DPHRM S12 - Industrial Relations - English - V1

Chartered
Qualification in
Human Resource
Management
Level : Diploma in Professional HRM
Unit Code : DPHRM - S12
Session : Industrial Relations
Name & Index No: …………………………………………
Chartered Institute of Personnel Management Sri Lanka (Inc)

www.cipmlk.org
Chartered Institute of Personnel Management Sri Lanka Version 01
Unit Title Industrial Relations
Level Diploma in Professional HRM
Competency Professional Credibility
Credit Value 1
Unit Code DPHRM/S12
Unit Review Date 12th July 2021
Equivalent to SLQF 03
Purpose and aim of the unit

This unit provides an insight into Industrial Relations and the practice of Industrial Relations. The unit
also provides knowledge on the aspect of Tripartite mechanism of an Industrial Relations System. The
unit provides knowledge on Industrial Relations as a normative system built on labour legislation. The
unit covers knowledge on Trade Unions, Trade Union recognition and membership as well as
Collective Bargaining and Collective Agreements. The unit deals with the areas of conciliations and
dispute resolution.
Learning Outcomes
On completion of this unit students will;
 Understand the concept of Industrial Relations and its practices

 Display knowledge about Tripartite Mechanisms.
 Understand the concept and acceptance of Trade Unions and Trade Union membership
 Understand the normative nature of Industrial Relations and labour legislation
 Demonstrate knowledge of Collective Bargaining and Collective Agreements.
 Describe and analyze the concepts of Dispute Resolutions Mechanism
Assessment modes
 Case Study
Guided Learning Hours
The guided learning hours for this unit would be 06 with an additional 40 hours of self-managed
learning
Copyright © 2020 CIPM P a g e 1 of 33

Contents
01. Introduction to Industrial Relations and Trade Unions and Trade Union Recognition ............. 3
1.1 Concept of Industrial Relations .................................................................................. 4
1.2 Tripartism ........................................................................................................................ 7
1.3 Unionized and Non-Unionized Environment ................................................................ 10
1.4 Trade Unions in Sri Lanka ............................................................................................. 12
1.5 Union recognition .......................................................................................................... 16
1.6 Trade Union Check off .................................................................................................. 18
02. Dispute Resolution and Collective Bargaining ........................................................................ 19
2.1 Escalation of a Grievance to a Dispute .......................................................................... 19
2.2 The Industrial Dispute ACT- Definitions ...................................................................... 20
2.3 Collective Bargaining and Collective Agreements........................................................ 29
List of Figures
Figure 1. The Systems approach ........................................................................................................... 5
Figure 2. The Industrial Disputes Act consists of the following six parts .......................................... 20
List of Table
Table 1. Unionized and Non-Unionized environment ........................................................................ 11
Table 2. Legal provisions to conciliation ............................................................................................ 24
Table 3. Arbitration ............................................................................................................................. 25
Table 4. Advantages & disadvantages of collective bargaining ......................................................... 31

01.Introduction to Industrial Relations and Trade Unions and Trade

Union Recognition
Historical Background
Agriculture was the primary occupation in the pre-industrial revolution era where the families
managed the operations. Later new inventions, handicrafts and simple machineries were emerging as
supportive mechanisms for people who engaged in agriculture largely which were handled by
unskilled labourers.
However, with such transformation, by the middle and later part of the 18th century small scale cottage
textile industries soon moved towards large-scale industries with the growing use of iron to make
machines and usage of steam as the energy source which were immensely productive. This
transformation hence resulted in the emerging of industrial and boom towns, which ultimately created
two different classes in the society by separating the labour from the capital as the ‘capital class ‘and
the ‘labour/wage-earning class’ with two different motives of ‘profit and rewards’. This revolution
brought many dramatic changes mainly in the British society affecting the social structure, politics,
demographics and the economy.
As a result, more man power was required to run the industries and such large number of workers were
controlled by the owners who possessed capital, while the development in the technology highly aided
the growth of capitalism. The owners rapidly became very rich and powerful while the industrial
capitalists gradually replaced agrarian land owners as the leaders of the power and economical
structure of the nations. However, with this rapid development and the sudden change of the structure
in the society the working / labour class were often exploited by the owners.
Industrial revolution itself
 led to unemployment with the replacement of machineries,

 high labour exploitation,
 very low payment of wages to earn maximum profit,
 unlimited number of working hours, working places were poorly ventilated,
 over-crowded, unhealthy/dangerous working environments which finally ended up with the rise of
urban slums.
 Poor conditions of the workers as a less privileged class
 Work stoppages, strike resulted loss of production thus adversely affecting the Economy.

 Working class represented by unions was in the forefront of the agitation thus becoming a political
force.
By the beginning of the 19th century with the growth of the capitalist class the occupations such as
bankers and merchants were held as positions with much social importance while the concept of leissez
faire doctrine governed the entire economic system. This system maintained the concept that ‘in order
to maximize the wealth of the nation the labor must produce larger number of quantity of goods and
the notion of demand and supply must play’. It also expressed that the state / governments should not
intervene in the employment of labor or in running factories which paved the way to ‘freedom of
contract’ where the parties to the contract had the freedom to decide on the terms and conditions where
ultimately the party with more power possessed more bargaining power and the labourers were more
helpless.
However subsequent to the rise of Karl Marks and other various social reforms and the prompt of
unionization of workers, the states realizing the unfair practices maintained in the society and in order
to maintain socio-economic justice and political stability, the ‘social welfare policy’ was introduced
by state by intervening even into personal matters of individuals when the freedom given to such
labourers were at danger or violated by the other party. This was the beginning of labour legislation
where subsequently great extent of influence from International Labour Organization (ILO) and the
demand from organized labour unions were affected in the rise of trade unions, collective bargaining,
labour courts systems and development of labour equity.
1.1 Concept of Industrial Relations

 Why study concepts?
Studying the concept or the core of industrial relations helps us realise the emerging of the current
practice of industrial relations
Scholars and expertise in the field have introduced 04 concepts emerged gradually in different stages
with the development of industrial relations namely:
 The systems approach

 Oxford approach
 Industrial socio-logical approach
 Radical Marxist approach

1. The Systems approach - It is largely autonomous but interacts with other systems
J. P Dunlop from Harvard University in 1958 developed the ‘system approach’ which describes that
‘individuals are part of an ongoing, but, an independent social system’.
The behviour, actions and the role of individuals are influenced by the culture of each society.
The main three elements of the society should be input, process and output.
The base of this approach is that ‘cohesiveness of a group is provided by the common ideology
influenced and shaped by the societal factors’.
He explained that this system comprises of three elements: actors, certain contexts and ideology,
which bind together and work as a body of rules governing the actors at the work place. The actors are
defined as the managers, the workers/their representatives and the government agencies while the rules
in the system classifies as substantives rules and procedural rules.
Figure 1. The Systems approach
2. The Oxford Approach - every business enterprise as a social system of production and
distribution, which has a structured pattern of relationships
This system was enunciated by researchers named Flanders, Turnour, Clegg, Alan. This approach
considers that ‘every business enterprise as a social system of production and distribution, which has
a structured pattern of relationships’.
Flanders further has categorized ‘institution of job regulation’ as internal and external; internal, code
of work rules, wage structure, internal procedure of joint consultation, and grievance procedure are
recognized and as external: trade unions and collective agreements.

