Employer-Employee

Relations
Presented by: Group 5
Bhavya Duggal (L)
Archita
Asmi
Bhavya Ahluwalia
Bhawna
+919137969287
TABLE OF
CONTENT
Emergence of Industrial
Relations 01
Concept of Industrial
Relations 02
Industrial Disputes 03
Causes of Industrial 04
Measures to Disputes
Achieve
Good Industrial 05
Industrial Relations
Relations
Machinery in India 06
 Industrial Relations
❖ Industrial relations are invariably a combination of
cooperation, collaboration and conflict between labour
and management.

❖ Efforts are made to improve these relations and avoid

conflicts caused due to:

● Different orientations and perceptions

● Demand for rationality
● Carry past baggage and instances
Emergence of Industrial Relations
The emergence of Industrial Relations can be traced back to the
18th and 19th centuries, when the Industrial Revolution led to the
growth of factories and large-scale production. Here are some key
points on the emergence of industrial relations:

1. Created a new class of industrial workers

2. Organizing of trade unions.
3. Demand of rights
4. Employers formed associations
5. Industrial Relations as a field of study
6. Government intervention to regulate labor relations
7. Includes the study of human resource management,
organizational behavior, and labor law, among other areas.
 The Change in Dynamics
With the introduction of industrialisation or industrial revolution the
relation between employers and employees was no longer same or
relevant.

Workers struggled financially, physically, mentally due to introduction

of machinery and increase in rate of production.

This led to the formation of Trade

Unions. Progress for industries meant
growth of these unions. They stood for
workers rights, better working
conditions and participation in
managerial discussions.
 Formation of Trade Unions
Management of industrial relations became more complex with the emergence and growth of
multinational companies and trade unions. Strikes and lockouts became quite common.

Governments around the world could not be silent spectators anymore and passed various laws to
protect the social and economic interests of the workers and to bring and maintain industrial peace.

In India,
The Trade Unions Act was passed in 1926 to regulate the working of trade unions.
The Industrial Disputes Act was enacted in 1947 to provide for a mechanism for resolution of
industrial disputes.

A large number of other labour laws have also been passed for the welfare of workers for
maintaining industrial peace in the country and for the protection of economic rights of the workers
who have low bargaining capacity.
CONCEPT AND NATURE OF INDUSTRIAL RELATIONS

The term 'Industrial Relations' refers

to all types of relations between the
parties concerned with industry.
 The subject to industrial relations includes-

1. The collective relations between employers

and trade unions.

2. Relations between individual managers and

individual workers.

3. The role of government in regulating these

The subject, therefore includes individual's relations and
joint consultation between employers and workpeople at
their workplace collective relations between employers and
their organisation and trade unions and the part played by
the state in regulating these relations.
 SIGNIFICANCE OF GOOD INDUSTRIAL
RELATIONS OR INDUSTRIAL PEACE-

1.Industrial Remove causes of disputes and insures peace.

harmony

Due to cordial relations, workers takes interest in

2.Higher
productivity their jobs and work efficiently.

3. Collective Bargaining: Facilitate entering into long-term agreements.

 5.Fair benefits CORDIAL RELATIONS ENSURES ECONOMIC AND
NON-ECONOMIC BENEFITS TO THE WORKERS .
to workers :

THIS IMPLY THE EXISTENCE OF AN ATMOSPHERE OF

6. High MUTUAL COOPERATION, CONFIDENCE, AND RESPECT
morale: WITHIN THE ORGANISATION.

BY CREATING A CLIMATE OF COOPERATION AND

7. Facilitate change:CONFIDENCE, MAKE THE PROCESS OF CHANGE EASY.
 OBJECTIVES OF INDUSTRIAL RELATIONS
● 1. To protect the interests of employees as well as
● 2. To avoid industrialmanagement.
conflicts and minimise occurrence of
strikes, lockouts.
3. To minimise labour turnover and absenteeism.

● 4. To raise productivity to a higher level.

