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Industrial relations is a multidisciplinary field that

studies the employment relationship. IR is increasingly
being called employment relations because of the
importance of non-industrial employment relationships.
Many outsiders also equate industrial relations to labour
relations and believe that industrial relations only
studies unionized employment situations, but this is an
oversimplification.
 History
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Industrial relations has its roots in the industrial revolution which created the
modern employment relationship by spawning free labor markets and large-scale
industrial organizations with thousands of wage workers. As society wrestled with
these massive economic and social changes, labor problems arose. Low wages,
long working hours, monotonous and dangerous work, and abusive supervisory
practices led to high employee turnover, violent strikes, and the threat of social
instability. Intellectually, industrial relations was formed at the end of the 19th
century as a middle ground between classical economics and Marxism, with
Sidney Webb and Beatrice Webb’s Industrial Democracy (1897) being the key
intellectual work. Industrial relations thus rejected the classical econ.

Institutionally, Industrial Relations was founded by John R Commons when he

created the first academic industrial relations program at the University of
Wisconsin in 1920.
 Industrial Relations Today
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By many accounts, industrial relations today is in crisis. In

academia, its traditional positions are threatened on one side
by the dominance of mainstream economics and
organizational behavior, and on the other by postmodernism.
In policy-making circles, the industrial relations emphasis on
institutional involvement. In practice, labor unions are
declining and fewer companies have industrial relations
functions. The number of academic programs in industrial
relations is therefore shrinking, and scholars are leaving the
field for other areas, especially human resource management
and organizational behavior.
 IR- The Concept

EMPLOYMENT
Management Trade Unions
RELATIONSHIP
Industrial Environment

Government

The Actors Of IR

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 Is IR-A Process ?
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Process by which people and their

organization interact at the place of work
to establish the terms and conditions of
employment.
 Role of Government
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Government legislation protects workers

against:

 Employment discrimination.
 Employee rights and other issues and the legal
environment of work.
 Labor relations and collective bargaining are
closely governed by law.
 Settling all Industrial Disputes.
 Objectives of Industrial Relations
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 Congenial labor management relations

 Regulate the production by minimizing industrial
conflict thereby contributing to economic progress
 Avoiding industrial conflicts
 To boost the discipline and morale of workers
 Workers to have a say in decision making
 Encourage and develop trade union.
 The Emerging Scenario
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What for an individual develops a relationship

with the management?

Individual Time Structuring

Material Time structuring
Social Time structuring
 Lets Play the Union-Management Game
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Three Groups
The Management Group
The Union Group
The Government
Issue:
To a very progressive and good management the union is demanding
a pay hike of 30%.

The management all through been very considerate and had been
taking care of their workers .

The Management examined the demands and came to the conclusion

that they can’t consider to give a wage hike of 30%. However 10 t o
15% is possible provided the union assures an least 10% increase in
production though improving individual productivity.
 Success of IR
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 Top Management support

 Sound Personnel policies

 Adequate practice should be developed by

professionals
 Detailed supervisory training

 Follow up results.
 Trade Union
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A trade union (British English) or labor union

(American English) is an organization of workers
that have banded together to achieve common goals
such as better working conditions.
UK Legal Definition Of Trade Union
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An organization, whether permanent or

temporary, which consists wholly or mainly of
workers of one or more descriptions and
whose principle purpose include the regulation
of relations between workers of that description
and employers or employers’ association’
[S.1, TULR (c) A, 1992]
 Distinction of ‘Trade Union’ from Other
Organization
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The nature of trade union membership [Those

who rely on the sale of their labour to provide
their Livelihood]. Trade unions purpose is to
protect and represent employee, provide them
with collective power and support, and regulate
their terms of employment. That means trade
union employ to achieve their purposes.
[Emphasis on direct negotiations with the
employer]
The Two Gradations Of Trade Unions
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Independent Trade Union:

A union declared by the Certification Officer
to be ‘not under the domination or control of
an employer’ and ‘not liable to interference by
an employer … arising out of the provision of
financial or material support or by any other
means’ [S. 5, TULR (c) A, 1992]

Recognized Trade Union:

A union which is recognized by management
‘to any extent, for the purpose of collective
bargaining’ [S. 178 (3), TULR (c) A, 1992]
 Trade Union Development
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The development of organized labor is a

complex process based on changes in the
economy and the ways in which people
define and pursue their interests.
This section discusses British trade union
development under the headings of:
Organizational
Legal
Political
 What Is An Industrial Dispute ?
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Disagreement between an employer and its

employees, usually represented by a trade union, over
some aspect of the terms or conditions of employment.
A dispute may be followed by industrial action, in the
form of a strike.
Dispute Settling Machineries
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 Conciliation Officer
 Arbitration & Adjudication
 Constitutional Provisions.
Can The Unions & Management
Play Road Blocks For Each
Other ?

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Collective Bargaining
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 Collective Bargaining
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“Collective Bargaining is a process in which the
representatives of a labour organization & the
representatives of business organization meet and
attempt to negotiate a contract or agreement, which
specifies the nature of employee-employer union
relationship”.

 Process involving discussions and negotiations

 ‘Collective’ – group
 ‘Bargaining' – proposals and counter proposals
 To resolve their conflicting interests
 And is a flexible approach.
Levels At Which Collective Bargaining Is Undertaken

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Enterprise or
Plant Level

Industry Cum Region

Wise Agreement

Sectoral Collective Bargaining At

National Level
 National Level Agreement
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Bargaining between one or more

employers/companies/ corporations or one or
more employers association on one side and one or
more unions established at national, industry,
nation, region or plant level on the other.
Industry Cum–Region Wide Agreements
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Bargaining between one or more

employers/companies/corporations or one or more
employers association on one side and one or more
unions established at industry, region or plant level
on the other.
 Firm/Plant Level Agreement
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With unions established at plant, locality level.

Legal Framework of Collective Bargaining
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Freedom of Association: Article 19(c)

Determination of Collective Bargaining Agent

Secret Ballot
Check off system
Membership verification
 Agreements Settlements & Awards
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 Agreement : Collective agreement is binding on

workers who have signed and not on other unions

 Settlement : Written agreement between employer

and workers arrived during Conciliation proceeding
is applicable to all the present and future workers.

 Award : When Agreement and settlement fail.

Award(final determination of industrial dispute )
given by Arbitration and adjudication-binding on
parties