Industrial Relations

Industrial Relations
 Industrial relations explains the relationship between
employees and management which stem directly or
indirectly from union-employer relationship.
Industrial relations are the relationships between
employees and employers within the organizational
settings.
 Industrial relations are basically the interactions
between employers, employees and the government, and
the institutions and associations through which such
interactions are mediated
Industrial Relations
SCOPE of IR

Collective bargaining
Machinery for settlement of industrial
disputes
Standing orders
Workers participation in management
Unfair labor practices
Importance Of Industrial Relations

Uninterrupted production
Reduction in Industrial Disputes
High morale
Mental Revolution
Reduced Wastage
Trade Unions

Trade unions are formed to protect and

promote the interests of their members.
Their primary function is to protect the
interests of workers against
discrimination and unfair labour
practices
Objectives Of Trade Unions
 Representation
 Negotiation
 Voice in decisions affecting workers
 Provision for Social and Economic security
 Industrial Democracy
 Industrial Discipline
 Harmonious IR
Reasons For Joining Trade Unions

Greater Bargaining Power

Minimize Discrimination
Sense of Security
Sense of Participation
Sense of Belongingness
Platform for self expression
Betterment of relationships
 Central Trade Union Organizations in India

 All India Trade Union Congress (AITUC)

 Bharatiya Mazdoor Sangh (BMS)
 Centre of Indian Trade Unions (CITU)
 Hind Mazdoor Sabha (HMS)
 Indian National Trade Union Congress (INTUC)
 United Trade Union Congress (UTUC) and
 United Trade Union Congress - Lenin Sarani (UTUC -
LS)
LIMITATIONS IN TUism
 Militant Attitude
 Adversarial Relations
 Multiplicity
 Politicisation
 Outside Leadership
 Lack of Resources
 Lack of Credibility of TU Leaders
 Infighting
 No clear recognition process
Measures For Improving Industrial
Relations
 Strong and Stable Union
 Mutual Trust
 Workers’ Participation in Management
 Mutual Accommodation
 Sincere Implementation of Agreements
 Sound Personnel Policies
 Progressive Outlook(Industry, TU &Government)
Collective Bargaining

 Collective bargaining is process of joint decision

making and basically represents a democratic way of
life in industry.
 It is the process of negotiation between firm’s and
workers’ representatives for the purpose of
establishing mutually agreeable conditions of
employment.
 It is a technique adopted by two parties to reach an
understanding acceptable to both through the process
of discussion and negotiation
Collective bargaining

 Collective process in which representatives of

both the management and employees participate.
 Continuous process which aims at establishing
stable relationships between the parties involved.
 Not only involves the bargaining agreement, but also
involves the implementation of such an agreement.
 Attempts in achieving discipline in the industry
 Flexible approach, as the parties involved have to adopt
a flexible attitude towards negotiations.
Characteristics Of Collective Bargaining

Group process
Negotiations form an important aspect
Formalized process
Bipartite, complementary & continuous
process
Political activity
Collective Bargaining Process
Prepare: involves composition of a negotiation
team
Discuss: parties decide the ground rules that will
guide the negotiations
Propose: involves the initial opening statements
and the possible options that exist to resolve
them.
Bargain: negotiations are easy if a problem
solving attitude is adopted
Settlement
Collective Bargaining Process
Importance to employees
 Increases the strength of the workforce, thereby, increasing their
bargaining capacity as a group.
Collective bargaining increases the morale and productivity of
employees.
It restricts management’s freedom for arbitrary action against the
employees.
Effective collective bargaining machinery strengthens the trade
unions movement.
The workers feel motivated as they can approach the management on
various matters and bargain for higher benefits.
It helps in securing a prompt and fair settlement of grievances. It
provides a flexible means for the adjustment of wages and
employment conditions to economic and technological changes in the
industry, as a result of which the chances for conflicts are reduced.
Importance to employers

 Easier for the management to resolve issues at the

bargaining level rather than taking up complaints of
individual workers.
 Collective bargaining tends to promote a sense of job
security among employees and thereby tends to reduce
the cost of labor turnover to management.
 Collective bargaining opens up the channel of
communication between the workers and the
management and increases worker participation in
decision making.
 Collective bargaining plays a vital role in settling and
preventing industrial disputes.
Importance to society

 Collective bargaining leads to industrial peace in the

country
 Results in establishment of a harmonious industrial
climate
 The discrimination and exploitation of workers is
constantly being checked.
 Provides a method or the regulation of the conditions of
employment of those who are directly concerned about
them.
Thank You