The fusion of all above explanations were indulged in a formula as follows:
r = f (b)
or
r = f (c)
r = the rules governing industrial relations

b = collective bargaining
c = conflict resolved through collective bargaining.
However, this system was criticized for the fact that, it was a narrower approach to provide a
comprehensive framework to analyze issues in industrial relations since it over emphasises the
importance of the political process of collective bargaining while providing insufficient weight on
determination of rules.
3. Industrial Sociological Approach - emphasis should be on causes of the conflict and not on the
outcome/ consequences of the conflict.
G. Margersion, an industrial sociologist introducing this approach explained that the core of industrial
relations should be the scope and the development of the particular conflict itself and such conflict
remains as the basic. He criticizes the previous approaches as they were much concentrating on
studying the resolution of the industrial conflict than its forming. He classifies the concept as intra-
plant level and intra-organisational level.
However, this approach rejects the special emphasis given to rule determination by the “Systems and
Oxford models”. In its place, it suggests a method of inquiry, which attempts to develop sociological
models of conflicts
4. Radical Marxist Approach - is primarily oriented towards the historical development of the
power relationship between capital and labour.
Marxism, which was enunciated by Karl Marx contributed by Leon Trotskey, Lenin, describes that
industrial relations are equated with power struggle between the two classes and the price payable to
the labour shall be determined by the by a confrontation between conflicting interests. However, it is
recognized that Marxism is not a comprehensive approach but it only concentrates on the relations
between capital and labour being rather a general theory of society and of social changes.

The gist of Marxism
 that labour creates wealth. Hence, means of production wealth should be owned by labour
 Equal distribution of wealth is essential
 Capitalist class would not allow this equal distribution to occur hence the need for a class struggle
through Arms Conflict
 Only way to eradicate exploitation of labour is for the labour class to take charge of the process
i.e. Dictatorship of Labour/Proletariats
 State would wither away
 Dawn of a classless society
However, Industrial Relations is some part of Social Relations in production. It is a discipline

(Academic Orientation) as well as a skill (Professional Orientation).
1.2 Tripartism
Employee relations to industrial relations
As per Armstrong ‘employee relations’ are about how managements and employees work together
and strategies which could be used to make such parties work efficiently together.
According to G M Cole, in his writings it is interpreted that employee relations is the inter-relationship
of both formal and informal agreements between managers and those who manage the two main parties
that starts this whole operation and is therefore are the ‘Employer’ and the ‘Employee’.
What is the focus of Employee Relations?
 The contractual obligations between employer and employee

 Communications policy and practice
 Joint decision making
 Joint problem solving
 Collective bargaining
 Individual grievance and disciplinary policy and practice,
 Social responsibility
 Employee development
 Employee welfare
The relationship between the employer and the employee should be governed by agreed rules and
conditions which are important to each other either in written or unwritten form. Written form is

always considered as the formal method. However, the agreement should be concentrating on the role,
job status and the working condition of the employee. Although this relationship at all times may not
controlled/intervened by unions or government, when the intervention of trade unions by means of
collective bargaining is made, such process captures in the term of ‘industrial relations’. In order to
have a healthy employee relationship unions or collective agreements are not mandatory. Yet, having
a union aids organizations which own larger number of employees, since it is practically impossible
to communicate each one of the employees by the employer, i.e, the plantation sector in Sri Lanka
managed by collective agreements.
Industrial Relations according to Cole, should regulate the employee employment relations with the
involvement of trade unions, collective bargaining in a formal manner. Industrial relations is also
defined as collective relations between trade unions, employers, and the government.
Sriyan de Silva in his book Framework of industrial relations in Ceylon, defines industrial relations
as a sub system of the wider society and its special purposes being to create rules of work which are
acceptable to both parties and regulate their relationship by providing acceptable methods of
determining what the rules shall be.
He further explains in his writing The Transformation of Labour Law and Relations, that industrial
relations are concerned with the rules, processes and mechanisms through which the employers,
employees, their respective organizations and the governments are regulated. However, he explains
that the distension between industrial and labour or employee relations is not always observed.
Employee Relations is however a broader concept. It operates in the non-union set up as well. But on
the other hand when one speaks of industrial relations it is essential to have trade unions involved.
Further the inter-relationship is primarily given by a common agreement, which we call a Collective
Agreement.
The key actors or stake holders in industrial relations, trade unions, collective bargaining and how our
labour law has facilitated these will be discussed in further chapters.
The parties attached to Industrial Relations – Tripartism
When learning industrial relations, it is paramount to understand its stakeholders. Individual

employees, employers, trade unions and their representatives, employee association representatives,
courts, tribunals and government agencies have been recognized as the stakeholders in industrial
relations,

As explained earlier, where trade unions and employer associations’ get involved, this relationship
becomes more formal and it will be identified as an industrial relation. In industrial relations the key
stake holders are known as actors, and the relationship as the tri partite relationship.
The dictionary of the International Labour Organizations (ILO) defines tripartism as the ‘interaction
of government, employers and workers (through their representatives) as equal and independent
partners to seek solutions to issues of common concern’.
How each actor reflects employee relations in terms of human resources management?
INDIVIDUAL EMPLOYEES TEND TO SEE EMPLOYEE RELATIONS IN TERMS OF THE OPPORTUNITY TO
 Improve their conditions of employment

 Voice any grievances
 Exchange views and ideas with management
 Share in decision making
MANAGERS AS
 Creating and maintaining employee motivation