● 5. To establish and develop industrial democracy

based on worker's partnership.
 Participants of variable in Industrial
Relations
2.Employer and
1. Employees and their
their organisations.
organisations.
There variation in size,
The personal characteristics
composition and specialisation
of workers, qualifications,
impose internal
background attitude
communications.
towards work play an
Communications between
important role.
employer and trade union given
TRADE UNIONS are formed
due importance.
to safeguard them.
 3. Government.

3. The government keep an eye

on both the trade unions and
employers’ organisations to
keep them them disciplined.
In case of disputes, the
government can intervene
through conciliation officer,
Labour court and tribunal.
INDUSTRIAL UNREST AND
DISPUTES
Industrial unrest is the most acute problem in any industrial organisation because it endangers the
Peace in the industry

SYMPTOMS :

● High labour turnover

● Disciplinary problems
● Low morale
● Restriction of output

Industrial unrest in the form of strikes and lockouts leads to cessation of work due to which the
interests of the management, workers and the community suffer
INDUSTRIAL DISPUTES
Section 2 ( Industrial Disputes Act, 1947 )
Industrial disputes means any dispute or difference between employers and employees, or
between employers and employers, or between employees and employees, which is connected
with the employment or non-employment or the terms of employment of labour of any person

INDIVIDUAL COLLECTIVE
DISPUTES DISPUTES

Reinstatement Compensation for Wages, profits Hours of work

wrongful termination
 STRIKE
WEAPONS OFWorkers collectively cease to work in an industry.
Cessation of work by a body of persons employed in an organisation in
LABOUR combination.

ECONOMIC STRIKE GENERAL STRIKE HUNGER STRIKE

Most of the strikes of Members of the majority Workers of the

workers are for more of the trade unions in an organisation collectively
facilities and increase in industry or region go on a refuse to take food to put
wage levels. strike. pressure on the employer
In economic strikes, Such a strike is organised for conceding their
labourers demand to force demands which demands.
increase in wages, are common to all workers
travelling allowance,
house rent allowance and
other facilities.
 BOYCOTT
The workers may decide the company by not
using its products.
It is a coercive method whereby the
management is forced to accept the demands

PICKETING
Workers are dissuaded from work by stationing certain men
at the factory gates.

GHERAO
Gherao means to SURROUND. Workers may gherao the members of the
management by blocking their exits and forcing them to stay inside their
cabins just like prisoners.
Main object : Inflict and physical and mental torture.
WEAPONS OF EMPLOYERS’ ASSOCIATION
The employers may have their associations or unions which
MANAGEMENT may collectively oppose the working class and put pressure
on trade unions.
TERMINATION OF
SERVICES
LOCKOUT
The employers may terminate An employer may close the place of employment
the services of the workers temporarily. It is reverse of a strike and is a very powerful
who are on strike by weapon in the hands of an employer to coerce the
blacklisting them. workers to return to the place of work.
 CAUSES OF INDUSTRIAL
DISPUTE
1.) Economic Causes
2.) Political Causes
3.) Personnel Causes
4.) Indiscipline
ECONOMIC
CAUSES 1. Demand for increased wages.
2. Demand for paid leaves and
retirement benefits.
3. Demand for bonus.
4. Demand for reduction in working
hours.

Workers may demand better wages, paid

leave, benefits while employers may seek
to cut costs.
POLITICA
POLITICAL 1.) Political Interference:-
Political interference in labour relations can lead
CAUSES
L to industrial disputes.
2.) Change in Government Policies:-
CAUSES Change in Government policies can lead to disputes
between between workers and employees.

3.) Privatisation:-
In some cases, industrial disputes can arise due to
privatisation.

4.) Political Ideologies:-

Difference in political ideologies of workers and
employees can lead to industrial disputes.
PERSONNEL
CAUSES 1.)Lay Off
Employees who feel that their jobs are not secure
don't work with their full potential and this can
lead to industrial disputes.

2.)Promotion :- Employees may have

grievances about their promotions.

3.)Transfer :-
Disputes may arise over transfer.
INDISCIPLINE 1.) Poor Communication:-
Lack of clear communication between

CAUSES management and employees can lead to

misunderstandings.
2.) Poor Working Conditions:-
When working conditions are poor, it can lead to
indiscipline.

