What are Industrial Relations?

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labor. The full concept of industrial relations is the organization and practice of multi-pronged relationships between labor and management, unions and labor, unions and management in an industry. Dale Yoder defines it as a "whole field of relationships that exists because of the necessary collaboration of men and women in the employment process of an industry."

Role of Industrial Relations:

Industrial relations are associated with labor, management, labor unions, and the state. The scene of industrial relations has grown tremendously, and cannot be represented merely by relations between management and labor. It has become a comprehensive and total concept embracing the sum total of relationship that exists at various levels of the organizational structure. Additionally, it connotes relationships between workers themselves within the labor class, and relations among the management within the managerial class. In an open sense, industrial relations denote all types of relations within a group and outside a group - both formal and informal relations.

Objectives of Industrial Relations:

1. Protect management and labor interests by securing mutual relations between the two groups. 2. Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased. 3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits. 4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is done to ensure the sharing of profit gains, and personal developmental of all all employees. 5. Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum. 6. To bring about government control over plants where losses are running high, or where products are produced in the public interest. 7. To bridge a gap between various public factions and reshape the complex social relationships emerging out of technological advances by controlling and disciplining members, and adjusting their conflicts of interests.

Additional Readings:

Conceptual Model for understanding Industrial Relations

Rahul's Noteblog Industrial Relations Notes on Industrial Relations Conceptual Model for understanding

Conceptual Model of Industrial Relations

Role of State Intervention:

State intervention in business is necessary in a developing country because of the following reasons: 1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and even ignore their demands. This is why governments have to step in and play a role in delineating certain parameters of industrial relations. 2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silent bystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or an intermediary, and establish peace. 3. The federal nature of the constitution has made it imperative for the state to intervene in matters of labor to ensure a smooth and continuous operation. The state and the central governments have established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952, the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, the Contract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and the Remuneration Act of 1978. 4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to look after the interests of the weaker sections of the society, for example, the physically disabled.

Causes of Industrial Dispute:

Disputes may result from various causes: psychological, potential, and economic. The most common cause of strikes has been economic reasons; other reasons have been influenced by nationalist, communist, and commercial ends. The Labor Bureau of Simla has observed causes such as: wages and allowances, bonus, personnel, vacation and work timings, violence (added in 1971), etc. An analysis has revealed the following facts:

During 1921-1931:
15.2% of demands were related to wages. 4.6% of demands were related to bonus. 4.4% of demands were related to vacation days and work-timings. 18.5% of demands were related to others.

During 1939-1947:
44.1% of demands were related to wages. 7.9% of demands were related to bonus. 15.6% of demands were related to personal matters. 5% of demands were related to vacation and work-timings.

During 1948-1957:
28.1% of demands were related to wages. 9.1% of demands were related to bonus. 30.9% of demands were related to personal matters. 7.2% of demands were related to vacation days and work-timings.

Industrial Disputes According to V.B. Singh:

Mr. V.B. Singh defines industrial disputes falling under these categories: 1. Income (wage items, price rates, allowances, bonus, minimum and basic wages, etc.) 2. Employment (holidays, leaves like sick leave, etc., work-timings, welfare activities, etc.), and 3. Technological changes (workload, standardization of raw materials, etc.).

What is Industrial Peace?

Industrial peace has, at a certain extent, worsened in the past few years. The social gap between management and labor has increased, resulting in increased disparities and frustration. Industrial peace has to be developed with mutually understanding the issues of labor, and it is imperative to have proper communication between management and labor union. Three ways to establish industrial have been suggested by the Royal Commission on Labor: 1. Appoint a labor officer who ensures labor welfare and serves as a representative to management. 2. Constitution of Works Communities for different industries, and 3. Development of stable and responsible trade unions.

What are 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. Industrial relations may also be defined as relations between employees and management.

Evolution of Industrial Relations:

The evolution of industrial relations in India began a long time ago. The caste system greatly influenced the ancient industries and their development. Due to successive foreign invasions in India, the living conditions of slave and artesian couldn't be differentiated. Furthermore, under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages were not guaranteed, the living conditions of workers were harsh, and there was no proper management. The coming of the British didn't improve the working conditions. After some time, however, most Indian industries were modeled after the British system of business, and this led to growth in various sectors.

Industrial Relations under British Rule:

During British rule, India was expected to be a colonial market for British goods up until a cotton mill was established in Mumbai in 1853 and a jute mill was established in Kolkatta in 1955. The working conditions of workers, however, were still very harsh with low pay, and this gave rise to various disputes involving the management and employees. On the other hand, Tata Iron and Steel industry was also established in Jamshedpur in 1911. While there was great demand of iron and steel before and during the First World War, the working conditions of workers hadn't improved. Hence, the Factories Act of 1881 was established, and it granted workers certain rights.

Industrial Relations in First World War:

The First World War was an opportunity in disguise for local factories in India. Prices of virtually all products went up and profits soared, however, wages of lower employees were still the same. There were various strikes and disputes between management and employees. During this time, the Workmen's Compensation Act (1923), the Trade Union Act (1926), and the Trade Disputes Act (1917) were established. While the wages of employees remained the same, they were given a certain share of profits made by their hiring industry. Strikes, however, were sometimes prohibited under the Emergency Rules. The years following World War II involved the most workers' upheaval, and saw the establishment of Industrial Employment Act (1946) and Industrial Disputes Act (1947).

Post-Independence Industrial Relations:

The post-independence era saw a developing relation between industry and labor. A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and industry. While industrial relations in India have evolved a long way, some features of the early system still exist today. Modern industrial relations are dynamic, and may integrate industrial policies of American and British businesses.