Module 1

Fundamental Aspects of Industrial relations

Introduction and Background of IR

• Industrial relation means the relationship between employers and employees in course
of employment in industrial organizations.
• Industrial relation is a term used to denote the collective relationships between
management and the worker.
• It covers the aspects of industrial life such as trade unionism, collective bargaining,
workers participation in management, discipline and industrial disputes.
Approaches to IR

There are mainly three approaches to IR

1. Unitary approach

2. Pluralistic Approach

3. Marxist Approach

4. Systems Approach

5. Gandhian approach
1.Unitary Approach
IR is grounded in mutual co-operation, individual treatment,
team work and shared goals.
• Union co-operate with the mgt. & the mgt.’s right to
manage is accepted because there is no ”we they feeling‟

• Assumption: Common interest & promotion of harmony

• No strikes are there.

• It's a reactive IR strategy.

• They seek direct negotiations with employees.

2.Pluralistic Approach

• It perceives:
• Org. as a coalitions of competing interest.
• TU as legitimate representatives of employee interests.
• Stability in IR is viewed as the product of concessions and
compromises between mgt. & unions.
• Conflict between Mgt. and workers is understood as inevitable.
• Conflict is viewed as conducive for innovation and growth.
• Strong union is necessary.
3.Marxist Approach

• Marxists see conflict as a product of the capitalist society.

• Conflict arises due to the division in the society between those

who own resources and those who have only labor to offer.

• For Marxist all strikes are political.

• He regard state intervention via legislation & the creation of

Industrial tribunals as supporting mgt’s interest rather than
ensuring a balance between the competing groups.
4.Systems approach

• The system approach was developed by Dunlop of Harvard University in

1958.

• According to this approach, individuals are part of an ongoing but

independent social system.

• The behavior, actions and role of the individuals are shaped by the cultures
of the society.

• The three elements of the system approach are input, process and output.

• Society provides the cue (signal) to the individuals about how one should act
in a situation.
4.Systems approach
4.Systems approach
Systems approach

• The institutions, the value system and other

characteristics of the society influence the process and
determine the outcome or response of the individuals.
The basis of this theory is that group cohesiveness is
provided by the common ideology shaped by the societal
factors.
Dunlop’s Systems Approach

INPUTS
Actors
(Employees, PROCESSES
Employers, Bargaining
State) Conciliation
OUTPUT
Context Adjudication Rules
(Tech, Market, Legislation
Power
Indeology)

Feedback
Gandhian Approach
System of IR in India

 An industrial relations system consists of the whole gamut of relationships

between employers and employees which are managed by the means of conflict
and cooperation.
 A sound industrial relations system is one in which relationships between
management and employees (and their representatives) on the one hand, and
between them and the State on the other, are more harmonious and cooperative
than conflictual and creates an environment conducive to economic efficiency.
 Hence, such relationships are strengthening through the major stakeholders. In
this backdrop, the said topic mainly discusses the major stakeholders of
industrial relations in India.
System of IR in India
Government policies relating to Labor

 The Constitution of India provides detailed provisions for the rights of

the citizens and also lays down the Directive Principles of State Policy
which set an aim to which the activities of the state are to be guided.
 Government is committed to regulate all economic activities for
management of safety and health risks at workplaces and to provide
measures so as to ensure safe and healthy working conditions for
every working man and woman in the nation.
 Government recognizes that safety and health of workers has a
positive impact on productivity and economic and social
development.
Government policies relating to Labor

OBJECTIVES:
The policy seeks to bring the national objectives into focus as a step towards improvement in safety,
health and environment at workplace. The objectives are to achieve:-
a) Continuous reduction in the incidence of work related injuries, fatalities, diseases, disasters and
loss of national assets.
b) Improved coverage of work related injuries, fatalities and diseases and provide for a more
comprehensive data base for facilitating better performance and monitoring.
c) Continuous enhancement of community awareness regarding safety, health and environment at
workplace related areas.
d) Improving safety, health and environment at workplace by creation of “green jobs” contributing
to sustainable enterprise development.
Explanation refer notes
Code of conduct/discipline

To maintain harmonious relations and promote industrial peace a code of

conduct/discipline has been laid down which applies to both public and
private sector enterprises. It specifies various obligations to management
and workers with the objective of promoting co-operation between their
representatives.
 Diversity and gender sensitivity

 Gender is a social and cultural phenomenon. It shapes a person’s behavioral patterns.

 Diversity on the other hand refers to how these 2 genders co-exists in synchronization with
each other.
 Most of the societies are organized on a patriarchal model.
 Women became more dependent on men in such societies.
 Their status was reduced like unpaid slaves.
 The decision making powers were suppressed.
 Even though they worked they were paid less compared to their male counterparts.
 Top executive jobs were denied to them.
 Developing gender sensitivity

 At the individual level it is important to realize that being a women cannot be considered
as inferior.
 Some feminist are oriented towards up-liftment of women by causing political hatred
towards men which is not socially acceptable. They must know that men and women are
having equal grounds to be treated and should have a good synchronization in the society.
 At the management level gender friendly policies have to be developed especially in
matters of Recruitment, salary fixation and promotion.
 At the inter-cultural level we have to be respectful while communicating with the gender
sensitivities of the other culture.
 Mutual respect is a learned value that assures the co-existence of a discrimination free
society among gender.
Constitutional Provisions for the Protection of Labour Workforce
in India

 Article 14- Equal pay for equal work

 Article 19 (1) (C)- forming union or associations

 The trade unions act 1926

 Article 23- Prohibits forced labor.

 The bonded labor abolition act 1976

 Article 24- Prohibition of Child labor

Constitutional Provisions for the Protection of Labour Workforce
in India

 PART IV of Constitution of India refers to Directive Principles of State Policy

 Aims at working towards the welfare of citizens.

 Article 39 (a)- Right to adequate means of livelihood without discrimination

 Article 41- Right to work and education

 Article 42- Upliftment of working conditions, maternity relief

 Article 43- Living wage for citizens, includes not only bare necessities of life but also social and
cultural upliftment, education, insurances and creation of employment opportunities.
 Rights of women workers

 Right towards equal remuneration like men.

 Right towards maternity benefit.
 No discrimination for work based on gender.
 Right towards raising voice against sexual harassment.
 Prevention and abolition of domestic violence.
 Right towards minimum wages.
 Right towards education.