Unit I

INDUSTRIAL RELATIONS

MEANING
The concept of industrial relations means the relationship
between employees and management in the day-to-day working of an
industry. ut the concept has a wide meaning. !hen taken in the wider
sense" industrial relations is a #set of functional independence
in$ol$ing historical" economic" social" psychological" demographic"
technological" occupational" political and legal $ariables.%
According to Dale Yoder, Industrial Relations are a whole field of
relationshi that e!ists "ecause of the necessar# colla"oration of
$en and wo$en in the e$lo#$ent rocess of an industr#%&
According to the Industrial La"our Organisation 'ILO(,
Industrial Relations deal
)ith either the relationshi "etween the state and e$lo#ers* and
wor+ers* organi,ations or the relation "etween the occuational
organi,ations the$sel-es%&
The concept of industrial relations has been e&tended to denote the
relations of the state with employers" workers" and their organisations.
The sub'ect therefore includes industrial relations and 'oint
consultations between employers and work people at their work place"
collecti$e relations between employers and their organi(ations and
trade union and part played by the )tate in regulating these relations.
.EATURES
*. Industrial relations are mainly the relations between employees
and the employer.
+. Industrial relations are the outcome of the practice of human
resource management and employment relations.
,. These relations emphasis on accommodating other party-s
interest" $alues and needs. .arties de$elop skills of ad'usting to
and cooperating with each other.
/. Industrial relations are go$erned by the system of rules and
regulations concerning work place and working community.
0. The main purpose is to maintain harmonious relations between
employees and employer by sol$ing their problems though
grie$ance procedure and collecti$e bargaining.
1. The go$ernment shapes industrial relations though industrial
relations policies" rules" agreements" mediation" awards" acts etc.
2. Trade 3nion is another important institution in the industrial
relations.
Trade union influence and shape the industrial relations through
collecti$e
argaining.
4. Industrial relations de$elop the skills and methods of ad'usting to
and cooperating with each other.
5. The Go$ernment-in$ol$es to shape the industrial relations
through laws" rules" agreements" awards etc.
*6. The important factors of industrial relations are7 employees
and their organi(ations" employer and their associations and
Go$ernment.
.A/TORS O. INDUSTRIAL RELATIONS

Industrial relations are influenced by $arious factors" $i(."
institutional factors" economic factors and technological factors.

1. Institutional Factors: These factors include go$ernment policy"
labour legislations" $oluntary courts" collecti$e agreement"
employee courts" employers- federations" social institutions like
community" caste" 'oint family" creed" system of beliefs" attitudes
of works" system of power status etc.
2. Economic Factors: These factors include economic organi(ation"
like capitalist" communist mi&ed etc." the structure of labour
force" demand for supply of labour force etc.
3. Technological Factors: These factors include mechani(ation"
automation" rationali(ation" and computeri(ation.
4. Political Factors: These factors include political system in the
country" political parties and their ideologies" their growth" mode
of achie$ement of their policies" in$ol$ement in trade unions etc.
5. Social and Cultural Factors: These factors include population"
religion" customs and tradition of people" race ethnic groups"
cultures of $arious groups of people etc.
6. o!ernmental Factors: These factors include Go$ernmental
policies like industrial policy" economic policy" and labour policy"
e&port policy etc.
T0REE A/TORS O. INDUSTRIAL RELATIONS
Three ma'or participants or actors of industrial relations" $i(."
workers and their organi(ations" management and go$ernment are
identified.
*. Workers and their Organisations: The total worker plays
an important role in industrial relations. The total worker
includes working age" educational background" family
background" psychological factors" social background"
culture" skills" attitude towards other workers etc. workers-
organi(ations prominently known as trade unions play their
role more prominently in trade unions. The main purpose of
trade union is to protect the workers- economic interest
through collecti$e bargaining and by bringing pressure on
management through economic and political tactics. Trade
union factors include leadership" finances" acti$ities etc.
+. Employers and their organization: Employer is a crucial
factor in industrial relations. 8e employees the worker" pays
the wages and $arious allowances" regulates the working
relations through $arious rules" regulations and by enforcing
labour laws. 8e e&pects the worker to follow the rules"
regulations and laws. 8e further e&pects them to contribute
their resources to the ma&imum. The difference between the
demands of worker and employer results in industrial
conflicts. Normally employers ha$e higher bargaining
power than workers. ut their bargaining power is
undermined when compared that to trade unions. Employers
from their organi(ations to e9uate :or e&cel; their
bargaining power with that of trade unions. These
organisations protect the interest of the employer by
pressuring the trade unions and go$ernment.
,. Government: Go$ernment plays a balancing role as a
custodian of the nation. Go$ernments e&erts its influence on
industrial relations through its labour policy" industrial
relations policy" implementing labour laws" the process of
conciliation and ad'udication by playing the role of both
employees- organisation and employers- organisation.