 Obtaining commitment from the workforce
 Establishing mutually beneficial channels of communication throughout the organization
 Achieving high levels of efficiency
 Negotiating terms and conditions of employment with employee representatives.
 Sharing decision making with employees
 Engaging in a power struggle with trade unions.
Employers’ association representatives would tend to share most of these views.
TRADE UNIONISTS AS
 Collective bargaining about terms and conditions of employment

 Representing individuals and groups of individuals in conflict with their management
 Improving the ability of employees to influence events in the workplace
 Regulating relations with other trade unions.
THIRD PARTIES, SUCH AS GOVERNMENT MINISTERS, ARBITRATORS, JUDGES AND CIVIL SERVANTS
MAY SEE AS
 Creating and maintaining harmonious relationships at work

 Creating a framework of rules of fair conduct in employer employee relations

 Representing the community has a whole in dealing with the repercussions of internal conflicts or
decisions made within individual organizations
 Establishing peace-making arrangements to deal with breakdowns in employer-employee relations
 Achieving a prosperous society with justice.
However, in order to maintain a balance, healthy industrial relationship each actor has an important
role to play although each party may have different views and there ought to be conflicts and disputes.
Mr. Franklyn Amerasinghe in his book Employee Relations and Industrial Law in Sri Lanka describes
how each of these actors define good industrial relations as follows:
 An employer - absence of trade union action and the maintenance of satisfactory package at a
competitive cost.
 An employee - a satisfactory package of terms and the absence of harassment.
 The state - the absence of disputes which disrupt the society and the economy.
1.3 Unionized and Non-Unionized Environment

In order to understand the difference between a union and a non-union environment, it is important
that an individual has lived in unionized environment. However, the reality of any
environment, whether union or non-union always depends on the working culture of a particular
organization.
In a non-union environment, the employer holds the majority bargaining power, determining the
employees’/workers’ work expectations, determining work schedules, deciding on wages, promotions
and other aspects of the working culture. As of, when analyzing the pros and cons of a union or non-
union working culture, it is important to know that there are basic differences which are pretty straight-
forward and that every union is different in their unique ways.

Table 1. Unionized and Non-Unionized environment
Unionized environment Non-unionized environment
Job security since proper processes for The major bargaining power is with the
dismissals are conducted. employer
Collective voice again one employee’s unfair Have to pay a membership fee
treatments
The senior staff being protected against their When the union is penalized, all employees are
rights, especially in over-looks of affected and penalized
promotions and benefits
A membership fee has to be paid Since it is collective always, employees may
lose their autonomy
Miscommunications among senior
management and the employees could also be
created commonly
CURRENT POSITION OF INDUSTRIAL RELATIONS IN SRI LANKA
The Employers’ Federation of Ceylon (EFC), being the sole employer organization in Sri Lanka, in
November 2006 presented a collection of Sri Lankan Case Studies on workplace relations at a
conference on Industrial Relations in Sri Lanka. This gives a fair understanding as to the present
industrial practices in Sri Lanka.
Enterprise should not rely on national policy and/or legal changes in the field of industrial relations
to achieve their objectives. Instead, they need to be as self-reliant as possible.
The presence or absence of collective bargaining and trade unions does not necessarily define
Where union representatives complain of the lack of consideration by employers for the wellbeing of
workers, it is generally because of the lack of information and management’s inability to be credible
in terms of its consistency and handling of employee issues. In this context, few employers have given
information about them on a pro-active basis, but have acted on a “need to know’ basis in
disseminating facts which affect them, especially when the consequences were adverse.
In good organizations in terms of IR/HR, leadership by the CEO is very much in evidence. Outsourcing
has become popular sometimes to evade the responsibilities created by legal rigidities. Some

arrangements are no doubt with a view to reducing costs or to enable the enterprise to concentrate on
its core business.
 Employers have also achieved increased pay flexibility through performance related pay, though
this is very much in its infancy, at least as far as sophistication and effectiveness are concerned.
 Many employers are developing, or already have in place, procedures which enable employees to
discuss their individual and collective problems with the management as well as with their
immediate superiors.
 Two-way information and communication systems, both formal and informal, are essential. They
ensure on the one hand, that management is able to keep its finger on the pulse. On the other, they
enable employees to understand the business better, the rationale for management decisions, and
to ultimately subscribe to the overall goals of the enterprise. Information is central to good
decision-making.
1.4 Trade Unions in Sri Lanka

Historical Background
With the emerging of the industrial revolutions in the 18th century the commencement of trade unions
was from the United Kingdom. Although at the latter part, especially during the French revolution,
trade unions were illegal, the initial purpose of emerging of trade unions became originations to protect
the rights of working men, women and children from severe work exploitation and unjust treatments
by the capitalist society, through labour laws as explained earlier in this lesson. Gradually, the
restrictions placed on the trade unions in different parts of the world were relaxed and was given
recognition during 1871 to 1875. However, in the period that followed the trade union movement
flourished, the trade unions began to involve in politics to promote their interests and influence while
funding large sums of money in financing campaigns of candidate for the parliament.
Trade unions in Sri Lanka

With such emerging of trade unions, the Trade Union Act of 1913 unequivocally established the right
of trade unions to include political or other lawful objectives in their trade union constitutions provided
that the principal objects were those of a trade union. In Sri Lanka provisions relating to the rights of
organizing trade unions are found in the Constitutions and the Trade Unions Ordinance No. 14 of 1935
with many amendments to same.
The Article 14 of the 1978 Constitution of Sri Lanka supports the fundamental rights in asserting that
the freedom of association and freedom to form and join a trade union should be respected, secured
and achieved by all organs of the government and should not be bridged, restricted or denied except
in the manner provided under Article 15 (7) of the Constitution.

Sri Lanka has also ratified the International Labour Organization conventions namely; the Convention
No. 98 in 1972 and Convention No. 87 in 1995, which also provide for the recognition of trade unions
through freedom of association and right to organize and collective bargaining, which have also
recognized through the 1978 Constitution, the Trade Union Ordinance and the Labour laws in Sri
Lanka.
However, the first trade union was formed in 1893 even before the Ordinance by the printers in
Colombo.
Definition of a trade union
Section 02 of the Ordinance defines a trade union ‘as an association or combination of workmen or
employers, or between workmen and workmen, or between employers and employers, whether
temporary or permanent, having among its objects one or more of the following objects:
a) the regulation of relations between workmen and employers, or between workmen and workmen
or between employers and employers; or
b) the imposing of restrictive conditions on the conduct of any trade or business; or
c) the representation of either workmen or employers in trade disputes; or
d) the promotion or organization of financing of strikes or lock-outs in any trade or industry or the
provision of pay or other benefits for its members during a strike or lock-out and includes any
federation of two or more trade unions’.
However, it has been recognized that by today, trade unions may have varied operating levels such as
company or enterprise level operations, industry level operations, national levels and international
levels and the role play differs from the level of operation.
The purpose of the Ordinance
The purpose of the Trade Union Ordinance is for registration and control of trade unions. The
objectives of the ordinance make sure that a measure of public supervision over the affairs of the trade
unions, particularly their constitutions and accounts, in return for which they were given certain
privileges not possessed by any unregistered trade union.
As a result the first registered union under the Ordinance was the EFC.

