Industrial Relations

The term "industrial relations" has developed a broad as well as a narrow meaning. The
original broad definition of industrial relations included the totality of relationships and
interactions between employers and employees. From this perspective, industrial
relations encompasses all aspects of the employment relationship, such as human
resource (or personnel) management, employee relations and union-management (or
labor) relations.
However, since the middle of the twentieth century, industrial relations have taken on a
narrower, more restricted definition, according to which it is largely equal with the
unionized employment relationships. From this perspective, industrial relations pertain
to the study and practice of collective bargaining, labor-management relations and trade
unionism. In this view, human resource management remains a separate, largely
distinct field, dealing with nonunion employment relationships and employers' personnel
practices and policies. In the twenty-first century, both meanings of the term coexist, but
the latter is more common.
The term industrial relations became commonly used in the 1910s, in particular in 1912
when President William Taft appointed an investigate committee called the Commission
on Industrial Relations. The commission was in charge of investigating the causes of
widespread, often violent labor conflict and making recommendations regarding
methods to promote greater cooperation and harmony among employers and
employees. The term became even more salient in the public mind amid the wave of
strikes, labor unrest and agitations for "industrial democracy", accompanying the
economic and political disturbances related to World War I (1914-1918).
However, the term's roots extend back at least to the beginning of the 1870s when the
industrialization process started in earnest in the United States. Conditions resulting
from this process led to a wave of strikes, revolutionary economic and political
movements, as well as demands for social and economic reform. The conflict between
employers and employees came to be known as "the Labor Problem". When industrial
relations emerged as an academic field of study and area of business practice in the
1910s, it was intimately associated with the rise of the Labor Problem.
During this period, industrial relations came to be widely defined as the study of labor
problems and alternative methods to resolve such problems. Later, during the
prosperous 1920s, the major line of advance in the field was the employer's solution of
personnel management. Personnel departments were established at numerous firms
which in various ways looked to reduce the most serious causes of labor turnover and
unrest. As numerous labor problems reemerged and as a result of different events and
developments in the economic, legislative and trade unions worlds in the 1930s, there
was a great shift in industrial relations practices and policies, with employers' power
declining and unions flourishing.
During the 1940s, the industrial relations system that had evolved in the previous
decade was largely intact, but the public opinion was that union power needed to be
reined in and made more responsible. While the National Labor Relations Act was
amended in 1947 and prohibited certain practices of unions, organized labor continued
to expand its influence and membership for about a decade. A new industrial relations
system emerged in the early 1960, where collective bargaining had a much smaller role
while personnel management, now called human resource management, along with
direct government regulation of employment conditions, expanded their role.
The new system, which was consolidated in the 1980s and 1990s, was established as
the size and influence of the union sector in the economy slowly but significantly shrank.
However, between the 1960s and 1990s, there were also positive developments for
unions, the most positive of which was the spread of collective bargaining to the public
sector. As the union sector of the economy declined, personnel/human resource
management managed to reassert itself as a leading force in industrial relations. As a
result of new employment practices, in the 1970s companies developed the so-called
"high-performance" work system, which has spread widely ever since as it boosted
productivity and typically increased employee job satisfaction.
The spread of greater government regulation of employment conditions also helped the
emergence of the new system and undermined the earlier industrial relations system.
Since the beginning of the 1960s, the government passed laws and regulations
pertaining to discrimination as well as laws relating to other employment areas,
including pension plans, family and medical leave, along with the portability of health
insurance. These laws, as well as attendant agencies, courts and attorneys, have been
widely considered to have served as a substitute for unions to some extent, partly
explaining the union decline at the end of the twentieth century
Causes of poor Industrial Relations:

1. Economic causes: Often poor wages and poor working conditions are
the main causes for unhealthy relations between management and
labour. Unauthorised deductions from wages, lack of fringe benefits,
absence of promotion opportunities, faulty incentive schemes are other
economic causes. Other causes for Industrial conflicts are inadequate
infrastructure, worn-out plant and machinery, poor layout, unsatisfactory
maintenance etc.
2. Organisational causes: Faulty communications system, unfair
practices, non-recognition of trade unions and labour laws are also some
other causes of poor relations in industry.
3. Social causes: Uninteresting nature of work is the main social cause
of poor Industrial relations. Dissatisfaction with job and personal life
culminates into Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit
and performance, poor interpersonal relations are the psychological reasons
for unsatisfactory employer-employee relations.
5. Political causes: Multiple unions, inter-union rivalry weaken the
trade unions. Defective trade unions system prevailing in the country has
been one of the most responsible causes for Industrial disputes in the
country.
Suggestions to improve Industrial Relations:

1. Sound personnel policies: Policies and procedures concerning the
compensation, transfer and promotion, etc. of employees should be fair and
transparent. All policies and rules relating to Industrial relations should be
fair and transparent to everybody in the enterprise and to the union leaders.
2. Participative management: Employees should associate workers
and unions in the formulation and implementation of HR policies and
practices.
3. Responsible unions: A strong trade union is an asset to the employer.
Trade unions should adopt a responsible rather than political approach to
industrial relations.
4. Employee welfare: Employers should recognise the need for the
welfare of workers. They must ensure reasonable wages, satisfactory
working conditions, and other necessary facilities for labour. Management
should have a genuine concern for the welfare and betterment of the working
class.
5. Grievance procedure: A well-established and properly administered
system committed to the timely and satisfactory redressal of employees
grievances can be very helpful in improving Industrial relations. A
suggestion scheme will help to satisfy the creative urge of the workers.
6. Constructive attitude: Both management and trade unions should
adopt positive attitude towards each other. Management must recognise
unions as the spokesmen of the workers grievances and as custodians of
their interests. The employer should accept workers as equal partners in a
joint endeavour for good Industrial relations.
7. Creating a proper communication channel to avoid grievances
and misunderstandings among employees
8. Education and training imparted to the employees

Measures For Improving Industrial Relations

The following measures should be taken to achieve good industrial
relations:
Strong and Stable Union: A strong and stable union in each industrial
enterprise is essential for good industrial relations. The employers can easily
ignore a weak union on the plea that it hardly represents the workers. The
agreement with such a union will hardly be honored by a large section of
workforce. Therefore, there must be strong and stable unions in every
enterprise to represent the majority of workers and negotiate with the
management about the terms and conditions of service.
Mutual Trust: Both management and labor should help in the
development of an atmosphere of mutual cooperation,


confidence and respect. Management should adopt a progressive outlook and
should recognize the rights of workers. Similarly, labor unions should
persuade their members to work for the common objectives of the
organization. Both the management and the unions should have faith in
collective bargaining and other peaceful methods of settling disputes.
Workers Participation in Management: The participation of
workers in the management of the industrial unit should be encouraged
by making effective use of works committees, joint consultation and
other methods. This will improve communication between managers
and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation. The employers must recognize the
right of collective bargaining of the trade unions. In any organization,
there must be a great emphasis on mutual accommodation rather than
conflict or uncompromising attitude. One must clearly understand that
conflicting attitude does not lead to amicable labor relations; it may
foster union militancy as the union reacts by engaging in pressure
tactics. The approach must be of mutual give and take rather than
take or leave. The management should be willing to co-operate
rather than blackmail the workers.

Sincere Implementation of Agreements. The management should
sincerely implement the settlements reached with the trade unions. The
agreements between the management and the unions should be
enforced both in letter and spirit. If the agreements are not
implemented then both the union and management stop trusting each
other. An environment of uncertainty is created. To avoid this, efforts
should be made at both ends to ensure the follow up of the agreements.

Sound Personnel Policies: The following points should be noted
regarding the personnel policies. The policies should be:
o Formulated in consultation with the workers and their
representatives if they are to be implemented effectively.

o Clearly stated so that there is no confusion in the mind of
anybody.

o Implementation of the policies should be uniform throughout
the organization to ensure fair treatment to each worker.

Governments Role: The Government should play an active role for
promoting industrial peace. It should make law for the compulsory
recognition of a representative union in each industrial unit. It should
intervene to settle disputes if the management and the workers are
unable to settle their disputes. This will restore industrial harmony.

