What is Industrial

Relations

Important Terminology
Grievance -A conflict of interest between the employer and employee.
Dispute -A conflict of interest between the employer and members of a
trade union.
Negotiate-A discussion between conflicting parties aimed at reaching
an agreement.
Conciliation- Parties to a dispute bring their dispute to a neutral third
party who acts (only) as a go between.
Mediation-Negotiations to end a dispute are handled by a neutral,
third person, a Mediator, who can suggest solutions, but the mediator
may not instruct the conflicting parties.

Contin.
Arbitration- An arbitrator is a neutral third person hears both sides of
the story and then decides
how the dispute will be resolved. There is no appeal against a
decision made by an arbitrator.
Collective bargaining-Negotiations between workers (who are
grouped together in unions) and
employers about aspects such as working conditions, wages and
working hours.
Deadlock-When an employer and trade union cannot reach an
agreement.
Lockouts-Employers lock the premises so as not to allow striking
employees to enter

INTRODUCTION
The term industrial relations refers to the collective relations
between employers and employees as a group. It underscores the
importance of compromise and accommodation in place of conflict
and controversy in resolving disputes between labour and
management.

Industrial Relations: Features

Employer-employee interactions
Web of rules
Multidimensional
Dynamic and changing
Spirit of compromise and accommodation
Government's role
Wide coverage
Interactive and consultative in nature

Major factors influencing industrial

relations
Industrial relations are influenced by various factors viz., institutional
factors, economic factors and technological factors.
1. Institutional factors: These factors include government policy,
labour legislation, voluntary courts, collective agreements, employee
courts, employers federations, social institutions like
community,
caste, joint family, creed, system of beliefs, attitudes
of workers,
system of power, status, etc.
2. Economic
factors:
These
factors
include
economic
organisations, like capitalist, communist, mixed, etc., the structure of
labour force, demand for and supply of labour force, etc..
3. Technological factors: These factors include mechanisation,
automation, rationalisation, computerisation etc.
Industrial Relations And Industrial Disputes

Industrial relations: major participants

G o v e rn m e n t R u le s ,
A w a rd s , P o lic ie s
E m p lo y e r

E m p lo y e e s

In d u s tria l
R e la tio n s

E m p lo y e r s
A s s o c ia tio n s

T r a d e U n io n s
U s a g e s , c u s t o m e r s , t r a d i t io n s w i t h in
a c o u n try

Objectives of industrial relations

Enhance the economic position of the worker
Minimize conflicts and to the extent possible, avoid conflicts and
their negative consequences
Allow workers to have a say in important decisions affecting their
lives
Resolve conflicting issues through consultation and negotiation
Encourage and develop trade unions in order to improve the
workers' collective strength
Pave the way for industrial democracy.

Industrial Relations And Industrial Disputes

Sound Industrial Relations:

Importance and essential conditions
Sound industrial relations are essential for ensuring industrial peace and
improved productivity. Cordial labour management relations enable the
employer to secure cooperation and commitment from employees quite
easily. It is not, however, easy to promote and maintain sound industrial
relations. Certain conditions should exist for the maintenance of harmonious
industrial relations:
Existence of strong, well organized and democratic employees' unions
Existence of sound and organized employers' unions
Spirit of collective bargaining and willingness to resort to voluntary
negotiations
Maintenance of industrial peace

Establish machinery for prevention and settlement of disputes

Provision for bipartite and tripartite committees to evolve proper
personnel policies
Establish committees to evaluate collective bargaining agreements
Create proper legal mechanisms to settle disputes quickly and easily.

Industrial Relations And Industrial Disputes

Industrial Conflict: Forms And Causes

Industrial conflicts constitute organised protests against existing
industrial conditions. They are symptoms of industrial unrest. The
term industrial dispute is characterised by the following features

Features of the term industrial

dispute

There should be a difference or dispute

The dispute could be between employer-employer, employee-employee or

employer-employee
The dispute must pertain to some work-related issue
The dispute must be raised by a group or class of workers. For example the
dispute between one or two workers and the respective employer is not an industrial
dispute

Forms of Industrial Disputes

Lock outs: Closing down of an undertaking or the suspension of
work or the refusal of an employer to continue to employ any
number of persons employed by him is known as 'lock out'.
Gherao: Gherao means to surround. In this method, a group of
workers initiate collective action aimed at preventing members of
the management from leaving the office.
Picketing and Boycott: When picketing workers often carry or
display signs, banners and placards, prevent others from
entering
the place of work and persuade others to join the strike. Boycott
aims at disrupting the normal functioning of an enterprise.