The registration of a trade union
Registration of a trade union does not confer legal personality on a trade union as in the case of
incorporating a company. However, the registration does not compel an employer to recognize a trade
union of workmen.
Trade unions Should be registered within three months from the date of establishment with the
Registrar of Trade Unions using Form –B provided in the Ordinance and a duly registered trade union
is issued with a Registration Certificate. (Form – D).
To be registered the trade union must fulfill the following:
1. Should have at least 7 members

2. The application must be signed by 7 members
3. The objects, rules and regulations of the union must not conflict with any of the provisions of the
Trade Union Ordinance and should not be unlawful
4. The name of the Trade Union should not be identical with any of the existing trade Unions.
However, a trade union
 Cannot hold properties

 Immovable and moveable properties should be vested in the name of the trustees to the union for
the benefit of the union and the members
 Purchase or lease of any land or building should be in the name of the trustee may sue and could
be sued in its registered name
Constitution of the Trade Union
Schedule A of the Ordinance specifies the rules that every trade union should provide and exhibit in
all three languages in their registered offices. Some of the rules are as follows;
1) Name and business address of the Trade Union

2) Objects of the Trade Union
3) Fund and how it could be used, audit of accounts
4) How rules are made and its applicability and how they could be altered
5) Benefits to members
6) Appointment and removal of executives, trustees, secretaries and other officers
7) Appointment of trustees

Consequences of non-registration
In terms of the ordinance, effects of non-registering a trade unions are:
 considered as unlawful trade unions and ceases to enjoy the rights, immunities and privileges of a
registered trade union until registered
 such trade union or its officers and agents cannot take part in trade disputes or promote, organize
or finance any strike or lock-out or provide or pay other benefits for its members during a
strike/lockout
 such trade union be dissolved and its funds be disposed
 no person of such union could take part in any management or organization or act on behalf of the
union other than disposing.
Rights, immunities and privileges of registered trade unions
The ordinance provides a trade union or its members, immunity from certain actions made in
furtherance or contemplation of a trade dispute on the ground that it:
 is in interference with the trade, business or employment of some other person or

 induces another person to break contract of employment or
 with the right of some other person to dispose of his capital or labour
It further provides
 immunity from tortious acts committed in contemplation or furtherance of a trade dispute,

 no actions could be maintained against any trade union on the grounds that the objects of the unions
are in restraint of trade and such union will not be liable for criminal prosecution,
 any trade union may sue and may be sued in its registered name,
 may own movable/immovable property in the name of its trustees,
 may possess funds including a political fund which could be used for political objects, the
Companies Act, Business Names Act and the Co-operative Societies Act shall not apply to
registered trade union.
The ordinance also provides that a registered union may constitute a separate fund as a ‘political fund’
from contributions separately levied for or made to that fund, excluding the trade unions of peace
officers or governments staff officers.
Further the Industrial Disputes Act No.

Provisions applicable to trade unions of public servants
The initial Trade Union Ordinance in 1935 did not provide for the registration of trade unions of public
servants and as a result of agitations and the general strike in 1947, the Ordinance was amended in
1948, granting the public servants the right to organize trade unions subject to certain restrictions
related to federate with other unions, political objects, political funds and outside office bearers.
However subject to many removals of such restrictions, by today certain categories of public servants
do not have the right to form trade unions:
 Judicial officers
 Members of the armed forces
 Police officers
 Members of any corps established under the Agricultural corps Ordinance
The other public servants however can form unions subject to the following conditions:
 The membership of the union is restricted to employees in one specific department or class or
category except for two persons from outside, one of whom may be elected as the Union’s
president or Secretary
 The unions of peace officers or government staff officers are not permitted to affiliate with the
other unions or to have political objects or funds.
Functioning of a trade union
The right to form a trade union includes certain features that conducive for the proper functioning of
trade unions such as;
 Recognition of trade unions

 Collective bargaining
 Trade union actions and strike actions
1.5 Union recognition
Although the trade unions registered in terms of the Trade Union Ordinance enjoy certain benefits and
privileges and the Constitution has provided for the freedom of forming unions, there was no particular
legal provision which made an employer recognize and negotiate with trade unions. The Labour
Department carried out polls to ascertain the unions entitle to make representations based on
membership strengths. However, the 40% Rule on trade unions derived through the Industrial Disputes

Act No. 56 of 1999 amendment, recognized that ‘where a trade union represents more than 40% of
workmen on whose behalf the trade union seeks to bargain, the employer cannot refuse but recognize
the union and call upon for measures to mitigate and solve such matter’. The question of recognition
of the unions was however there for some time until the 40% Rule was established through the
Industrial Dispute Act Amendment. This will be discussed further under collective bargaining in
session 02.
Trade union actions and strike actions
Strike actions have been recognized as methods which trade unions may defend and further its
interests. Although the right to strike is not specifically recognized by the laws of Sri Lanka, by
granting protection to trade unions and their members against civil and tortious acts done in
furtherance of trade disputes has been made available through the Trade Union Ordinance. Strike
actions are conducted in forms of slow-go, picketing, boycotts, work to rule and lobbying.
Collective Bargaining
One of the main objectives of a trade union is to strive for improved terms and conditions of service
for its members. Hence collective agreements are carried out and developed to achieve this end with
the respective employers and the ability for negotiations and bargaining freely. This will be discussed
further under collective bargaining in session 02.
Cancellation of Trade Unions
There are two methods to cancel a Trade Union.
1) On a request made by the trade Union upon its dissolution.

2) By the Register himself if he is satisfied that there had been a fraud or any other violation of
provisions of the Ordinance, or when the Trade Union ceases to exist
When the Registrar proposes to cancel a trade union, he should give 2 months’ notice to the trade
union specifying the grounds as to why he proposes to cancel the trade union. When receiving this
notice, the trade union has a right to show cause as to why it should not be cancelled.
Why are the institutions of trade unions being important to society?