Progressive Outlook: There should be progressive outlook of the
management of each industrial enterprise. It should be conscious of its
obligations and responsibilities to the owners of the business, the
employees, the consumers and the nation. The management must
recognize the rights of workers to organize unions to protect their
economic and social interests
SCOPE:

The concept of industrial relations has a very wide meaning and connotation.
In the narrow sense, it means that the employer, employee relationship
confines itself to the relationship that emerges out of the day to day
association of the management and the labor. In its wider sense, industrial
relations include the relationship between an employee and an employer in
the course of the running of an industry and may project it to spheres, which
may transgress to the areas of quality control, marketing, price fixation and
disposition of profits among others.

The scope or industrial relations is quite vast. The main issues involved
here include the following:


1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices


Dunlop's Contribution To Industrial Relations

One of the significant theories of industrial labor relations was put forth by John Dunlop in
the 1950s. According to Dunlop industrial relations system consists of three agents
management organizations, workers and formal/informal ways they are organized and
government agencies. These actors and their organizations are located within an
environment defined in terms of technology, labor and product markets, and the
distribution of power in wider society as it impacts upon individuals and workplace. Within
this environment, actors interact with each other, negotiate and use economic/political power
in process of determining rules that constitute the output of the industrial relations system.
He proposed that three partiesemployers, labor unions, and government-- are the


key actors in a modern industrial relations system. He also argued that none
of these institutions could act in an autonomous or independent fashion.
Instead they were shaped, at least to some extent, by their market,
technological and political contexts.

Thus it can be said that industrial relations is a social sub system subject to
three environmental constraints- the markets, distribution of power in society
and technology.

Dunlop's model identifies three key factors to be considered in conducting an
analysis of the management-labor relationship:
1. Environmental or external economic, technological, political, legal and
social forces that impact employment relationships.
2. Characteristics and interaction of the key actors in the employment
relationship: labor, management, and government.
3. Rules that are derived from these interactions that govern the
employment relationship.
Dunlop emphasizes the core idea of systems by saying that the
arrangements in the field of industrial relations may be regarded as a system
in the sense that each of them more or less intimately affects each of the
others so that they constitute a group of arrangements for dealing with
certain matters and are collectively responsible for certain results.

In effect - Industrial relations is the system which produces the rules of the
workplace. Such rules are the product of interaction between three key
actors workers/unions, employers and associated organizations and
government

The Dunlops model gives great significance to external or environmental
forces. In other words, management, labor, and the government possess a
shared ideology that defines their roles within the relationship and provides
stability to the system.


Functions of Industrial Relations
Functions of Industrial Relations include:
1.Communication is to be established between workers and the management in order to bridge the
traditional gulf between the two.
2.To establish a rapport between managers and the managed.
3.To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of
workers on the one hand and the management on the other hand, to avoid unhealthy, unethical
atmosphere in an industry.
4.To lay down considerations which may promote understanding, creativity and co-operation to raise
industrial productivity, to ensure better workers participation?
The industrial scene is affected by lack of central values, class struggle, competition and unhealthy
compromisers. Even in the latter part of the century, the management considers trade unions as a
nuisance or a hurdle. The trade unions on the other hand considered the management and managers as
exploiters. Workers are misled by their trade union leaders on the one hand and they allow themselves to
be exploited by management.
The trade unions are organs of political organizations and they follow the ideologies of those
organizations even at the cost of their own interest in the industry. As a result, the collective bargaining
ends in either aggressive bargaining or futile waste of time. These and many other considerations led the
ILO to formulate certain principles for promoting healthy industrial relations. They are:
(a)Good labor-management relations depend on employers and trade unions capacity to deal with their
mutual problems freely, independently and responsibly.
(b)The trade unions and the employers and their organizations should be interested in resolving their
problems through collective bargaining and if necessary with the assistance of proper government
agency.
(c)Workers and employers organizations should be desirous of associating with government agencies
taking into consideration the general, social, public and economic measures affecting employers and
workers relations.
Good industrial relations are necessary for the following reasons.
1. To help in economic progress of a country. The problem of an increase in productivity is essentially the
problem of maintaining good industrial relations. That is why they form an important part of the economic
development plan of every civilized nation.
2. To help establishing and maintaining true industrial democracy this is prerequisite for the establishment
of a socialist society.
3. To help the management both in the formulations of informed labour relations policies and in their
translation into action.
4. To encourage collective bargaining as a means of self-regulation. They consider the negotiation
process as an educational opportunity a chance both to learn and to reach.
5. To help government a making laws forbidding unfair practices of unions and employers. In climate
good industrial relations every party works for the solidarity of workers movement. Unions gain more
strength and vitality. There is no inter-union rivalry.
6. Employees give unions their rightful recognition nd encourage them to participate in all decisions.
Unions divert their activities from fighting and belligerence to increase the size of the distribution and to
make their members more informed (workers education) on vital issues concerning them.
7. To boost the discipline and morale of workers. Maintenance of discipline ensures orderliness.
Effectiveness and economy in the use of resources. On the other hand, lack of discipline means waste,
loss and confusion. It also means in sub-ordination and non-co-operation.
8. Industrial relations are eventually human relations therefore, the same basis of human psychology
prevails in the field of industrial relations therefore, and the efficiency of an industry is directly related with
the quality of relationship, which is being built up amongst the individuals who work together..
Principles of good Industrial relations

