Industrial Relation

Determinants of Industrial Relations

• Interpersonal Relations • Industrial Absenteeism

• Attitudes • Strikes & Lockouts

• Job satisfaction • Worker Participation

• Employee’s Opinion • Grievances

• Labor Turnover
 Parties to IR

Employees Trade
Employers
Union

Employee Employer-Employee Employer

Employers Industrial Relations
Associations Relations Associations

Government Courts &

Tribunals
WHAT IS INDUSTRIAL RELATIONS ?

1. IR is a relationship between management and

employees or among employees and their
organizations, that characteristics and grow out of
employment.

2. IR may be defined as the complex of inter-

relations among workers, managers and
government.
 Definition

Industrial Relations refer to the multilateral

relations between employees, employers and
government.

Jucius in “Personnel Management”

 Characteristics of IR

1. An outcome of relationship in industry.

2. It create rules and regulations to maintain
piece and harmony.
3. Important parts of IR are employees and their
organization, employer and their association
and government.
4. It has a role of management, union and
government.
 Objective of IR

• To promote and develop labor management relation.

• To regulate the production by minimizing industrial conflicts
• To provide opportunity to workers to involve in decision making process
with management.
• To encourage and develop trade unions in order to improve the workers'
strength.
• 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,.
• To raise productivity to a higher level in an area of full employment by
lessening the tendency to high turnover and frequency absenteeism.
• To improve the economic conditions of workers in the existing state of
industrial managements and political government
• To Avoid disputes between management and labor, and create a
harmonizing relationship between the groups so productivity can
be increased.
• Ensure full employment and reduce absenteeism, hence, increasing
productivity and profits.
• To Provide better wages and living conditions to labor, so
misunderstandings between management and labor are reduced to a
minimum.
• To bring about government control over plants where losses are
running high, or where products are produced in the public interest.
 Role of Trade Unions in IR

• Union play a vital role in organizing the employee and

mobilizing them through a set of demand and with
employer through collective bargaining.
• Achieving higher wages
• To offer responsive co-operation in improving level of
production, discipline etc.
• To promote individual and collective welfare
• To improve working and living conditions
• To enlarge the opportunities of promotion and training.
 Role of Employers Organisation

• Promote and protect of the interest of employers

engaged in Industry, Trade and Commerce.\
• Advice offering
• Bridge between Union Government
• Train and develop staff members of concern
members of Associations
 Examples of Employer’s
Organizations
ASSOCHAM- Associated Chamber of Commerce
(1920)
FICC- Federation of Indian Chamber of Commerce
(1927)
IOE- International Organization of Employers (1920)
TRADE UNIONS
 What is Trade Union
 A trade union is an organization of workers formed
to promote , protect and improve through
collective action, the social, economic, and political
interests of its members.
Flippo

 Formed to protect and promote the interests of their

members
 Primary function is to protect the interests of workers
against discrimination and unfair labor practices.
Objectives of TUs
 Representation (Workers’ Interests)
 Negotiation (Collective Bargaining)
 Voice in decisions (Lay off, Retrenchment) affecting
workers
 Member Service (Education, Training, Welfare,
Discounts, Loans)
Functions Of TUs
 Collective Bargaining
 Advice Management on personnel policies
 Taking problems of the workers with the
management.
 Work for achieving better say of workers in
management
 Education of workers
 Welfare and recreational activities for their members
 Representing workers in national, international
forums.
Functions of Trade unions
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
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
Importance of Trade Unions
 For industrial peace
 Decisions taken through the process of collective
bargaining and negotiations between employer and
unions are more influential
 Effective communication between the workers and
the management

 Economic development
 Recruitment & selection
 Discipline among workforce
 Settlement of ID in rational manner
Why do people join Union?

 Greater Bargaining Power

 Minimize Discrimination
 Sense of Security
 Sense of Participation
 Sense of Belongingness
 Platform for self expression
 Betterment of relationships
SPECIFIC FUNCTIONS OF
UNIONS
 Wage & salary bargaining
 Fight for continuous improvement in employee
benefits
 Improving working conditions at work place
 Improving welfare, healthcare & recreation facilities,
and leisure at workplace
 Increasing rest periods, holidays, paid leave and
time-offs
SPECIFIC FUNCTIONS OF
UNIONS
 Decreasing working hours, work load esp. manual,
and hazardous working conditions
 Improving career and salary rise prospects & job
security
 Protecting employees against arbitrary / unjust
actions of Management
Major Trade Union Organizations
 AITUC (All India Trade Union Congress)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Sabha
 All India Council of Central Trade Unions
 All India United Trade Union Centre
 United Trade Union Centre
 All India federations of banks, insurance, railways, defence,
telecom, airline and airports.
 Centre of Indian Trade Unions -president M.K. Pandhe
Present Central Trade Union Organizations
 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)
 United Trade Union Congress - Lenin Sarani (UTUC - LS)
INTRODUCTION

 Labour welfare is an important dimension of industrial

relation, labour welfare includes overall welfare facilities
designed to take care of well being of employee's and in
order to increase their living standard.
 It can also be provided by government, non government
agencies and trade unions.
HISTORY OF LABOUR WELFARE
 In India the labour welfare started sometime during the 1st
world war (1914-1918). Till then wellbeing of workers in
factories was hardly thought by anybody.
 Industrial Labour Organization has played a very significant
role for labour welfare.
 Formed by Indian central government and state
governments for welfare of labour in Industries
DEFINITION

 According to Arthur James…

Labour welfare means anything done for the
comfort and improvement, intellectual and social,
of the employees over and above the wages paid
which is not a necessity of the Industry.
INDUSTRIAL LABOUR
ORGANIZATION

 According to Industrial Labour Organization (ILO)

 “Labour welfare may be understood and including such
services facilities and amenities which may be established in
vicinity of undertaking to perform their work in healthy and
congenial environment and to avail of facilities which
improve their health and bring high morale.”
OBJECTIVES OF LABOUR
WELFARE
 Labour welfare provides social comfort to employees.
 It provides intellectual improvement of employees.
 To build stable work force.
 To make employees lives good and worth living.
 To provide healthy and proper working conditions.
 To ensure well being of employees and families.
PRINCIPLES

• Welfare activities will be carried out at all levels

in the organization.
• It will be provided over and above regular wages.
• It can be a social concept which relates to welfare
of employees, their families and community as a
whole.
NATURE OF WELFARE

 Schemes of labour welfare shall be updated time to time

according to needs of workers.
 Labour welfare provides facilities in addition to regular
wages and other economic benefits.
 Employers, government, NGOs etc. introduce labour
welfare measures.
 Labour welfare provides facilities which improves workers
work-life balance.
SCOPE OF LABOUR

 Working Environment
 Health facilities
 General welfare programs
 Economic welfare programs
 Labour welfare programs