 It has made democracy viable, right to organize, freedom of association, collective bargaining
 It promotes industrial democracy through social dialogue
 It represents the organized work force in or country

 It has a major impact on key sectors of the economy.

 Gains made by a Trade Union has a spillover effect to nonunion workers (CWC EFC collective
agreement in the plantation)
 Unions are generally excepted as the voice of the working class
 They stand up for the rights of Labour is the most important resource in HRM, and the creators of
wealth.
 Powerful lobbying group eg (TEWA)
 Political force eg (Helps economic and social development of people CWC in the plantation
industry).
Issues faced by managements in dealing with unions in Sri Lanka
 Multiplicity of unions
 Political affiliations
 Inter union rivalry
1.6 Trade Union Check off
It is a system whereby the employer annually deducts a portion of the employee’s wages to pay union
dues or the union’s subscription fee. It allows an organization to collect union dues even through an
automatic payroll deduction. These conditions are well described in a collective agreement signed
between the employer and the union. However, this mechanism helps to balance the unionized
environment in a work place, between an employer and the union, representing the employees.

02. Dispute Resolution and Collective Bargaining

 To provide an insight into Industrial Relations and the practice of Industrial Relations
 Understand the normative nature of Industrial Relations, Disputes and Labour legislations
 Describe and analyze the concepts of dispute resolution mechanisms
 Demonstrate knowledge of Collective Bargaining and Collective Agreements
2.1 Escalation of a Grievance to a Dispute

With the emergence of the field of industrial relations in virtue of the industrial revolutions, soon the
neediness for settlement mechanisms of industrial disputes occupied an important place in the society.
Subsequent to the concepts which lead then societies in an unfair manner, such as the doctrine of
‘leissez faire’, the importance of the involvement of the state to settle industrial disputes in a ‘just and
equitable’ manner was soon highlighted. Hence the state start playing a leading role in settling
industrial disputes since conflicts between employers and employers could cause considerable damage
to the economy of a nation and disrupt the smooth functioning of a society.
As a result, the following statutory provisions emerged gradually in Sri Lanka with the intention of
maintaining a smooth functioning in the society:
 The Industrial Disputes (Conciliation) Ordinance No. 03 of 1931

 Essential Services (Avoidance of Strikes and Lock-outs) Order 1942, and
 The Industrial Dispute Act No. 43 of 1950 (with amendments)
Forming the basis machinery for the settlement of industrial disputes in Sri Lanka, the Industrial
Dispute Act was amended from time to time.
However, industrial relations in Sri Lanka are regulated through legislation as well as through
voluntary efforts such as collective bargaining, conciliation and voluntary arbitration. The Industrial
Dispute Act with its amendments from time to time, however has become the unique piece of
legislation which radically changed the traditional theories and concepts of ‘contract of employment’.
The Act empowers the Minister of Labour to refer disputes over terminations of services through an
Industrial Court or to an arbitration for settlement.

The Industrial Disputes Act consists of the following six parts
Part I Preliminary
Part II Functions of the Commissioner of Labour and circumstances in which

industrial disputes will be referred for settlement by conciliation or by
arbitration or by an Industrial Court
Part III Collective Agreements
Part IV Industrial Courts
Part IV A Labour Tribunals
Part IV B Provisions relating to retrenchment of Workmen
Part V Essential Industries
Part VI General
2.2The Industrial Dispute ACT- Definitions
The preamble to the Act defines its primary objective ‘as to provide for the prevention, investigation
Figure 2. The Industrial Disputes Act consists of the following six parts
and settlement of industrial disputes and for matters connected therewith or incidental thereto’ which
is in simple term, the primary objective of the Act is to promote industrial relations.
Section 02 of the Act casts a general duty on the Labour Commissioner to take necessary steps to settle
industrial disputes whenever they arise or likely to arise. The Act further provides that in addition to
the involvement of the Labour Commissioner, there are six specific methods by which disputes could
be resolved in terms of the Act:
Section 3 (1) (a) - Settlement in terms of arranging Collective Agreements
Section 3 (1) (b) & (c) - Conciliation through the Labour Commissioner or an authorized officer
Section 3 (1) (d) - Voluntary Arbitration
Section 4 (1) - Compulsory Arbitration
Section 4 (2) - Reference to Industrial Courts
Section 31 (b) - Application to Labour Tribunals

Section 48 of the Act under the interpretation section defines certain paramount clauses pertaining to
industrial relations and it is essential that the students understand such interpretations accordingly in
order to apply the concepts in industrial disputes.
However, it is ONLY industrial disputes which could be settled under these methods and hence it is
paramount to identify exactly what an industrial dispute is?
In order to execute a dispute, the three elements which should involve are:
 A difference
 Two or more parties
 Subject matter of the dispute
In terms of Section 48 of the Act an ‘industrial dispute’ means;
a) Any dispute or difference

b) Between
i. an employer and workman, or
ii. employers and workmen, or
iii. workmen and workmen
c) connected with
i. employment,
ii. non-employment,
iii. terms of employment,
iv. conditions of labour,
v. termination of services,
vi. re-instatement in service of any person.
The word ‘workmen’ is also read including a trade union of workmen.
In the decided case Beetham v. Trinidad Cement Ltd, it was determined that a trade dispute exists
whenever a difference exists and such difference could be existed long before the parties come to a
combat. However, it is not necessary that the parties have come to combats but that there is a sparring
for an opening.
The case Colombo Apothecaries Co. Ltd. v. Wijesuriya, more fully explained the separation of the
three limbs under the definition of industrial dispute while also highlighting the interpretation of
‘contract of employment’ deciding that disputes between ex-employees and ex-employers too fall

