Introduction to Industrial

Relations and Labour Laws

Unit: 06

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Road Map of the Unit

1. Meaning of Industrial Relations

2. Theories of IR
3. Meaning and Sources of Employee Grievance
4. Grievance Handling Systems
5. Meaning & Process of Collective Bargaining
6. Indiscipline
7. Settlement Machinery of Industrial Conflicts
8. Labour laws related to social security measures  

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Questions….

● Should we need industrial relations law?

● Who should need industrial relations law?

● Who can make/break industrial relations law?

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1.Meaning of Industrial Relations

● 1.1 Introduction
● Industrial relations is a unique type of employer-
employee relationship which has been brought forth
by ever growing and fast changing
scientific , technological development, industrial
production techniques and ideological values.

● This new relationship has replaced the traditional

master –servant relationship.

● Historical review of industrial relations in few

countries is required for their proper theoretical
perspective.

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1.Meaning of Industrial Relations

● 1.1 Introduction
● They understood the benefits
of being united & formed
Shreni or guild to manage
their affairs.
● During Mughal rule such
organizations were not there &
as a result workers were
entirely dependent on their
employers who forced them for
work.

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1.Meaning of Industrial Relations

● 1.2 Industrial Relations in India

● Phase 01 : From 1850s to the end of the 1st

World war. The British Government enacted
several legislative measures. They aimed at
minimizing competitive advantage of local
employers against British employers.
● The 1st World war brought about labour unrest as
wages were not paid keeping pace with either
rising prices or growing aspirations.
● Central & Provincial legislatures initiated
social legislations and started a new phase of
industrial relations .
● Establishment of International Labour
Organization in 1919 and formation of All
India Trade Union Congress in 1920 were
significant events in the history of
industrial relations.
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1.Meaning of Industrial Relations

● 1.2 Industrial Relations in India

● Phase 02 : The policy after the world war related to

improvement in the working conditions &provision of
social security benefits.
● Trades disputes act 1929 sought to provide a conciliation
machinery to bring about peaceful settlement of disputes.
● 2nd World War forced the Government to
maintain an adequately contended work force to
maximize production to support the war. Appropriate labour
policy was shaped by bringing all the interests
together at a common forum.
● Expressing its faith in ILO philosophy, tripartite
consultative system was initiated in India.
Gradually, tri-partism developed into a full-fledged
system, a kind of parliament for labour and
management.
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1.Meaning of Industrial Relations

1.4 Definition of IR

● 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.

● ‘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.
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1.Meaning of Industrial Relations

● The term “Industrial Relations” denotes the relations

between management and Labour and it covers all
sorts of relationships individual and collective .

● The term “industrial relations” denotes the relation

between management and Labour. It covers all sorts of
relationship , individual and collective and hence the
orbit of what we are accustomed to call labour law
comprehends matters of industrial disputes , of
collective agreements as well is of job security, in short
anything that can arise between the managers and
those subject to managerial power.
● J. Henry Richardson “industrial relations is an art, the
art of living together for purposes of production”
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2. Theories of IR

i. Unitary Approach
ii. Pluralistic Approach
iii. Marxist Approach
iv. The System Approach
v. Social Action Approach
vi. Gandhian Trusteeship Approach
vii. Human Relations Approach

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I. Unitary Approach

● UNITARY APPROACHI is grounded in mutual cooperation,

individual treatment, team work and shared goals.
● Work place conflict is seen as temporary aberration,
resulting from poor management Employees who do
not mix well with organization culture Unions cooperate
with the management.
● Management’s right to manage is accepted because
there is no ‘we they” feeling
● Underlying assumption is that everyone benefits when
the focus is on common interest and promotion of
harmony
● Based on reactive strategy.
● The employer and employee work as a harmonious unit
and they work for a common goal. Hence, there is no
possibility of conflicts arising
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II. Pluralistic Approach

● It was developed in the United States of America by

John R Commons.
● He considered society as complex due to the presence
of multiple interest groups with their own goals.
● Hence, conflict is inevitable in the system and there are
possibilities of compromise based on the interaction
between different stakeholders.
● Collective bargaining was used as a mechanism to sort
out the conflict between the employer and employees.
● The presence of trade union in an organization can
serve as an interest group to protect the interest of
employees.

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III. Marxist Approach

● Classical Approach (Marxist Model)/ Radical

Approach
● Karl Marx considered industrial conflict as a part of the
broader social conflict between classes and used it to
explain the fundamental historical process of change
and development in human society. He was concerned
with certain macro economic processes and deep-
rooted inequalities in society as a whole, and not with
specific industries or firms. Marx divided the society
into two classes
○ Capitalists, who own the means of production, and
○ Proletariat, who own nothing but their own labour power

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IV. Systems Approach

● Developed by John Dunlop

● The systems approach views the industrial relations
system as a sub-system of the society or the total
social system. The society is seen as providing certain
external influences and constraints but not as
completely dominating industrial relations.

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V. Social Action Approach

● Its origins is in Weberian Sociology. Under this model,

the actors own definitions of the situations in which
they are engaged and these are taken as an initial basis
for the explanation of their social behaviour and
relationships.

● This model points out the reciprocal nature of the

relationship between social structure and behaviour.
One of the most important features of the social action
models is the attitude it adopts towards social theory.

