EMPLOYEE RELATIONS

MODULE -2

PROF. ANKITA JENA

 INDUSTRIAL RELATIONS

 Industrial relations refer to the complex and multidimensional relationship between employers and employees in the workplace. It encompasses various aspects such as the
terms and conditions of employment, the negotiation and administration of collective agreements, the resolution of labor disputes, and the overall dynamics of the employer-
employee relationships.

 It refers to the complex and dynamic relationship between employers, employees, and the government within the organizational and societal context. It encompasses the
various interactions, negotiations, and regulations that govern the employment relationship and the broader labor market.

 Industrial relations refer to the multidisciplinary field of study that focuses on the relationships and interactions between employers, employees, and the government within
the workplace. It encompasses various aspects of the employment relationship, including the terms and conditions of employment, the negotiation process, and the
resolution of conflicts between labor and management. The goal of industrial relations is to establish and maintain a balanced and productive relationship between employers
and employees, fostering a conducive work environment and contributing to overall organizational success.

 Therefore, Industrial Relations is the relationship that exist between an employer and the employees collectively through their Union. Industrial Relations became a social
science where workplace relations were analyzed using, academic disciplines such as physiology , sociology, human resource management and economics.
 SCOPE OF INDUSTRIAL RELATIONS
The scope of industrial relations refers to the comprehensive field of study and practice that focuses on the relationships between employers and employees in the workplace. It

encompasses a wide range of activities, processes, and institutions aimed at managing and regulating these relationships to ensure a harmonious and productive working

environment. The scope of industrial relations includes the following key elements:

 Employer-Employee Relations: This involves the study and management of interactions between employers and employees at all levels of an organization. It includes

negotiations, communication, conflict resolution, and the overall dynamics of the employment relationship.

 Collective Bargaining: Collective bargaining is a central component of industrial relations, involving negotiations between employers and labor unions or employee

representatives. The aim is to reach agreements on terms and conditions of employment, such as wages, working hours, and benefits.

 Labor Laws and Regulations: Industrial relations encompass the study and application of labor laws and regulations that govern the employment relationship. This

includes understanding legal frameworks, compliance with labor standards, and addressing issues related to workplace safety and health.

 Trade Unions and Employee Associations: The activities and roles of trade unions and other employee associations are integral to industrial relations. This involves the

formation, functions, and influence of such organizations in representing the interests of workers and negotiating with employers.

 Dispute Resolution: Managing conflicts and disputes is a crucial aspect of industrial relations. This includes the development of mechanisms for resolving conflicts, such

as grievance procedures, mediation, arbitration, and, in some cases, legal proceedings.

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 SCOPE OF INDUSTRIAL RELATIONS
 Employee Participation and Involvement: Industrial relations involve promoting mechanisms for employee participation in decision-making processes within
the organization. This may include joint consultative committees, work councils, and other forms of employee involvement in managerial decisions.

 Human Resource Management Practices: The scope of industrial relations extends to the examination of human resource management practices and policies
that impact the employment relationship. This includes recruitment, training, performance appraisal, and employee development.

 Social Dialogue: Industrial relations also involve fostering social dialogue between employers, employees, and the government. This can take place at the
industry, national, or international levels and aims to address broader social and economic issues affecting the world of work.

 Globalization and International Labor Relations: As workplaces become more interconnected globally, the scope of industrial relations extends to the study of
international labor standards, cross-border collective bargaining, and the impact of globalization on employment relationships.

 Workplace Culture and Climate: The broader socio-cultural aspects of the workplace, including the organizational culture and climate, are considered within
the scope of industrial relations. This involves understanding how these factors influence the dynamics between employers and employees.
 APPROACHES TO INDUSTRIAL RELATIONS
Industrial relations refer to the complex interactions and relationships between employers, employees, and the government within the workplace. There are several approaches to
industrial relations that have evolved over time, each reflecting different perspectives on how to manage and regulate the employment relationship. Here are some of the key
approaches:

 Unitary Approach: This approach assumes that organizations are a single, unified entity where both employers and employees share common goals and objectives. Conflict is
seen as dysfunctional and something to be minimized. Management plays a central role in fostering cooperation and maintaining a harmonious workplace. Disputes are
typically seen as a result of poor communication or misunderstandings.

 Pluralistic Approach: This approach recognizes that within organizations, there are multiple groups with different interests, such as employers, employees, and trade unions.
Conflict is viewed as inevitable due to these competing interests. The role of management is to balance these interests and facilitate negotiations between different groups.
Collective bargaining and employee representation through unions are considered essential elements of this approach.

