BAM 414 – INDUSTRIAL RELATIONS

LECTURE ONE
CONCEPT OF INDUSTRIAL RELATIONS AND ITS ACTORS
1. MEANING OF INDUSTRIAL RELATIONS
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 an industrial enterprise and the staff that carries out the duties of
the enterprise.
In simple terms, industrial relations deal with the workers and employers relations in any
industry. The term connotes practices in the industrial setting which ginger cooperation of
labours and management harmonious relationship.
Industrial relations also cover the process through which employer- employee
relationships are expressed such as collective bargaining, workers’ participation in
decision making, grievance and dispute settlement; and management of conflict between
employers, workers and trade unions.
It should be noted therefore, that good industrial relations boost production, improve
quality of work life, amplify efficiencies of the workers and reduce the cost of production.
On the other hand, bad Industrial Relations lead to industrial unrest and industrial dispute.
2. ACTORS/ PARTIES INVOLVED IN INDUSTRIAL RELATIONS & THEIR ROLES
There are three major parties to industrial relations in Nigeria. These parties are equally
regarded as ‘industrial relations actors’. They are: -
(i.) Employer & its Association
(ii.) Employees, represented by the trade unions
(iii.) Government
(i.) Employers & their Associations: The employers or their association consist of people
who possess certain rights vis-à -vis labour. They have right to hire and fire the employees.
In not shell, management of an industrial enterprise remains her employers. Employers
should act as the part of the support system alike the labour unions so that the organization
can achieve the unique capabilities to undertake pro-active activities for the future.
Management’s role is vital in the sense that it makes the coordination and integration
mechanisms in a manner that can produce conducive work climate that in its turn ensures
a good IR.
(ii.) Employees: These are the people in employment relationship with the organization.
These people normally seek to improve their terms and conditions of their employment.
Workers, through their Unions, do exchange views with management and voice their
grievances at the same time. They want to share in decision making powers of the
management. Employees’ trade union acts as support system of the management now days.
It is no more operating, aggressively.
iii. Government: The State is the third force in the industrial relations system. State as an
actor in industrial relations acts as the guardian of the industrial relations. Further as
interventionist and as lawmaker, it should always endorse the administration of the
legislative measures in judicious way so that interests of both the parties are served,
equally well. Subsequently, as governments assumed overall responsibility for the
economy, the role of the state had expanded to include coordination of the activities of
employers and trade unions (employees). The following are the agencies of the state in
industrial relations:
a. Legislature (parliament or its equivalent)
b. The executive (government ministers)
c. Central administration (the civil service – bureaucrats)
d. The judiciary, the police and army, local and state governments
e. Specialized agencies like industrial tribunals, wages and productivity boards,
conciliation, arbitration, industrial court, factory inspectors, and the prices, productivity
and incomes board.
3. IMPORTANCE OF INDUSTRIAL RELATIONS
An healthy Industrial relations is key to the progress and success of any industrial setting
due to the following importance/ benefits derivable from it:-
(i.) It brings about uninterrupted production in the work place.
(ii.) It improves employees’ morale.
(iii.) Effective industrial relations leads to mental revolution of both the employees and the
employers.
(iv.) It leads to reduction in industrial disputes.
(v.) It amounts to national development and social justice.
(vi.) Good industrial relations will reduce wastage on the job. This is because good
industrial relations is achieved on the basis of cooperation and recognition of each other.
This will help increase production and thus reduce wastage.
4. MEASURES FOR IMPROVING INDUSTRIAL RELATIONS IN AN ORGANIZATION
Some of the major measures for improving employer-employee relations are as follows:
1. Sound Human Resource Policies: Policies and procedures concerning the
compensation, transfer, promotion, etc. of employees should be fair and transparent. All
policies and rules relating to employer-employee relations should be clear to everybody in
the enterprise and to the union leaders. Top management must support them and set an
example for other managers. Practices and procedures should be developed to put human
resource policies into practice. Sound policies and rules are of little help unless they are
executed objectively and equitably.
2. Constructive Attitudes: Both management and trade unions should adopt positive
attitudes towards each other. Management must recognize union as the spokesmen of
workers grievances and as custodians of their interests. The employer should accept
workers as equal partners in a joint endeavour. Unions and workers, on their part, must
recognize and accept the rights of employers.
3. Collective Bargaining: Employers’ organizations as well as trade unions should be able
and willing to deal with mutual problems freely and responsibly. Both should accept
collective bargaining as the cornerstone of good employer-employee relations. A genuine
desire on the part of employers to bargain with employees on the basis of equality is
necessary. Government agencies should assist the two sides in public interest. Problem
centered negotiations rather than a legalistic approach is desired. Widespread union
management consultations and information sharing are helpful.
4. Participative Management: Employers should associate workers and unions in the
formulation and implementation of human resource policies and practices. Management
should convince workers of the integrity and sincerity of the company.
5. Responsible Unions: Unions should adopt a responsible rather than political approach
to employer-employee relations. Unions should accept private ownership and operations of
industry. They must recognize that the welfare of workers depends on the successful
operation of industry. A strong, democratic and responsible union alone can ensure that
workers honour the agreement with their employer.
6. Employee Welfare: Employers should recognize the need for the welfare of workers.
They must ensure reasonable wages, satisfactory working conditions, opportunities for
training and development, and other necessary facilities for labour. A genuine concern for
the welfare and betterment of working class is necessary.
7. Grievance Procedure: A well-established and properly administered system for the
timely and satisfactory redressal of employees’ grievances can be very helpful in improving
employer-employee relations. It provides an outlet for tensions and frustrations of
workers. Similarly, a suggestions scheme will help to satisfy the creative urge of workers. A
code of discipline if properly adhered to by both the parties will help to avoid unilateral
and violent actions on either side.
8. Strong and Independent Union Administration: Management should not interfere in
the internal affairs of the unions. Instead of trying to win workers’ loyalty away from
unions, management should encourage right type of union leadership. A strong union is an
asset to the employer.

References
Fajana, S. (2006): Industrial Relations in Nigeria. Lagos: Labofin & Company

Ogini, B. O. & Fasheyiku, I. O. (2015). Dynamics of Industrial Relations, Revised Edition,

Lagos: Ras Ventures.