3.) Inadequate Training:-

Employees who are not properly trained
to their jobs may make mistakes or fail to
meet performance expectations, leading
to disciplinary action.
 INDUSTRIAL DISPUTES IN INDIA

Maruti Suzuki Air India BHEL

Manesar Plant 2012 Strike Worker
 1.Atmosphere of mutual
MEASURES TO trust:
Both management and labour should
ACHIEVE GOOD help in the development of an

INDUSTRIAL atmosphere of mutual

cooperation,confidence and respect.

RELATIONS
2.Effective
Communication:
Blockages in communication should
be removed and their should be two-
way communication between
management and workers.
 3.Proactive Management:
Management should follow a proactive approach means that it should
anticipate problems and take timely steps.

4.Role of Government:
It must monitor and regulate industrial relations for encouraging
industrial peace in the country.

5.Industrial Democracy:
Workers’ participation in management should be encouraged.
 6.Effective Implementation of Agreements:
Any agreement between labour and management should be sincerely
administered.

7.Strong Unions:
Workers should be encouraged to build strong unions which will negotiate
with the management.
POLITICA
INDUSTRIAL
RELATION
L
MACHINERY IN
CAUSES
INDIA
Industrial relations machinery in
India refers to the institutional
framework and mechanisms
established by the government to
manage and regulate the
relationship between employers,
employees, and trade unions in
the industrial sector.
 1.TRIPARTITE BODIES:
PREVENTIVE Tripartite bodies in India are institutions that bring together representatives
from the government, employers' organizations, and trade unions to engage

MEASURES in dialogue and make decisions on various labor-related matters. These

bodies play a crucial role in shaping labor policies, resolving disputes, and
promoting social dialogue in the country. Here's a brief overview of
tripartite bodies in India:

1. Indian Labour Conference (ILC): The ILC is the apex tripartite

consultative body in India. Its function include: a. To promote
uniformity in labour legislations b. To lay down a procedure for
settlement of industrial disputes. c. to discuss matters of All India
importance as between employers and employees.

2. Standing Labour Committee (SLC): It’s main function is to

consider and determine such questions as may be referred to it by
Central Government and to render advice taking into account
suggestions made by various governments, workers and employees.
 2.CODE OF DISCIPLINE:
A code of discipline is a set of guidelines or rules agreed upon by
employers and workers to maintain harmonious industrial relations
and ensure smooth functioning of workplaces. It establishes standards
of behavior, outlines rights and responsibilities of both employers and
workers, and provides mechanisms for resolving conflicts and
disputes.

The purpose of a code of discipline is to prevent and manage industrial

disputes by promoting mutual trust, cooperation, and effective
communication between employers and workers. It often covers areas
such as attendance, punctuality, work performance, grievance
handling procedures, disciplinary actions, and adherence to rules and
regulations.

THE FIFTEENTH INDIAN LABOUR CONFERENCE AGREED THAT THERE

SHOULD BE A SET OF GENERAL PRINCIPLES. TO EVOLVE SUCH SET OF
PRINCIPLES, A TRIPARTITE COMMITTEE WAS SET UP.
 3.STANDING ORDERS:
Standing orders in India refer to the set of rules and regulations that govern
the conditions of employment in industrial establishments. These orders are
typically formulated under the Industrial Employment (Standing Orders)
Act, 1946. The objective of standing orders is to maintain harmonious
relations between employers and workers, ensuring a fair and consistent
framework for employment.

Preventive measures in industrial relations aim to anticipate and address

conflicts and disputes before they escalate. The standing orders of
preventive measures in industrial relations in India include the following key
aspects:

● Grievance Redressal
● Disciplinary Actions
● Working Hours and Leave and etc
 JUDICIAL/ 1.)CONCILIATION
STATUTORY It is a process of rational and orderly
discussion between the parties to a
MEASURES dispute under the guidance of a
conciliator.