O12E/TI3ES O. INDUSTRIAL RELATIONS

The primary ob'ecti$e of industrial relations is to maintain congenial
relations between employees and employer. The other ob'ecti$es are7
*. To promote and de$elop congenial labour management
relations<
+. To enhance the economic status of the worker by impro$ing
wages" benefits and by helping in e$ol$ing sound budget<
,. To regulate the production by minimi(ing industrial conflicts
through state control<
/. To pro$ide an opportunity to the workers to ha$e a say in the
management and decision- making<
0. To impro$es workers- strength with a $iew to sol$e their
problems through mutual negotiations and consultation with
the management<
1. To encourage and de$elop trade unions in order to impro$e the
workers- strength<
2. To a$oid industrial conflict and their conse9uences<
4. To e&tend and maintain industrial democracy.

.UN/TIONS O. INDUSTRIAL RELATIONS
=unctions of industrial relations include7
*. >ommunication is to be established between workers and the
management in order to bridge the traditional gulf between the
two.
+. Establish a rapport between managers and the managed.
,. Ensure creati$e contribution of trade unions to a$oid industrial
conflicts" to safeguard the interest of the workers on the one hand
and the management on the other hand" to a$oid unhealthy"
unethical atmosphere in an industry.
/. lay down such considerations which may promote understanding"
creati$ity and cooperati$eness to raise industrial producti$ity" to
ensure better workers- participation.
0. Good labour-management relations depend on employer and
trade union-s capacity to deal with their mutual problems freely"
independently and responsibly.
1. The trade unions and the employers and their organisation should
be interested in resol$ing their problems through collecti$e
bargaining and if necessary with the assistance of proper
go$ernment agency.
2. !orkers and employers- organi(ations should be desirous of
associating with go$ernment agencies taking into considerations
with general" social" public and economic measures affecting
employers and workers relations.
/ONDITIONS .OR /ON4ENIAL INDUSTRIAL
RELATIONS
The establishment of good industrial relations depends on the
constructi$e attitude on the part of both the union and the management.
The constructi$e attitude in its turn depends on all the basic policies
and procedures laid down in any organi(ation for the promotion of
healthy industrial relations. It depends on the ability of the employers
and trade union to deal with their mutual problems freely"
independently with responsibility. They should ha$e their faith in
collecti$e bargaining rather than in collecti$e action.
It is $ery difficult to promote and to maintain sound industrial
relations. >ertain conditions should e&ist for the maintenance of
harmonious industrial relations. They are7
*. Existence of Strong, well-Organised and emocratic
Employees !nions: Industrial relations will be sound only when
the bargaining power of the employees- unions is e9ual to that of
management. A strong trade union can protect the employees-
interest relating to wages" benefits" 'ob security etc.
+. Existence of So"nd and Organised Employers !nions: These
associations are helpful for the promotion and the maintenance of
uniform personnel policies among $arious organi(ations and to
protect the interest of weak employers.
,. Spirit of #ollective $argaining and willingness to %esort to
&ol"ntary Organisation: The relationship between employee
and the employer will be congenial only when the differences
between them are settled through mutual negotiation and
consultation rather than through the inter$ention of the third
party. >ollecti$e bargaining is a process through which employee
issues are settled through mutual discussions and negotiations
through gi$e and take approach. If the issues are not settled
through collecti$e bargaining they should be referred to $oluntary
arbitration but not to ad'udication in order to maintain congenial
relations.
/. 'aintenance of (nd"strial peace: .ermanent industrial peace in
an organi(ation is most essential which can be ensured through
the following measures7
Machinery for pre$ention and settlement of industrial
disputes. It included legislati$e and non-legislati$e
measures. .re$enti$e measures include works committees"
standing orders" welfare officers" shop councils" 'oint
councils and 'oint management councils. )ettlement
methods include $oluntary arbitration" conciliation and
ad'udication.
Go$ernment should be pro$ided with the authority of
settling the industrial disputes when they are settled
between the two parties and also by $oluntary arbitration.
.ro$ision for the bipartite and tripartite committees in
order to e$ol$e personnel policies" code of conduct" code
of discipline etc.
.ro$ision for the $arious committees to implement and
e$aluate the collecti$e bargaining agreements" court
orders and 'udgements" awards of the $oluntary arbitration
etc.
Scoe of Industrial Relations
)cope of Industrial ?elations
*; @e$elopment of 8ealthy Aabour-Management ?elations 7
The promotion of healthy labour management relations pre-
supposes7
The e&istence of strong" well-organi(ed" democratic and
responsible trade unions and associations of employers.
This can lead to7 B Cob security of employees Increased workersD
participation in management B Negotiations" consultations and
discussions Good labour-management relations.
+; Maintenance of Industrial .eace 7 Industrial peace pre-supposes
the absence of industrial strife. Industrial peace is essential for
increased producti$ity and harmonious labour-management
relations.
The industrial peace can be largely nurtured through the
following means7 B Machinery should be set up for the
pre$ention and settlement of industrial disputes
The industrial peace can also be attained by the creation and
maintenance of implementation cells and e$aluation committees
which ha$e the power to look into implementation of agreements"
settlements and awards and also $iolations of statutory pro$isions
laid down under $arious labour laws.
