Unit-1
Industrial Relations
Concept/Scope/Objectives/Importance
/Industrial relations system in India.
Approaches to IR
Trade Unions Act,1926/Trade Union movement
in India/Objective/Role/Functions/Procedure
for registration of trade unions/Rights and
responsibilities/Problems/Employee relations
in IT sector.
Industry
Industry means any systematic activity carried
on by co-operation between an employer and
his workmen.
Industry is the work and processes involved in
collecting raw materials, and making them into
products in factories.
Industry Relations
Meaning
• It is used to denote the collective relationship
between Management, employees and the
government in any Industrial and Non-
Industrial Organization.
Definition
• “Industrial Relations is a relation between
employer and employees, employees and
employees and employer and employer.”
–The Industrial Dispute Act, 1947
Scope of IR
1.Labor relations (Relations between labour
union and management).
2.Employer – Employee relations(Relations
between management and employees).
3.The mechanism of handling conflicts between
employers and employees in case conflict
arise.
Three Main Parties in IR
1.Workers and their Organisation
2.Employers and their Organisation
3.Government
Objectives Of Industrial Relations
• To safeguard the interest of labor and
management
• To avoid industrial conflict
• To raise productivity to a higher level
• Develop and Retain Employee- Employer
Relationship
• To establish and maintain the growth of
Industrial Democracy
• To bring down strikes, lockouts.
Importance Of Industrial Relations
• Uninterrupted production
• Reduction in Industrial Disputes
• High morale
• Mental Revolution
• Reduced Wastage
• Maintenance of Industrial democracy
• Encourage collective Bargaining
• Helps government in making Legislations
Suggestions to improve Industrial Relations
• Both management and unions should develop
constructive attitudes towards each other
• All basic policies and procedures relating to
Industrial Relation should be clear to
everybody including the Union leaders
• The HR manager should remove any distrust
about the company’s integrity. Suspicious,
rumors and doubts should all be put to rest.
• The Personnel Manager should not lie with the
union to gain workers' loyalty
• Management should encourage right kind of
union leadership.
• After any settlement is reached the agreement
should be properly administered.
Theories and Perspectives of Industrial
Relations
Theories and Perspectives of Industrial Relations
1. Unitary Theory
• The unitary theory of industrial relations
emphasizes the co-dependency of employers
and employees. To a unitary, an organization
is an integrated, friendly and collaborative
whole.
• Unitary do not favor employee unions. They
believe that loyalty to such an organization
would detract from employee loyalty to a
company (disrupting the bond between
employer and employees).
• The unitary approach is based on the notion
that all the members of the organization Viz.
Managers, workers, and other staff have a
common set of objectives, purposes and
interests and, therefore, work in unison
towards the accomplishment of shared goals.
2. Pluralist Theory
• The pluralistic approach is just the opposite of
unitary approach which is based on the
assumption that an organization is an alliance
of powerful and divergent sub-groups
(management and trade unions), having
different competing interests are mediated by
the management.
• Different Opinion
• The management and the trade unions
(association of workers) are the powerful sub-
groups that may not agree with certain terms
and conditions prevailing in the organization
and to resolve those management tries to
mediate the interest of both the groups.
• The conflict between the management and the
employees is inevitable and is viewed as
instrumental in the innovation and growth.
3. Marxist Theory( Conflict may arise through
Society)
• The Marxist approach is based on the basic
assumption that the conflict is regarded as the
product of a capitalist society.
• This means that conflict arises not just
because of the rift between the employee and
the employer, but also because of the division
in the society between those who owns the
means of production (capitalists).
4. Human Relation Theory
• It encourages the small work group to exercise
considerable control over its environment and
in the process, helps to remove a major
irritation in labor management relations.
• Acceptance of workplace as a social system,
group dynamics, participation in management
etc.
• According to him, the goals of human relations
are:
– To get people to produce
– To cooperate through mutually of interest
– To gain satisfaction from their relationships.
– Human relations approach highlights certain
policies and techniques to improve
employee morale, efficiency and job
satisfaction.
5. Hyman Theory
• This system taken several forms broadly
categorisable into Pessimistic and Optimistic
approaches.
• Pessimistic: Limitations of trade union
consciousness and feels that unless working
class joins hands with intellectuals.
• Optimistic: The role of working classes as not
only maintenance and enhancement of wage
level.
Trade Union
Trade Union
• “Trade Union” means any combination,
whether temporary or permanent, formed
primarily for the purpose of regulating the
relations between workmen and employers or
between workmen and workmen or between
employers and employers or for imposing
restrictive conditions on the conduct of any
trade or business.
• Trade Union are formed to protect and promote
the interest of their members. Their primary
function is to protect the interests of workers
against discrimination and unfair labor
practices.
Definition
A trade union is such an organization which is
created voluntarily on the basis of collective
strength to secure the interests of the workers.
