Material No: 17

Name of Teacher / Designation : Md Nasar Equbal/Assistant Professor

Subject Code / Subject : IMED2001
Course / Branch : EE
Topics : Industrial relations
Duration : 00:50Hours.
Resources required handling the class: Visuals
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STEP 1: INTRODUCTION

Learning Objectives
After the session, the student should be able to:
 Understand about the meaning of Industrial Relation
 Protect management and labor interests by securing mutual relations between the
two groups.
 Avoid disputes between management and labor, and create a harmonizing relationship
between the groups so productivity can be increased

STEP 2: ACQUISITION
Industrial relations may be defined as the relations and interactions in the industry
particularly between the labor and management as a result of their composite attitudes
and approaches in regard to the management of the affairs of the industry, for the
betterment of not only the management and the workers but also of the industry and the
economy as a whole.
The term industrial relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial relation is the relation in the industry created by the diverse and complex
attitudes and approaches of both management and workers in connection with the
management of the industry.
Industrial Relations: Meaning & Definition
The term ‘Industrial Relations’ comprises ‘Industry’ and ‘relations. Industry means any
productive activity in which an individual is engaged. It includes- (a) primary activities
like agriculture, fisheries, plantation, forestry, horticulture, mining etc. etc. and (b)
Secondary activities like manufacturing, construction, trade, transport, commerce,
banking, communication etc.

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Economically speaking, industry means the secondary sector where factors of production
(land, labor, capital and enterprise or four M’s – men, materials, money and machines)
are gainfully employed for the purpose of production, and where a business organization
exists.
‘Relations’ means ‘the relations that exist in the industry between the employer and his
work-force. Different authors have defined the term industrial relations in somewhat
different way.
Some of the very oft-quoted definitions are given below:
According to Bethel and Others, “Industrial relation is that part of management which is
concerned with the manpower of the enterprise whether machine operator, skilled worker
or manager.”
Manpower of the enterprise can, thus, be classified as management and workers or
employers and employees and industrial relations can, thus, be treated as relations
between the employer and the workmen.
According to V. Agnihotri, “The term industrial relations explains the relationship
between employees and management which stem directly or indirectly from union-
employer relationship.”
The following points emerge from the analysis of the above definitions:
(1) Industrial relations are the relations which are the outcome of the ’employment
relationship’ in an industrial enterprise. It is, thus, employer-employee relationship in an
industry. Two parties—employer and workmen are necessary without which such
relationship cannot exist and it is the industry which provides the setting for industrial
relations.
(2) Industrial relation is the relation in the industry created by the diverse and complex
attitudes and approaches of both management and workers in connection with the
management of the industry. Attitude refers to the mental state of a person, approach can
be the external expression of such an attitude. Attitudes are always not obvious and the
individual himself may not always be fully conscious of the attitudes.
Attitudes must be inferred from tone of verbal expressions or perhaps from the
individual’s overt behavior. Attitude is the mental state of the individual which prepares
him to take a particular, (external) approach or make him behave in a particular manner.
Attitudes of both—employer and employees influence each other and determine natural
relationship.
(3) This relationship emphasizes on the process of accommodation whereby both the
parties develop skills and methods of adjusting to and cooperating with each other.
(4) Industrial relation is not a simple relationship between the two parties but is a set of
functional interdependence involving a number of factors, say, historical, economic
social, psychological, demographic, technological, occupational, legal and others etc. It,

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therefore, requires an interdisciplinary approach for its study. In this context, industrial
relations are the relations and interactions between management and workers and as a
result of their composite attitudes and approaches.
(5) Every industrial relation creates a complex of rules and regulations to govern the
work-place, the work- community with the main purpose of maintaining harmonious
relations between the management and the workmen by solving their problems through
the process of collective bargaining.

Industrial relations-Scope
Industrial relations are relation between employee and employer in their day-to-day work.
Hence, it is continuous relationship.
The scope of industrial relations includes:
(a) Relationship among employees, between employees and their superiors or managers.
(b) Collective relations between trade unions and management. It is called union-
management relations.
(c) Collective relations among trade unions, employers’ associations and government.
Scott, Clothier and Spiegel remarked that industrial relations has to attain the maximum
individual development, desirable working relationships between management and
employees and effective moulding of human resources. They have also asserted that
either industrial relations or personnel administration is primarily concerned with all
functions relating man effectively to his environment.
Thus, the scope of industrial relations seems to be very wide. It includes the
establishment and maintenance of good personnel relations in the industry, ensuring
manpower development, establishing a closer contact between persons connected with
the industry and that between the management and the workers, creating a sense of
belonging in the minds of management, creating a mutual affection, responsibility and
regard for each other, stimulating production as well as industrial and economic
development, establishing a good industrial climate and peace and ultimately maximizing
social welfare.
Industrial Relations – 4 Main Objectives
Two-fold objectives of good industrial relations are to preserve industrial peace and to
secure industrial co-operation.
If we have to establish industrial peace, the workers must be assured of fair wages, good
conditions of work, reasonable working hours, holidays and minimum amenities of life.
Industry can be defined as a venture of co-operation under the direction of the
management to secure the effective co-ordination of men, materials, and machinery and
money.

