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Unit - 11: Industrial Relation
11.1 Introductio
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Industrial relation is not a very new concept but it has become one of the most delicate and complex problem of modern Indian society. Industrial Progress is impossible without labour management cooperation and industrial harmony. The concept of Industrial relation has a wide meaning and connotation. In the narrow sense, the term “Industrial Relation” refers to the nature of relationship between the employers and employees in an Industrial enterprise. In the broad sense, industrial relation refers to all types of relationship between all the parties concerned with the industry. Examples are: F 0 B 7 Individual relations F 0 B 7 Relationship between employers and workers at the place of work or workers participation in management. F 0 B 7 Collective bargaining F 0 B 7 Trade union F 0 B 7 Machinery for settlement of industrial disputes F 0 B 7 Unfair labor practices F 0 B 7 Individual grievance and disciplinary policy and practice. F 0 B 7 Industrial relation training. F 0 B 7 State participation in industrial Relation.
Another related term is ‘employee relations’ or ‘human relations
11.2 The Concept of Industrial Relation or Meaning and
Definition of
Industrial Relation (IR)
The term “Industrial Relation” refers to all types of relationship between all the parties concerned with industry. According to Encyclopaedia
Britannica, it denotes relations of all those associated in productive work, including industry, agriculture, mining, commerce, finance, transport and other services.
According to Dale in his book Personnel Management and Industrial Relation, defines Industrial relations are relationship between management and employees or among employee and their organization that arise out of employment.
According to R.A.Lester Industrial relations involves attempts to have workable solutions between conflicting objectives and values, between incentive and economic security, between discipline and the industrial democracy, between authority and freedom and between bargaining and
cooperation”.
In modern usage, the phrase “Industrial Relation” includes the whole gamut
of matters that arise due to the continuing relationship between the employers and the workers.
Its scope includes three rarely distinct areas:
F 0 B 7 Relations between mangers and individual workers. F 0 B 7 The collective relations between employers and labor (trade) union. F 0 B 7 The role of government in the regulation of these relationships. These three closely associated areas are often referred to respectively as F 0 B 7 Personnel Management F 0 B 7 Collective Bargaining F 0 B 7 Labor Legislation
Parties involved in industrial relations: F 0 B 7 Employers F 0 B 7 Employee F 0 B 7 Government
- To check and ensure a healthy and balanced social order in the industry.
11.4 Approaches to
IR
Industrial Relation is perceived differently by different people. Some of the approaches to industrial relations are as follows. There are three popular approaches to IR: Unitary, Pluralistic and Marxist. Some others are psychological approach, sociological, HRD and System Approach. Here we are discussing on mainly popular approaches.
Unitary Perspective: In unitary, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitary has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.
From employee point of view, unitary approach means that:
F 0 B 7 Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.
F 0 B 7 If a union is recognized, its role is that of a further means of communication between groups of staff and the company. F 0 B 7 The emphasis is on good relationships and sound terms and conditions of employment. F 0 B 7 Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc. F 0 B 7 Employees should feel that the skills and expertise of managers supports their endeavors.
From employer point of view, unitary approach means that: F 0 B 7 Staffing policies should try to unify effort, inspire and motivate employees. F 0 B 7 The organization’s wider objectives should be properly communicated and discussed with staff. F 0 B 7 Reward systems should be so designed as to foster to secure loyalty and commitment. F 0 B 7 Line managers should take ownership of their team/staffing responsibilities. F 0 B 7 Staff-management conflicts - from the perspective of the unitary framework - are seen as arising from lack of information, inadequate presentation of management’s policies.
The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization’s needs
Pluralistic-Perspective: In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes. The implications of this approach include: ·
F 0 B 7 The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation.
F 0 B 7 Independent external arbitrators should be used to assist in the resolution of disputes. F 0 B 7 Union recognition should be encouraged and union representatives given scope to carry out their representative duties·
F 0 B 7 Comprehensive collective agreements should be negotiated with unions
Marxist Perspective: This view of industrial relations is a byproduct of a theory of capitalist society and social change. Marx argued that:
F 0 B 7 Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism.
F 0 B 7 Capitalism would foster monopolies. F 0 B 7 Wages (costs to the capitalist) would be minimized to a subsistence level. F 0 B 7 Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident
This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure
F 0 B 7
F 0 2 0A regular follow up of IR programmed is essential so that existing practice may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves.