1. Following are some of the principles of good industrial relations.
1. Fair redressel of employee grievance
2. Providing satisfactory working conditions
3. Payment of fair and reasonable wages
4. Training and education of employees
5. Developing proper communication system between employer and employee
6. To develop employees to adapt themselves for technological, social and economic
changes.
7. Contribution in economic development of country
8. Recognizing importance of collective bargaining

Historical development of Industrial Relations
View Comments
Basic concept of Industrial Relations:
1. The concept of industrial relations was developed with the industrial revolution.
2. Prior to this it was considered master and servant relationship
3. The workers were considered and treated like any other commodity which could be easily
purchased and replaced.
4. Wages and conditions of services were poor and this situation was not only in India but
also in England and other European countries.
5. The term Industrial Relations comprise Industry and relations. Industry means and
productive activity in which and individual is engaged and relations mean the relation that
exists in the industry between employer and its workman.
Definitions of Industrial Relation:

As per J. Henry Richardson

"Industrial Relation is an art, the art of living together for purposes of production."
Analysis of Industrial Relations:
1. Industrial relations are the relations which are the outcome of the employment
relationship in an industrial enterprise.
2. Every industrial relations system creates a complex of rules and regulations to govern the
work place and work community.
3. The main purpose of this complex is to maintain harmonious relations between labour and
management by solving their problems through collective bargaining.
4. The government/state shapes industrial relations with the help of law, rules, agreements,
awards of the courts.
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3. Leadership Training
HR Best Practices in Industrial Relations
by Ruth Mayhew, Demand Media

A number of human resources best practices can help you develop a productive and collegial relationship between
management and organized labor. Up-to-date information about labor laws, leadership training on basic industrial
relations practices and well-constructed negotiation strategy are elements that will improve your organization's
labor-management relations. Turn what traditionally has been an adversarial relationship into one that benefits your
company and employees.
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Labor Laws
Fundamental to the labor-management relationship is clarity about applicable laws, such as the National Labor
Relations Act. The act establishes employees' rights and sets out the obligations and responsibilities of employers
and labor unions. In addition to understanding basic labor law, HR best practices include staying abreast of changes
in the laws and decisions of the National Labor Relations Board that affect your industry and your workplace.
Leadership Training
Much of leadership training covers how to assign work and provide feedback about performance and basic
employment law, such as Title VII of the Civil Rights Act and preventing workplace harassment. Supplement your
supervisory training with labor-management-related components, such as union contract interpretation, conflict
resolution and, if your workforce isn't unionized, how to maintain a union-free workplace. Supervisors and
managers have the most direct contact with workers, and workforce management principles suggest that HR equip
them with the skills necessary to be first responders concerning labor-management issues.
Related Reading: The Best Practices for Manager-Employee Relations
Collective Bargaining
HR best practices in collective bargaining include developing management strategy and proposals for contract
negotiation at least six months before the contract expiration date. Assess the negotiating team's workload and
reassign long-term projects that could interfere with their availability for bargaining sessions. The NLRA requires
that both management and the union make themselves available for contract negotiations, as that demonstrates good
faith. If you anticipate changes in your employee benefits package, get clarification from your compensation and
benefits specialist on how the group health plan, pension and other benefits will affect negotiations.
Resources
Take advantage of resources available to HR staff, supervisors and managers. Continuing education courses,
workshops and seminars on building relationships with labor union representatives generally are sponsored by law
firms, management consulting groups and colleges. Use social media and Internet research to learn about union-
organizing drives, including the occupations and industries that labor unions are targeting.
Union-Free Workplace
If your employees aren't union workers, improve your employee relations practices. Strengthen the employer-
employee relationship by addressing workplace issues as soon as possible to avoid the lingering effects of conflict
that often lead employees to seek unionization. Conduct routine vulnerability assessments to determine the
likelihood of your employees supporting a union. Vigilance pays off -- showing interest in and appreciation for your
employees keeps job satisfaction high so they won't seek union representation.
Problems Facing Industrial Relations
by Kristie Lorette, Demand Media

