INDUSTRIAL RELATIONS IN AN ENTERPRISE

• The state of IR in an organization depends upon several different

factors: the organisation's culture, the governance practices, the
style of management of the owners and the top management, the
approach and the style of functioning of the leaders of the trade
unions, and the methods employed by them in handling the IR
issues in the organisation.

• The IR situation is also influenced by the labour legislations in

force, the contract of employment, the rules and the regulations of
the enterprise, and the past agreements between the Management
and the Trade Union
 INDUSTRIAL RELATIONS IN AN ENTERPRISE CONTD
General causes of industrial disputes strains which result in
bad industrial relations are.
1. Close mindedness of employers and employees one
thinking to extract maximum work with minimum
remuneration, other thinking to avoid work and get
more enhancement in pay and wages.
2. Irrational wage, wage system and structure not
mutually acceptable
 INDUSTRIAL RELATIONS IN AN ENTERPRISE CONTD
3. Poor working environment, low presence of safety,
hygiene conditions vitiated atmosphere for smooth
working
4. Poor human relations, and lack of dexterity on the part of
management personnel
5. Lack of control over the situations erosion of discipline,
which rebounds.
6. Introduction of new technology or automation
mechanization, Computerization etc. without proper
consultations, preparations and discussion with workers
and creating climate.
 INDUSTRIAL RELATIONS IN AN ENTERPRISE CONTD
7. Nepotism, unequal work loads, disproportionate wage,
and responsibilities.
8. Adoption of unfair labour practices either by employer
or employees and unions.
9. Unjustifiable profit sharing, and not considering workers
as a co-shares of the gains of the industry.
10. recognition of trade unions, Militancy of the unions
Frequent union rivalries over membership, foisting
of employer sponsored unions.
11. Strikes lock out, lay off, and resulting retrenchment due
to highhandedness on the part of the concerned.
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12. Throwing away the agreements and arrived
settlements
13. Aspects of work, quantum of output, quality of output,
terms and conditions of employment, type of
employment, number of employees, engagement of
contract labour, compensation, promotion policy,
rewards, punishments arising out of disciplinary
proceedings and other related matters.
14. Attitude of government and political parties who may
indirectly control some the unions for their own gains or
to get a hold on the industry.
 INDUSTRIAL RELATIONS IN AN ENTERPRISE CONTD
• While working out solutions, we are not to lose sight of other
important aspects such as maintaining discipline and improving
quality and productivity. We have also to ensure uninterrupted
operations, growth and profitability of the enterprise.
• In addition, we need to take care of the growth and the
development of the workers and payment of adequate, fair
remuneration. This calls for transparency from both the parties and
clear, open, continuous communication. For achieving a robust IR
situation, both sides need to invest time and energy to build a
relationship based on trust. Trust begets trust. Any trace of mistrust
will damage the relationship.
 IR CLIMATE
• The IR climate is organization-specific. The IR climate will differ from
one company to another. The IR climate will depend on the attitudes and
the behaviour of the Management towards the Trade Union and of the
Trade Union towards the Management.
• Where there is more than one Trade Union in a Unit, the IR climate will
also be influenced by the quality of the relationships amongst the trade
unions & the company. There may be situations when trade unions and
workers resort to confrontational measures and indulge in agitations of
some Kind. The protests may take different forms such as putting up
posters / banners, wearing of black badges, shouting slogans, go slow,
work to rule, stoppage of work, illegal strikes and, in some extreme
cases, violence and sabotage.
• These actions by trade unions may invite retaliations from the
management and in extreme cases leading to suspension of operations
and declaration of a lockout.
 IR CLIMATE

In some instances, managements may also behave in a highhanded

fashion by victimizing the workers who are seen as trouble makers.
The workers who are likely to incur the wrath of the management are
those who are in the fore front of leading the agitations or of forming
a trade union or of taking active part in trade union activities or of
questioning the Management about their decisions and actions.
These actions of the management may lead to counter retaliation by
the trade unions and the workers. It is important for both the Trade
Unions and Management to realize that whosoever starts a fight,
should also know how to end it. They have to learn to work together
for the larger good of the company, for the business to be sustainable.
 IR CLIMATE
• The way IR is practiced differs widely amongst the organizations
in the country. We have real life examples of situations varying
from being regarded as ‘peaceful’ to being classified as
‘turbulent’. Industrial unrest witnessed in our businesses in India
during the period 1960 to 2000 has reduced considerably in the
recent past. However, no one can deny that IR continues to be a
very important aspect in the life of any business.
• An effective IR situation contributes to the continued success and
the sustainability of any business, while ensuring, at the same
time, a fair deal for the people who work for the organization.
 IR CLIMATE

Besides, organizations need to educate their internal trade

union leaders about the complexities of running a business
and about competition and competitors. The internal trade
union leaders need to know how to read and understand a
company’s balance sheet.
They also need to acquire knowledge of the relevant
portions of labour laws and the process of negotiation.
These knowledge and skills help internal trade union
leaders in resolving disputes, to manage differences and to
work collaboratively.