INDUSTRIAL RELATIONSINDUSTRIAL RELATIONS

• Du……..Duality of human naturenat na……Nature is …Tnecessary TO create harmonyHha………….harmony……….

INTRODUCTIONINTRODUCTION

Continuing work environment issues are creating pressures for more industrial relations reform. Higher productivity translates into higher wages, better jobs and improved job security. While all parties agree that reform is inevitable, the problem is in obtaining consensus. The way people view the challenges of reform is in large part influenced by their perspective on industrial relations.

Industrial relations define relationships between employers and employees toward each other in terms of supervision, direction, planning and coordination of organizational activities, with minimal human effort and functions; all this done with an enthusiastic spirit taking into consideration the safety of all employees.

INDUSTRIALINDUSTRIAL RELATIONSRELATIONS ”Industrial Relation is a relation

between Employer and Employees, Employees and employees and Employees and trade unions”. –Industrial disputes act 1947 The Industrial Relation relations

also called as labor-management,Employee-employer relations.

WHAT IS INDUSTRIAL WHAT IS INDUSTRIAL RELATIONS ?RELATIONS ?

The term IR comprises of two terms : “INDUSTRY” and “RELATIONS”. Industry refers to “ any productive activity in which an

individual (or a group of individuals) is (are) engaged” . By “relations” we mean “ the relationships that exist within the industry between the employer and his workmen”

IR is a relationship between management and employees or among employees and their organizations,

that characteristics and grow out ofemployment.IR may be defined as the complex of inter- relations among workers, managers and government.

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Characteristics of IRCharacteristics of IR1. 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.

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NATURE OF IRNATURE OF IR• IR arise out of employer employee relations

• IR is a web of rules: formed by the interaction of Govt, industry & labor

• IR is multi dimensional: influenced by complex set of institutional. economic & technological factors

• IR is dynamic and changing: keep pace with employee expectations, trade unions, employer associations and other economic and social institutions of society

• IR is characterized by forces of conflict and compromise. Individual differences and disagreements resolved through constructive means.

• Govt influences and shapes IR: with its laws, rules, agreements through executive and judicial machinery

• Scope of IR is very wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory schemes and dispute settlement mechanism etc

• Interactive and consultative in nature: in resolving conflict,controversies and disputes between labor and management.

SCOPE OF IRSCOPE OF IR

Management – Union relationship

Employer – Employee relationship

Relationship amongst various groups of employees

Effect of extraneous factors like state, socio-political- economic factors on workplace relationships

ASPECTS OF IRASPECTS OF IR

OBJECTIVES OF IR OBJECTIVES OF IR

Objective of IRObjective of IR1. To promote and develop labor management relation.

2. To regulate the production by minimizing industrial conflicts

3. To provide opptunity to workers to involve in decision making process with management.

4. To encourage and develop trade unions in order to improve the workers' strength.

5. Appreciate the role of employers, trade unions and governments in industrial relations.

6. Understand individual and collective bargaining, conciliation and arbitration.

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APPROACHES TO INDUSTRIAL APPROACHES TO INDUSTRIAL RELATIONSRELATIONS

• IR involves employee and their unions, employers and their associations and governments and industrial tribunals that make regulations governing the employment relationship.

NATURE OF IRNATURE OF IR• Focus

– Strategic & integrated managerial approach to the management of people

– HRM support for achieving business aims and objectives

• Mechanisms– Individualism (human relations, organisational

psychology)– Integrating planning, monitoring and control

of human resources (not just employees)– Securing employee commitment or

organisation’s aims & objectives (performance based rewards, employee involvement)

Pluralistic

Co-operation

Conflict

Authoritarian

Paternalism

Unitary

Humanresource

management

Systems

Evolution

Revolution

Marxist

Control ofthe labourprocess

Input Conversion Output

Conflict(differences)

Institutionsand

processes

Regulation(rules)

Approaches to industrial relations

Social action

Wider approaches to industrial relations

Approaches to industrial Approaches to industrial relationsrelations

Labour market Comparative

UNITARIST APPROACHUNITARIST APPROACH

• Industrial relations is grounded in mutual cooperation, individual treatment, teamwork and the sharingof common objectives.