Causes of Industrial Disputes

Employment-related
Administration-related
Recognition as a bargaining agent
Psychological and social issues
Institutional causes
Political causes

Machinery For The Settlement of

Industrial Disputes
When the relationship between the parties is not cordial, discontentment
develops and conflicts erupt abruptly. It is not always easy to put out the
fires with the existing dispute-settlement machinery, created by the
government. Hence both labour and management must appreciate the
importance of openness, trust and collaboration their day-to-day dealings.

Machinery for Prevention and

Settlement of Industrial Disputes
M a c h in e r y f o r p r e v e n t io n a n d s e t t l e m e n t o f d is p u t e s

C o ll e c t i v e B a r g a i n i n g

Labour
A d m in is t r a t io n
M a c h in e r y

T r a d e U n io n s
J o in t c o n s u lta tio n s
S ta n d in g O r d e r s
G r ie v a n c e P r o c e d u r e
C o d e o f D is c ip li n e

S ta te L e v e l
C e n tr a l L e v e l

I n d u s tr ia l D is p u te s A c t, 1 9 4 7

G o v e r n m e n t M a c h in e r y

S ta te A c ts

V o lu n ta r y M e th o d s

S ta tu to ry M e a s u re s
W o rk s C o m m itte e s
C o n c ilia t io n

(A )
(B )

C . O f f ic e r
C . B o a rd

A r b it r a tio n
A d j u d ic a t io n

(a )
(b )
(c )

L a b o u r C o u r ts
I n d u s tr i a l T r ib u n a ls
N a t i o n a l T r ib u n a l s

Machinery For The Settlement of

Industrial Disputes
Works committees: committees have to be set up all those industrial
units which employ 100 or more persons. It is basically a consultative body

Giving greater participation to workers

Ensuring close interaction between labour and management

Generating cooperative atmosphere for negotiation between

parties

Opening the doors to unions to have a clear view of what is going

on within the unit

Strengthening the spirit of voluntary settlement of disputes

Joint Management Councils: The JMC normally consists of equal

number of representatives of workers and employers looking after three
things: information sharing, consultative and administrative matters relating
to welfare, safety, training etc and the formulation of standing orders.(of
course, without encroaching on the jurisdiction of works committees)

Machinery For The Settlement of

Industrial Disputes
Standing orders: These are the rules and regulations which
govern the conditions of employment of workers. The Industrial
Employment (standing orders) Act provides for the framing of standing
orders in all industrial undertakings employing 100 or more workers.

Grievance procedure:

Code of discipline: It consists of a set of self-imposed obligations

voluntarily formulated by the central organisation of workers and
employers.

Industrial Disputes: Settlement

Machinery
Conciliation: The practice by which the services of a neutral third party
are used in a dispute as a means of helping the disputing parties to reduce
the extent of their differences and to arrive at an amicable
settlement or
agreed solution.

Conciliation officer: an authority appointed by the government to

mediate disputes between parties brought to his notice; enjoying the
powers of a civil court. He is supposed to give judgement within 14
days
of the commencement of the conciliation proceedings.
Board of conciliation: The Board is an adhoc, tripartite body having
the powers of a civil court created for a specific dispute(when the
conciliation officer fails to resolve disputes within a time frame, the board is
appointed)

Court of enquiry: In case the conciliation proceedings fail to resolve a

dispute, a court of enquiry is constituted by the government to
investigate the dispute and submit the report within six months.

Machinery For The Settlement of

Industrial Disputes
Voluntary arbitration: It is the process in which the disputing parties
show willingness to go to an arbitrator (a third party) and submit to his
decision voluntarily.
Adjudication: It is the process of settling disputes compulsorily
through the intervention of a third party appointed by the
Government.
The Industrial Disputes Act provides a three-tier
adjudication machinery
consisting of:
Labour court
Industrial tribunal