11.6 Significance of Good Industrial
Relations
If the objective of the nation is rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and union. Such relations will lead to the following benefits:
1. Industrial Peace: Good industrial relations bring harmony and remove causes of disputes. This leads to industrial peace, which is an ideal situation for an industrial unit to concentrate on productivity and growth. 2. High Morale: Cordial industrial relations improve the morale of the employee. It implies the existence of an atmosphere of cooperation, confidence, and respect within the enterprise. In such an atmosphere, there are common goals, which motivate all members of the organization to contribute their best. Consequently, there is higher productivity, higher income, and increased job satisfaction – all resulting in higher morale of the workforce. 3. Mental Revolution: Sound industrial relation completely transforms the outlook of employers and employee. It is based on consultation between the workers and the management. This motivates the workers to give their best to the organization and share the fruits of progress jointly with the management. 4. Reduced Wastage and Increased Productivity: It helps in increasing production. Wastage of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, they will contribute to the economic growth of the countries. 5. Programmes for Workers Development: New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. Hence, full advantage of latest inventions, innovations and other technological advancement can be obtained. Through these employee development programme, workforce easily adjust itself to required changes for betterment.
11.7 Industrial
Disputes
Industrial dispute can be defined as any dispute or difference between employers and employers or between employers and workers, or between workers and workers, which is connected with the employment or non-employment or terms of employment or with the conditions of labor of any person.
Industrial Disputes are frequently clouded by a sense of exploitation, distrust and discontent between employee and employers. In simple language, the disputes between employers and employees on any Industrial matters are known as industrial disputes. The term ‘dispute’ is characterized by the following factors :
- Dispute mainly relate to the strife between employers and their employees.
- There must actually be a difference.
- Its work related or industrial matter issues.
- Disputes must be raised by group or class of workmen.
- Disputes between one or two workmen and their employers are not an industrial dispute.
11.8 Forms of Industrial
Disputes
Industrial dispute can take place in any of the following forms:
1) Strikes: A strike means a cessation of work by a body of persons employed in any industry acting in combination or a concerted refusal under a common understanding of a number of
persons who are or have been so employed to continue work or to accept employment. Strikes are of several types: F 0 B 7 Economic Strike F 0 B 7 Sympathetic Strike F 0 B 7 General Strike F 0 B 7 Sit down Strike F 0 B 7 Slow Down Strike F 0 B 7 Lightening Strike F 0 B 7 Hunger Strike
2) Lock Out: lock out is the counterpart of strike. Lock outs bring psychological pressure on the workers to agree to his conditions or face closure of the units. A lockout is decaled as a trial of strength between the management and its employees. Lockouts means the employer closes down his factory where his workers are employed because he wants to force them to agree to his terms and conditions of service during the pendency of a dispute.
3) Gherao: Its means “to surround”. According to National Commission on Labour “ Gherao tend to inflict physical duress on the persons affected and endanger not only industrial harmony but also create problems of law and order”.
F 0 B 7 Granting wage increases to workmen at crucial periods of the trade union organization, with a view to undermine the efforts of the trade union at organization. F 0 B 7
F 0 2 0To, dominate, interfere with or contribute support, financial or otherwise, to any trade union.
To encourage or discourage membership in any trade union by discriminating against workmen.
To discharge or dismiss workmen.
To indulge in acts of force or violence.
To refuse to bargaining collectively, in good faith with the recognized trade unions.
To insist upon individuals workmen, who are on a legal strike, to sign a good conduct bond as a precondition to allowing them to resume work?
11.10 Prevention of Industrial Disputes
It is very famous sentences prevention is always better than cure. Prevention steps should, therefore, be taken so that reduced industrial disputes and sometimes try to do not occur the industrial disputes in the organizations.
1) Collective Bargaining: Collective Bargaining is the most effective method of resolving industrial disputes. The role of collective bargaining in solving the problems arising between the management and the worker has been widely recognized. Collective bargaining not only includes negotiation, administration and enforcement of the written contracts between the employees and the employers but also includes the process of resolving labour management conflicts.
Collective bargaining offers the following benefits to both of the employees and employers:
F 0 B 7
F 0 2 0It helps increase economic strength of both the parties at the same time protecting their interest.
F 0 B 7
F 0 2 0It helps resolve disputes when it is occur in the organization. F 0 B 7
F 0 2 0It also help to establish uniform conditions of employment with a view to avoid occurrences of industrial disputes.
F 0 B 7
F 0 2 0It lays down rules and norms for dealing with labour.
2) National Arbitration Promotion Board: The Truce Resolution 1962 and the code of Discipline as evolved in 1958 recognized the principle of voluntary Arbitration. The Government of India took note of the intention of both the industrial partners and set up the National Arbitration Promotion Board in July 1967 to promote arbitration.