,; @e$elopment of Industrial @emocracy7 The idea of industrial
democracy states that the labour should ha$e the right to be
associated with the management of an industry. To achie$e this
ob'ecti$e" the following techni9ues are usually employed7
Establishment of the )hop >ouncils and Coint Management
>ouncils at the floor and plant le$el. These councils aim at7
Impro$ing the working and li$ing conditions of employee
Impro$ing producti$ity" encourage suggestions from employees
Assisting the administration of laws and agreements )er$e as a
channel of communication between the management and
employees >reating among the employees a sense of participation
in the decision-making process and )ense of belonging to the
industry.
A55ROA/0ES TO INDUSTRIAL RELATIONS
Industrial relations issues are comple& and multifarious. They are the
results of social" cultural" economic" political" and go$ernmental
factors. An economist interprets industrial conflict in terms of
impersonal market forces" a psychologist interprets in terms of
impersonal market forces" a psychologist interprets in terms of
indi$idual goals" and moti$es etc. similarly" a sociologist interprets
from his own $iewpoint. ut the study of industrial relations should be
from the multidisciplinary approach.
*. )sychological *pproach to (nd"strial %elations: According to
psychologists" issues of industrial relations ha$e their origin in
the differences in the perceptions of management" unions and
rank and file workers. These ercetions $a# "e the
ercetions of ersons, of situations or of issues in-ol-ed in
the conflict% The perpetual differences arise due to differences in
personalities" attitudes" etc. )imilarly factors like moti$ation"
leadership" group goals $ersus indi$idual goals etc." are
responsible for industrial conflicts.
The perceptions of unions and of the management of the same issues
may be widely different and" hence" clashes and may arise
between the two parties. Ether factors also influence perception
and may bring about clashes. The reasons of strained industrial
relations between the employers and the employees can be
understood by studying differences in the perception of
issues"situations and persons between the management groups
and labour groups.The organi(ational beha$ior of inter-groups of
management and workers is of crucial importance in the pattern
of industrial relations. The group-dynamics between the two
conflicting groups in industrial relations tend to shape the
beha$ioral pattern.
+. Sociological *pproach to (nd"strial %elations: Industry is a
social world in miniature. Erganisations are communities of
indi$idual and groups with differing personalities" educational
and family backgrounds" emotions" sentiments etc. These
differences in indi$iduals create problems of conflict and
competition among the members of indi$idual society.
Industry is a social world in miniature. The management goals"
workers attitudes"perception of change in industry" are all" in
turn" decided by broad social factors like theculture of the
institutions" customs" structural changes" status-symbols"
rationality"acceptance or resistance to change" tolerance etc.
Industry is" thus inseparable fromthe society in which it
functions. Through the main function of an industry is
economic"its social conse9uences are also important such as
urbani(ation" social mobility"housing and transport problem in
industrial areas" disintegration of family structure"stress and
strain" etc. As industries de$elop" a new industrial-cum-social
patternemerges" which pro$ides general new relationships"
institutions and beha$ioural pattern and new techni9ues of
handling human resources. These do influence the de$elopment
of industrial relations.
,. +"man %elations *pproach to (nd"strial %elations: 8uman
resources are made up of li$ing beings but not machines. They
need freedom of speech" of thought" of e&pression" of mo$ement
and of control o$er the timings. This approach implies that the
relationship between employee and employer as between two
human beings. The term human relations include the relationship
during the out of employment situations.
8uman resources are made up of li$ing human beings. They want
freedom of speech "of thought of e&pression" of mo$ement" etc.
!hen employers treat them as in an imate ob'ects" encroach on
their e&pectations" throat-cuts" conflicts and tensions arise. In fact
ma'or problems in industrial relations arise out of a tension which
is created because of the employer s pressures and workers
reactions" protests and resistance to these pressures through
protecti$e mechanisms in the form of workers organi(ation"
associations and trade unions. Through tension is more direct in
work place< gradually it e&tends to the whole industry and
sometimes affects the entire economy of the country. Therefore"
the management must reali(e that efforts are made to set right the
situation. )er$ices of specialists ineha$ioral )ciences :namely"
psychologists" industrial engineers" human relations e&pert and
personnel managers; are used to deal with such related problems.
Assistance is also taken from economists" anthropologists"
psychiatrists" pedagogists"etc. In resol$ing conflicts"
understanding of human beha$ior F both indi$idual and groups F
is a pre-re9uisite for the employers" the union leaders and the
go$ernment Fmore so for the management. >onflicts cannot be
resol$ed unless the management must learn and know what the
basic what the basic needs of men are and how they can be
moti$ated to work effecti$ely.
/. Gandhian *pproach to (nd"strial %elations: Mahatma
Gandhi-s $iews on industrial relations are based on his
fundamental principles of truth" non $iolence and non F
possession. 3nder the principle of non-$iolence and truth" Gandhi
meant a peaceful co-e&istence of capital and labour. Trusteeshi"
implies cooperation between capital and labour. Gandhi
ad$ocated the following rules to resol$e industrial conflicts7
!orkers should seek redressal of reasonable demands
through collecti$e action.
Trade unions should decide to go on strike talking ballot
authority from all workers and remain peaceful and use
non- $iolent methods.
!orkers should a$oid strikes to the possible e&tent.
)trikes should be resorted to only as a last report.
