Introduction to Industrial Relations

(A)Industrial Relations- Its Definition

The term Industrial Relations comprises of two terms; Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen.

Dale Yoder, Industrial Relations is a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of an industry.

Dunlop, Industrial Relations may be defined as the complex of interrelations among workers, managers and government.

Biswanath Ghosh, Industrial Relations is an art, the art of living together for the purpose of production.

Encyclopedia Britannica, Industrial Relations include individual relations and joint consultation between employers and work people at the place of work, collective relations among employers, the organizations, the trade unions and the part played by the state in regulating these relations.

The analysis of the definitions of industrial relations mentioned above provides the concepts of following relations between/among:(i) employers and employees at the plant level.(ii) employers and trade unions at various levels (plant, industry & national level).

(iii) employers and the government.

(iv) the government and the unions.(v) the various unions.

(B) Objectives of Industrial Relations

The main objectives of industrial relations system are:-1. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will.

2. To enhance economic status of workers in the existing state of industrial managements and political government.

3. To avoid industrial conflict and their consequences and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

4. To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions.5. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency of absenteeism.

6. To provide good working conditions to the workers and treat workers as total workers.7. To develop and encourage trade unions and encourage collective bargaining as a means of self-regulation.8. To maintain discipline among workers and to eliminate or minimize the number of strikes, lockouts and gheraos.

(C) Importance of Industrial Relations

The healthy industrial relations are key to the progress and success. Their significance are-1. Uninterrupted production This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.2. Reduction in Industrial Disputes Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. IR helps promoting co-operation and increasing production.3. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. 4. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other.5. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

(D) Scope of Industrial Relations

The scope or industrial relations is quite vast. The main issues involved here include the following:1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices

(E) Functional Requirements for Sound Industrial RelationsIt is very difficult to develop and maintain sound industrial relations. Certain conditions should exist for the maintenance of sound industrial relations. These are:

1. History of good industrial relations: A good history of industrial relations means harmonious relationship between management and workers. On the other hand, a bad history is characterized by militant strikes and lockouts. Both have perpetuating tendency that does not mean that they cannot change their attitude. The probability of conflict is greater when conflict has been accepted as normal. The probability of peaceful relations is greater when mutual understanding is expected to continue as a part of standard operations.

2. Economic satisfaction of workers: Industrial relations depend on the economic satisfaction of workers. Much of mans conduct is dominated by the basic survival need because he wants to survive.3. Social and psychological satisfaction: Identifying the social and psychological needs of workers is a very important step to determine the good industrial relations. It has been revealed by the Hawthorne Experiments that a man has several other needs besides his physical needs. Employment relationship is not only an economic contract; supportive climate is more required than economic rewards. The supportive climate of an organization is essentially built around social and psychological rewards. Workers participation in management, job enrichment, suggestion schemes, effective two ways communication are some of social & psychological rewards.4. Off the job conditions: For good IRS it is not enough that the workers factory life alone should be taken care of. His home life is not totally separable from his work life and his emotional condition is not separable from his physical condition. Each affects the other. For this reason workers off the job conditions should also be improved. 5. Enlightened labor unions: Strong and enlightened labor movement can help to promote the status of labour without hampering the interests of management. Labour unions always talk much of the employers obligations to the workers but say very little about the workers responsibility to the employer.6. Better education: Better education provides proper sense of responsibility and thus they will be less influenced by outside forces. 7. Collective bargaining: Collective bargaining is the cornerstone of good industrial relations though the assistance of appropriate government agencies might be necessary in public interest.8. Negotiating skills of management and workers: Good industrial relations depend on the ability of employers, organizations and trade unions to deal with their mutual problems freely, independently and with responsibility.9. Urge on the part of employers: Good industrial relations depend on the realization and urge on the part of employers for the promotion of their workers welfare. 10. Genuine sympathy of the public: Good IRs depends on the genuine sympathy of the general public towards labor.11. Public policy & legislation: Govt. becomes a third major force in determining IRs. It regulates the behaviour of both labor and management.(F) Measure for Improving Industrial RelationsThe following measures should be taken to achieve good industrial relations.

1. Strong and Stable Union: A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak union on the plea that it hardly represents the workers. The agreement with such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable unions in every enterprise to represent the majority of workers and negotiate with the management about the terms and conditions of service.

2. Mutual Trust: Both management and labor should help in the development of an atmosphere of mutual cooperation, confidence and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labor unions should persuade their members to work for the common objectives of the organization. Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling disputes.

3. Workers Participation in Management: The participation of workers in the management of the industrial unit should be encouraged by making effective use of works committees, joint consultation and other methods. This will improve communication between managers and workers, increase productivity and lead to greater effectiveness.

4. Mutual Accommodation. In any organization, there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual give and take rather than take or leave. The management should be willing to co-operate rather than blackmail the workers.

5. Sincere Implementation of Agreements. The management should sincerely implement the settlements reached with the trade unions. The agreements between the management and the unions should be enforced both in letter and spirit. If the agreements are not implemented, an environment of uncertainty is created. Then both the union and management stop trusting each other.

6. Sound Personnel Policies: The following points should be noted regarding the personnel policies. The policies should be:

Formulated in consultation with the workers and their representatives if they are to be implemented effectively.

Clearly stated so that there is no confusion in the mind of anybody.

Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker.

7. Governments Role: The Government should play an active role for promoting industrial peace. It should make law for the compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the management and the workers are unable to settle their disputes. This will restore industrial harmony.

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