An Overview of Industrial Relations

• Reliance’s sprawling Hazira petrochemical complex was in the news for its high productivity. This was the result of the better relations that the managers enjoyed with their employees.

• Tata steel completed 82 years of industrial harmony and this fact has contributed to the competitive edge of the steel maker.

• On the other hand, at a plant of Titan, workers went on a strike in 1996 following the dismissal of a female apprentice, who the management felt had a performance below standard. Situation became violent and lock- out was the result.

• Maruti has witnessed strikes in 1986, 1988, and 1999 ranging from one to 85 days.

• Thus the scenario relating to IR is a mixed one. Sparks between enlightened managers and motivated workforce coexist with large scale violence leading to destructions & closures.

• “More specially, IR is concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interest of the employed and their employers, and to regulate the ways in which employers treat their employees.”

• The National Commission on Labor (NCL) also emphasize on the same concept. According to NCL, industrial relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself.

• industrial relation encompasses all such factors that influence behavior of people at work. A few such important factors are:

• Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships.

• Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management).

• Institution: It includes government, employers, trade unions, union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems.

• Characters: It aims to study the role of workers unions and employers’ federations officials, industrial relations officers/ manager, mediator/ arbitrator, judges of labor court, tribunal etc.

• Methods: Methods focus on collective bargaining, workers’ participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.

Scope of IR

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

• Collective bargaining• Machinery for settlement of industrial disputes• Standing orders• Workers participation in management• Unfair labor practices

• IR is the key for increased productivity in industrial establishments.

• For example,

• At the Alwar plant if Eicher Tractors, productivity went up from 32% between 1994 and 1996 to 38% in 1997. the reason was increased productivity for which the reason was, of course, peaceful IR.

• While several textile mills at Tamilnadu & Karnataka were closed for just one reason, and that was- militancy of labour.

Importance of Industrial Relations1.Uninterrupted production• The most important benefit of industrial relations

is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.

2. Reduction in Industrial Disputes • Good industrial relation reduce the industrial

disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.

3. High morale • Good industrial relations improve the

morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers.

5. New Programmes • New programmes for workers development are

introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs.

6. Reduced Wastage • Good industrial relations are maintained on the basis of

cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

Actors in the IR system

Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employers:• In general, managers tend to see employee relations in terms of foll.

activities:• Creating and maintaining employee motivation• Obtaining commitment from the workforce• Establishing mutually beneficial channels of communication throughout

the organization.• Negotiating terms and conditions of employment with employee

representatives.• Sharing decision making with employees.

• Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. Workers generally unite to form unions against the management and get support from these unions.

• Commitment to industry• Status of workers• Now the employees perceive the IR in terms of the opportunity to:• Improve their condition of employment• Voice any grievances• Exchange views & ideas with management• Share in decision making

• Trade Unions:• Unions have a crucial role to play in IR:• To redress the bargaining advantage of the

individual workers vis-à-vis the individual employer, by substituting joint or collective action for individual action.

• To secure improved terms & conditions of employment for their members and maximum degree of security to enjoy these terms & conditions.

• To obtain improved status for the workers in their work.

• Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court and the like. It also includes third parties and labor and tribunal courts.

EMPLOYEES

EMPLOYER

GOVERNMENT

INDUSTRIAL RELATIONS

COURT & TRIBUNALS

EMPLOYER’SASSOCIATION

TRADE UNIONS

Objectives of Industrial Relations

1.Protect management and labor interests by securing mutual relations between the two groups.

2. Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased.

3.Emphasize labor employer partnership to establish and maintain industrial democracy. This is done to ensure the sharing of profit gains, and personal developmental of all all employees.

4. Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum.

5. To bring about government control over plants where losses are running high, or where products are produced in the public interest.

6. To bridge a gap between various public sections and reshape the complex social relationships emerging out of technological advances by controlling and disciplining members, and adjusting their conflicts of interests.

7.Ensure full employment and reduce absenteeism, hence, increasing productivity and profits.

Causes Of Industrial Disputes

• Wages and allowances

• Personnel and retrenchment

• Indiscipline and violence

• Bonus

• Leave and working hours

Acts

• Industrial Dispute Act’ 1947

• National Arbitral Body

• Trade Union Act’ 1926

Trade Unions

• All India Central Council of Trade Unions:

(Communist Party of India (Marxist-Leninist)

Liberation)

• All India Trade Union Congress: (Communist Party of India)

• Bharatiya Mazdoor Sangh: (Rashtriya Swayamsevak Sangh)

•

• Indian National Trade Union Congress: (Indian National Congress)

• New Trade Union Initiative: (Independent from political parties)

• Centre of Indian Trade Unions: (Communist Party of India (Marxist))

• Hind Mazdoor Sabha: (socialists)

• Labour Progressive Federation: (Dravida Munnetra Kazhagam)

Role of HR in IR

• Recruitment & hiring• Induction• Training & development• Safe & healthy environment• Remuneration• Opportunities for growth All this leads to quality of work life (QWL)

and QWL leads to motivation & satisfaction.