 Radical Approach: A radical approach in industrial relations typically involves a fundamental critique of the existing economic and social system, seeking to address power
imbalances and inequalities between employers and employees. This perspective often goes beyond incremental changes and calls for more transformative and revolutionary
shifts in the way work and employment relations are structured.

 Marxist Approach: Rooted in Marxist theory, this perspective sees the employment relationship as inherently exploitative, with employers seeking to maximize profits at the
expense of workers. Conflict is seen as a natural outcome of the class struggle between capital owners (employers) and the proletariat (workers). The Marxist approach often
advocates for collective action and the overthrow of the capitalist system.
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APPROACHES TO INDUSTRIAL RELATIONS
 Human Resource Management (HRM): HRM emphasizes the importance of human capital and treating employees as valuable assets to the organization. It focuses on aligning

individual goals with organizational goals. Conflict is viewed as counterproductive, and HRM seeks to create a positive workplace culture through employee development,

empowerment, and involvement in decision-making.

 Systems Theory: This approach views an organization as a dynamic and interrelated system. It considers the various components of the organization, such as employees,

management, and external factors, as interconnected and influencing each other. Conflict is seen as a natural part of the system, and the challenge is to manage it effectively to

maintain overall stability and productivity.

 Employee Involvement and Participation: This approach encourages active involvement and participation of employees in decision-making processes. It often includes mechanisms

such as quality circles, team-based structures, and employee forums. The aim is to enhance communication, boost employee morale, and improve overall organizational

performance.

 Legalistic Approach: This approach emphasizes adherence to laws and regulations as a means of governing industrial relations. Legal frameworks, such as labor laws and

employment contracts, play a crucial role in defining the rights and responsibilities of both employers and employees.

These approaches are not mutually exclusive, and organizations often incorporate elements from multiple perspectives depending on their context and goals. The choice of approach can

significantly impact the workplace environment, employee satisfaction, and overall organizational performance.
 INDUSTRIAL RELATIONS SYSTEM
 An industrial relations system refers to the framework of rules, regulations, policies, and institutions that collectively govern the relationships between employers,

employees, and the government within a given industry or economy. The goal of an industrial relations system is to manage and regulate the employment relationship,

ensuring fair and productive interactions between employers and workers.

 An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of

conflict and cooperation.

 Industrial relations refer to the complex and dynamic relationship between employers and employees in the workplace, including the government and other

stakeholders. The industrial relations system encompasses the formal and informal structures, processes, and arrangements that govern and regulate these

relationships. Its primary goal is to manage and resolve conflicts between employers and employees, promote cooperation, and establish a framework for negotiations

and decision-making.

There are various key Components of IRS which are discussed in below-

 Employment Contracts and Agreements: These are formal documents that outline the terms and conditions of employment, including wages, working hours, benefits,

and other relevant provisions. Collective bargaining agreements may also be a part of this, negotiated between employers and labor unions.

 Labor Unions: These organizations represent groups of workers and negotiate with employers on their behalf. They play a crucial role in shaping the industrial

relations landscape, advocating for workers' rights, and participating in collective bargaining.
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 INDUSTRIAL RELATION SYSTEM
 Government Regulations and Legislation: Governments often play a role in shaping industrial relations through laws and regulations that establish the rights and
responsibilities of employers and employees. These laws may cover areas such as minimum wage, working conditions, and dispute resolution mechanisms.

 Industrial Dispute Resolution: Mechanisms for resolving conflicts between employers and employees are an essential part of the industrial relations system. This
may involve negotiation, mediation, arbitration, or legal proceedings.

 Workplace Policies and Practices: Companies often establish their own internal policies and practices related to employment, work environment, and employee
relations. These can impact the overall industrial relations climate within an organization.

A well-functioning industrial relations system is crucial for maintaining a balance between the interests of employers and employees, promoting a healthy and productive
work environment, and ensuring fair and equitable treatment for all parties involved. The effectiveness of the industrial relations system can vary across countries and
industries, influenced by cultural, legal, and economic factors.
 TRADE UNIONISM
Trade unionism refers to the organized efforts and activities of workers to improve their working conditions, wages, and benefits through collective bargaining and collective action.

Trade unions, also known as labor unions, are organizations formed by workers to represent their interests and negotiate with employers on issues such as wages, working hours, job

security, and workplace safety. Key features of trade unionism include:

 Collective Bargaining: Trade unions engage in collective bargaining on behalf of their members. This involves negotiations between representatives of the union and employers

to reach agreements on various aspects of employment, such as wages, working conditions, and benefits.

