INDUSTRIAL RELATION & COLLECTIVE BARGAINING

INDUSTRIAL RELATION

INDUSTRIAL RELATION (IR)

IR may be defined as the complex of inter-relations among workers, managers and the government.
The term IR commonly denotes employeeemployer relations , in both organized and unorganized sectors of the economy.

Factors affecting IR

Institutional Factors Economic Factors Social Factors Technological Factors Psychological Factors Political Factors Global Factors

Pre-requisites for successful IR

Existence of strong Trade Union Sound Employers organization Co-operation between Union and Management Trained Supervisors Continuous Review Support from Top Management Motivated employees Healthy Environment

Significance of IR
IR contributes to Economic Growth and Development IR establishes Industrial Democracy IR ensures Optimum use of Scarce Resources IR improves Morale of the Work Force IR facilitates Change IR discourages Unfair Practices on the part of the both Management and Unions IR promotes Enactment of Sound Labor Legislation

Objectives of IR

To promote economic welfare To maintain flow of production To develop Trade union To promote workers participation in management decision-making To establish two-way communication To promote and maintain healthy relations To develop Industrial democracy To avoid strikes and lockouts

Approaches to IR

Psychological Sociological Approach Approach Human Relations Socio-Ethical Approach Approach Gandhian Approach

COLLECTIVE BARGAINING

COLLECTIVE BARGAINING (CB)

CB is essentially a process in which employees act as a group in seeking to shape conditions and relationships in their employment.
CB is a mode of fixing the terms of employment by means of bargaining between an organized body of employees an employer or an association of employees usually acting through organized agents.

Factors Affecting CB

Union Related

Management Related

Government Related

Political Dominance

Pre-requisites for successful CB

There must be a change in the attitude of employers and employees. CB is best conducted at plant level. The employers and employees should enter upon negotiations on points of difference or on demands with a view to reaching an agreement. Negotiations can be successful only when the parties rely on facts & figures. Unfair labor practices should be avoided by both. Once an agreement is reached, it must be honored and fairly implemented.

Features of CB

It is a group action. It is flexible. It is a two party process. It is a continuous process. It is dynamic and not static. It is industrial democracy at work. Not a competitive process but is a complementary process It is an art, an advanced form of human relations.

Types of CB
Distributive or Conjunction or Traditional Bargaining. Integrative or Co-operative Bargaining. Intra-organizational Bargaining. Single Plant Bargaining. Multiple Plant Bargaining. Multiple Employer Bargaining. Productivity Bargaining.

Importance of CB

Increases economic & moral strength Fair & better redressal of grievances. Fair rates of wages & norms of working condition. Maintaining steady flow of production. Contributes towards maintaining stability and promoting prosperity of industry. Finds out solution for problem. Changes are accepted.

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