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The objectives of good industrial relations should be development and progress of
industry; through democratic methods, stability, total wellbeing and happiness of the
workers; and industrial peace.
Industrial peace is the fruit of good industrial relations. It is the harmonious atmosphere
where there is no “inquilabs”, no strikes and no industrial disputes.
Regional prejudices, provincialism and clannishness have no place where good industrial
relations prevail.
The primary objective of industrial relations is to bring about good and healthy relations
between the two partners in the industry i.e., the management and the labor.
All other objectives revolve around it. Mr. Kirkaldy, has listed the following four
objectives of industrial relations:
(a) Improving the economic condition of the labor in the existing state of industrial
management and political government;
(b) Controlling industries by the State to regulate production and industrial relations;
(c) Socialization or nationalization of industries by making the state itself the employer;
and
(d) Vesting the proprietorship of the industries in the worker.
He stated “The state of industrial relations in a country is intimately connected with the
form of its political government and the objectives of an industrial organization may
change from economic to political ends.”

Labour Law for Beginners: The Industrial Disputes Act, 1947

Introduction
Regardless of the level of economic development, policies governing dispute
resolution form an essential part of the labour law framework in any nation. This
is due to the fact that complaints and conflicts are inevitable in any working
relationship, and the object of policy is aimed at providing mechanisms that
address these disputes effectively and expeditiously. In recent times the use of
voluntary mechanisms such as arbitration, conciliation, and mediation has
become central to dispute resolution policy. This is because they lack the
adversarial element that ordinary litigation proceedings are characterized by and
thus, have been effective in maintaining relationships during the process of
dispute resolution.
The Industrial Disputes Act, 1947 is the primary legislation governing dispute
resolution in India.  It was enacted to provide for the investigation and settlement
of industrial disputes, to prevent illegal strikes and lockouts, to provide relief to
workmen during lay-off or after retrenchment or wrongful dismissal. It also
provides for the mechanisms of conciliation, arbitration, and adjudication to
promote measures for mutually beneficial relations between employers and
employees.

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Applicability & Scope of the Act
To understand the scope of the Industrial Disputes Act, 1947 it is important to
understand the meaning and import of the terms ‘industrial
dispute’ and ‘industry’ as defined in the statute. Section 2(k) of the Act states that
the former describes any dispute or difference between employers and
employees, or between employers and workmen, or amongst workmen, which is
connected with the employment or non-employment or the terms of employment
or with the conditions of employment of any person. Section 2(j) of the Act
defines the latter as any business, trade, undertaking, manufacture, or calling of
employers and includes any calling, service, employment, handicraft, or industrial
occupation or avocation of workmen.
Therefore, to attract the application of the Act, a dispute would have to occur in
an establishment falling under the definition of industry and would have to involve
one or more of the stakeholders mentioned in the definition of industrial disputes.
In other cases, there is no scope for governmental interference and thus the only
recourse is to approach courts or engage in alternate dispute resolution
mechanisms.
It is pertinent to note that the definition of ‘industry’ has been discussed
extensively in case laws. In the landmark case of Bangalore Water Supply and
Sewerage Board v. R. Rajappa, the Supreme Court laid down a three-pronged
test to ascertain whether a particular activity was industrial in nature. If the said
activity involved systematic and organized activity, cooperation between
employer and employee, and was carried out for the production of goods and
services, it would be considered industrial in nature. The elements of capital
investment and profit motive were held to be immaterial in the determination of
the above question. In the case of an undertaking engaging in multiple activities,
which might or might not be one of the core activities, the Dominant Nature Test
is applicable. It determines whether a specific activity of any enterprise can be
classified as industrial in nature by examining the predominant nature of the
activities conducted by the enterprise and the integrated nature of the
departments.
Dispute Redressal Bodies
Industrial disputes may be broadly classified into interest disputes and rights
disputes. Interest disputes are mostly related to the determination of a revised
wage level and other conditions of employment. Whereas, rights disputes relate
to the interpretation and application of existing standards of employment and
usually involve an individual worker or group of workers. The Industrial Disputes
Act, 1947 has provided for the establishment of both internal and external
mechanisms to settle industrial disputes. Internal mechanisms include bodies
such as the works committee and the grievance redressal committee.
Works Committee
Section-3 of the Act is statutorily mandated in all industrial establishments having
a hundred or more workmen. It consists of representatives of employees and
workmen of an establishment. The workmen’s representatives and employer
representatives should be equal in number. The object of the works committee is
to provide for an internal forum for dispute resolution as a precursor to litigation
or external mechanisms for dispute resolution.