• The underlying assumption is that it is to the benefit of all to focus on common interests and promote harmony.

• Conflict is regarded as destructive.

PLURALISMPLURALISM((CONFLICT APPROACH CONFLICT APPROACH ))

• Pluralism is belief in the existence of more than one ruling principle, giving rise to a conflict of interests.

• The pluralist approach to IR accepts conflict between management and workers as inevitable but containable through various institutional arrangements ( like collective bargaining, conciliation and arbitration etc) and is in fact considered essential for innovation and growth.

• It perceives organizations as coalitions of competing interests , where the management’s role is to mediate among the different interest groups.

• It perceives trade unions as legitimate representative of employee interests

• It also perceives stability in IR as the product of concessions and compromises between management and unions.

• Employees join unions to protect their interests and influence decision making by the management. Unions thus balance the power between management and employees. In pluralistic approach a strong unions is not only desirable but necessary

MARXIST APPROACHMARXIST APPROACH• Marxists like pluralists also regard conflict as inevitable but see it

as a product of capitalistic society where as pluralist believe that the conflict is inevitable in all organizations

• For Marxists IR has wider meaning. For them conflict arises not because of rift between management and workers but because of the division in the society between those who own resources and those who have only labor to offer.

• Marxist approach thus focuses on the type of society in which an organization functions.

• Industrial conflict is thus equated with political and social unrest• Trade Unions are seen both as labor reaction to exploitation by

capitalists, as-well-as a weapon to bring about a revolutionary social change. Wage related disputes as secondary

• For them all strikes are political and they regard state intervention ( via legislations and creation of Industrial Tribunals ) as supporting management’s interests, rather than ensuring a balance between the competing groups.

Systems approach Systems approach

• IR - a social sub-system within the econ. & political systems

• Components

– actors

– contexts (influences & constraints on decisions & action e.g. market, technology, demography, industrial structure)

– ideology - beliefs affecting actor views - shared or in conflict

– rules - regulatory elements i.e. the terms & nature of the employment relationship developed by IR processes

OTHER APPROACHES OF INDUSTRIAL OTHER APPROACHES OF INDUSTRIAL RELATIONSRELATIONS

( DIFFERENT SCHOOLS OF THOUGHT )( DIFFERENT SCHOOLS OF THOUGHT )

PSYCHOLOGICAL APPROACH• Differences in the perceptions of labor and management wrt factors

influencing their relations i.e. wages. Benefits, services and working conditions etc

• Dissatisfaction compels workers to turn aggressive and resort to strike, lockouts and gherao etc.

SOCIOLOGICAL APPROACH• Sociological factors such as value system, customs and traditions etyc affect

the relations between labor and management

HUMAN RELATIONS APPROACH• Human behavior is influenced by feelings, sentiments and attitudes. As per

this approach humans are motivated by variety of social and psychological factors

like economic and non-economic awards to be used.

GIRI APPROACH• Collective bargaining and joint negotiations be used to settle disputes

between labor and management. Outside interference to be avoided.

GANDHIAN APPROACH• worker's right to strike but cautioned that this right be exercised in just

cause and in a peaceful and non-violent manner for minimum wages etc like ‘satyagrah’- Non violent non- cooperation

LABOUR MOVEMENTLABOUR MOVEMENT

The labour movement or labor movement is a broad term for the development of a collective organization of working people, to campaign for better working conditions and treatment from their employers and governments, in particular through the implementation of specific laws governing labour relations. Trade unions are collective organizations within societies, organized for the purpose of representing the interests of workers and the working class. Many ruling class individuals and political groups may also be active in and part of the labour movement. In some countries, especially the United Kingdom and Australia the labour movement is understood to encompass a formal "political wing", frequently known by the name labour party or workers' party, which complements the aforementioned "industrial wing".