!orkers should a$oid formation of unions in
philanthropical organisation.
!orkers should take recourse to $oluntary arbitration to
the possible e&tent where direct settlement failed.
It has now been increasingly recogni(ed that much can be gained by
the managers and the worker" if they understand and apply the
techni9ues of human relations approaches to industrial relations.
The workers are likely to attain greater 'ob satisfaction" de$elop
greater in$ol$ement in their work and achie$e a measure of
identification of their ob'ecti$es with the ob'ecti$es of the
organi(ation< the manager" on their part" would de$elop greater
insight and effecti$eness in their work.
.actors /ontri"uting for 0ar$onious Industrial Relations
*. There is a full acceptance by management of the
collecti$e bargaining process and of unionism as an
institution. The company considers a strong union as an
asset to the management.
+. The union fully accepts pri$ate ownership and operations
of the industry< it recogni(es that the welfare of its
members depends upon the successful operation of the
business.
,. The union is strong" responsible and democratic.
/. The company stays out of the internal affairs of the
union< it does not seek to alienate the worker-s allegiance
to heir union.
0. Mutual trust and confidence e&ists between the parties.
There ha$e been no serious ideological incompatibilities.
1. Neither party to bargaining adopts legalistic approach to
the solution of problems of relationship.
2. Negotiations are problem-centered. More time is spent
on the day-to-day problems than on defining abstract
principles.
4. There are widespread union-management consultations
and highly de$eloped information sharing.
5. Grie$ances are settled promptly in the local plant"
where$er possible. There is fle&ibility and informality
within the procedure.
*6. The en$ironmental factors do not by themsel$es cause
peace but they create conditions to de$elop it. The
attitudes and the policies of the parties" the personality of
their leaders and their techni9ues" bring about good
relations.
Industrial ?elations in India
I? has undergone a wide change in Indian scenario< during the end of
ritish period in India an awakening in working class was seen.
The world wars forced the employers to become friendlier with
the workers< to see un interrupted production is ensured during
war time. Eut of their self interest they ha$e to become
bene$olent" At the same time leaders also came up" Mr. ?oy Tilak
Mahatma Gandhiand others were instrumental to organi(e
workers union" and also force go$ernment to frame labor laws" to
impro$e the lot of workers. In *5+5 Industrial dispute Act was
enacted later in *5/2 it became industrial dispute" act where in
machineries to sol$e industrial dispute were indicated.
:*; The @irecti$e principles of state policy" as enshrined in o u r c o n s
t i t u t i o n stipulate that the state should endea$or to impro$e
the workers conditions" working conditions" and also producti$ity
of industries which will impro$e wealth of nations.
:+; )e$eral acts are enacted by parliament both before and after i n d e
p e n d e n c e which were focusing on workers interests" welfare
health etc. TheGTric Act =actory" Act. Industrial @ispute Act<
Trade union Act gi$es ma'or direction to achie$e the
constitutional directi$es.
:,; esides this" wages Act *5/4" onus Act *510" Gra$idity Act* 5 2
+" E 9 u a l remuneration Act *520" are some of the acts in the
abo$e direction.
:/; In *52+ National commission on labor" recommended setting up a
permanent industrial ?elations commission this was not well
recei$ed by go$ernment.
:0; National conference in *54+ made se$eral recommendations;
Emphasis on formation of permanent industrial ? e l a t i o n s
commission: ) t r i n g e n t a c t i o n o n c o n t r a $ e n t i o n o
f am u t u a l l y a g r e e d c o d e o f conducted; A check off
system was prescribed where in by ballot election" how many are
real members of a union how many" dual" bogus etc could come
to light. This did not find well with unions but some unions ha$e
arranged for deduction of their subscription through employers
pay counter to some e&tent the check of system is working.
>auses of industrial unrest in India can be classified mainly under four
heads they are
*; =inancial Aspects
a; @emand for increase of wages" salaries and other perks. !orkers
demand goes on increasing with the increase in cost of li$ing
b; @emand for more perks" and fringe benefits. Issue of bonus also has
become a contentious one" e$en though onus Act has come
fi&ing minimum r a t e payable as 4*H,I of their total salary in
spite of profit or loss incurred by the industry.
c; Incenti$es festi$als allowances" concessions etc re9uires a hike
e$ery now and then" workers compare these benefits with other
industries and demand them Fwithout comparing the capacity of
the industry where they are working.
+; Non financial aspects
a; ! working hours" rest hours" tra$eling hours are source of d i s p u t
e s. I f h o u s e s a r e pro$ided some section of workers want to
include tra$el time also as working hours.
b; Introduction of machines" computers moderni(ation" and automation
F In effect any act of management which may result in economy
in man power is resisted c; More facilities like free meals free
group tra$el etc are sought e$ery now and then
,; Administrators >auses
a; Non implementation of agreements awards and other local
settlements F with full sprit
b; )tifling with recognition of labor unions though registered"
c; Attempt to weaken e&isting trade unions and trying to foist fake
unions
d; 3n healthy working conditions
e; Aack of skill on the part of leaders super$isors
f; @isproportionate works loads" fa$oritism
g; Jictimi(ation" nepotism attitude of management in recruitment"
promotion" transfer etc
h; Instead of re deployment or skill impro$ement easier way of
retrenchment forced $oluntary retirement schemes :>.?.); are
adopted.