 Representation: Trade unions represent the collective interests of workers. They act as intermediaries between employees and employers, advocating for workers' rights and

addressing grievances.

 Worker Solidarity: Trade unions promote solidarity among workers. By joining together, workers can exert more influence and negotiate more effectively with employers.

Solidarity is crucial in achieving common goals and resisting unfair labor practices.

 Advocacy for Workers' Rights: Trade unions work to protect and advance the rights of workers. This includes advocating for fair wages, reasonable working hours, safe working

conditions, and other benefits that contribute to the well-being of employees.

 Strikes and Industrial Action: When negotiations fail to produce favorable outcomes, trade unions may resort to strikes or other forms of industrial action. These actions are

meant to put pressure on employers to meet the demands of the workers.

Trade unionism has played a significant role in shaping labor relations and improving working conditions throughout history. However, the effectiveness and prevalence of trade

unions vary across different countries and industries. Some argue that trade unions are essential for protecting workers' rights, while others criticize them for potential disruptions to

business operations.
 STRUCTURE OF TRADE UNIONISM
Trade unionism refers to the organized efforts of workers to improve their working conditions, wages, and other related issues through collective action. The structure of trade
unionism can vary depending on the country, industry, and specific goals of the union. However, there are some common elements in the structure of trade unions.

1.General Body:

 Members: The basic unit of any trade union is its members—individual workers who join together for common goals.

 General Meetings: Regular meetings where members discuss issues, make decisions, and elect leaders.

2. Leadership:

 Elected Officials: Trade unions typically have elected officials who represent the members and make decisions on their behalf. This may include a president, vice president,
secretary, treasurer, and other positions.

 Executive Committee: A group of elected officials and representatives responsible for making decisions between general meetings.

3. Shop Stewards or Local Representatives:

 Shop Stewards: These are union representatives at the workplace or shop floor level. They act as a liaison between the union leadership and the members in a specific work
location.

4. Committees:

 Committees for Specific Issues: Trade unions may have committees dedicated to specific issues such as health and safety, grievances, education, and political action.
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 STRUCTURE OF TRADE UNIONISM
5. Affiliations:

 Federation or Confederation Affiliation: Some trade unions affiliate with larger federations or confederations to gain strength and support. These larger organizations can provide
resources, coordination, and a unified voice for multiple unions.

6. Finances:

 Dues: Members typically pay regular dues to fund the activities of the trade union.

 Treasurer: Responsible for managing the union's finances.

7. Communication:

 Communication Channels: Unions use various channels to communicate with members, including newsletters, websites, and social media.

 Meetings: Regular meetings to discuss ongoing issues, progress, and future plans.

8. Strikes and Industrial Action:

 Strike Committees: In the event of industrial action, a strike committee may be formed to organize and coordinate the efforts of the striking workers.

 Education and Training: Education Programs: Many trade unions provide educational opportunities and training for their members to empower them with knowledge about their
rights, labor laws, and negotiation skills.

It's important to note that the structure and organization of trade unions can vary widely, and these elements may be adapted to suit the specific needs and challenges faced by different
unions in different contexts. Additionally, legal and regulatory frameworks in each country influence the structure and functioning of trade unions.
 Functions of Trade Unionism
 Protect economic interests of the members- Arguably, the economic function of a trade union is the most significant one. A trade union, once organized , revolves around the economic
demand of its members, which manifest themselves in the following forms:
1. Improved Economic Status
2. Shorter working day
3. Improvement in working and living conditions
4. Better health and safety standards
5. Upgrading welfare facilities
6. Promoting internal and external equity

 Influence social relationships at the workplace- The power of management within an enterprise can be kept in check through strong unionism. In addition, unions affect nearly every other
measurable aspect of the operation of workplace and the enterprises, from top line to the enhancement of productivity to the compensation structure.

 Policy and Legislative (Influence policies at the national level)- Initially, unions were successful in correcting arbitrary conditions of work and service, often through legislation. They
made their presence felt in the area of personnel policy within undertakings by including recruitment, transfer and promotion in collective bargaining. But today, there may be very little
left to fight for. For instance, many organizations under business compulsions have ceased to exploit their work force and offer not only good wages but ample of welfare and comfortable
working conditions. In most countries, unions find themselves increasingly concerned with economic policies at the national level.

 Redress inequality- If we get back to the basics of unionism, we see that there in unequal distribution of money and power in all organizations. The job of any union is to redress this
inequality; that is to make the distribution of money and power less unequal than it is. They may negotiate with management the terms and conditions under which their members are
employed. Cont..
 Functions of Trade Unionism
 Precipitate collective withdrawal in the pursuit of sectional interest- But their most important weapons and one that unions have fiercely clung on to throughout history is the

collective withdrawal of labour, otherwise called the strike. Through union organization, workers bring pressure to bear on enterprise management and the ruling elite.