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Grievance Redressal Committee 
Section-9(c) of the Act requires the employer in every industrial establishment in
which fifty or more workmen are employed to provide for a grievance settlement
authority. Every industrial establishment consisting of twenty or more workmen
shall have one or more grievance redressal committees that shall be composed
in equal proportion by members of management and the workmen. The total
number of members in the committee shall not exceed six and shall include one
female member if feasible. The Grievance Redressal Committee shall complete
its proceedings within forty-five days after the receipt of a written complaint by an
aggrieved party. Any workman dissatisfied by the decision of the committee may
prefer to appeal against it. The employer is then obliged to consider the appeal
and dispose of the matter within one month from the date of its institution and
provide a copy of the decision to the aggrieved employee.
The Industrial Disputes Act, 1947 provides for the following external mechanisms
to resolve industrial disputes: – 
Board of Conciliation & Conciliation Officers
Section 4 and Section 5 of the Act refer to conciliation as a mechanism for
redressal of industrial disputes. The Government appoints Conciliation Officers
by way of notification in the Official Gazette. They can be appointed to a specific
area or industry, for a fixed period of time, and are considered to be acting in an
administrative capacity.Their role is to facilitate dialogue between the parties so
as to help them reach a common understanding. The Officer must submit a
report within 14 days of the commencement of the conciliation of an
issue/dispute. On the basis of the same, the Government is empowered to either
take the issue further in the form of litigation or write to the parties.
The Conciliation Board is set up through a Gazette Notification issued by the
Government to resolve industrial disputes amicably by aiding the parties in
reaching a settlement. It comprises a Chairman and two or four members, all of
whom must be impartial and must have no personal involvement in the cases. A
number of members are appointed equally for each side of a dispute and are
appointed on the recommendation of the parties. In case the parties fail to reach
a conclusion, then the government appoints the members and proceedings
resume. The Conciliation Board does not have powers to take suo
moto cognizance of matters, it may only engage in a matter when the
government refers a case to it. The board must submit a report within 2 months
of the occurrence of a dispute which must be published by the government within
thirty days of receipt of the report. In circumstances wherein the dispute is still
not resolved, industrial tribunal or labour tribunal can be approached.
Court of Enquiry 
This court of civil nature under Section-6 of the Act is constituted by the
government by way of notification to inquire into matters connected with or
relevant to industrial disputes.
Labour Court
They have been constituted under Section 7 of the Act, consisting of only one
person who is appointed by the government to oversee the proceedings of the
court. Qualification of such a person is that they must have been/are a High
Court Judge, or district judge or additional district judge for at least 3 years or
held any judicial office in India for not less than 7 years. Their jurisdiction extends
to matters specified under the Second Schedule of the Act.
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Industrial Tribunal 
They have been constituted by government notification under Section 7-A of the
Act, and one or more of its kind can be constituted. They are a quasi-judicial
body; therefore, they must serve notice upon the parties to the reference by
name before making any award. Their jurisdiction extends to matters specified in
the Second or Third Schedule.
National Tribunal
This quasi-judicial body is constituted under Section 7-B to solve industrial
disputes at the national level, of national importance. Disputes of such nature are
taken up at the national level, in which one or more industries in one or more
states are affected. The judge presiding this tribunal must not be lesser in
position than a High Court Judge, must be less than 65 years, and has the same
powers as other preceding tribunals, with respect to the declaration of an award.
Conclusion
While the Act provides for both internal and external bodies for dispute resolution
and prevention of illegal strikes, lockouts and mitigates the use of unfair labour
practices, from a compliance perspective it is important to have robust internal
mechanisms that address disputes. External mechanisms generally require a
great deal of effort, expense and time spent which generally leads to a soured
relationship between employer and employee. Thus, having internal mechanisms
is preferable because the likelihood of having to rely on adjudication or alternate
dispute resolution reduces thereby providing for an amicable working relationship
which ultimately leads to greater productivity.
Disclaimer: This blog is meant for informational purposes and discussion only. It contains only
general information about legal matters. The information provided is not legal advice and
should not be acted upon without seeking proper legal advice from a practicing attorney.
Simpliance makes no representations or warranties in relation to the information on this article.

STEP 3: PRACTICE/TESTING
Short Question:
Q.1 Define Industrial Relations.
Q.2 Illustrate the scope of industrial relations.

Long Questions:
Q.1 Explain in details the 4-Main Objectives Industrial Relations in details.

STEP 4: REFLECTION
Summary: In this lecture we discussed about the industrial relation and see relations and
interactions in the industry particularly between the labor and management. Also we
discussed the four main objectives of industrial relations in details.

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