Discover issues that may arise between upper management and employees.
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Industrial relations is the term that describes how the management and the employees of a company interact with
each other. Specifically, it is the relationship that exists between the upper management of a small business and the
staff that carries out the duties of the small business. Because there is a divide between these two aspects of a
business, problems also arise when maintaining a relationship between management and staff.
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Narrow Focus
In many businesses, an issue that arises out of industrial relations is a narrow focus by the employees of the
organization. An employee or staff member may only view the task at hand that they have to perform to complete
their job rather than viewing how the role the employee plays benefits the organization as a whole. Many employees
simply see their managers as someone who tells them what to do rather than as a facilitator that can help the
employee achieve their own professional goals as well as bring the company to a point where it reaches the goals of
the business.
Inflexibility of Employer
When an employer is inflexible, this can stifle the creativity of employees. When employees feel as if their creativity
is being squashed or that their opinions do not matter, this can cause strife between the employees and management
of the business. When creativity is squashed, this can cause the company innovation to lack, which can ultimately
create an uncompetitive position for the company in the marketplace. Employers that allow employees to participate
in running the company by allowing suggestions and feedback from the employees and even empowering employees
to take on more responsibility for the route the business takes, typically enjoys a more successful business
environmentinternally and in the marketplace.
Related Reading: What Are the Concepts in Industrial Relations?
Division
Another issue that arises in industrial relations is an us against them mentality. Many employees believe there is a
great divide that exists between them and the management of the company. This division between the two groups of
a business can cause a myriad of issues such as contract negotiation problems, strikes and the required intervention
of trade and labor unions. When management and employees can relate and communicate with each other, it
typically alleviates the problems, such as not being able to negotiate work contract agreements or having to bring in
the labor union to negotiate the terms and conditions between employees and management.
Examples of Industrial Relations
Union organizing, collective bargaining and strikes are prime examples of industrial relations at work,
because they are three actions that involve active participation of both organized labor and management.
Industrial relations, generally referred to as labor relations or labor-management relations, comprises
several concepts and actions that apply to unionized workers.
Union Organizing
Union organizing underlies the concept of industrial relations. Two scenarios are possible for union organizing to
occur: Employees can seek the assistance of a labor union to represent their interest, or a union organizer can initiate
contact with workers to begin an organizing drive. In either scenario, the union organizer obtains signed
authorization cards from workers who want a union to represent them. When an organizer has interest from at least
30 percent of the employer's workers, he can file a petition with the labor board. The labor board deems whether a
bargaining unit exists and, if so, directs an election. If a simple majority of workers vote in favor of the union, the
labor board certifies the union to represent the bargaining unit.
Collective Bargaining
The collective bargaining process exemplifies how labor unions and management come together on mutually
agreeable terms and conditions. Collective bargaining refers to a negotiation process whereby negotiating teams for
the labor union and the employer exchange proposals, counteroffers and concessions to achieve a union contract.
The NLRA requires the parties to bargain in good faith. Good faith means they are sincere about reaching an
agreement that mostly satisfies the interests of employees, the labor union and the employer. Union contracts aren't
simple; many times, agreeing on a contract takes weeks and even months. Even after the labor union and employer
agree on a tentative agreement, the contract still must be ratified, or approved, by the union members to be official.
Strike Action
Strike action is a powerful weapon with a prominent place in both the history and the future of industrial relations.
For example, union workers dissatisfied with economic conditions during the contract negotiation process can strike,
leaving the employer to find replacement workers so the company can meet business needs. However, those strikers
risk losing their jobs because an employer can replace union members who go on strike for economic reasons. They
cannot be fired, but the replacement workers can become permanent employees, leaving the striking workers to
waive the conditions of their reinstatement -- such as a wage increase -- when the company has job openings. On the
other hand, if a union worker goes on strike for non-economic reasons, such as protesting an employer's practice of
writing up union workers more frequently than nonunion workers, the law prohibits replacing those workers on
strike.
Responsibilities of Industrial Manager-