CHARACTERISTICS OF INDIAN LABOURCHARACTERISTICS OF INDIAN LABOURCharacteristics of Indian Labor Class: The characteristics of the Indian labour class have changed greatly over time. With the growth of new industries and the continuous migration of labour, the face of the Indian labour class is continuously changing, and is assimilating itself with the new industrial processes. Here are come characteristics of the Indian labour class:Social Composition:Most of the industries of the past comprised of labour consisting of the scheduled caste and other lower caste people. Today, however, the modern Indian labour is mixed, especially in the areas of engineering, metal-trades, oil refining, and petrochemicals. Some traditional industries, however, still employ people more or less based on caste. Whether the work is blue collar or white collar, the social barriers within the labour force are deteriorating. Better access to education is also bridging this gap.Sex Composition:In the past, labour was very segregated in terms of gender. Women only worked on plantation and textiles industries, and men were confined to factories. Today, however, more and more gender redistribution is taking place. Men and women are equally getting more involved in all types of industry. Even at home, the number of working couples in increasing as they strive to increase their standard of living. Child labour is also present in various industries, but their number is on the decline.Tribal Labour:After the independence, certain raw materials like manganese, coal and iron ore are gathered from rural areas in India. Most of the labour comprised of the rural population, and this lead to the urbanization of rural villages. Today, tribal youth are increasingly modernized, and are being employed in industries such as steel, iron, and other mining areas

Other Characteristics: The Indian labour industry has always been divided on the basis of religion, region, language and caste. Until only recently, however, these artificial divisions are deteriorating. The Indian labour industry is of undifferentiated class character. Most of the labour is low paid, and still attached to joint families and villages and castes. According to Oranti, the Indian labour is highly dynamic. The labour fluctuates from being unemployed to being employed. Even when employed, the labour is exposed to different types of industries and working conditions. The rate of illiteracy is high among the Indian labour. Absenteeism is the absence from work. 40% of labour are missing at work. The reasons of absenteeism are sickness, accidents, leave, fatigue, Another characteristic of the Indian labour force is labour turnover. It is the rate at which old labour is replaced with new labour. The Indian labour force possesses a migratory character. A majority of labour force is from other cities or rural areas, and still maintains strong ties with their places of origin. This property renders the labour as unstable and unreliable, and adversely affects industrial progress in India

ADVERSARIAL IRADVERSARIAL IR

UNION MANAGEMENT

Strike Lockout

Bans Injunction

Boycott Strike breakers

Picket Employer associations

Industrial tribunal Industrial tribunal

WHY EMPLOYEES JOIN UNIONSWHY EMPLOYEES JOIN UNIONS

Compulsion

Protection

Social pressure

Political beliefs

Solidarity

Tradition

Pay and conditions

Communication

Health and safety

PARTIES TO IRPARTIES TO IR

EMPLOYEES

EMPLOYEEASSOCIATIONS

GOVERNMENT

EMPLOYERS

EMPLOYERASSOCIATION

COURTS &

TRIBUNALS

EMPLOYER-EMPLOYEERELATIONS

ROLE OF WORKERSROLE OF WORKERSWORKERS and their ORGANIZATIONS - Trade Unions or

Associations

1. Trade unions have a protecting role of safeguarding workers interests.

2. Regulating function of ensuring implementation of statutes / Acts

3. Ensuring non-violation of worker’s rights4. Trade Union Act provides Status and Authority for the

power vested in them5. This power is used for negotiating Wage Interests, better

benefits and service conditions, concessions, more amenities and welfare schemes

6. Structure of Workers’ organization or Trade unions differs from country to country

ROLE OF MANAGEMENTROLE OF MANAGEMENTAn organization is represented through officials

designated in the organization structure for coordination of activities relating to:

• Administering employee benefits• Regulating terms and condition of employment• Providing welfare and social security benefits• Coordination is done through graded hierarchical

and formal communication channels of orders and directives

• Style and manner in which employer organizations get work and regulate the terms and conditions of employment affects the industrial relations of the unit.