under the category of industrial disputes. This case being one of the land mark cases under industrial
disputes further determined that the ‘subject matter’ to the case must be in connection with
employment, non-employment, terms of employment, condition of labour, termination of services or
re-instatement in service of any person. However, although the Act refers to ‘any person’ here, it was
clearly decided that ‘any person’ does not mean everybody in the world, but, any person in service, or
a person discharged or a candidate for employment.
In the decided case Carson Cumberbatch and Co. Ltd v. Nandasena, interpreting the words
‘workmen’, and ‘employers’, it was held that an agent who acts on behalf of a principal, does not
become an employer within the meaning of Section 48 to the Act, but as ‘a person employing a
workman under each of the three limbs of the definition is intended to refer to a person who is under
contractual obligation to the workman’. Similarly, in Shaw Wallace and Hedges Ltd v. Palmerston
Tea Co. Ltd and Others, it was held that an agent who has disclosed his identity as an agent is not
liable as an employer. In Colombo Paints v. de Mel, it was held that the term ‘employer’ under the
Termination of Employment of Workmen is identical to that in the Industrial Dispute Act. Hence an
employer could be a person who employs workmen such as a proprietor, a company, a firm or a
corporation.
The person referred to as a ‘workman’ in each of the limbs under section 48 intended to refer to a
person who is under contractual obligation to an employer. In Colombo Apothecaries Co. Ltd. v.
Wijesuriya it was interpreted by Judge Tennakoon that a) any person who has entered into or works
under a contract with an employer in any capacity, whether the contract is expressed or implied, oral
or in writing, and whether it is contract of service or of apprentice, or a contract personally to execute
any work or labour, b) any person ordinarily employed under any such contract whether such person
is or is not in employment at any particular time, or c) any person whose services have been terminated,
are fallen within the phrase workman or employee.
However, Section 49 states that nothing in the Act shall apply to or in relation to the Crown or the
Government in the capacity as the employer, or in relation to a workman in the employment of the
Crown or the Government. As of, the employees in the public service and the Government owned
business undertaking will be excluded from the coverage of the Act. However, in Air Ceylon v.
Rasanayagam it was held that public corporations are not excluded from the definition of the Act.

Dispute Resolution Mechanisms
As learnt prior, the initial legislative measure relating to the settlement of industrial disputes in Sri
Lanka was the Industrial Disputes (Conciliation) Ordinance of 1931. This was a result of the
recommendation made by the industrial committee ‘to settle wages and other trade dispute matters
dealing with the evils of sweated labour’. This Ordinance empowered the Controller of Labour to take
steps where the industrial existed or was apprehended and enabling the parties to meet by themselves
or through their representatives under a Chairman, mutually agreed by the Controller. The Controller
was also granted power to refer disputes to Conciliation Boards with or without the consent of the
disputed parties. However, by the period of the Second World War this Ordinance was lacking the
power to control all then trade disputes and as a result the Essential Services (Avoidance of strikes and
lockouts) Order in 1942 was enacted. Since all these machineries were inadequate by the time to meet
the needs of the growing industrial unrest arising due to the rapid social economical dilemmas taking
place, the Industrial Disputes Act of 1950 provided the below four methods where the state may
intervene in settling the dispute:
a) Settlement by Conciliation
b) Settlement by Voluntary Arbitration
c) Settlement by Compulsory Arbitration
d) Settlement by Labour Tribunals.
By today, the machineries introduced through the Act with amendments are with lots of improvements
addressing issues in the system of the labour operations, wage scales, rise in the cost of living with the
economy, growth of trade unions and management attitudes and with the question of what constitutes
industrial disputes.
Conciliation
In ordinary words conciliation means making peace or settlement of hostilities. In conciliation under
the Act, the peace making is done through the involvement of a third party.
Hence conciliation is differed from a negotiation as negotiation does not involve third parties.
Conciliation is also known as an extension of a negotiation when to parties fail to solve matters by
themselves.
Conciliation also differs from arbitration although there is a third party involvement since, in
arbitration when the dispute is referred to a third party, such parties are bound to the Award given by
the arbitrator. In a conciliation the third party only acts as a peace maker.

Conciliation may also differ from mediation, in which the third party makes sure to keep the two
disputing parties away by meeting face to face at the earlier stages in order to prevent any violent
confrontation or exchange of blows. This is a very primitive practice which is not recognized nor
practiced in the current scenario.
Advantages of conciliation
 Speedy settlements
 Since parties are voluntarily agreed on the terms of settlement greater acceptance on the terms of
settlements
 Also neither party is bound by the recommendation made by the third party.
Legal provisions to conciliation
Table 2. Legal provisions to conciliation
Industrial Disputes (Conciliation) Industrial Disputes Act

Ordinance 1931
Provides for conciliation in 3 methods: Provides under:

a) Controller of Labour was empowered to Section 02 - to settle any dispute resorting to the
take steps enabling parties to meet under ways and means referred in the Act or otherwise,
the chairmanship of mutually agreed or
by a person appointed by the Controller, Section 3 (1) (b) – to endeavor to settle any
b) The Controller may appoint a dispute to dispute by conciliation,
a conciliation board appointed by him
with or without the consent of the Section 3 (1) (c) – to refer to dispute to an
parties, authorized officer for settlement by conciliation,
c) The Governor may appoint a
commission of one or more persons to Section 11 – 15 – provisions on settlement of
inquire any trade dispute. industrial disputes by conciliation
Effect of the Settlement
Section 14 – this settlement of conciliation may have the same effect of a collective agreement. Every
settlement which is in force shall be binding on the parties to the settlement and the terms of the
settlement be implied in the contract of employment.

Arbitration
Arbitration is considered as one of the oldest forms of settling disputes which refers to an independent
party for settlement.
Under the Industrial Dispute Act, arbitration is in two forms:
a) Voluntary Arbitration
b) Compulsory Arbitration
Table 3. Arbitration
Voluntary Arbitration Compulsory Arbitration
The submission of the dispute for settlement Here the parties to the dispute may not agree
is made at the request of the parties on their to refer the dispute to arbitration but they are
free will. compelled under the provisions of the Act.
Section 3 (1) (d) – empowers the The principle is that public interest is
Commissioner of Labour to refer an industrial paramount and industrial peace is essential to
dispute for settlement by an arbitrator only if the community and thus the state shall
the parties give the consent. intervene.
The parties can jointly name an arbitrator or Section 4 (1) – the Minister has the power to
in such absence the Commissioner may refer any minor industrial dispute to an
nominate a suitable arbitrator or refer the arbitrator or to a Labour Tribunal with or
dispute to the Labour Tribunal. without the consent of the parties.
The parties may also appoint a body of Section 4 (2) – the Minister has the power to
arbitrators, one nominated by the employer, refer a dispute to an Industrial Court for
one by the workmen and a third person as the compulsory arbitration and this power is only
chairman appointed by both parties or by the vested in the Minister. No writs can be taken
Commissioners. to compel him since this is purely an
administrative action. Yet the exercising
Section 16 – every reference for an arbitration power shall be in good faith
must be accompanied by a statement prepared
by the Commissioner setting out the matters

in dispute and the arbitrator is entitled to The reference to arbitration shall accompany
admit, consider and decide that he is fit for a statement by the Commissioner setting out
such settlement prior to commencement of the issues.
arbitration.
This mode is considered as better of the two

forms since there is harmony of feeling
between the rival parties and in virtue there is
a likelihood of the parties readily accepting
the decision of the arbitrator.
When a reference is made for any mode of arbitration and the arbitrator receive the reference for an
industrial court or labour tribunal, they assume jurisdiction thereof and take steps for preparation of
hearing the case.
The arbitrator shall hear both the parties and make just and equitable Awards.
The arbitrator's Award is published in the Gazette. Parties bound by the Award can reject the award
by a written notice in the prescribed form sent to the Commissioner and every other party bound by
the Award and repudiation takes effect upon expiry of three months immediately succeeding the month
in which the notice received by the Commissioner.
Once reference is made to arbitration it is an offence for workmen concerned to do any act of strike or
to invite and induce for a strike as per section 40 (1).
Advantages of Arbitration
 May be quicker than court proceedings in obtaining a result

