Industrial Relations Definitions and Main Aspects

-By Prof. Priyanka Desai Grims

Learning Objectives
Understand the different views of the employment relationship and the interaction in an IR System Explain the integral nature of the concept of conflict, cooperation and regulations

Identify the importance and difficulties of comparing industrial relations in different countries.
Appreciate the character of labour process and labour market within capitalism and the interrelationship between macro and micro employment issues

 Industrial society is a complex and dynamic society (consist of group, societies and institution) they are interrelated, however have different attitudes and perceptions. They are also being influenced by external environment. We cannot ignore the working aspect of human being, as working hour dominate most of our time.

DEFINING IR
Relationship between management and employees or among employees and their organization that characterize and grow out of employment.

Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concerned with determining and regulating employment relationship

OBJECTIVES OF IR
To enhance economic status of worker To avoid industrial conflicts and their consequences To extend and maintain industrial democracy To provide an opportunity to the worker to have a say in the management decision making To regulate production by minimizing conflicts To provide forum to the workers to solve their problems through mutual negotiations and consultations with management To encourage and develop trade union in order to develop workers collective strength

Evolution of IR
The Origin of Industrial relations lies in Employer and Employee relationships. Workers gains ownership divorced of instruments they become liable of wage earners depending on livelihood and the one who owns becomes employers and own the product In Early Modern Industrial society the relation betwn employee-employer was kind of informal, personal and intimate. This intimacy got reduced and had become more formal due to giant-sized companies, biz corporations which employs thousands of employees Formal institutions have grown up to regulate this relations. Like employers association, Industrial Psychology growth of sciences of personnel management, industrial sociology which tends to influence the spirit and the course of relationship betwn employers and employees.

 Factors have changed this relationship making it more of public importance rather than private.
Emergence of T.U. and their federations have empowered an command of power which is being used as a welfare and also as a disruption of society. The result is strikes, lockout, layoffs, promotion-transfer, industrial discipline hiring- firing have became essentially acute and demand understanding and constructive solutions.

NATURE 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.

Dominant Aspects of Industrial Relation

The two aspects seen in Modern Industrial relations of industrial relations are: a) Co-operation b) Conflict
a) Co-operation: Modern Industrial is based upon co-operation betwn labour and capital, labour stands for the workers who man the factories, mines and other industrial establishments and services. whereas Capital stands for owners for owners of business enterprises who supply capital and the final products.
The Industrial organisation and economic structure is being able to generate goods and services is is an index of extent of co-operation between the two. There is fair degree of relationship betwn them of give and take and serve of mutual interests which is at base of co-operation. This degree of co-operation is minimal and there is northing more than this and is de void of any voluntary choice the other as partner.

b) Conflict:
Conflict is inherent. It becomes apparent when conflict between management and labour becomes frequent due to strikes, lockouts etc. The maintenance of an elaborate machinery by the state for the prevention and settlement of industrial dispute flowing from industrial conflict is an indication of its extent and depth. It can be compared with that of the health of one

Nature of Industrial Conflict

The coming together of workers motivated by their urge of obtaining the highest possible wages and the owners of capital motivated by profit maximization is the basic cause of industrial conflict in the capitalist economic system. The products that is the joint effort of labor and capital i.e. The outcome if it goes more in form of higher wages to labor and other amenities of life and less is available to owners of capital resources. Thus they become antagonistic to each other. This conflict is more like a buyer and seller where seller sells his stocks at higher price and buyer seeks to buy at lowest rate. Therefore workers sells this commodity and buyers or employers buy this commodity. Thus, conflict of interest is not only found in spheres of wages and profits but it can also arise due to profit maximization goal of management which changes the outcome produced. Hence it is not only sharing of fruits of the industry that generates conflict but fact is how production is to be carried on and how costs are to be shared also becomes a major source of conflict.

Industrial Dispute
Industrial dispute means any dispute or difference between employers and employers, or between employers and workmen or between workmen and workmen, which is connected with employment or nonemployment or the terms of employment .The dispute has to be between plurality of workman and employer
Individual workman cannot raise an industrial dispute

Individual dispute deemed as industrial dispute

1965 amendment to I.D ACT and insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer.shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.

Specific causes of Industrial Disputes

A) Economic:
1. Division of the fruits of the industry a) Wage structure and demands for higher wages b) Methods of job-evaluation c) Deductions from wages d) Incentives e) Fringe Benefits 2. Methods of Production and physical working conditions a) b) c) d) Working conditions Technology and machinery Layouts Changes in Products

3) Terms of Employment Hours of work, shift working, promotion, demotion, layoff, retrenchment, dismissal, job security, retrenchment etc.

B) Institutional 1) Recognition of unions 2) Membership of Union 3) Subject of Collective Bargaining 4) Bargaining Unit 5) Union security 6) Unfair practices c) Psychological 1) Clash of Personalities 2) Behavioral maladjustments 3) Demands for recognition 4) Authoritarian administration 5) Lack of scope for self-expression and participation 6) Undue emphasis on discipline D) Denial of Legal and contractual Rights 1) Non implementation of labour laws and regulations, standing orders, adjudication awards, and so on. 2) Violation of collective agreements , wage boards recommendations, customer rights and privileges and so on.

Results of Industrial Conflict

Conflicts have adverse effects on industrial production, efficiency, costs, quality, human satisfaction, discipline, technological, and economic growth and finally on the welfare of the society. Absenteeism and labour turnover increase, plant discipline breaks down, quality and quantity of production suffers and costs mount up to the detriment of all concerned workers- workers, employers and consumers. Then, the realisation comes that it is wrong that urges for preventive and curative measures.