ROLE OF GOVERNMENTROLE OF GOVERNMENT

• Govt or state machinery regulates the relationship between workers’ organizations and employers’ organizations.

• It does it through : - Statutes and legislations, - The judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules,

procedures and gives awards and monitors them

Employment RelationsEmployment RelationsDunlop’s model

FACTORS AFFECTING EMPLOYEE RELATIONSFACTORS AFFECTING EMPLOYEE RELATIONSINTERNAL FACTORS:

• Attitudes of management to employees and unions

• Attitudes of employees to management and unions

• Attitudes of unions to unions to management and employees

• Present and likely future strength of unions

• Effective and agreed procedures for discussing and resolving grievances or handling disputes within the company

• Inter union rivalries in case of more than one union

• Effectiveness and capability of managers and supervisors in resolving grievances and handling disputes.

• Company's strategy wrt expansion, diversification, contraction , stabilization, turnaround and stagnation etc

• Quality of work life ( QWL), growth and developmental opportunities

• Degree of Autonomy and Empowerment given to employees

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FACTORS AFFECTING EMPLOYEE RELATIONSFACTORS AFFECTING EMPLOYEE RELATIONS

EXTERNAL FACTORS:

• Militancy of unions- nationally or locally• Authority and effectiveness of the employer’s family• The extend to which bargaining is carried out at national,

local or plant level• The effectiveness of any national or local procedure

agreements that may exist• Employment situation nationally or locally• Legal framework within which IR exists

SOCIAL SECURITYSOCIAL SECURITY( IMPACT ON EMPLOYEE RELATIONS )( IMPACT ON EMPLOYEE RELATIONS )

• Social security is one of the key components of labor welfare

• Labor welfare refers to all such services, amenities and facilities to the employees that improve their working conditions as-well-as their standard of living

• Social security benefits provided by an organizations should protect not only their employees but also their family members including financial security and health care etc

• Social security envisages that the employee shall be protected against all types of social risks that may cause undue hardship to them in fulfilling their basic needs.

• Accidents, job losses, retirement, sickness, death while on duty-

these are realities of working life and leave a person and his dependents vulnerable

• Social security is an attempt by the employer and the state institute measures that mitigate such social risks

MAJOR LEGISLATIONSMAJOR LEGISLATIONS

• India being a welfare state has taken up itself the responsibility of extending various benefits of social security and social assistance to its citizens.

• Although the constitution of india is yet to recognize social security as a fundamental right, it does require state to promote the welfare of the people by providing social, economic and political justice

• Constitution requires companies to make effective provisions for making effective provisions for securing right to work, to educate and public assistance in case of unemployment, old age, sickness and disablement. Securing just and humane conditions of work. Raise level of nutrition and standard of living, improvement of public health etc

• A social security division has been set up under the ministrybof labor and employment.

• In the context of labor , social security aims at reducing risks against

loss of earnings or earning capacity due to old age,illness or work-related injuries.

Social security to the workers is provided through 5 major Acts:

1. The Employees State Insurance act, 19482. Employees’ provident Fund and Miscellaneous provisions

Act3. The Worker’s Compensation Act4. The Maternity Benefit Act5. The payment of Gratuity Act6. In addition there are large number of welfare funds also

for some specific segments Major thrust of social security relating to labor is on: a) Provisions relating to medical facilities,

compensation benefits and insurance coverage incase if accidents, incapacity, illness etc..

b) Provisions relating to provident fund and gratuity

BY , BY , SHYMALA SHYMALA VINOTHVINOTH

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