INDUSTRIAL (LABOUR) RELATIONS

INDUSTRIAL RELATIONS, DEFINITION AND CONCEPT

- Industrial Relations is that aspect of management which deals with the manpower of the
enterprise-whether machine operator, skilled worker or manager.
- Cordial and peaceful Industrial Relations between the employees and the employer are highly
essential for increasing productivity and the economic growth of the country. Through good
industrial relations only, the enterprise can move towards the welfare of the employees and
the management of the concern.
- Industrial Relationship is the composite result of the attitudes and approaches of the
employees towards each other with regard to the planning, supervision, direction and co-
ordination of the activities of an organization with a minimum of human effort and friction,
with an animating spirit of cooperation and with proper regard for the genuine well-being of
all the members of the organization.
- The term Industrial Relations has been looked upon and worded differently by different
pioneers of the field.
Integrated programmes of industrial relations are of relatively recent origin. Fragmented attention to
employee concerns started around World War I and became inclusive during the 1940s. The
human- relations approach is a long term trend toward recognizing the individual interests of
workers.
Certain people define Industrial Relations as-the relations between employers and employees in
industry.
Others describe Industrial Relations as-the relationships between employees and management that
grow out of employment.
Still others call Industrial Relations as-Social relations in production.
However, with the industrial developments after World War II, the term Industrial Relations has
been widened in its meaning and now it implies Employers-Employees-Unions and Government
relationship in industry.
The basic requirements of an Industrial-relation programme are
(i) To have the support of top management.
(ii) To be based on sound personnel policies
(iii) To follow proper practices.
(iv) To follow up and evaluate the pattern of employee action.
The important functions of Industrial Relations are
(i) Employee Relations.
(ii) Labour Relations.

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(iii) Public Relations.

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The important aspects of Industrial Relations are
(i) Cooperation.
(ii) Conflict.

Labour Relations and Employee Relations

Whereas Employee Relations is a broader term which represents the relations and contacts between
the Management and it’s (all) employees; Labour Relations has its field of contact between
Management and employees, limited. In other words unlike Employee Relations, Labour Relations
represents relations and contacts between Management and employee representatives (or the union)
only.
The increased size of today's employers and union organizations have caused the government to
become more active in employer-employee relationship and for this reason, Legislation and
Government regulations affect considerably the field of Labour Relations.

The Labour Relations department of an industry

(i) Deals with management and the labour union in arriving at a satisfactory resolution of
problems such as low wages, poor fringe benefits, etc.
(ii) Carries out all correspondence with the labour unions.
(iii) Participates in Grievance handling.
(iv) Represents the company in arbitration cases.
(v) Participates in negotiations.
(vi) Conducts the necessary correspondence with government labour agencies.

In brief, Labour Relations Department looks after,

(i) Union Relations.
(ii) Collective Bargaining.
(iii)Discipline in the Industry.
(iv)Handling Grievances.

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TRADE UNIONS OR LABOUR UNIONS

Definition
The social historians Sydney and Beatrice Webb defined a trade union as:
"A continuous association of wage-earners organized for the purpose of maintaining and improving
the condition of their working lives".
This definition was given in 1920; today it has been widened and includes salary earners as well.
A trade union or labour union is a continuing long term association of employees formed to
promote, protect and improve, through collective action, the social, the economical and political
interest of its members.
A trade union may also be defined as any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between workmen and employers between
workmen and workmen or between employers and employers or for imposing restrictive conditions
on the conduct of any trade or business and includes any federation of two or more unions.

Origin of trade Union

Trade unions are the creation of industrialization and modern industrial conditions.
Industrial Revolution destroyed the earlier way of life and left the individual worker, who was
protected by the customary values, to drift by himself in the anonymity of the town, and (also)
gathered these workers together around the employer.
The employer did pay as little as possible to the workers; the workers as individual could not
protest against it and therefore those (workers) similarly situated, economically and socially and
closely associated with the work of the same employer developed mutual understanding and a
common solution of their problems of living and this crystallized them into a self-conscious group
what we may call as Trade Union.
Trade unions got originated out of the necessity of workers to protect and defend themselves from
encroachment, injustice and wrong imposed upon them by the employer or the management of the
concern.
The aspects of the process of industrialization those necessitated "the origin of trade union is:
(i) Separation between the ownership of capital and labour, both of which are essential for
producing goods and rendering services to the consumers.
A difference got created between the owners of capital and the labour. The former wanted to pay
lowest possible to the latter and the latter were interested to secure the maximum possible price for
the work done for the former. These two classes with divergent and _ conflicting interests gave rise
to conflicting situations and the workers thought of uniting.
(ii) Since, individually the workers did not have any other source of the livelihood except that
of service under the owners of capital, there was no match between the two as regards
economic resources or bargaining power or skill, ft was the owner of capital who dictated
the terms and conditions of employment, Le. wage rate, hours of work, etc and either a

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worker had to serve under those conditions or starve. This again infused a spirit of union among the
workers.
(iii) When the workers were suffering in this way, the State or Law remained silent
because in its eyes workers and employers were equal. This further increased the
exploitation of workers by the owners of capital.
(iv) Though an individual worker was dispensable to an employer, but he could not afford to
dispense with the services of a group of workers. The day it was realised by the
workforce, they thought to unite and get their reasonable rights from the owners of
capital.

