Trimester: May-August 2021

Course Name: Industrial Relations

Course Code: HRM 8605
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 Introduction of Course Instructor

MPhil (On progress) BUP

BBA (Management), MBA (HRM), DU
Assistant Professor
Department of Business Administration in Management Studies
Bangladesh University of Professionals
E-mail: [email protected]

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 Introduction of the Course
 Industrial relation is an advance course in the field of human resource management designed to
develop knowledge regarding the relations of employees, employers or management and
government.
 Moreover, this course introduces the Bangladesh’s industrial relations by examining the linkages
between labor standard, workers’ rights and development in the light of contemporary trends
and by focusing on a number of key issues and challenges faced by Bangladesh.
 From well-established concepts and practices, students are expected to be equipped with
theoretical tools and empirical evidence necessary for an in-depth understanding on industrial
relations.
 Additionally, learners will be able to develop theoretical and practical know-how on the rules
and regulations of the IR as well as the responsibilities of each stakeholder involved in the IR
processes.
 Under this course there are several chapters including introduction to industrial relations, trade
union, conflict management, industrial dispute, employee grievances, collective bargaining,
industrial accident and safety, workplace discipline, participation in management, relevant
basics from industrial and labor laws.
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 Course Objectives
• To explain the concepts of labor-management relations and the determinants of
industrial relations.
• To evaluate players in the industrial relations field such as the organization, the
Government, workers and their organizations.
• To identify the nature of trade unions in private and public sector of Bangladesh.
• To differentiate among the traditional, interactionist, and managed-conflict views of
conflict.
• To study pattern, causes and forms of industrial dispute in Bangladesh.
• To analyze collective bargaining, its characteristics and importance.
• To learn whether safety is necessary and what is the significance of industrial safety.
• To explain the concept of employee counselling and the basic requirements of
successful counselling.
• To study the importance of workers' participation.
• To learn about the basics of labor and industrial law.

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 Learning Outcomes
• Understand the concepts and key theories relating to industrial relations;
• Recognize that the historical context of industrial relations in Bangladesh;
• Analyze the trade union movement and apply registration process of trade union in
Bangladeshi context;
• Apply the conflict resolution techniques and effective negotiation mechanism;
• Comprehend procedure of settlement of industrial disputes in Bangladesh;
• Apply the tactics to be followed in collective bargaining;
• Understand the importance of industrial safety and industrial training;
• Explain whether workplace counselling works, and whether a workplace counselling
service protects the employer completely from stress claims;
• Identify and apply tactics for ensuring effective employee participation;
• Recognize the procedure for leave, types of leave, punishment for conviction and
misconduct, responsibility for payment of wages, etc.

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 Recommended Books

• Industrial Relations and Labour Welfare, Text and Cases: R.

Sivarethinamohan (Latest edition)
• Industrial Relations: Theory and Practice: Michael Salamon (Fourth
Edition)
• Industrial Relations: Dr. Abdul Awal Khan & Dr. Md. Abu Taher (Latest
edition)
• Labour Law and Industrial Relations: Dr. Nesar Ahmed (Latest edition)
• Relevant articles and other reading materials will be provided.

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 Assessment Strategy

Events Weightage
Trimester Final Exam 40%
Midterm Exam 20%
Class Tests (Total Four) 12%

Term Paper (with the different topic) including Presentation 10%

Assignments and Case Studies (Individual/Group) Including Presentation

05%
Regular Class Presentation and Participation 05%
Class Attendance 05%
Attitude/Conduct/Manners 03%
Total: 100%
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 Chapter 01
Industrial Relations

Asst. Prof. Mohammad Ali, MGT, BUP 8

 Learning Objectives
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After reading this chapter, you will be able to:

• Explain the concepts of labor-management relations and the determinants of industrial
relations.
• Define labor-management relations from an industrial perspective.
• Evaluate players in the industrial relations field such as the organization, the
Government, workers and their organizations.
• Identify Ten Golden Rules for sound industrial relations.
• Assess industrial relations theories and constructive criticisms on these theories.
• Historical context of industrial relations in Bangladesh.