/; Go$ernment and political pressures
a; Industrial unions affiliating with political unions which are in power"
resulting infre9uent shift of loyalty and resultant unrest
b; .olitician influencing workers group closes e&amples is the Nalco F
takeo$er by )terile" the state go$ernment supported :propped up;
strike at >hhattisgarh state against Nalco" for months together
resulting in total stoppage of the industry for some time.
c; )ome time unions" workers strike against mergers" a c 9 u i s i t i o
n " t a k e n o $ e r " disin$estments policies" of go$ernment and
pri$ate sectors.

Industrial Disutes
INTRODU/TION

Modern industriali(ation has not been an unmi&ed blessing. It has
created a yawning gulf between management and labour because of the
absence of workers- ownership of the means of production. .ower has
been concentrated in the hands of few entrepreneurs" while a ma'ority
has been relegated to the insignificant position of mere wage earners.
The workers ha$e now come to reali(e that most of their demands can
be satisfied if they resort to concerted and collecti$e action< while the
employers are aware of the fact that they can resist these demands. This
denial or refusal to meet their genuine demands has often lead to
dissatisfaction on the part of the workers" to their distress" and e$en to
$iolent acti$ities on their part" which has hindered production and
harmed both the workers and the employers.
According to .atterson" #industrial strife constitute militant and
organised protests against e&isting industrial conditions. They are
symptoms of industrial unrest in the same way that boils are a
symptom of a disordered body.%
The Industrial @isputes Act" *5/2" defines an industrial dispute
as% any dispute or difference between employers and employees" which
is connected with the employment" or non-employment" or the terms of
employment or with the conditions of work of any person.%
.OR6S O. DIS5UTES
Industrial disutes $a# ta+e the for$ of stri+es, go7slow tactics,
to+en stri+es, s#$athetic stri+es, en7down stri+es, hunger
stri+es, ,andhs, gheraos and loc+outs%
A strike is a stoppage of work initiated or supported by a trade
union" when a to resol$e a grie$ance or constrain him to accept such
terms and conditions of ser$ice as the employees want to en'oy.
If" howe$er" an employer closes down his factory or place where
his workers are employed" or if he refuses to continue in his employ a
person or persons because he wants to force them to agree to his terms
and conditions of ser$ice during the pendency of a dispute" resulting
situation is a lockout.
.rocedures for a$oiding strikes" lockouts and other forms of
coerci$e action in connection with industrial disputes between trade
unions and employers are generally laid down in the form of a clause
or clauses in an agreement between the two. At the same time" it is also
laid down that there shall be no stoppage of work and no coerci$e act
on the part of either party to a dispute till the procedure outlined in the
agreement ha$e been gone through" and the two parties ha$e been
unable to come to a compromise or reach a settlement.

TY5ES O. DIS5UTES
@isputes" according to the code of industrial relations introduced in
the 3nited Kingdom in *52+" are of two kinds7
#a$ %is"utes o& 'ight" which relate to the application or
interpretation of an e&isting agreement or contract of
employment< and
#($ %is"utes o& interest) which relate to claims by employees or
proposals by a management about the terms and conditions of
employment.
According to the industrial disputes act" *5/2" and the mainly
'udicial decisions which ha$e been handed down by courts and
tribunals" industrial disputes may be raised on any one of the following
issues7
*. =airness of the standing orders<
+. ?etrenchment of workers following by the closing down
of a factory" lay-offs" discharge or dismissal"
reinstatement of dismissed employees" and compensation
for them<
,. enefits of an award denied to a worker< non-payment of
personal allowance to seasonal employees< the demand
of employees for medical relief for their parents<
/. !ages" fi&ation wages" and minimum rates" modes of
payment" and the right of an employee to choose one of
the awards on wages ha$e been gi$en<
0. Aockout and claim for damages by an employer because
employee resorted to illegal strike<
1. .ayment of hours" gratuity" pro$ident fund" pension and
tra$eling allowance<
2. @isputes between ri$al unions< and
4. @isputes between employees and employers.
/AUSES O. INDUSTRIAL DIS5UTES
'A( Non-(nd"strial -actors. Industrial relations may be harmonious
or strained and acrimonious. In the latter case" there are many causes
which are rooted in historical" political and socio-economic factors"
and in the attitudes of workers and their employers. )ome of the
causes of a dispute may be7

*. An industrial $atter relating to e$lo#$ent, wor+, wages,
hour of wor+, ri-ileges, the rights and o"ligations of
e$lo#ees and employers< the mode" terms and conditions of
employment" including matters pertaining to F
#a$ @ismissal or non- employment of any person<
#($ ?egistered agreement" settlement or award< and
#c$@emarcation of the functions of an employee<
+. An industrial disute which contains an# difference which
has "een fairl# defined and is of real su"stance8 that is a
matter in which both parties are directly and substantially
interested< or which s a grie$ance on the part of the worker
which the employer is in a position to redress< or which is
such as the parties are capable of settling between themsel$es
or referring it for ad'udication<
,. Disutes often arise "ecause of9 :a; The rapidly increasing
population which has no opportunities for gainful
employment< there is" therefore" no impro$ement in the
standard of li$ing of employees who put forward demands for
higher wages which" if not conceded" often lead to strained
industrial relations and strikes< :b; ?ising unemployment.
