CHAPTER-1

INTRODUCTION TO
INDUSTRIAL
RELATION
INDUSTRIAL RELATION

 INDUSTRY:" Any productive activity in which an

individual (or a group of individuals) is (are)
engaged”.

 RELATION:“The relationships that exist within

the industry between the employer and his
workmen.”
Demand of Industrial Relations:
 In medieval society- direct relations between
master & servant to secure cooperation.
 But situation underwent a change with the
emergence of factory system after the Industrial
revolution in England.
 Industrial Revolution changed radically the
techniques of production and resulted in
investment of huge amount of capital in
technology,company form of organisation gain
popularity, seperation of ownership and
management of industry.
Demand of Industrial Relations:

 All the factors lead to labour unrest and conflict

and therefore cooperation between the labour and
employers has been emphasized (means Industrial
relation come in to existence at that time).
 Industrial Relations

The term ‘industrial relations’ refers to

relationships between management and
labour or among employees and their
organisations that characterise or grow
out of employment. There are two parties
in ‘employment’ relationship-labour &
management. Both parties need to work in
a spirit of cooperation, adjustment &
accommodation
Industrial Relations
 Industrial relations includes individual,
individual relations and joint consultation
between employers and workpeople at the
workplace; collective relations between
employers and their organisations and
trade unions and the part played by the
state in regulating these relations.
Concept of industrial relations
 IR is an art ,the art of living together for the purpose of
Production”(J.Henry)
Or
 “The field of IR includes the study of workers and their
trade unions management employers’ associations and the
state institutions concerned with the regulation of
employment” (H.A. Clegg)
Or
 “It is the relation between employers and employees in
industry. in the broad sense the term also includes the
relation between the various unions ,between the states and
the unions as well as those between the employers and the
state” (Casselman’s labour dictionary)
 Characteristics of IR
8

1. An outcome of relationship in industry.

2. It create rules and regulations to maintain piece
and harmony.
3. Important parts of IR are employees and their
organization, employer and their association and
government.
4. It has a role of management, union and
government.
 Objective of IR
9

1. To safeguard the interest of labor and management

and promote & develop their relations.
2. To regulate the production by minimizing industrial
conflicts, absenteeism and high turnover.
3. To provide opportunity to workers to involve in
decision making process with management.
4. To encourage and develop trade unions in order to
improve the workers' strength.
 Objective of IR
5. To establish and promote the growth of an industrial
democracy based on labor partnership in sharing in
profits & decision making.
6. To minimise the no. of strikes, lockouts and gheraos
by providing resonable wages,improved living and
working conditions.
7. To improve the economic conditions of workers in
the existing state of industrial management.
 Dominant Aspects of IR
 Acc. to Douglas McGregor, there are two
aspects:- Conflict and Cooperation
 Cooperation- Union-management cooperation

will be a function of two forces:- a) behavioural

pattern of union and management, b) balancing
of union rights and management rights
 Conflict- Some degree of conflict is inevitable

as it is essential to survival of both union and

management and is not always bad and certain
constructive aspects.
 Importance of IR
 Industrial peace
 Higher productivity
 Industrial democracy
 Collective bargaining
 Fair benefits to workers
 Higher morale of workers
 Facilitation of changes
The Actors in Employee Relations Management

 Workers and their organization

 The management
 The Government
Scope of IR
 Promotion of healthy labour management relations
a) Responsible trade union and Association of
Employers
b) Spirit of collective bargaining
c) Labour welfare
 Maintenance of industrial peace
a) Machinery for the prevention and settlement of
industrial disputes
b) Provision of bipartite and tripartite forums
Scope of IR
 Promotion of industrial democracy
a) Establishment of the joint management councils at
the plant levels
b) Recognition of human right in industry
c) Increase in productivity
Approaches To Industrial Relations

 Classical approach
 Human relation approach
 Pluralistic approach
 Social action approach
 System approach
 Gandhian Trusteeship approach
Factors Affecting IR

 Institutional factors
 Economic factors
 Social factors
 Technological factors
 Psychological factors
 Enterprise-related factors
 Globalization
 Trade union
Concept and Nature
Definitions:
“A trade union is continuous association of wage earners for the purpose of maintaining or improving the
conditions of their working lives”. ( Webb)
Or
“ A labour union or trade union is an organization of workers formed to promote, protect, and improve , through
collective action ,the social ,economic, and political interest of its members”.

Sec. 2(h) –Trade union Act,1926 defined union as “ any combination, whether temporary or permanent, formed
primarily for the purpose of regulating the relations between the workmen and employers, or between
workmen and workmen, or between employers and employers, or for imposing restrictive conditions on
the conduct of any trade or business and includes any federation of two or more trade unions.”

Nature of Trade union :

a) It is an organization
b) It is an Permanent body
c) It is formed for common interest of labour
d) It is a group efforts
Trade union
Objectives
 Steady employment
 Rationalization of personnel policies
 Voice in decision affecting workers
 Recognition and participation
 Gaining legislative enactment
 Miscellaneous services
 Role of Trade Unions in IR
20

1. Achieving higher wages

2. To offer responsive co-operation in improving
level of production, discipline etc.
3. To promote individual and collective welfare
4. To improve working and living conditions
5. To enlarge the opportunities of promotion and
training.
Trade unions
Functions of Trade Unions
 Militant functions
 Faternal functions
 Political functions
Motive of Joining TU
 Economic Benefits
 Platform for self Expression
 Check on arbitary actions of management
 Security
 Employer-Employee Relation
 Sense of Participation
 Sense of Belongingness
 Background factors
Methods of TU
 Mutual Insurance
 Collective Bargaining
 Legal Enactment
 Direct Action
Trade Union
Types of trade union
(a) According to purpose
I. Reformist union
II. Revolutionary
(b) According to membership structure
I. Crafts union
II. Industrial union
III. General union
Trade Union
Problem of trade union in India
 Uneven growth
 Low membership
 Outside leadership
 Multiplicity of unions
 Inter-union rivalry
 Absence of paid office bearers
 Weak financial position
 Subscription dues unpaid
Emerging challenges in IR
 Revolution in information technology
 Advancement of technology
 Adoption of new technology
 Economic changes
 Changes in economical policy
 Changing international environment
 Increased no. of mergers and acquisition
 Changing needs of customers
Reasons for challenges
 Globalization
Impact :
1. Integration of economies
2. Global benchmarking
3. Changes in management style
4. Increase in inequities
Change in workforce profile:
Impact :
1. Increase in education level
2. Change in skill level
3. Knowledge worker
4. Age group and aspirations of the workers
Technological advancement:
1. Obsolete jobs
2. Increased Training needs
3. Involvement of employees for technological
changes
Changes in politico-legal environment :
1. Role of government
2. Role of non-government organisations
Contemporary issues in IR
 Low wages
 Employment of women
 Ignorance and illiteracy
 Child labor
 Industrial housing
 Social security
Trade Union
Structure of trade union in India
 Local level Federation
 Regional level Federations

 National Federations

Example :
1.The Indian national trade union congress
2.AITUC
3.HMS
4.UTUC