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 1.1 Definition of Industrial Relations
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• The term 'industrial relations' usually refers to relationships between labor

and capital that grow out of employment. There are two parties in the
'employment' relationship—labor and management.
• Both parties need to work in a spirit of cooperation, adjustment, and
accommodation. In their own mutual interest certain rules for co-existence
are framed and adhered to.
• Over the years state has also come to play two major roles in industrial
relations—one, as controller of the relationship between the employers
and the workers and the other, as an employer by setting up an extremely
large public sector.

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 1.1 Definition of Industrial Relations
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• Yoder defined it as "a relationship between management and employees or

among employees and their organizations, that characterize and grow out
of employment.”
• According to ILO, "industrial relations deal with either the relationships
between the state and the employers and the workers' organization or the
relation between the occupational organizations themselves."

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 1.2 Analysis of the Definitions
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The above definitions on industrial relations have the following features:

Industrial relations:
1. Are the relations chiefly between employees and employers.
2. Are the outcome of the practice of human resources management and
employment relations.
3. Emphasize on accommodating Other party's interest, values and needs. 'Both
the parties develop skills of adjusting to and cooperating with each other.

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 1.3 CHARACTERISTICS OF INDUSTRIAL RELATIONS
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Following are some of the chief characteristics of industrial relations.

Industrial relations:
1. Are the outcome of employment relationship in an industrial enterprise.
2. Develop the skills and methods of adjusting to and cooperating with each
other.
3. Lead to rules and regulations to maintain harmonious relations between
the employer and employees.
4. Are shaped often by laws, rules, agreements and awards where the
government has a major role to play.
5. Involve employees and their organizations, employer and their
associations, and the government.

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 1.4 OBJECTIVES OF INDUSTRIAL RELATIONS
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Industrial relations are designed to:
1. Facilitate production and productivity.
2. Safeguard the rights and interests of both labor and management by securing
their cooperation.
3. Achieve sound, harmonious and mutually beneficial labor-management
relations.
4. Bring about socialization of industries.
5. Avoid unhealthy atmosphere in the industry, especially stoppages, go-slows,
gheraos, strikes, lockouts, etc.
6. Protect and improve the interests of both the labor and the management by
developing mutual understanding and confidence.

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 1.4 OBJECTIVES OF INDUSTRIAL RELATIONS
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7. Minimize employee turnover and absenteeism among workers, and encourage
them to enhance productivity.
8. Uplift the economic status of workers by improving wages and benefits.
9. Establish government control over industries which are running in loss or in
which production has to be regulated in public interest.
10. Encourage and develop trade unions in order to improve workers' strength.

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 1.5 Nature of Industrial Relations
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Industrial relations occur within a dynamic conflict situation. Its nature

and characteristics are:
a. Existence of a conflicting relationship.
b. Relationship between the employers and employees.
c. Buying and selling of labor power is the main issue.
d. Buyers are few but sellers of labor power are many.
e. State favors the buyers of labor power.

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 1.6 Participants in Industrial Relations
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Industrial relations involve three major participants (actors)—the management, the
Government, and the workers and their organizations, i.e., trade unions.
(a) Workers and their organization
Industrial relations mainly focus on employees and their cultural and personal
characteristics educational qualifications, technical and non-technical skills, and
their attitude to work. Thus, employees are the key factor in developing good
industrial relations.
(b) Managers and their organization
Industrial relations (also called labor relations) look at the relationship between
management and workers. Particularly, how the manager through his skills of each
work group manages to bring about more productivity and at the same time keeps
the workers happy.

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 1.6 Participants in Industrial Relations
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(c) The government
 The role of the government depends on the choices made by employers, workers,
and especially by its own actions.
 The policies and law set by the government and regulatory bodies have
significant impact on the nature and sustainability of the relationship between
employers and employees.
 IR success requires new policies and high-performance systems more appropriate
for a global, knowledge-intensive economic environment.