There was a backlog of +6 million unemployed at the end of
the fourth fi$e-year plan and of ,6 million by the end of the
fifth fi$e-year plan. Eften the unemployment resulted form
the implementation of the rationalism schemes and installation
of new machines on which fewer persons would be employed.
/. The galloing rices of essential co$$odities" their
shortages and or non- a$aibility" all these erode the $alue of
money" as a result of which the real wages of the workers go
down. They become dissatisfied" and demand higher wages<
0. The attitude and te$era$ent of industrial wor+ers ha$e
changed because of their education" the growth of public
opinion and the legislation enacted for their benefit. They are"
therefore" $ery conscious of their rights" and will not put up
with any in'ustice or wrong done to them<
1. Trade unions ha-e often failed to safeguard the interest of
the wor+ers.
The reasons for this state of affairs are7
:a; ?i$alry among" and a multiplicity of" trade unions ha$e
destroyed the solidarity of the working class<
:b; Non-recognition of some trade unions as bargaining
agents of their members<
:c; >ompulsory ad'udication has made trade unions seem
redundant" for the wages and the working conditions of
industrial employees can now be determined by courts"
tribunals and wage boards<
:d; Trade unions generally do not bother about any aspect
of the li$es of industrial labour e&cept their wages<
:e; Trade unions leaders who are themsel$es industrial
workers ha$e become an eye-sore<
:f; Trade unions generally function on the basis of the
caste" language" or communal considerations" which
di$ide rather than unify industrial labour<
:g; Trade unions are unstable and ephemeral.

/$0 'anagements *ttit"des to la,o"r. Managements generally are
not willing to talk o$er any dispute with their employees or their
representati$es or refer it to arbitration e$en when trade unions want
them to do so.
A management-s unwillingness to recogni(e a particular trade union
and the dilatory tactics to which it resorts while $erifying the
representati$e character of any trade union ha$e been a $ery fruitful
source of industrial strife.
E$en when employers ha$e recogni(ed representati$e-s trade
unions" they do not" in a number of cases" delegate enough authority to
their officials to negotitiate with their workers" e$en though the
representati$es of labour are willing to commit themsel$es to a
particular settlement.
)ome of the other cases are7
*. The absence of any suitable grie$ance redressal procedure" as
a result of which grie$ances go on accumulating and create a
climate of unrest among workers.
+. !hen" during negotiations for the settlement of a dispute the
representati$es of employers unnecessarily and un'ustifiably
take the side of the management" tensions are created" which
often leads to strikes" go-slow tactics or lockouts.
,. The managements- insistence that they alone are responsible
for recruitment" promotion" transfer" merit awards" etc. and that
they need not consult their employees in regard to any of these
matters" generally annoys the workers" who become the un-co-
operati$e and un helpful" and often resort to go-slow tactics.
As a result" tensions build up between the two parties.
/. The ser$ices and benefits offered by a management to its
employees do promote harmonious employer-employee
relations. ut a large number of managements ha$e not taken
any steps to pro$ide these benefits and ser$ices for their
workers.

/#0 Government 'achinery. The machinery pro$ided by the
go$ernment for
the resolution of the industrial conflicts is often $ery inade9uate.
=or e&ample7
*. The go$ernment-s conciliation machinery has settled a $ery
negotiable number of disputes because both employers and
employees ha$e $ery little confidence in it< because both
ha$e become litigation-minded< because it is inade9uate" for
the number of disputes referred to its $ery large and the
personnel dealings with them is hopelessly inade9uate"
particularly because" in addition to labour disputes" it is
called upon to see to it that labour laws are properly
implemented.
+. Again" trade unions are generally affiliated to some ma'or
political party.ch political party" therefore" somehow
#engineers% strikes" gheraos and bandhs to demonstrate its
political strength. In$ariably" the political party" which is in
power" fa$ours that trade union organisation which is
affiliated to it. ?esult7 labour conflicts and disputes
htt9::www%slideshare%net:"iru"iru:lecture7;<7one7ste7further7
industrial7disutes
The E$olution of Industrial ?elations
The term industrial relations is generally associated with relations
between the employer and the workmen in a unit or industry. The
e$olution of the concept is linked to industriali(ation and the growing
comple&ity of work organi(ation. As industrial enterprises grew in si(e
and technological processes initiated a socio-technical dependence"
there emerged certain peculiar characteristics that re9uired an
institutionali(ed rather than an indi$iduali(ed employerFemployee
relationship. Aet us take a brief look at a few of the special features
associated with these changes7
Seg$entation '1lue7collar and )hite7collar Roles(9 Mass-
scale production re9uired that repetiti$e tasks be performed with
greater efficiency and competence. !ork" therefore" got fragmented
into smaller tasks. Those performing these fragmented and repetiti$e
tasks needed super$ision and" thus" the nature of roles within the
workplace got classified as those of operati$es" super$isors"
managers" etc. This segmentation led to what later was classified as
#blue-collared% and #white-collared% workers.
