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Industrial Relations

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1.

Industrial relations, also known as employment relations, relates to the relationships between


employers, employees, employee representatives, such as unions and government bodies and
lawmakers. Good industrial relations are essential in achieving a motivated and productive
workforce. As with many employment-related practices, conditions can often improve if companies
adopt best practice industrial relations guidelines to work by. The Association of South East Asian
Nations Services Employees Trade Union Council (ASETUC) has developed industrial relations
guidelines that are "consistent with internationally-recognized principles, obligations and standards."
Legal Framework
2. According to ASETUC, good industrial relations must be based on a solid legal framework that
account for economic and social conditions and allow the employer to build and grow
his business while providing employees with equitable and safe working conditions, stable
employment and minimum standards. The framework must also allow employees to voice their
opinions and be a part of business decision-making processes.
Rights
3. The rights of employees to self-organize their labor union activities must be respected and
protected. Employers should regularly consult with union representatives and employees to
encourage collective-bargaining and provide employees with a platform to voice opinions. These
meetings may also be an opportunity for employees to suggest more efficient work practices that
could improve productivity and increase profits. Employers must also be respected and accorded the
right to manage their business in a manner that is fiscally sound.
Cooperation
4. Industrial relations will also improve if common employer/employee interests such as
productivity, profit sharing, disciplinary procedures and termination, conditions of service and
grievance handling can be handled with procedures developed by collaboration and cooperation of
both employer and employees.
Trust
5. Employer and employee must work to build mutual trust and respect. Employees feel respected
and productivity will be at its best when there is transparency and general consensus on the
common issues of the workplace. Exercises to improve trust and respect, including team building
social activities for all employees, will help them feel invested in their employer. Employers and
employees must work together and deal with each other honestly and with integrity.
Dispute Resolution
6. A good industrial relations system must encompass effective labor dispute resolution. Employers
and employees must be allowed the right to participate in good faith in dispute resolution processes
to resolve grievances.

History of good industrial relations

Economic satisfaction of the workers

Social and psychological satisfaction


Off the job conditions

Enlightment of worker unions

Negotiating skills of management and workers

Public policy and legislation: 1. In catching and solving problems before they become serious.2. it
provides formalised means to the workers and employers for the emotional release of
dissatisfaction.3.acts as a check and balances upon diff managements

Collective bargaining

Harmonious industrial relations

Urge upon on the part of employees

Genuine sympathy

1. Demand for Higher wages -


The employees want higher wages. The employer wants more profit by paying lower wages. This
results in frustration among employees and they resort to agitation.
2. Non-Implementation of Bonus Schemes -
Bonus is a strong incentive for the employees. They want share in the profit in the form of bonus.
However, the employers generally show deficit and do not pay bonus to the employees. This results in
industrial dispute.
3. Demand for better working condition -
The employees want better working conditions. If their demand is not accepted by the employer they
resort to agitational approach. The result is industrial disputes.
4. Failure to recognise Unions -
The employers cannot tolerate trade unions as they feel that these unions are threat to their profit.
Therefore, they discourage union movement by the policy of divided and rule. But the workers believe
in collective bargaining and desire the recognition of unions by the employers.
5. Demand for proper leave Rules -
The employers want that leave rules and working hours should as laid down in factory act. No worker
should be forced to work more than 48 hours or more in a week. However, generally employers ignore
these rules which results in industrial dispute.
6. Over Time Payment -
The employees demand over-time payment as prescribed in the factory act. But the employer either
does not make any payment or makes under-payment. This causes frustration among employees and
they resort to agitations.
7. Political Interference -
Most of the trade unions in India are dominated by political parties. Sometimes, political leaders use
workers as tool for their selfish ends. They excite the workers to go on strike or adopt other
agitational approach.
8. Punishment to Workers -
Sometimes, the employer adopts dictational policy and victimises the employers by suspending or
dismissing them from services. In order to get the victimisation redressed the employees resort to
agitational approach. This disturbs the industrial peace.
9. Mass retrenchment & undue promotions :-
One major cause of industrial dispute is the mass retrenchment and undue promotions of the
employees. The employees start agitation to show their resentment against the callous attitude of the
management.
10. Insecurity of Service -
In India, the employment opportunities are very tight. The employees want security of service. If the
employer does not meet with their demand they adopt agitational approach.
11. Wrong policy or decision -
Sometimes, the policy or decision taken by the management is determental to the interests of
employees. This causes frustration among the employees and they went to agitational approach in bid
to put pressure on the management to withdraw the wrong decision.
12. Bad Behaviour -
The pre-requisite of industrial peace is the cordial relations between the employer and employees. If
the behaviour of the management is bad towards the employees, good will disappears and dispute
arises.
13. Non-redressal of grievances -
The employees place their grievances before the management time and again. If their genuine

grievances are not removed or properly attended, it give rise to frustration and ultimately a dispute. 
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. The trade union, through its
leadership, bargains with the employer on behalf of union members (rank and file [1] members) and
negotiates labour contracts (collective bargaining) with employers. This may include the negotiation
of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers,
benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on
the rank and file members and the employer and in some cases on other non-member workers.