Scope of the Act
• This Act provides for the registration of trade
unions and in certain respects in define the law
relating to Trade Unions.
• The act applies to registered Trade Unions.
Objectives of Trade Unions
• Wages salaries
• Working conditions
• Discipline
• Personnel policies
• Welfare
• Employee –employer relation
• Negotiating machinery
Functions of Trade Unions
1.Functions relating to members
2.Functions relating to organization
3.Functions relating to the Union
4.Functions relating to the society
1. Functions relating to members
• To safeguard workers against all sorts of
exploitation by the employer, by union leaders
and by political parties.
• To protect workers from the atrocities and
unfair labor practices of the management.
• To ensure healthy, safe and conductive working
conditions.
• To exert pressure for enhancement of rewards
associated with the work only after making a
realistic assessment of its practical
implications.
• To remove the dissatisfaction and redress the
day to day grievances and complaints of
workers.
• To encourage workers participation in the
management of industrial organisation and
trade union.
• To make the workers conscious of their rights
and duties.
• To guarantee a fair and square deal and social
justice to workers.
2. Functions relating to organization
• To help in the maintenance of discipline
• To increase production quantitatively as well
as qualitatively by laying down the norms of
production and ensuring their adequate
observance.
• To create opportunity for workers participation
in management and to strengthen labor
management co operation.
• To help in the removal of dissatisfaction and
redressal of day to day grievances and
complaints.
• To create favorable opinion of the management
towards trade unions and improve their status
in industrial organisation.
• To facilitate communication with the
management.
• To impress upon the management the need to
adopt reformative and not punitive approach
towards workers faults.
3. Functions relating to Trade Union
• To formulate policies and plan consistent with
those of the industrial organisation and society
at large.
• To train members to assume leadership
position.
• To improve the network of communication
between trade union and its members.
• To resolve the problems of factionalism and
promote unity and solidarity within the union.
• To keep away from advocating the adoption of
unfair labor practices.
• To prepare and maintain the necessary records.
• To continuously review the relevance of union
objectives .
4. Functions relating to the society
• To render all sorts of constructive co operation
in the formulation and implementation of plans
and policies relating to national development.
• To actively participate in the development of
programmes of national development.
• To enable unorganized sector to organize itself.
• To Create public, opinion favorable to
government policies and plans, and to mobile
people participation for their effective
implementation.
• To create public, opinion favorable to trade
unions and thereby to raise their status.
• To exert pressure, after realistically
ascertaining its practical implications, on the
government to enact legislations
Trade Unions in India
1.INTUC( Indian National Trade Union Congress)
2.AITUC( All India Trade Union Congress)
3.CITU( Centre of Indian Trade Unions)
4.NLO( National Labour Organization)
5.TUCC( Trade Union Congress Committee)
Formation Registration/Registration of Trade
Unions
1. Mode of Registration
• Any seven or more members of trade union
may apply for registration. All the members
applying for registration must subscribe their
names to the rules of the trade union.
2. Application for Registration
3. The Names, Occupation and Addresses of the
members making the application.
4. The name of the trade union and the address
of its head office.
5. The titles, names, ages, addresses and
occupations of the office-bearers of the trade
union.
3. Content of the copy of rules
A copy of rules of the Trade Unit, it contains:
• The name of the trade union
• Object for which the trade union has been
established
• The purpose for which the general funds of a
trade union shall be applicable.
• Payment of a subscription by members of the
trade union which shall not be less than
One rupee per annum for rural workers
Three rupee per annum other organized
sectors
4. Power of the Registrar to call for further
particulars
• When the application for registration is filed
before Registrar, he has got the powers to call
further particulars regarding the trade union.
5. Registration and Certificate
• If all the requirement of the Act have been
complied with, the Registrar of Trade Union
shall register the trade union and issue
Certificate of Registration.
Rights of a Trade Union
1.Recruit new members.
2.Ask about changes in wages/ conditions.
3.Take Industrial actions to protect members eg:
Strike.
4.Participate in industrial action.
5.Have union representation in a dispute with
management.
6.Benefits conferred to the workers in case of
unemployment, disability, or death.
7. Right to inspect Books of Trade Union.
8. Enforceability of agreements.
9. Criminal conspiracy( Secret agreement) in
trade disputes.
10.Right to establish a general funds(
Duties and Liabilities of a Registered Union
1.Change of registered office
2.Objects on which general fund may be spent
3.Constitution of a fund for political purposes
4.Proportion of officers bearers be connected
with the industry.
5.Returns to be submitted
6.Account books and list of members
Problems/Challenges in Trade Union
1.Leadership
2.Financial Troubles
3.Lack of Balanced Growth
4.Low Membership
5.Politicization
6.Illiteracy
7.Low Membership
8.Indifferent Attitude of the Members
9.Lack of Recognition
