Industrial Relations

Industrial Relations
By Baskar
Panneerselvam

Definition
John T. Dunlop in his book Labour Economics,
says that “the complex of inter-relations among
workers, managers and government.”
Agnihotri V. defines that “The term Industrial
Relations explains the relationship between
employees and management which stem
directly from union-employer relationship.”

Scope of Industrial Relations
Establishing and maintaining
good personal relations in the
industry.
Ensuring man power
development.
Making a mutual link
between the various persons
connected with the industry
especially between the
management and the
workers.
Creating a sense of belonging
in the minds of the workers
and a sense of patronising
responsibility in the minds of
the management.
Creating a mutual affection,
respect and regard.
Establishing a good industrial
climate and peace.
Stimulating production as
well as industrial and
economic development.
Maximising social welfare.
Providing ways and means for
a healthy and effective
government intervention in
the management of the
industrial sector.

Functions of Industrial Relations
To establish a pipeline between the workers and the management.
To bridge the gap between the employers and employees.
To establish a support between the manager and the managed.
To ensure creative contribution of the trade unions.
To avoid industrial conflicts and to maintain harmonious relation.
To avoid unhealthy atmosphere in the industry, especially strikes, lockouts, ghearos,
etc.
To increase industrial productivity.
To ensure better workers participation and involvement in the production process.
To bring about government control over the industrial scene.

Approaches to industrial relations
Psychological
approach
Sociological
approach
Human relations
approach
Socio-Ethical
approach
Gandhian
approach
System
approach

DUNLOP Model of Industrial Relation
Environmental
forces
•Market or Budgetary
Restraints
•Technology
•Distribution of Power in
Society
Participants in the
system
•Union
•Management
•Government
Output
•Rules of the work place

Tripartite Bodies
The tripartite bodies are those in
which the representatives of
employers, labor, and government
should meet regularly in
conference, to bring the parties
together for mutual settlement of
differences in a spirit of co-
operation and good will.

Tripartite Bodies in India
The Indian Labour
Conference (ILC)
The Standing Labour
Committee (SLC)
The Committee on
Conventions
The Industrial
Committee

Industrial Disputes
Definition
•According to section 2K of industrial
dispute act 1947, “Any dispute or
difference in Industry, between
employers and employers,
employers and workmen, workmen
and workmen”.

Conditions for Industrial Disputes
There should be a
dispute or
difference.
The dispute
should be
between
employees, or
between
employers or
between
employers &
employees
It should
connected
with
employment.

Causes of Industrial Disputes
Employment and non-employment – Retrenchment or discharge,
Dismissed
Individual dispute and Industrial dispute.
Disputes Regarding Facilities.
With drawl of privilege of trade union leader.
Dispute relating to workmen employed by the contractor.
Lay off - Failure of employee on account of shortage of raw materials.
Lock out – Temporary closing of a place of employment.
Retrenchment – Termination by the employer of the service of a
workman.

Forms of Disputes
Strikes
Go slow
tactics
Sit down
strikes
Stay away
strikes
Token
strikes
Sympathetic
strikes
Cat-call
strikes
Pen-down
strikes
Hunger
strikes
Bandhs Gherao Lockout

Settlement of Industrial Disputes
Collective
Bargaining
Conciliation Arbitration Adjudication

Trade Union
Definition
• According to section 2(b) of Trade union Act
1926,“Trade union is any combination of persons,
whether temporary or permanent, primarily for
the purpose of regulating the relations between
workers and employers or between workers and
workers, and for imposing restrictive conditions on
the conduct of any trade or business and includes
the federation of two or more trade unions.”

Principles of trade union
Equal pay for
equal work or
for the same job
Security
of service
(Job)
Unity is
Strength

Advantage to workers joining in Trade
Union
To get
economic
security
To restrain the
management
from taking
any action
which is
irrational,
illogical, etc.
To
communicate
their views,
aims, ideas to
the
management
To secure
protection
from economic
hazards
beyond their
control.
Eg,. Accident,
disability,
death.
To get a job
through the
good offices of
a trade union.

Functions of Trade Union
To secure for workers fair wages
To safeguard security of tenure and improve conditions or service
To enlarge opportunities for promotion and training
To improve working and living conditions
To provide for educational, cultural and recreational facilities
To co-operate in technology advancement
To promote individual and collective welfare

Any seven or more persons form a trade union and can apply for its
registration.
These applicants must be members of a trade union.
In order to avoid the multiplicity of trade unions, the number of persons
forming a trade union for the purpose of registration be increased to 10%
of total employees of the unit, subject the minimum of 7 members.

Members
Any person who has attained the age of 15 years
can be a member of registered trade union.
He cannot be an office bearer until the age of 18
years. But subject to rules of the trade union, he
may enjoy all the rights of the members.
Persons employed in Raj Bhavan, defence
cannot form a trade union.

Legal Status of Registered Trade Union
It becomes a corporate body by the name under which it is registered.
It has perpetual succession and a common seal.
It has power to acquire and hold with movable and immovable
properties.
It has power to contract.
It can by the name under which it is registered sue and be sued.

Federation of Trade Unions
BMS
(1956)
INTUC
(1947)
CITU
(1970)
AITUC
(1920)

Problems in Indian Trade Unions
Small size of
unions
Financial
weakness
Multiplicity of
unions
Inter-union
rivalry
Leadership
issue
Politicalisation
of unions
Problem in
recognition of
trade union

Workers Participation in Management

Need of workers participation in
Management
The increased use of technology in industry has necessitated the growing co-
operation of workers because of the complex operations of production.
The changed view that employees are no longer servants but are equal partners
with their employers in their efforts to attain the goals of the enterprise.
The growth of trade unions which safe guard the interest of workers and protect
them against possible exploitation by their employers.
The growing interest of the government in the development of industries and
welfare of workers.
The need for increased and uninterrupted production which can be achieved only
when there is a contented labor class.

Participation of Workers
Ascending
Participation
Workers are given an
opportunity to influence
managerial decisions at
higher levels through their
elected representatives.
Descending
Participation
Workers may be given
more power to plan and
make decision about their
own work. They may
participate through
Collective Bargaining.

Levels of Participation
Information sharing
Problem sharing
Idea sharing

Reference
Mamoria C.B., Mamoria, Gankar S.V., “Dynamics Of
Industrial Relations”, Himalaya Publishing House, 2000
Nair N.G., Latha Nair, “ Personnel Management and
Industrial Relations”, Chand & Comoany Ltd., 2001
Baskar P., Quality of Work Life, Ph.D Dissertation,
Annamalai University, 2010

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