Seciali,ation '0ori,ontal Differentiation(9 !orkers were
further classified on the basis of groups that speciali(ed in a small but
distinct nature of task grouping :for e&ample" fitters" riggers" ri$eters
and painters;. The differentiation" from an organi(ational point of
$iew" was hori(ontal" and later led to what" in modern terms" could be
akin to departments or sections. This hori(ontal differentiation also
enabled workers to organi(e themsel$es on the basis of speciali(ation
or special skill sets at an enterprise le$el or e$en at the industry le$el.
This kind of organi(ation had its own impact on work relationships
not only amongst the members but also with the employer and the
industry.
0ierarchical Le-els '3ertical Differentiation(9 As the
differentiation on the hori(ontal dimension increased" there was need
for super$ision and coordination" which resulted in a $ertical
hierarchy or $ertical differentiation. The different le$els thus created
$ertically were responsible and accountable for different tasks in
terms of output" targets" costs" resource utili(ation" etc. !ith
differentiations along both $ertical and hori(ontal dimensions" work
relationships became increasingly comple&.
A New Relationshi Interface9 The fragmentation of work and
the resulting differentiationsLboth $ertical and hori(ontalLresulted
in increasing comple&ity in the relationship between employees and
employers" and amongst different groups. A range of interfaces
emerged 8a$ing ma&imi(ed the production up to a gi$en le$el with
the technological resources a$ailable" the factor multiplication
process of gaining through economies of scale was reached. The
focus" then" shifted to technological transformation and inno$ations.
Newer methods of production through newer technologies demanded
different and new knowledge and skill sets. This impacted the
security of the e&isting 'ob holders because of knowledge and skill
obsolescence and their redundancy. A collecti$e effort for protecting
their interests" thus" became a necessity.
The changes at wor+lace relationshis include9
Increase in capitalFlabour ratio
!ork speciali(ation
=ragmentation of work
?epetiti$e work to increase efficiency
=ragmentation of work led to formation of groups and
employees and employers
New perspecti$e of an inter-group relationship
Growing sense of insecurity re9uired a collecti$e effort to
counter any management initiati$e for retrenchment" dismissal"
etc.
The roots of the modern concept of industrial relations can be traced to
the immediate aftermath of the Industrial ?e$olution and the problems
that arose due to the growth in industries in terms of si(e" $ariety and
$olume of production. Employers adopted a mechanistic approach to
work and began to $iew labour as one of the factors of production. The
industries grew from small competiti$e business units to business
corporations employing thousands of workers. The relationship
between an employer and an employee changed from informal and
personal to a formal and regulated one" and the nature of the
employeeFemployer relationship changed from a pri$ate and
indi$iduali(ed relationship to a standardi(ed one.
!ith the employerFemployee relationship entering the public domain
and impacting society" formal institutions emerged to regulate the
relationship. Trade unions" as mentioned abo$e" emerged out of a
necessity to restore some balance in the relationship between powerful
capital and weak labour. Thus" trade unions :and also employersD
associations; flourished" and with it" work relationships mo$ed out of
the realms affecting the enterprise or the labour alone. The comple&ity
of issues relating to the social costs of industrial growth became
increasingly apparent.
Industrial relations was no longer confined to the relation between an
employer and an employee. The collecti$e of workers necessarily had
to be factored in" and it became a power to be dealt with< more so
because the interests of employers and employees were largely
conflicting. The conflict was natural since workers were dissociated
from the ownership of the instruments" materials and other means of
production. The origins of the concept of industrial relations lie here.
This genesis of the term influenced the general perception for many
years. >onflicting interests and ideological orientations con$eyed an
ad$ersarial and strife-torn relationship. Industrial relations" therefore"
con$eys a sub'ect matter largely related to the handling of conflicts in
the industrial domain. )tate inter$ention became necessary for the
creation and maintenance of good relations between workers and the
management once the relationship crossed the purely two-party domain
comprising the employer and the employee" and entered the domain of
social and public welfare. The )tate sought to gain the cooperation of
the two partners in industry supporting economic growth and
de$elopment through an impro$ement in the 9uality of work life. The
)tate had an ob$ious stake in this relationship as an instrument of
socio-economic progress.
Gradually" the term industry was e&tended beyond economic acti$ity
to include all gainful employment" including ser$ice under the )tate.
The relationship between the )tate and its employees also ac9uired the
characteristic features of the employerFemployee relationship in the
industry. This is e$ident from the strike by go$ernment employees to
demand better wages and benefits. Thus" employment in go$ernment
and public sector enterprises" where ownership is $ested with the )tate"
also came within the scope of industrial relations.

E$olution of I? in India >ompetition on the basis of cheap labour7-
Globali(ation and increased competition has lead to less strikes"
lockouts and less man days lost due to strikes. Also now in the era of
knowledge industry employees are educated and thus donMNt belie$e in
$iolent acti$ities. They are ha$ing responsibilities in cut throat
competition and also are aware of their rights well leading to decline in
strikes. Employers also a$oid lockouts because decline in production
for e$en hours results in hea$y losses so forget about days or weeks.