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 1.7 FACTORS DETERMINING INDUSTRIAL RELATIONS
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A high degree of trust, open communication, participation and constructive
negotiation skills are required to develop good industrial relations. The following
are some key issues that determine improved relations between the workers and
management:
1. Institutional factors: These include the pattern and pace of a labor legislation,
state policy relating to labor and industry, extent and stage of development of
trade unions and employer’s organization, and the type of social institutions.
2. Economic factors: These relate to the nature of economic organization of the
country (e.g., capitalist, socialist or communist), patterns of business
organization (e.g., individual, company or government ownership), capital
structure, the pattern of technology, the sources of demand and supply in the
labor market, and the nature and composition of labor force.
3. Technological factors: These include mechanization, automation,
rationalization, and computerization.

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 1.7 FATORS DETERMINING INDUSTRIAL RELATIONS
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4. Social and cultural factors: These include population, religion, customs

and traditions of the people, various ethnic groups, different cultures,
etc.
5. Political factors: These comprise, among others, the political system
existing in the country, the ideologies of the political parties, policies,
growth of trade unions and other such factors.
6. Governmental factors: They consist of factors such as industrial policy,
economic policy, labor policy, and five year plans.
MINI CASE: Suppose that you are Mr. M. Parthipban, CEO, Rane TRW
Company. One day, you went to your subordinate, Mr. S. Renganathan's,
room unexpectedly. He was leaning back in his chair when you entered, feet
on the desk and eyes closed. How will you react?

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 1.8 Approaches to Industrial Relations
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Industrial relations are concerned with a particular set of phenomena associated

with regulating human activity in industrial employment. It is quite possible to
specify the boundaries of the set of phenomena. But there are as many definitions
of industrial relations as there are writers on the subject. As a result, different
approaches to study industrial relations have emerged. They are:
1. Unitary approach
2. Pluralistic approach
3. Marxian approach
4. Social action approach
5. System / Dunlop approach
6. HRD approach

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 1.8 Approaches to Industrial Relations
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1. Unitary approach
Under unitary approach the values, goals, interests, etc. of employers
and employees are considered as the same.
This approach has two important implications:
• Conflict is perceived as an irrational activity.
• Trade unions are regarded as intruders into the organization from
outside competing with management for the loyalty of employees.

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 1.8 Approaches to Industrial Relations
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2. Pluralistic approach
The organization is composed of individuals who are divided into a variety of distinct sectional
groups, each with its own interests, objectives and leadership.
The implications of this approach are:
• Conflict is both rational and inevitable.
• The trade unions have positive role to endure the wellbeing of the workers.
3. Marxian approach
Marxist approach is based on the class interests and class conflicts between labour and capital.
Marxian approach concentrates on the nature of the society surrounding the Organization. In the
capitalist society there is always class conflict. This class conflict which arises within the society also
affects industrial relations. Marxian approach is based on class interests and class conflict between
labor and capital.
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 1.8 Approaches to Industrial Relations
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4. Social action approach: The pioneers of this approach are C.J. Margerison and
Max Weber. This approach emphasizes upon understanding of interpersonal
relationship in the work. Social action approach discusses the behavior of
individuals and group within the organization.
The assumptions of this approach are:
• People are human beings
• People are members of informal small groups.
• People have own personality level.
• Individual behavior, desire and social works affected by some social and
psychological factors.

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 1.8 Approaches to Industrial Relations
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5.System / Dunlop approach: System approach considers the industrial relations

as a system that performs an Institutional procedure to make rules to govern
behavior of the people at work. Industrial relations system is a process created by
four interrelated elements comprised of-
• Certain actors,
• Environmental contexts
• An ideology which binds the industrial relations system together, and
• A body of rules created to govern the actors at the work place.

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 1.8 Approaches to Industrial Relations
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6. HRD approach
The HRD approach recognizes employees as the greatest assets in an organization
and believes that they can be developed to an unlimited extent.
Human Resource Development involves—
(i) the greatest involvement an employee in various aspects of his work,
(ii) ways to better adjust the individual to his job and environment and
(iii) the greatest concern for enhancing the capabilities of the individual.

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 1.9 Essentials for Sound Industrial Relations
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1. Proper democratic environment: It is essential that in order to ensure effective

industrial relations in any enterprise, a proper democratic environment in the
greater society is essential. In the absence of democratic environment, the
employers may try to exploit the workers and even the workers may try to
adopt unfair means, thereby disturbing industrial harmony.
2. Efficient management: Efficient management, capable of performing its duties
professionally and thereby satisfying both the parties —the employers and the
employees—is indispensable.