Arbitration is a procedure in which a neutral third party studies the bargaining situation, listens to both the parties and gathers information, and then makes recommendations that are building on the parties. Arbitration is effective because it is established by the parties themselves and the decision is acceptable to them and it also delays are cut down, settlement are speeded up and less expensive when compared to courts or tribunals.
3) Grievance Redressal Procedure: Grievance may be understood as an employee’s dissatisfaction or feeling of personal injustice relating to his or her employment relationship. A grievance is generally well- defined in a collective bargaining agreement. The Indian Labour Conference inn1958 evolved a code of discipline which was ratified by the national trade union and employers’ organization. Under this code, both the parties voluntarily agree to maintain and create an atmosphere of mutual trust and cooperation in the factory and to settle all the disputes
is acceptable to them and relatively expeditious when compared to courts or tribunals. Delays are cut down and settlements are speeded up. But it has some weakness also are it is expensive. The expenditure needs to be shared by the labour and the management and judgment become arbitrary if there is a mistake in selecting the arbitrator.
2) Conciliation: It is a process by which representatives of workers and employees are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. The third party may be one individual or a group of people. The alternative name for the third party is mediators.
The conciliation officer can be appointed by the central and state government to mediate in all disputes brought to his notice. The officer enjoys the power of civil courts. He can call and witness disputing parties on oath and interpret the facts of the case. He is expected to give judgment within 14 days of the commencement of the conciliation proceedings. His judgment is binding on all the parties to the disputes. When the conciliation officer fails to resolve the disputes between the parties, the government can appoint a Board of Conciliation. It is not a permanent Board. It consists of a chairman and two or four other members nominated in equal numbers by the parties to the disputes.
3) Collective Bargaining: it is a process by which employers on the one hand and representative of the employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services. We already discuss on it.
4) Code of Discipline: The code of discipline evolved by the Ministry of Labour and Employment. The code of discipline defines duties and responsibilities of employers and workers. The objectives of promoting constructive co-operation between their representatives at all levels, avoiding stoppage as well aslitigation, securing settlement of grievance by mutual negotiation, conciliation and voluntary arbitration, facilitating the growth of trade union and eliminating all forms of coercion and violence of Industrial Relation.
5) Grievance Procedures: A grievance may be understood as an employee’s dissatisfaction or feeling of personal injustice relating to his or her employment relationship. There are some condition which may give rise to a grievance are like a violation of law, a violation of the intent of the parties as stipulated during contract negotiation , a violation of company rules, a change in working conditions or past company practices and a violation of health and /or safety standards.
It is resolved by set procedure: F 0 B 7 How the grievance will be imitated?
F 0 B 7 The number of steps in the process. F 0 B 7 Who will represent each party? F 0 B 7 The specified number of working days within which the grievance must be taken on the next step in the hearing.
6) Adjudication: it is means a mandatory settlement of an industrial dispute by a labour court or a tribunal. Whenever an industrial dispute remains unresolved by the conciliation officer and the board of conciliation, the matter is referred in a court of inquiry. A court of inquiry may consist of one independent person or such numbers of independent persons as the appropriate government may think fit and submit its report to the government within six months from the date of the commencement of the inquiry. If settlement is not arrived at by the efforts of the above machinery, three types of semi-judicial bodies are formed i.e. labour court, industrial tribunals and national tribunals.
F 0 B 7 Labour Court^ shall consist of one person only to be appointed by the appropriate government. Labor court for adjudication of industrial disputes relating to disputed orders of the employers. e.g. dismissal, discharge and suspensions of employees, application and interpretation of standing orders, withdrawal of any concession or privilege, legality or otherwise of any strike or lockout etc.
F 0 B 7 Industrial Tribunals:^ the tribunals will consist of one person of the rank of a high court judge by state government. This tribunals solve out the disputes relating to wages, hour of work and rest, intervals, leave with pay, holidays, compensatory and other allowances, bonus, profit sharing, provident fund, retrenchment, gratuity and etc.
F 0 B 7 National Tribunal:^ National Tribunals are set up by the Central Government for the adjudication of the industrial disputes which involves the question of national importance or which affect industrial establishment situated in more than one state. It gives decisions on matters referred to it by the Central Government which matter is referred to the national tribunal by the central government, the labour courts and industrial tribunals are barred from entertaining such disputes and if any such dispute is before labour court or tribunals. Shall be deemed to be quashed.
7) Consultative Machinery: It is set by the government to resolve disputes. The main function of this machinery is to bring the parties together for mutual settlement of differences in a spirit of co-operation and goodwill. Consultative machinery operates at the plant, industry, state and the national level. At the plant level, there are works committees and joint management councils being bipartite in character and at the industry level there are wage boards and industrial committees.