@isin$estment7 - it affects I? in following ways7O It changes
ownership" which may bring out changes not only in work org and
employment but also in trade union :T3; dynamics. It changes the
work organi(ation by necessitating retaining and re deployment. It
affects the right of workers and Trade unions" including 'obHunion
security" income security" and social security. Trade unions" mgt and
go$ernment are responding to these challenges through $arious types
of new" inno$ati$e" or model arrangements to deal with different
aspects of disin$estment likeGP Making workers the owners through
issue of shares or controlling interests :latter is still not in India;GP
Negotiating higher compensation for $oluntary separation P
)afeguarding e&isting benefit P )etting up further employment
generating programs" andGP .roposals for setting up new safety nets
that not only include unemployment insurance but also skills
pro$isions for redundant workers. @eregulation7 - it is tried to ensure
that public sectorH go$ernment employees recei$e similar protection as
is pro$ided in publicHgo$ernment employment. The worst affected are
the pension pro$isions. this means" usually a reduction in pension
benefits and an uncertainty concerning future pro$ision of pension
benefit due toGP The absence of go$ernment guaranteesGP =alling
interest ratesGP In$estment of pension funds in stock 6markets
@ecentrali(ation of I? is seen in terms of the shift in consideration of
I? issues from macro to micro and from industry to enterprise le$el.
!hen the coordination is a

the national or sectoral le$el then work in the whole industry can be
paraly(ed because of conflict in I?. ut when the dispute is at the bank
le$el" in t
he absence of centrali(ed coordination by Trade unions only work
in that bank is paraly(ed and the other banks function normally. This
weakens the bargaining power of unions. New actors and the emerging
dynamics7 - Earlier I? was mainly concerned with Trade unions" mgt
and go$ernment but now consumers and the community are also a part
of it. !hen the right s of consumers and community are affected" the
rightsof workers and unions and managers H employers take a back
seat. 8ence there is ban on bandh and restrictions e$en on protests and
dharnas. Increasingly Trade unions are getting isolated and see a future
for them only by aligning themsel$es with the interests of the wider
society. .ro-labour-pro-in$estor policies This leads to decline in
strength and power of Trade unions if not in numbers. 3nions ha$e to
make alliances with the society" consumers and community and $arious
ci$il society institutions otherwise they will find themsel$es dwindling.
@eclining T3 density In go$ernment and public sectors workforce is
declining because of non-filling of $acancies and introduction of
$oluntary H early separation schemes. New employment opportunities
are shrinking in these sectors. In the pri$ate sectors particularly in
ser$ice and software sector" the new" young" and female workers are
generally less eager to 'oin unions. !orkers militancy replaced by
employer militancy @ue to industrial conflicts In *546-4* man days
lost Q /6+.* million
In *556-5* man days lost Q +*6 million
Not because of impro$ed I? but because of the fear of 'ob security"
concern about the futility of strikes" and concern to sur$i$e their
organi(ation for their income sur$i$al. Trade unions ha$e become
defensi$e e$ident from the fact that there is significant shift from
strikes to law suits. Instead of pressing for higher wages and impro$ed
benefits" Trade unions are pressing for maintenance of e&isting benefits
and protection and claims o$er non-payment of agreed wages and
benefits
>ollecti$e argaining Ae$el of collecti$e bargaining is shrinking day
by day. )ome more information7-In India" while labour is in the
>oncurrent Aist" state labour regulations are an important determinant
of industrial performance. The )ur$ey notes e$idences that states that
had enacted more pro-worker regulations" had lost out on industrial
production in general. 8owe$er" on the upside" the )ur$ey said there
was a secular decline in the number of strikes and lockouts
during +666-6/. The total number of strikes and lockouts went down
*,.1I from 00+ in +66, to /22 in +66/. The decline was sharper in the
number strikes than in lockouts" it noted. !hile most of the strikes and
lockouts were in pri$ate sector establishments" o$erall industrial
relations had impro$ed" especially between +66, and +66/" when there
was a decline in the number of man days lost by 1.,5 million.Among
states" the ma&imum number of strikes and lockouts were in Aeft-ruled
!estengal" followed by Tamil Nadu and Gu'arat. The sectors
which saw instances of industrial disturbance were primarily te&tiles"
engineering" chemical and food product industries.)tressing on the
importance of labour reforms to enhance producti$ity"competiti$eness
and employment generation" the )ur$ey noted that a beginning had
already been made in that direction. =or instance" in the current year"
there was a proposal to enhance the wage ceiling from ?s *"166 per
month to ?s 1"666per month through The .ayment of !ages
:Amendment; Act +660. Also" the proposal to empower the central
go$ernment to further enhance the ceiling in future by way of
notification is already in effect from No$ember 5" +660.As regards
women working on night shifts" The =actories :Amendment; ill
+660"was under consideration to pro$ide them fle&ibility and safety.
Also" to simplify the procedure for managements to maintain registers
and filing returns" an amendment of Aabour Aaws :E&emption from
=urnishing returns and maintaining ?egisters by >ertain
Establishments; Act *544" was underconsideration.