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 1.9 Essentials for Sound Industrial Relations
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3. Existence of strong, well organized trade unions: Industrial relations will be sound
only when the bargaining power of the workers' unions is equal to that of
management. A strong trade union can protect the workers' interests relating to
wages, benefits, job security, etc.
4. Existence of sound and organized employers' unions: These associations are helpful
for the promotion and maintenance of uniform personnel policies among various
organizations and to protect the interests of weak employers.
5. Spirit of collective bargaining: The relationship between an employee and the
employer will be congenial only when the differences between them are settled
through mutual negotiation and consultation rather than through the intervention of
any third party. Collective bargaining is a process through which employee issues are
settled by way of mutual discussions, negotiations, and a give and take approach.

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 1.9 Essentials for Sound Industrial Relations
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6. Minimizing industrial dispute: This can be ensured through the following
measures:
a. Establishing machinery for prevention and settlement of industrial disputes.
This includes activities of legislative and non-legislative measures. Preventive
measures include activities of works committees, welfare officers, and joint
management councils. Settlement methods include negotiation, conciliation
and adjudication.
b. Measures to be taken for settling industrial disputes wherever necessary.
c. Provision for bipartite and tripartite committees in order to implement
personnel policies, code of conduct, code of discipline, etc.
d. Provision for various committees to implement and evaluate the collective
bargaining agreements, court orders and judgements, etc.

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 1.10 Causes of Poor Industrial Relations
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1. Tendency to exploit workers by the employers: Employers try to exploit
workers by paying them less than what they deserve.
2. Inefficient management: Inefficiency of management causes dissatisfaction
among employers and employees within industries.
3. Uncompromising attitude of management towards the grievances of workers:
Stiff attitude towards workers' grievances tends to create dissatisfaction among
them, thereby worsening industrial relations.
4. Absence of responsible trade unionism: Irresponsible trade union leaders
cause strained industrial relations.
5. Authoritarian attitude of supervisors towards workers: If the supervisor fails
to show democratic attitude towards workers, it may cause conflicting
relationship within industries.

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 1.10 Causes of Poor Industrial Relations
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6. Absence of welfare activities and incentive measures: Absence of such
measures tend to create dissatisfaction among workers.
7. Unfavorable political and economic environment: Such environment plays
havoc in industrial relations.
8. Inter-union rivalry: Multiplicity of trade unions causes rivalry and disputes
within industries.
9. Disregard towards labor laws : Violations of labor laws cause severe problems
in industrial relations.
10. Excessive work load and improper work environment: Excessive work load
creates discontent and improper work environment demotivates works.

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 1.11 Challenges of IR: Emerging Trends and Issues
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1.Globalization
• It necessitates economic integration and consequent removal of other
restrictions (factors) from the business environment.
• As there is no preparation to meet the challenges of globalization, the parties
(employees, management and state) involved in the industry behave differently
in the new circumstances.
• Concerted efforts from the parties involved in industry are vital to reap benefits
front globalization.
2. Privatization
• It will benefit management. But the employees have to be skilled and efficient
enough to survive in the employment war.
• It will ensure better utilization of limited resources to bring out the best possible
services and goods from the industry.
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 1.11 Challenges of IR: Emerging Trends and Issues
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3. Information technology
• It is a must to make the industries updated enough to produce highly
sophisticated and frequently changing customer friendly goods within the
shortest production cycle.
• Without it, industries cannot compete in the market and exist for a long time to
employ the workers. Industrialization can be possible only through resorting to
information technology.
• It will help to sustain economic growth.
• Frequent changes in information technology compels employees to change their
level of skill but it is difficult for the employees of an organization in developing,
countries to upgrade their efficiency keeping pace with change of technology.

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 1.11 Challenges of IR: Emerging Trends and Issues
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4. Workforce diversity
• In this time of global completion, employees must have multidimensional skill so
that they can meet the various needs of the firm at the time of need.
• In general, employees in our country are not educated and skilled enough, let
alone having various skills for performing different jobs within the required time.

