Unit - 7
Industrial Relation
Meaning and concept
Industrial Relations or IR is the relationship between the management and workforce and the role of a regulatory body to resolve any industrial dispute.
Industry Relations comprises of two words, Industryand Relations, where the industry covers the production activity in which the group of workmen is engaged and the relations show the relationship between the management and the workers within the company. IR plays an important role in today’s working scenario where the harmonious relationship between the employers and employees is needed to have an uninterrupted production. The Industrial Relations has the following features:
- Regulatory body which resolves the industrial disputes.
- Collective Bargaining.
- The role ofunions, management and government.
- Labor Legislation
- Worker’s Grievance Redressal system.
- Disciplinary policy and practice.
- Industrial Relations Training.
Changing concept of industrial relation
In recent years, some new concepts have emerged with regard to the relationships between the management and its employees and also in the approaches related to managing manpower. The new concepts are employee relations, employment relations and human resource management.
One of the main reasons behind the adoption of the term “employee relations” or “employment relations” is due to the increasing importance of non-industrial employment relationships in various areas of economic activities.
Management-employees relationships have come to exist in several non-industrial employments such as trade and commerce,business, insurance and other service sectors. The use of the term “human resource management” combines the functions of “personnel administration” and “labour or industrial relations” and appears to be more appropriate and comprehensive.
Role played by the employer, trade union and government
Employer
Trade and/or labour unions represent the employees in negotiations with the employer.Because the union rep represents the multitudinous voices of the employees, it allows the employer to hear only one clear and concise argument on behalf of the workers instead of having to field the same comments/concerns from hundreds of employees who are all saying the same thing which saves the employer’s time as well as the money.While the interest of the union rep lies with the worker; his/her existence ultimately serves to benefit both parties; both employee and employer.
Thus it saves the employer man-hours and communication problems by creating a two-way communication platform between a large group of employees and a usually smaller group of employers
Trade union
Trade unions protects the employees against the exploitation by the employers through bargaining power and they represents the workers interests in the employment relationship.
The union ensures that the employee benefits from Industrial Relations and aim to secure the workers by helping them to have:
- Better wages that is sustainable for the future of the employee.
- Improved working conditions so that the employee can be productive, safe and happy.
- Mutual respectbetween the employer and their employees
- Proper skill development training to keep up with trends in the workplace so the employee will be able to progress within their career.
Government
The industrial relations processesare influenced by the government and its agencies through the government’s construction, passing and implementation of relevant industrial relations law, policies, regulations etc.
Current I.R. Position in India and I.R. Policies of government of India
IR is dynamic in nature. The nature of IR can be seen as an outcome of complex set of transactions among the major players such as the employers, the employees, the trade union, and the state in a given socio-economic context. In a sense, change in the nature of IR has become sine quo non with change in the socio-economic context of a country
The measures to reform IR in India are as follows:
(i) To constitute a bipartite committee of employers and unions to formulate proposals for a comprehensive legislation.
(ii) To withdraw the Trade Union and the Industrial Disputes (Amendment) Bill, 1988
(iii) To consider the possibility of formulating a bill on workers’ participation in management, 1990. In the 33rd session of ILC, another bipartite committee was constituted to recommend changes in the TU and ID Acts. The government introduced a Bill on Workers, Participation in Management in Parliament in 1990
Meaning, concept and Objective
A trade union is an organisation of workers formed with the objective of improving the conditions of workers. It is constituted to protect the interests of workers. Workers have little bargaining capacity when they are unorganized. The trade union movement began to stop the exploitation of workers by managements under the capitalist system.
Objectives:
The objectives of trade unions are:
1. To ensure the security of workers:
This involves continuous employment of workers without any lay-offs.
2. To Obtain Better Economic Returns:
This involves wage increments at periodic intervals, bonuses at higher rate, other admissible allowances, transport facilities and subsidized canteen.
3. Secure Power To Influence Management:
This involves workers’ participation in management, decision making, role of union in policy decisions affecting workers, and staff members.
4. Securing Power To Influence Government:
The unions should have some influence on the government so as to pass labour legislation laws which can improve the working conditions, safety, welfare, security and retirement benefits for the workers and their families, seek redressalof grievances as and when required.
Functions
The important basic functions of unions listed by National Commission on labour are:
(i) To secure fair salaries or wages to workers.
(ii) To safeguard and improve conditions of service.
(iii) To enlarge opportunities for promotion by providing proper training.
(iv) To improve living and working conditions of the workers.
(v) To provide for educational, cultural and recreational facilities to the workers for their knowledge and entertainment.
(vi) To co-operate and facilitate technological advance by broadening the understanding of workers on its underlying issues.
(vii) To promote identity of interests of workers with their industry.
(viii) To offer responsive co-operation in improving levels of production and productivity, discipline and high standards of quality and
Type
There are four main types of trade unions.
i. Craft unions:
These unions represent workers with a particular skill set like plumbers and weavers. These workers may be employed in a number of industries.
Ii. General unions:
These unions include workers with a range of skills and from a variety of industries.
Iii. Industrial unions:
The union seek to represent all the workers in a particular industry such as those in the rail industry.
Iv. White collar unions:
White collar unions represent particular professions which includes pilots as well as teachers. Different unions in a country generally belong to a national union organisation. For example, in India, a number of unions belong to the All India Trade Union Congress (AITUC).
This is the one of the largest and oldest trade union federations in the country. A number of them also belong to international trade union organisations such as the International Confederation of Free Trade Unions, which has more than 230 affiliated organisations in 150 countries.
Method of trade union
Various methods are adopted by the trade union to get their demands accepted by the superiors.
They believe in collective bargaining which means that the representatives of the union will go and meet with the representatives of the employing concern and settles the terms with them regarding pay scales, hours of work and other conditions of work.
If collective bargaining fails, the union may be had to arbitrate. Under arbitration representatives for both the capital and labourers are appointed who reach to a decision to which both sides abide. If no decision is reached at the arbitration then the trade union resorts to strikes which stops production and profits to the company.
The consumers are put through difficulties. The world comes to know that a group of workers is on strike and are not being treated fairly by their employer.
References:
1. Personal management by C.B.Memoria& G.V. Gankar- Himalaya
2. Personal management & industrial relation by P.C.Tripathi-S.chand
3. Industrial relation, Trade Union &Labour Relation by G.P.Sinha& PRN Sinha, Pearson.
