Industrial

Relations
 Industrial Relations

Contents
• Meaning and Definition
• Objectives
• Factors influencing behavior at work
• Importance of Industrial Relations
 Industrial Relations

Definition:
‘Industrial Relation is a relation between employer and
employees, employees and employees and employees and
trade unions’.
-Industrial dispute Act 1947

The Industrial Relation relations also called as labor

management, employee employers relations.
 Industrial Relations

Meaning:
• The relationship between Employer and employee or trade unions is called
Industrial Relation.

• Harmonious relationship is necessary for both employers and employees to

safeguard the interests of the both the parties.
 
• To avoid any dispute between them or settle it as early as possible so as to
ensure industrial peace and higher productivity.
 
• The main theme of personnel management is to get the work done by the
human power and it fails in its objectives if good industrial relation is
maintained. In other words good Industrial Relation means industrial peace
which is necessary for better and higher productions.
 Industrial Relations

Objectives of Industrial Relation

 To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production

 To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country

 To raise productivity to a higher level in an era of full employment by lessening the

tendency to high turnover and frequency absenteeism

 To establish and nurse the growth of an Industrial Democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the industry and
of the country as well
 Industrial Relations

Objectives Contd…
 To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos
by providing reasonable wages, improved living and working conditions, said
fringe benefits

 To establish government control of such plants and units as are running at a loss
or in which productions has to be regulated in the public interest

 Improvements in the economic conditions of workers in the existing state of

industrial managements and political government

 Control exercised by the state over industrial undertaking with a view to regulating
production and promoting harmonious industrial relations
 Industrial Relations

Importance of industrial relations:

• Uninterrupted production

• Reduction in Industrial Disputes

• High morale

• Mental Revolution

• New Programmes

• Reduced Wastage
Trade Union
 Trade Union

Meaning:
• Trade union is an association either of employees or employers or of
independent workers.

• It is a relatively permanent formation of workers. It is not a temporary or

casual combination of workers.

•It is formed for securing certain economic, social benefits to members.

• Collective strength offers a sort of insurance cover to members to fight against

irrational, arbitrary and illegal actions of employers. Members can share their
feelings, exchange notes and fight the employer quite effectively whenever he
goes off the track.
 Trade Union
Central Trade Union Organizations in India:
•All India Trade Union Congress (AITUC)
•Bharatiya Mazdoor Sangh (BMS)
•Centre of Indian Trade Unions (CITU)
•Hind Mazdoor Kisan Panchayat (HMKP)
•Hind Mazdoor Sabha (HMS)
•Indian Federation of Free Trade Unions (IFFTU)
•Indian National Trade Union Congress (INTUC)
•National Front of Indian Trade Unions (NFITU)
•National Labor Organization (NLO)
•Trade Unions Co-ordination Centre (TUCC)
•United Trade Union Congress (UTUC) and
•United Trade Union Congress - Lenin Sarani (UTUC - LS)
 Trade Union

Objective of Trade Unions

•Wages salaries
•Working conditions
•Discipline
•Personnel policies
•Welfare
•Employee-employer relation
•Negotiating machinery
•Safeguarding organizational health and interest of the industry
 Trade Union

Functions Of Trade Unions

1.Militant Functions
•To achieve higher wages and better working conditions
•To raise the status of workers as a part of industry
•To protect labors against victimization and injustice

2.Fraternal Functions
•To take up welfare measures for improving the morale of workers
•To generate self confidence among workers
•To encourage sincerity and discipline among workers
•To provide opportunities for promotion and growth
•To protect women workers against discrimination
 Trade Union

Reasons For Joining Trade Unions

• Greater Bargaining Power
• Minimize Discrimination
• Sense of Security
• Sense of Participation
• Sense of Belongingness
• Platform for self expression
• Betterment of relationships
Strikes
 Strikes

Meaning
A collective refusal to work to pressure management to
grant union demands.

A work stoppage undertaken in support of a bargaining

position or in protest of some aspect of a previous
agreement or proposed agreement between labor and
management
 Strikes
Types of Strikes
• Economic Strikes (Primary - Secondary - Partial)
Intended to resolve a “Bargaining Impasse”. Can only occur in connection
with contract negotiations.
• Unfair Labor Practice Strike
Purpose is to force the employer to cease committing what the union
believes to be unfair labor practices. It may or may not occur during
negotiations.
• Wildcat Strikes
Conducted by groups of workers without the authority and consent of the
union.
 Strikes
Types of Strikes Contd…

• Sympathy Strike
Refusal by one union to work for its employer to pressure another (or the same)
employer in it dealings with a second union.

• Jurisdictional Strike
To pressure an employer to assign work to the members of one bargaining unit rather than
another or to pressure an employer to recognize one union as representative of its employees
when it already recognizes another

• Lockout
Management's equivalent of a strike. It can only occur legally when an existing labor agreement
has expired and there is truly an impasse in contract negotiations.
Industrial
Disputes
 Industrial Disputes

Meaning
Industrial dispute means any dispute or difference between employers and
employers, or between employers and workmen or between workmen and
workmen, which is connected with employment or non-employment or the terms
of employment or with the conditions of labor of any person.

• The dispute has to be between plurality of workman and employer

• Individual workman cannot raise an industrial dispute

• A trade union or a number of workmen must rise the dispute

Collective
Bargaining
 Collective Bargaining

Meaning
• It is resolving Industrial disputes by negotiation between the workmen and
Employer

• Collective bargaining is the principle method whereby employers and employees

establish and continue a relationship

• Allows the two sides to get together and talk about problems, needs, goals and
to settle differences

• Collective bargaining is a continuous process with continual shifts in power

 Collective Bargaining

Definition

“A method of determining the terms and conditions of

employment and regulating the employment relationship
between representatives of management and employees with
the intention to reach an agreement which may be applied to
a group of workers
 Collective Bargaining

Bargaining Styles
• Distributive bargaining
– Each party strives towards an outcome that is favorable to its own side
– Both parties are thus assessing strengths and weaknesses on both sides
– Both parties are looking to how much they can push the other party
– Each party assesses its ability to withstand being pushed

• Integrative Bargaining
– This is when both parties want a successful outcome and there is a genuine
desire to solve a problem
– In integrative bargaining items are seen as problems that need resolving
– Integrative bargaining strives for a win –win situation
– Conflict is minimized
 Collective Bargaining

Why Collective Bargaining?

• Matters dealt with include: job security, procedures, promotions, benefits and
institutional security

• Problems like retrenchment and promotions are dealt with jointly and one party
does not impose its view on the other party

• Both parties identify and recognize the problem and search for solutions through
exploring alternatives
 Collective Bargaining

Bargaining Structures
– Narrow decentralised units: when a union represents the interest of one
group of workers at a particular plant

– Broad decentralised units: Unions of several unions combine to form one

bargaining unit represent different sets of employees

– Narrow centralised units: when a union or several unions

representing a particular sector at a company or industry, or different
industries bargain centrally
– Broad decentralised units: a union or a number of unions represent
diverse interests bargain with a number of employees in an industry
 Collective Bargaining

Outcomes
– The outcome of a collective bargaining process is an agreement

– There is usually an agreement to bargain regularly over wages and other

conditions of employment

– Agreement can stipulate a time factor to the agreement, for e.g. wage increase
for one year only or for a number of years