Originating in Europe, trade unions became popular in many countries during the Industrial Revolution,
when the lack of skill necessary to perform most jobs shifted employment bargaining power almost
completely to the employers' side, causing many workers to be mistreated and underpaid. Trade union
organizations may be composed of individual workers,professionals, past workers, or the unemployed.
The most common, but by no means only, purpose of these organizations is "maintaining or improving the
conditions of their employment".[2]
Over the last three hundred years, many trade unions have developed into a number of forms, influenced
by differing political objectives. Activities of trade unions vary, but may include:

 Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a


range of benefits toinsure members against unemployment, ill health, old age and funeral expenses.
In many developed countries, these functions have been assumed by the state; however, the
provision of professional training, legal advice and representation for members is still an important
benefit of trade union membership.
 Collective bargaining: Where trade unions are able to operate openly and are recognized by
employers, they may negotiate with employers over wages and working conditions.
 Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of
particular goals.
 Political activity: Trade unions may promote legislation favorable to the interests of their
members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or
financially support individual candidates or parties (such as the Labour Party in Britain) for public
office.

Unions may organize a particular section of skilled workers (craft unionism), a cross-section of workers
from various trades (general unionism), or attempt to organize all workers within a particular industry
(industrial unionism). These unions are often divided into "locals", and united in national federations.
These federations themselves will affiliate with Internationals, such as the International Trade Union
Confederation.

A union may acquire the status of a "juristic person" (an artificial legal entity), with a mandate to negotiate
with employers for the workers it represents. In such cases, unions have certain legal rights, most
importantly the right to engage in collective bargaining with the employer (or employers) over wages,
working hours, and other terms and conditions of employment. The inability of the parties to reach an
agreement may lead to industrial action, culminating in either strike action or management lockout, or
binding arbitration. In extreme cases, violent or illegal activities may develop around these events.

In other circumstances, unions may not have the legal right to represent workers, or the right may be in
question. This lack of status can range from non-recognition of a union to political or criminal prosecution
of union activists and members, with many cases of violence and deaths having been recorded both
historically and contemporarily.[28][29]

Unions may also engage in broader political or social struggle. Social Unionism encompasses many
unions that use their organizational strength to advocate for social policies and legislation favorable to
their members or to workers in general. As well, unions in some countries are closely aligned with political
parties.

Unions are also delineated by the service model and the organizing model. The service model union
focuses more on maintaining worker rights, providing services, and resolving disputes. Alternately, the
organizing model typically involves full-time union organizers, who work by building up confidence, strong
networks, and leaders within the workforce; and confrontational campaigns involving large numbers of
union members. Many unions are a blend of these two philosophies, and the definitions of the models
themselves are still debated.

Although their political structure and autonomy varies widely, union leaderships are usually formed
through democratic elections.

Some research, such as that conducted by the ACIRRT,[30] argues that unionized workers enjoy better
conditions and wages than those who are not unionized.

In Britain, the perceived left-leaning nature of trade unions has resulted in the formation of a reactionary
right-wing trade union called Solidarity which is supported by the far-rightBNP.

Trade unions are democratic organisations which are accountable to their members for their policies
and actions. Unions are normally modelled on the following structure:

 Members - people who pay a subscription to belong to a union


 Shop stewards - sometimes called union representatives - who are elected by members of the
union to represent them to management
 Branches - which support union members in different organisations locally. There is usually a
branch secretary who is elected by local members
 District and/or regional offices - these are usually staffed by full time union officials. These are
people who are paid to offer advice and support to union members locally
 A national office - the union's headquarters which offers support to union members and
negotiates or campaigns for improvements to their working conditions. At the top of the
organisation there is usually a General Secretary and a National Executive Committee, elected by
the union's members.

Unions structure diagram

Union Members

Shop Stewards (Union Representatives)

Branches
District and Regional Offices

National Office

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