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Introduction to Industrial Relations:

Industrial relations, also called employee relations, labour relations and personnel relations,
represent the relationship that exists between the employer and employees in an industrial
undertaking. If these relations are strained, industrial disputes occur and industrial work suffers.
The employers suffer losses, the workers do not get wages and there is shortage of goods and
services for community.

Hence, it is in the interest of both the employers and employees as well as for the society in
general that industrial relations should be cordial and harmonious.

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Industrial relations, is the management aspect which deals with the manpower of the enterprise.
It is essential that Industrial Relations between the employees and employer remain cordial and
peaceful. As enterprise can advance only if industrial relations are good. Industrial Relations are
the relations between the employees and the management that grows during the employment.

For any industrial relation programme, following are the basic requirements:

(i) To have the support of top management.

(ii) To adopt proper practices.

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(iii) To adopt and follow sound personnel policies.

Relationship between individual workers and manager(s) is called personnel relations.

Relations between labour unions and management are called labour relations.

The scope of industrial relations includes:

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(i) Promotion and development of healthy labour-management relations.

(ii) Maintenance of industrial peace and avoidance of industrial unrest.

Industrial relations should be cordial as they help in achieving the following benefits:
(i) Industrial peace.

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(ii) Encouragement in collective bargaining.

(iii) Fair benefits to workers.

(iv) Higher productivity.

Definitions:

(i) The term industrial relations explain the relationship between employees and management
which stems directly or indirectly from union-employer relationship.

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(ii) Industrial relations are broadly concerned with the bargaining between employers and trade
unions on wages and other terms of employment.

(iii) Industrial relations are an integral aspect of social relations arising out of employer-
employee interaction in modern industries.

(iv) Industrial relations are the composite result of the attitudes and approaches of employers and
employees to each other.

(v) According to the ILO, industrial relations deal with either the relationships between the state
and employers’ and workers’ organisations or the relations between the occupational
organisations themselves.

Essay # 2. Factors Affecting Industrial Relations:

Industrial relations are a set of functional interdependence involving historical, economic, social,
psychological, demographic, technological, occupational, political, legal and other variables
needing an inter-disciplinary approach for their study.

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Industrial relations are multi-dimensional in nature and depend upon following factors:
(i) Institutional Factors:

These include such items as state policy, labour laws, voluntary codes, collective agreements,
social institutions like community, caste, joint family, creed, system of beliefs etc. attitudes to
work, system of power status, nearness to the centres of power, motivation.

(ii) Economic Factors:

These include economic organisations such as socialist, capitalist, communist, individual

ownership, company ownership and government ownership; and the power of labour and
employers, and the sources of supply and demand in the labour market.

(iii) Technological Factors:

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These factors include the techniques of production, modernisation and rationalisation, capital
structure etc.

Sometimes, external factors, such as international relations, global conflicts, dominant socio-
political ideologies, and the operations of international bodies also influence industrial relations
in a country.

Fundamental principles in governing industrial relations are:

(a) Good labour-management relations develop when employers and trade unions are able to deal
their mutual problems freely, independently and responsibly.

(b) Trade unions and employers and their organisations are desirous of resolving their problems
through collective bargaining.

(c) The workers’ and employers’ organisations should be desirous of associating with
government agencies in considering the general, public, social and economic measures affecting
employers’ and workers’ relations.

Essay # 3. Objectives of Industrial Relations:

1. To safeguard the interests of labour as well as of management by securing the highest level of
mutual understanding and goodwill between all sections in industry.

2. To avoid industrial conflicts and develop harmonious relations.

3. To raise productivity.

4. To establish and maintain industrial democracy based on labour partnership in sharing of gains
as well as through participating in managerial decisions.

5. To bring down strikes, lockouts and gheraos by providing reasonable wages and fringe
benefits to the workers, and improved living conditions.

Industrial Unrest:

Industrial unrest is the result of absence of cordial industrial relations. Strikes, lockouts,
demonstrations, picketing, go-slow etc. are the usual consequences of industrial unrest. The
relations between the employers and the employees are frequently clouded by a sense of exploi-
tation, distrust, and discontent, which give rise to industrial conflicts or disputes.

Some of the symptoms of industrial unrest are high labour turnover, disciplinary problems,
absenteeism, low morale, reduction of output etc. Industrial unrest may take either organised or
unorganised form.

Industrial Peace:

Industrial peace is an ideal situation for industrial growth and is desirable to establish cordial
labour-management relations. The responsibility of creating industrial peace rests with
employers, employees and the government. Industrial peace is possible only when all these three
parties take suitable steps for maintaining cordial industrial relations. Prompt steps must be taken
to remove the causes for disturbing peace immediately when noticed.

Industrial peace means absence of industrial unrest or the existence of harmonious relations
between labour and management.

Essay # 4. Major Actors (Parties) in Industrial Relations:

Industrial relations are the complex of interrelations among workers, management and the
government.

The roles of these three in industrial relations are discussed hereunder:

(i) Workers and their Organisations:

The personal characteristics of workers, their culture, educational background, skills, attitude
towards work etc. play an important role in industrial relations. Workers’ organisations, known
as trade unions are political institutions. These are formed for safeguarding the economic and
social interests of the workers. These trade unions put pressure on the management for the
achievement of these objectives.

(ii) Management:

Management, being employers are a very important variable in industrial relations. Management
try to regulate the behaviours of the workers for getting high productivity from them. Industrial
unrest generally arises when management demands from the workers are very high and they
offer low economic and other benefits.

In order to increase the bargaining power, employers in several industries have formed their
associations. These associations put pressure on the trade unions and the Government. These also
serve as a forum to regulate the industrial relations.

(iii) Government:

Government exerts an important influence on industrial relations through regulating wages,

bonus and working conditions through various laws relating to labour. The Government keeps an
eye on both the trade unions and employers’ organisations to regulate their behaviours in the
interest of the nation.