1- To keep the smooth releations with union ( If union is teher)

2- Take the regular meeting of the Works comittee

3- Negotions while Agremment.

4- To keep industrial Disciplines:

5- Issue the letters to late coming ,absenteesim ,suspension etc,

6-To handle leagal issues.

These are some basic responsibilies of IR Manager.
Industrial Relations Policies
by Ruth Mayhew, Demand Media

Industrial relations is a term frequently used in union workplaces.
Related Articles
How to Improve Productivity in Industrial Relations in an Organization
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10 Most Important Business Objectives

Industrial relations, often called labor-management relations or labor relations, is the human resources discipline
most often associated with matters involving union workers. Employee relations is the companion discipline that HR
experts typically use when defining the HR responsibilities for a nonunion employee base. Policy development for
industrial relations generally is formed by the employer's HR department leader; however, if an HR leader is not on
staff, industrial relations policies become the responsibility of the employer's highest-ranking manager, such as the
company president.
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Human Resources Role
A core policy in industrial relations is to define the role of human resources and its participation in labor-
management relations. If the company doesn't have a dedicated HR department or chooses to not hire an HR labor
relations specialist, the company can engage the services of legal counsel or a labor relations consultant to advise on
matters involving union organizing, concerted activity among workers, union elections and collective bargaining.
Regardless of whether the work force is union or nonunion, human resources staff need to be aware of their
authority and responsibilities concerning labor-management relations. Therefore, policy setting begins with
assessing the employer's in-house expertise and external resources.
Posting Requirements
Industrial relations workplace policies must include informing workers of their rights under federal and state law
and maintaining employer compliance with labor and employment laws. Title VII of the Civil Rights Act of 1964
contains the fundamental provisions for equal employment and workplace fairness. The U.S. Equal Employment
Opportunity Commission enforces Title VII, which applies to employers with 15 or more workers, union and
nonunion.
The EEOC requires that employers post notices titled "Equal Employment Opportunity Is the Law." The National
Labor Relations Act of 1935 protects the rights of union and nonunion workers by prohibiting employers from
interfering with their right to engage -- or not engage -- in concerted activity. There is no employee count threshold
for employer compliance with this law. The U.S. National Labor Relations Board enforces the NLRA; as of January
2013, employers are not required to post notices about employees' rights under the NLRA, but that could change.
Related Reading: Industrial Relations Agreements
Collective Bargaining
The negotiation process that labor unions and employers use to achieve a labor union contract is referred to as
collective bargaining and the resulting contract is a collective bargaining agreement. During collective bargaining,
the employer and labor union make proposals on non-economic issues, such as seniority-based shift bidding and
grievance procedures, and economic issues, such as wages, benefits and pension contributions. Negotiation also
involves making concessions and counteroffers.
An essential industrial relations policy for employers is designating a chief negotiator. Even if the company has a
dedicated HR department, that does not always mean that an HR manager or a labor relations specialist is designated
as the chief negotiator. In many instances, the company president is the chief negotiator and the HR manager or
labor relations specialist is an adviser who provides wage and benefits expense data. The chief negotiator must be
someone with authority to enter into binding contracts.
Employee Relations Policies
Unionized workplaces also have nonunion employees, workers who aren't in the bargaining unit. Therefore,
developing industrial relations policies is not a substitute for developing employee relations policies. Employee
relations policies are equally important for strengthening the employer-employee relationship; however, the concept
of employee relations is one used to denote practices for nonunion employees. Employee relations policies include
processes to identify and resolve workplace conflict, HR metrics concerning job satisfaction and employee
engagement and guidance and support for management on maintaining productive supervisor-employee
relationships.