5. Service and productivity movement

• It is a new trend in the developed world and it is becoming a global standard in
the developing countries as well.
• In Bangladesh, it will throw a challenge simultaneously to the state for nurturing
industrialization and to the management for ensuring quality goods and services
at a cheap rate.

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 1.11 Challenges of IR: Emerging Trends and Issues
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6. Total Quality Movement (TQM)

• The current market is a consumer market, and the producers are bound to
maintain quality of their goods and services as per the expectation of consumers.
• To keep pace with the everchanging quality standard, all the employee and the
logistic facilities need to be upgraded.
• But the employees are not skilled and educated enough to be aware of the
quality standard and to sustain the pressure created from the emerged situation.

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 1.11 Challenges of IR: Emerging Trends and Issues
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7. Managerial obsolescence
• To face the challenges of ever-changing world of equal standard, managers must
make themselves equipped with the required managerial skills for running their
firms in a cost-effective way (as per the demand of the time).
• Consequently, due to reduction in productivity and profitability, an organization
fails to fulfill the demands of the employees and pacify their interest.

8. Adoption of international rules and regulations

• It will cause problem for the management in different countries to run their firm
as per global rules and regulations since the socio-economic conditions and
infrastructure facilities vary from country to country.

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 1.12 Historical context of IR in Bangladesh
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 The People’s Republic of Bangladesh, located in South Asia and bordering India
and Myanmar, was part of British India until 1947.
 It became a separate province of Pakistan on 14 August 1947, when the sub-
continent was partitioned into two independent sovereign dominions, India and
Pakistan. Bangladesh broke away from Pakistan and became an independent
sovereign state after a bloody liberation war in 1971.
 The history of industrial relations system of this country can be traced back to the
Trade Union Act, 1926 introduced by British rulers.
 The main purpose of the Act was to provide for the registration of trade unions
and in certain respects, define the law relating to registered trade unions.
 But the Act did not contain any provision regarding strikes.

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 Historical context of IR in Bangladesh
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 The People’s Republic of Bangladesh, located in South Asia and bordering India. In
1929 the Trade Disputes Act put restrictions on strikes in public utility services.
 The Act provided for the establishment of tribunals to adjudicate upon the labour
disputes.
 In 1947 the Industrial Disputes Act placed the conciliation and adjudication
machinery for the settlement of industrial disputes on a permanent footing.
 In decade following partition of India, the then Pakistan government mostly
adopted the colonial legacy with regard to labour laws.
 However, a major development took place in the legal framework of industrial
relations in 1965 when the East Pakistan Trade Unions Act, 1965 was enacted
repealing the Trade Unions Act, 1926.

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 Historical context of IR in Bangladesh
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 But the Act could not facilitate healthy growth of trade unions as it was more
restrictive on the freedom of association and right to organize.
 The period between 1947 and 1969 was thus marked by a host of repressive laws
and witnessed labour agitation and widespread industrial unrest.
 Subsequently, the Labour Disputes Act, 1965 and Trade Unions Act, 1965 were
integrated into one law, namely Industrial Relations Ordinance, 1969, which made
provisions for recognition of collective bargaining agents for establishment or
group of establishments.
 Thus, the Ordinance was a landmark development in the evolution of collective
bargaining in Bangladesh.
 After the emergence of Bangladesh, development of industrial relations was
strained by imposition of martial laws, proclamation of state of emergency at
different times, and promulgation of host of other laws and policy which inhibited
the growth of sound industrial relations in Bangladesh.
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 Historical context of IR in Bangladesh
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 Since independence of Bangladesh, no major development took place in the
history of labour legislation till the enactment of the Bangladesh Labour Act,
2006.
 The Bangladesh Labour Act, 2006 is a major and comprehensive enactment
regarding industrial relation system-- partly as a response to demand of
stakeholders for improving regulatory framework on trade union and partly by
demand for codification of existing labour laws in order to avoid overlapping and
inconsistencies.
 It brought some significant changes in industrial relation system.
 However, the Act has not been able to bring the desired changed due to its in-
built weaknesses, suspension of many labour rights under state of emergency
and lack of institutional capacity to implement the laws.

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Question & Answer

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