output which are
three parts of a social system.
• The behaviour, actions and role of the
individuals are shaped by the cultures
of the society.
Unitary Approach

• The employer and employee work as a harmonious unit and they work
for a common goal. Hence, there is no possibility of conflicts arising
between them and they work as a team to attain the common goal.
• Any conflict that may occur is then seen as the result of
misunderstanding.
• Moreover, if everyone works towards the achievement of the common
goals by maintaining peace and cooperation in the workplace, it will
tend to benefit everyone associated with the organization. It also
considered the organizational conflicts resulting in strikes to be useless
and destructive.
Pluralist Approach

• The pluralist approach was developed in the United States of America by John R Commons. Also called “Oxford
approach”.
• This approach explained that the management and the trade unions are the different and robust sub-groups
which unanimously form an organization (Which represents the society as a complex group).
• Thus, these multiple groups (Management, trade unions) have their own interest and goals.
• Hence, conflict is inevitable in the system and there are possibilities of compromise based on the interaction
between different stakeholders.
• Collective bargaining was used as a mechanism to sort out the conflict between the employer and employees.
• The organization should appoint personnel experts and industrial relations specialists to act as mediators
between the management and trade unions. They need to look into the matters of staffing, provide
consultation to the managers and the unions, and negotiate with both the parties in case of conflicts.
• The organization should ensure that the trade unions get recognized and the union leaders or representatives
can perform their duties freely.
• In the case of industrial disputes, the organization can avail the services of the external agent for settlement
of such issues.
Radical/Marxian Approach

• Social conflict is necessary for social change.

• This theory perceived that the industrial relations depend upon
the relationship between the workers (i.e., employees or labour)
and the owners (i.e., employer or capital). There exists a class
conflict between both the groups to exercise a higher control or
influence over each other.
• The Marxist theory assumed that the survival of the employees
without any work is more crucial than the survival of the employer
without the labours.
Mahatma Gandhi’s Trusteeship Approach

• Gandhi’s idea of industrial relations emerged from his engagement with workers throughout
his life. That’s why he was also a well-known labor leader.
• Every organization is a joint venture, and the labour should be treated as associates or co-
partners with the shareholders.
• Gandhi was not against strikes; instead, he gave the following conditions to carry out a
favorable strike:
• The workers or labors can go on a strike only if there is a specific grievance.
• There should be complete non-violence while carrying out strikes.
• The ones who are not involved in the strikes should not be tormented.
• He believed that strike should be the last option to which the labor should resort to, after the
failure of all the constitutional and peaceful ways of resolving conflicts and negotiating with
the employer.
• He focused on increasing the production and believed that the gains should be shared with the
employees because of whom it has been possible.