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VI. Gandhian Trusteeship Approach

● Gandhi’s views on industrial relations are based on his

fundamental principles of truth and non-violence and
non-possession. Out of these principles evolved the
concept of trusteeship on which his philosophy of
industrial relations rests.

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VII. Human Relations Approach

● It denotes that conflict is an aberration and not the

natural state of human society. This aberration occurs
when tendency of the industrial society is to treat
worker as an isolated individual, and deprive him of all
control over his environment. This loss of mooring and
control is a major source of conflict.

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3. Meaning and Sources of Employee Grievance

● Grievance
○ Any factor involving
wages, hours, or
conditions of
employment that is
used as a complaint
against the employer.

● Sources of grievances
○ Absenteeism
○ Insubordination
○ Overtime
○ Plant rules
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3. Meaning and Sources of Employee Grievance

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3. Meaning and Sources of Employee Grievance

● Grievance Procedure

○ Grievant and shop steward meet with supervisor. If not resolved,

○ Employee files formal grievance
○ Grievant and shop steward meet with supervisor’s boss. If not
resolved,
○ Meeting with higher-level managers.
○ If not resolved, matter goes to arbitration.

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3. Meaning and Sources of Employee Grievance

Handling Grievances: Do

○ Investigate and handle each case as though it may eventually result in arbitration.
○ Talk with the employee about his or her grievance; give the person a full hearing.
○ Require the union to identify specific contractual provisions allegedly violated.
○ Comply with the contractual time limits for handling the grievance.
○ Visit the work area of the grievance.
○ Determine whether there were any witnesses.
○ Examine the grievant’s personnel record.
○ Fully examine prior grievance records.
○ Treat the union representative as your equal.
○ Hold your grievance discussions privately.
○ Fully inform your own supervisor of grievance matters.

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3. Meaning and Sources of Employee Grievance

Handling Grievances: Don’ts

○ Discuss the case with the union steward alone—the grievant should be there.
○ Make arrangements with individual employees that are inconsistent with the labor
agreement.
○ Hold back the remedy if the company is wrong.
○ Admit to the binding effect of a past practice.
○ Relinquish to the union your rights as a manager.
○ Settle grievances based on what is ―fair.‖ Instead, stick to the labor agreement.
○ Bargain over items not covered by the contract.
○ Treat as subject to arbitration claims demanding the discipline or discharge of
managers.
○ Give long written grievance answers.
○ Trade a grievance settlement for a grievance withdrawal.
○ Deny grievances because ―your hands have been tied by management.‖
○ Agree to informal amendments in the contract.
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4. Grievance Handling Systems

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5. Meaning & Process of Collective Bargaining

Meaning
● Collective bargaining takes place when a number
of work people enter into a negotiation as a
bargaining unit with an employer with the
objective of reaching an agreement.
● Features of Collective Bargaining
○ Group activity
○ Activity in Levels
○ Flexibility
○ Win-win situation
○ Builds Relationships
○ An Art and a Science
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5. Meaning & Process of Collective Bargaining

● Process of Collective Bargaining

○ Preparation for Negotiation
■ Understanding of problem at hand by both the parties
■ Should possess all the required facts and figures
○ Negotiation
■ Submission of the demands of the trade union to the
management
■ Involvement of a third party may take place
○ Contract administration
■ The terms of the contract and the agreement reached
is widely circulated among the employees

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6. Indiscipline

● Discipline is employee self-control which prompts

him to willingly co-operate with the organizational
standards, rules, objectives, etc.

●  “Discipline is the force that prompts individuals or

groups to observe rules, regulations, standards
and procedures deemed necessary for an
organization.” - Richard D. Calhoon

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6. Indiscipline

Causes of employee indiscipline

○ Unfair Management Practices
○ Absence of Effective Leadership
○ Communication Barriers
○ Varying Disciplinary Measures
○ Defective Supervision
○ Inadequate attention to personnel Problems
○ Victimisation
○ Absence of Code of Conduct
○ Divide and Rule Policy
○ Deferring settlement of Employee Grievances
○ Mis-judgment in Promotion and Placements

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6. Indiscipline

Principles of maintaining discipline

○ Rules should be framed based on the nature of
work and working conditions.
○ The rules should be so formulated that they
ensure an objective and unbiased analysis of
the acts.
○ All the employees should know the penalties for
violation of different rules.
○ Mc Gregors Red Hot Stove Rule
■ Immediate, impersonal, immaterial….

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6. Indiscipline

Disciplinary Procedure
○ Forming and Issuing a charge sheet
○ Considering the explanation
○ Issuing the notice of enquiry
○ Holding a full-fledged enquiry
○ Final order of action
○ Follow-up

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7. Settlement Machinery of Industrial Conflicts

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8. Labour laws related to social security measures  

● The Payment of Gratuity Rules 1972

● The Payment of Gratuity Act, 1972
● Employees Compensation(Amendment) Act,2017
● Maternity Benefit(Amendment) Act,2017
● The Personal Injuries (Emergency) Provisions Act, 1962
● The Personal Injuries (Compensation Insurance) Act,
1963
● The Maternity Benefit Act, 1961
● Employees liability act 1938
● Employees liability act 1938
● The Employees’ Provident Fund & Miscellaneous
Provisions (Amendment) Act, 1996

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