 Cheaper for the parties
 Since the arbitrator is a well experienced in industrial relations, the application of the knowledge
in disputing the matter is greater
 Non applicability of the legal statutory laws and procedures helping the arbitrator to look at the
dispute in a much practical manner.

Industrial Courts
Section 22 (1) – the president of Sri Lanka from time to time appoints a panel not less than 5 persons,
from which Industrial Courts be constituted.
Section 4 (2) enables the Minister to refer any dispute to the industrial court for settlement.
To constitute the industrial court three members are selected by the president. Unlike in an arbitration,
in an industrial court it is expected to make all inquiries and hear all the evidence as it may consider
necessary and subsequently take decisions or to make wards as the court may see as just and equitable.
The only difference from an Award of an arbitration is, in an Award given by the industrial courts
such Award cannot be rejected but any party may make an application to the Minister to have the
Award set aside, replaced, modified, or make additions of new terms and conditions to the award.
Once such application is made the Minister shall refer it to the industrial court for consideration.
However, if the application is received within 12 months after the Award has come to operation, the
Minister needs not to consider same unless the Commissioner entertains same.
 All Awards of Arbitration and Industrial Court are gazette.
 An Award made for the time being in force shall for the purpose of the act is binding on both
parties and terms of the Award shall be implied terms in the contract of employment.
 Can be repudiated as specified.
 Section 21 - the provision relating to arbitration in other matters law such as, Arbitration Act or
Civil Law will not apply in these proceedings.
 The Arbitrator has no inherent absolute jurisdiction and derives jurisdiction from the order
reference. No vague and indeterminate jurisdiction.
 It was held in Thruvedakarasu v. Siriwardene an arbitrator has much wider powers both as
regards scope of inquiry and the kind of order he makes than a civil law arbitrator.
Labour Tribunals
The labour tribunals were created through section 31 A of the Industrial Disputes Act of 1957. Each
tribunal consists of a president and is a permanent body unlike an industrial court which comes to
operation when a reference is made by the Minister.

The two functions of the labour tribunal:
1. Settlement of disputes by arbitration with the consent of the parties as per section 3 (1) (d) or by
compulsory arbitration by the Minister as per section 4 (1), and
2. Settlement of applications made to it under Section 31 B (1) of the Act by a workman or a trade
union.
Under section 31 B, a workman can only seek relief through the labour tribunal at a) a termination of
service and not during the service of employment, or b) for a question of gratuity unless such matter
is sorted through the Gratuity Act of 1983 or c) such other matters relating to terms and conditions of
employment as may be prescribed. However, nothing has been prescribed so far under the last
condition mentioned above.
The provisions governing the procedure relating to Labour Tribunals appear in the regulations
published in the Govt. Gazette No. 11 of 2.3.29, 12731 of 21.10.61 and No. 14533 of 15.10.63.
Every application should be made on form D giving name, address, facts of the matter in dispute and
the relief claimed.
The application must be against a legal person and Section 31B (4) entitles the Tribunal to grant relief
notwithstanding anything to the contrary in any contract of employment. An application has to be
made within 06 months from the date of termination.
Section 32(C) - It shall be the duty of the Tribunal to make all inquiries into that application and hear
all such evidence as the Tribunal may consider necessary.
In terms of the recent amendments in 1990 the application should be heard and conducted within six
months. The Labour Tribunal under Section 31 (C) is expected to make an order which is just and
equitable. This expression gives the Labour Tribunal "unfettered direction" to do what they consider
to be right and fair.
Powers of Labour Tribunals
Labour tribunals have very wide powers:
 They can grant relief to a workman beyond the agreed terms in a contract of service
 Order reinstatement of a workman
 Powers of a labour tribunal are not possessed by an ordinary court

Section 31 B (4) states that tribunals are empowered to grant any relief or redress to a workman
notwithstanding anything to the contrary in the contract of service.
Sections 31 C (1) states that tribunals shall make all such inquiries, hear all such evidence as they may
consider necessary, and thereafter make order as appear to the tribunal as just and equitable.
Limitations on the power of Labour Tribunals
 Labour Tribunals do not have the power to compel an employer reinstate a workman who has been
employed by him as a personal secretary, personal clerk, personal attendant, personal driver or a
domestic servant as per section 33 (3).
 If the workman doesn’t wish to reinstated in employment the tribunal may order a payment of
compensation as alternative to reinstatement – section 33 (5)
 Labour Tribunals are also required to dismiss or suspend applications under the circumstances in
terms of section 31 B
 Labour Tribunals have no power to enforce their orders as per section 33 (2).
 Labour Tribunals have no jurisdiction to order a widow or a legal representative of a deceased
employer to pay the workman any wages, compensation or gratuity even if the order is made with
consent of the parties.
Informal dispute resolution mechanisms
Resolving disputes other than above formal mechanisms are informal dispute resolutions. Resolving
disputes through continuous negotiations and collective bargaining are the main mode while collective
agreements play a larger role in such scenario.
2.3 Collective Bargaining and Collective Agreements
An agreement between workmen or trade union(s) and employer(s), on terms and conditions of
employment and the manner of settlement of industrial disputes are known as collective agreements.
It has become a successful result of collective bargaining between workmen and employers. The
factors which are recognized as necessary for collective bargaining are:
 The right to organize. i.e. the right to form and join trade unions of one’s choice and collective
bargaining.
 Freedom of peaceful assembly
 Freedom of speech and expression
In Sri Lanka, legal provisions for collective bargaining is found in the following statutory provisions:

 Trade Union Ordinance No. 14 of 1935

 Industrial Disputes Act – Sections 5 (1) to 10B
 1978 Constitution of Sri Lanka – Articles 14 (1) and 15
The effect of a collective agreement on the contract of employment
As per section 8 (1) of the Act, when a collective agreement becomes operative, the terms therein bind
all parties to such agreement and impliedly apply in the terms of conditions in the contract of
employment between the employer and the workman.
Section 8 (2) states that an employer is bound to observe in respect of all the workmen in the work
place, the terms and conditions which are not less favorable than those in the collective agreement. As
per such, the collective agreement binds not only the party to the agreement but as individual workmen
and the trade union(s) in the industry.
The terms of the agreement also become implied terms to the individual contract of employment, or,
the provisions of the collective agreement supersedes the provisions of the letter of employment. A
collective agreement may specify the dispute resolution procedure, disciplinary procedure, grievance
handling procedure etc. and therefore it is paramount to have a careful study when entering into
agreements with unions and workmen. The best example for an existing collective agreement is the
plantation sector of Sri Lanka.
With the amendment made in 1999 to the Industrial Dispute Act No. 56, the 40% rule of union
recognition was introduced as a result of collective bargaining. Section 32 (A) (g) provides that when
a trade union has the membership of representing not less than 40% of the workmen on whose behalf
the trade union seeks to bargain, the employer cannot refrain from recognizing such trade union but to
allow:
 the check off facility

 invite for discussion with the management concerning trade disputes/ Collective Bargaining
 allow to represent in the labour issues of their members
The offences in relation to a collective agreement
 Keeping in employment any workman on less favourable terms than those specified in a collective
agreement
 The failure to observe ‘recognized terms and conditions’
 Commencing, inciting or inducing a lock-out too procure the alteration of the terms of collective
agreement

 Termination of services, demoting or otherwise punishing a workman solely because he has

become entitled to benefits to benefits of a collective agreement
 Performing any act, that aids or abets, or incites the violation of any terms and conditions of a
collective agreement
Importance of collective bargaining
(a) Resolving a situation - discussion and acceptance instead of conflicts & confrontation
(b) A form of participation
(c) Institutionalized process of settlement of Industrial Dispute
(d) Discourage industrial disputes
(e) Industrial peace: renounce or limit industrial action
(f) Cordial relationship between Employer and Employee
(g) Valuable by-products establishment of understanding
(h) Less likely to change Union affiliations.: Stabilise union membership
Advantages & disadvantages of collective bargaining
Table 4. Advantages & disadvantages of collective bargaining
Advantages Disadvantages
 Settlement through dialogue and consensus  An obstacle to wage or income policy

rather than conflict and confrontation  Unrealistic to certain organisations
 Often Institutionalises settlement through  Creations of unrealistic wage levels.
dialogue  Union taking undue advantage.
 A forum of participation: Sharing of
rulemaking power
 Often expressly renounces or limits
settlement of disputes through Trade Union
action
 Concept of social partnership demanded to
maintain confrontational processes in
settlements of dispute.

 Valuable by products generate trust &

contribute to mutual understanding by
establishing continuing relationship.
 Stabilise Union Membership
 Standardise business competition in regard
to cost of labour
 A source of equity
 Improves Industrial Relations
REFERENCES:
Amerasinghe, E. F. G. (1998). Employee Relations and Industrial Law: A Collection of Papers.
Employers' Federation of Ceylon.
Cole, G. (2004). Personnel and human resource management. Personnel Review.
De Silva, S. (2009). The transformation of labour law and relations. Stamford Lake.
De Silva, S. R. (1973). The legal framework of industrial relations of Ceylon. Colombo: H. W. Cave
Egalahewa, S. (2018). A General Guide to Sri Lanka Labour Law.
Employers' Federation of Ceylon, (2006). Workplace relations, Sri Lankan case studies. Employers'
Federation of Ceylon

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Chartered

Level : Diploma in Professional HRM

Unit Code : DPHRM - S12

Session : Industrial Relations

Name & Index No: …………………………………………

Chartered Institute of Personnel Management Sri Lanka (Inc)

Unit Title Industrial Relations

Level Diploma in Professional HRM

Competency Professional Credibility

Unit Code DPHRM/S12

Unit Review Date 12th July 2021

Purpose and aim of the unit

On completion of this unit students will;

 Understand the concept of Industrial Relations and its practices

Guided Learning Hours

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1.1 Concept of Industrial Relations .................................................................................. 4

1.2 Tripartism ........................................................................................................................ 7

1.3 Unionized and Non-Unionized Environment ................................................................ 10

1.4 Trade Unions in Sri Lanka ............................................................................................. 12

1.5 Union recognition .......................................................................................................... 16

1.6 Trade Union Check off .................................................................................................. 18

02. Dispute Resolution and Collective Bargaining ........................................................................ 19

2.1 Escalation of a Grievance to a Dispute .......................................................................... 19

2.2 The Industrial Dispute ACT- Definitions ...................................................................... 20

2.3 Collective Bargaining and Collective Agreements........................................................ 29

Figure 1. The Systems approach ........................................................................................................... 5

Table 1. Unionized and Non-Unionized environment ........................................................................ 11

Table 2. Legal provisions to conciliation ............................................................................................ 24

Table 3. Arbitration ............................................................................................................................. 25

Table 4. Advantages & disadvantages of collective bargaining ......................................................... 31

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01.Introduction to Industrial Relations and Trade Unions and Trade

Industrial revolution itself

 led to unemployment with the replacement of machineries,

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1.1 Concept of Industrial Relations

 The systems approach

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Figure 1. The Systems approach

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The fusion of all above explanations were indulged in a formula as follows:

r = the rules governing industrial relations

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The gist of Marxism

However, Industrial Relations is some part of Social Relations in production. It is a discipline

Employee relations to industrial relations

What is the focus of Employee Relations?

 The contractual obligations between employer and employee

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The parties attached to Industrial Relations – Tripartism

When learning industrial relations, it is paramount to understand its stakeholders. Individual

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INDIVIDUAL EMPLOYEES TEND TO SEE EMPLOYEE RELATIONS IN TERMS OF THE OPPORTUNITY TO

 Improve their conditions of employment

 Creating and maintaining employee motivation

Employers’ association representatives would tend to share most of these views.

 Collective bargaining about terms and conditions of employment

 Creating and maintaining harmonious relationships at work

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 Creating a framework of rules of fair conduct in employer employee relations

1.3 Unionized and Non-Unionized Environment

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