Functions of Trade Union

Functions of trade unions are:

1. The provision of friendly services such as a place for leisure pursuits, information about
jobs existing in other factories, games and outings, etc.
2. The provision of social services such as insurance against old age, unemployment, strike,
pay, payment for hospital fee, legal services, etc.
3. Wage bargaining. i.e. collective wage bargaining with the employers.
4. Safeguarding the job of the workers.
5. Political activities, i.e. the political pressure for reform, e.g. trade union legislation works
to protect the union and the workers from such industrial abuses as delay in payment of
wages, excessive hours of work, poor working conditions, etc,
6. To develop cooperation with employers.
7. To arouse public opinion in favour of labour.
8. To secure some shares in profit and in the control of the enterprise.

Objectives of Trade Union

Objectives of trade unions are:

1. To take labour out of the competitive process; because if a number of workers freely
compete for a job, the employer will definitely offer them less wages'.
2. To negotiate at all levels with employers over wages and conditions of work.
3. To protect the workers in their inalienable right to higher and better life.
4. To make workers to take part in union activities and to obey union rules and decisions.
5. To protect and promote the interests of the workers.
6. To provide legal assistance to workers (i.e., union members) in connection with work
affairs.
7. To improve economic status of workers.
8. To protect the jobs of the workers against lay off, retrenchment, etc.

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9. To ensure that workers get as per rule, the pension, provident fund, compensation for
injuries, etc.
10. To ensure for the workers, better health, safety and welfare standards.
11. To have a voice or participation in the factory management.
12. To ensure that workers get respect and human treatment from the foremen, managers, etc.
13. To improve their political status.
14. To offer educational services to the workers.

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INDUSTRIAL DISPUTES

Definition and Introduction

(i) An Industrial Dispute means any dispute or difference between employers and employers
or employers and workmen or between workmen and workmen which is connected with
employment or non-employment or terms of employment or conditions of labour, of any
person.
(ii) Every human being (says a worker) has certain needs, e.g., economic needs, social needs
and needs for security. When these needs do not get satisfied, there arises, a conflict
between labour and capital. A conflict means a struggle or clash between the interests of
the employer and the workers. For example, in order to compete in the market, the
employer would like to reduce the price of his product and for doing so he will tend to
reduce the wages of the workers; the workers would not agree to it and the result will be
an industrial conflict between the employer and the workers.
(iii) When an industrial conflict (which otherwise is general in nature) acquires a concrete and
specific display or revelation, it becomes an Industrial Dispute.
(iv) A conflict takes the shape of Industrial Dispute as soon as the issues of controversy are
submitted to the employer for negotiations.
(v) An industrial dispute may be looked upon as a controversy or disagreement between
employee (or management) and the workmen on issues such as
a. Wages and other benefits,
b. Work hours and working conditions, etc.
(vi) Industrial disputes cause losses to, workers, management and nation as a whole.
c. Workers lose their wages.
d. Management loses its profit.
e. Public suffers due to shortage of goods in the market.
f. Nation suffers due to loss of production.

Causes of Industrial Disputes

Some of the common causes of Industrial Disputes have been listed below:
(i) Psychological causes
- Difficulty in adjusting with each other (i.e. employer and worker).
- Clash of personalities.
- Authoritarian Leadership (administration).
- Demand for self-respect and recognition by workers.
- Strict discipline.
(ii) Institutional causes
- Non recognition of the labour union by the management
- Matters of collective bargaining.

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 - Unfair conditions and practices.
- Pressing workers, not to become members of union, etc.
(iii)Economic causes
 Terms and conditions of Employment
- More hours of work.
- Working in night shifts.
- Promotion, lay off, retrenchment, dismissal, etc
 Working conditions
- Environmental conditions such as too hot, too cold, noisy, dirty, messy, etc
- Improper plant and workstation layout
- Old and trouble giving machines.
- Frequent changes in products, etc.
 Wages and other benefits
- Inadequate wages
- Undesired deductions from wages.
- Poor fringe benefits
- No bonus or other incentives, etc.
 Denial of legal and other rights of workers
- Not proceeding as per labour laws and regulations, standing orders etc.
- Violation of already made mutual agreements (Le. between .employer and workers).

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