I. Conciliation Officers: III. Court of Inquiry:

Act provides for appointment of conciliation II. Board of Conciliation: If conciliation
officers, permanently or for a limited period, for Government can appoint a proceedings fail to settle
specific or specific area. Officer enjoy powers of Board of Conciliation within dispute, government can
a civil court. The conciliation officer examines all 14 days. Has 3 members. refer dispute to Court of
facts relevant to the matter and then gives his Functioning same as inquiry. Court has to give
judgement. Conciliation officer. its reports within 6
months.
 2. )ARBITRATION
. Voluntary arbitration was lent legal identity in 1956 after amending Industrial
Disputes Act, 1947.

. It refers to settling disputes through an independent person chosen by the

parties involved mutually and voluntarily.

. Was made because of lengthy legal proceedings and formalities and resulting
delays in Adjudication.

. Arbitrator is not vested with any judicial powers. He drives his powers to
decide the dispute from agreement that parties have made between
themselves. Arbitrator submits his award to government. Government then
publishes it within 30 days of its submission.
This method of resolving disputes has failed to make much progress.

REASONS FOR FAILURE OF VOLUNTARY ARBITRATION:

1. Lack of arbitrators who command confidence of the parties to the

disputes.
2. Law provides no appeal against the award given by arbitrator.
3. Easy availability of adjudication on failure of negotiations.
4. Absence of simplified procedure.
 3.) ADJUDICATION
. Adjudication is the ultimate remedy for settlement of an unresolved dispute. It is a process
which involves intervention in the dispute by a third party appointed by the government with or
without the consent of the parties to the dispute.

. The reference of dispute is voluntary when both parties agree and it is compulsory when
reference is made to adjudication by the government without consent of either or both the
parties to the dispute.

. The Industrial Dispute Act, 1947 provides a three-tier adjudication machinery comprising:

1 .Labour Courts: Deals with disputes referring 2. Industrial Tribunals: Deal with matters 3. National Tribunals: These
to: relating to: tribunals are meant for those
A. Application and interpretation of A. Wages including period and mode disputes which involve the question
standing orders. of payment. of national importance or issues
B. Withdrawal of any statutory concession B. Hours of work and rest intervals. which are likely to affect industrial
or privilege. C. Leave with wages and holidays. establishments of more than one
C. Illegality or otherwise of any strike or D. Bonus, profit sharing, provident state.
lockout. fund and gratuity.
KARNAL KARAMCHARI SANGATAN vs LIBERTY
FOOTWEAR COMPANY.

RESPONDENT 1. A registered partnership firm carrying on its trading activities in

leather footwear at karnal under the name of ‘LIBERTY FOOTWEAR COMPANY’.

RESPONDENT 2. Karnal karamchari sangathan

 BRIEF OF THE CASE-
The workers' union complained that the management has illegally
terminated more than 200 workers.

Respondent 1 denied that claim and asserted that the persons

whose services were alleged to have been terminated were not its
employees at the material time.
This dispute however, remained unsettled and the workers went on
strike which took a violent turn.

The management had to lay off certain workers and that added fuel
to the fire. The agitation of the workers before the factory premises
created law and order problem attracting the police to intervene.
How the settlement happened?

The Labour Commissioner and other top officials of the District arrived
and they initiated conciliation proceedings.

The then Labour Minister and the Public Health Minister of the State
Government were also alerted

They also came and extended their good officers to bring about a
settlement.

They succeeded in their efforts. On 31-3-1988, the parties entered into

an agreement containing the terms of settlement of their dispute.
 How the settlement happened?

On behalf of the workers, it was signed by the President and Secretary of

the workers' union.

It was mutually agreed that a committee consisting of five persons, two

from the management and two from the union with the Deputy
Commissioner, Karnal as the President should be constituted. They would
be the arbitrators to determine the said dispute.

The committee gave its award on 29-4-1988 and 11-5-1988 directing the
management to reinstate in all 159 workmen.
 QUESTIONS

1. Which of the following is usually not an objective of industrial relations?

a. Connectedness
b. Collective wisdom
c. Conflict prevention
d. None of the above

2.Identify the major actor of industrial relations from the following

a. Employers
b. Unions
c. Government
d. all of the above
Thank You!
42