“Being managed by professionals does not mean professional management!”

Industrial Relations-Arun Kumar Davay

Industrial Relations

Industry:Industry:

Sec2(j)Sec2(j)It means any business, trade, It means any business, trade, undertaking, manufacturing or undertaking, manufacturing or calling of employers & includes any calling of employers & includes any calling, service, employment, calling, service, employment, handicraft or industrial occupation handicraft or industrial occupation or avocation of workmen.or avocation of workmen. -The Industrial -The Industrial Dispute Act 1947Dispute Act 1947

Master-ServantMaster-Servant Human Human RelationsRelations

IlliterateIlliterate EducatedEducated

Not ConsciousNot Conscious Aware, Aware, InformedInformed

Ill MotivatedIll Motivated Willing, MotivatedWilling, Motivated

Traditional Present

Management

TraditionalAuthoritative

Autocratic

Paternalistic

Prerogative

PresentCollaborative

Democractic

Mutuality

Restrictive

What is Industrial Relations ?

An Act or Art of Controlling Human An Act or Art of Controlling Human Resources in Employment.Resources in Employment.

Also referred as Labour Relations, Legal Also referred as Labour Relations, Legal Relations, etc.,Relations, etc.,Two Inseparable LimbsTwo Inseparable Limbs

Interest apparently Conflict but Interest apparently Conflict but Complementary.Complementary.

DefinitionDefinitionRelations between the management of an industrial enterprise and its employees.

Process by which people and their organization interact at the place of work to establish the terms and conditions of employment

EmployeeEmployee

Actors in Actors in IRIR

Government Government Management Management

Objectives of Industrial Objectives of Industrial

RelationsRelations1. Congenial Labour - Management relations 2.Enhance economic status of the workers3.Regulate the production by minimizing industrial conflict 4.Socialize industries by making government as employer5.Workers to have a say in management &decision making6.Encourage &develop trade unions 7.Avoid industrial conflict consequences8.Industrial democracy

Functions of IRFunctions of IR1. Communication is to be established between workers and the management in order to bridge the traditional gulf between the two.2.To establish a rapport between managers and the managed.3.To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of workers on the one hand and the management on the other hand, to avoid unhealthy, unethical atmosphere in an industry.4.To lay down considerations which may promote understanding, creativity and co-operation to raise industrial productivity, to ensure better workers’ participation?

Importance of Industrial Importance of Industrial

RelationsRelations• Uninterrupted Production• Reduction in Industrial Disputes • High Morale• Mental Revolution • New Programme • Reduced Wastage

Success of Industrial Success of Industrial

RelationsRelations1.Top Management support 2.Sound Personnel policies 3.Adequate practice should be

developed by professionals 4.Detailed supervisory training 5.Follow up results

Purpose of HR in IRPurpose of HR in IR1. Human resource management

attracts, develops, and maintains a talented workforce.

2. Government legislation protects workers against

employment discrimination. 3. Employee rights and other issues

complicate the legal environment of work.

4. Labor relations and collective bargaining are closely governed by law.

Legal Aspects of Legal Aspects of

Industrial RelationsIndustrial Relations1. Discrimination: When someone is denied a job or position for non job related reasons

2. Equal Employment Opportunity: The right to employment and advancement without regard to race, religion, sex, color or national origin

3.Affirmative Action: An effort to give preference in employment to women or other minorities; Employment criteria justified by capacity to perform a job

4. Comparable Worth: Persons performing jobs of similar worth should receive comparable pay

Legal Aspects of Industrial Relations5. Bona-fide Occupational Qualifications:

Employment criteria justified by capacity to perform a job

6. Workplace Privacy: The right to privacy while at work

7. Independent Contractors: Hired on temporary contracts and are not part of the organization’s permanent work force

8. Labor Union: An organization that deals with employers on the workers collective behalf

9. Labor Contract: A formal agreement between a union and employer about the terms of work for union members

Industrial UnrestIndustrial Unrest

Causes for Industrial Unrest:

Workers Seeking More Wages – Justly or UnjustlyBetter Working ConditionsAdequate Housing etc., Political SentimentsEconomic Crisis

Industrial Unrest

If Relations between Management If Relations between Management and Labour gets strained, Labour and Labour gets strained, Labour protest takes any of the following protest takes any of the following forms:forms:

1.1.Flash Strike or Sudden Walk out: Flash Strike or Sudden Walk out: May just become a labour meeting May just become a labour meeting where a Memorandum is passed where a Memorandum is passed and handed over to the and handed over to the Management for consideration and Management for consideration and meeting. May disperse and resume meeting. May disperse and resume work soon after.work soon after.

2.2.Tools Down: Labour stops work Tools Down: Labour stops work for a period but does not leave for a period but does not leave their place of work. Production their place of work. Production suffers.suffers.

Industrial Unrest

3. Slow Down: Workers do not meet 3. Slow Down: Workers do not meet the given production targets. The the given production targets. The whole or the part of facilities may whole or the part of facilities may be affected.be affected.

4. Gherao: Labour ceases work. 4. Gherao: Labour ceases work. Blocks all routes by human barrier Blocks all routes by human barrier to the workplace/Management to the workplace/Management Personnel. Human pressure is Personnel. Human pressure is exerted till the demands are met. exerted till the demands are met. The offence commited is ‘Wrongful The offence commited is ‘Wrongful confinement’confinement’

5. Strike: Last resort of the Labour 5. Strike: Last resort of the Labour when negotiations have not when negotiations have not yielded any results. yielded any results.