 Productivity- Also, the establishment of union industry conferences have facilitated the collaboration between unions and management, which has been necessitated by the fact that

power, whenever it lies, cannot be dissociated from responsibility, in the long run.

 Enhance professional status- Unions have also assumed a role of enhancing professional competence of their members through providing expert knowledge, raising the standard of

competency in their occupation, improving the professional equipment of their members, educating them and endeavoring by every means to increase their status in public

estimation.

 Ancillary-

a. Communication- Many large unions bring out newsletters clarifying the union’s policy or stand on certain principal issues. It is also used as a channel of communication on

the management activities as well as union activities.

b. Welfare Activities- They include self-employment opportunities for women or spouse of workers, education facilities for worker children, organizing medical camps, sports

activities, etc.

c. Education- This involves organizing adult literacy classes, promoting the government’s worker-education schemes and information-driven seminars on aspects concerning their

rights and responsibilities.

 Industrial Dispute
An Industrial dispute refers to a disagreement or conflict between employers and employees in the context of their working relationship. This disagreement can
arise from various issues, such as employment conditions, wages, benefits, working hours, or other employment-related matters. Industrial disputes can occur in
any industry or workplace where there is a collective relationship between employers and employees. These disputes may manifest in different forms, including
strikes, lockouts, protests, or other forms of industrial action taken by workers or employers. The aim of such actions is often to address grievances, negotiate
better terms, or resolve conflicts regarding workplace issues. To manage and resolve industrial disputes, many countries have established legal frameworks and
industrial relations systems. These frameworks may include mechanisms for negotiation, mediation, arbitration, and other forms of conflict resolution. Labor
unions often play a significant role in representing workers during industrial disputes, negotiating with employers on behalf of their members. Efforts to prevent
industrial disputes may involve proactive measures such as effective communication between employers and employees, fair employment practices, and the
establishment of grievance redressal mechanisms within the workplace. The goal is to create a stable and harmonious working environment that minimizes the
likelihood of conflicts and disputes.

According to the Industrial Dispute Act, 1947. Section 2 (K) “Industrial Disputes mean any dispute or difference between employers and employers or between
employers and workmen or between workmen and workmen, which is connected with the employment or non - employment or terms of employment or with the
conditions of labour of any person”.
 Code of Discipline
 The term "Code of Discipline" in the context of industrial disputes generally refers to a set of guidelines or rules that are mutually agreed upon by employers
and workers or their representatives. These guidelines are aimed at promoting harmonious industrial relations and preventing or resolving disputes in the
workplace. The Code of Discipline serves as a framework for behavior and conduct to ensure a peaceful and productive working environment.

 To maintain harmonious relations and promote industrial peace, a Code of Discipline has been laid down which applies to both public and private sector
enterprises. It specifies various obligations for the management and the workers with the objective of promoting cooperation between their representatives. The
basic objectives of Code of Discipline are to: Maintain peace and order in industry.

 Promote constructive criticism at all levels of management and employment.

 Avoid work stoppage in industry.

 Secure the settlement of disputes and grievances by a mutually agreed procedure.

 Avoiding litigation.

 Facilitate a free growth of trade unions.

 Eliminate all forms of coercion, intimidation and violations of rules and regulations governing industrial relations.
 Grievance Management

 Grievance management in the context of industrial relations refers to the process of addressing and resolving grievances or complaints raised by employees
against their employers. Grievances can arise from various issues, including working conditions, terms of employment, workplace policies, interpersonal
conflicts, or perceived injustices. Effectively managing grievances is crucial for maintaining a positive work environment, preventing disputes, and promoting
harmonious industrial relations. Grievance handling is the management of employee dissatisfaction or complaints (e.g. favouritism, workplace harassment, or
wage cuts). By establishing formal grievance handling procedures, you provide a safe environment for your employees to raise their concerns.

 Dale Yader defines a grievance as “a written complaint filed by an employee and claiming unfair treatment.

 Keith Davis, defines a grievance as “any real or imagined feeling of personal injustice which an employee has concerning his employment relationship.”

 On the other hand, according to Michael J. Jucius the term grievance means “any discontent or dissatisfaction, whether expressed or not, whether or not arising
out of anything connected with the company that an employee thinks, believes or even feels to be unfair, unjust or in equitable”.
 Dispute Resolution
Dispute resolution in the context of industrial disputes refers to the methods and processes employed to settle conflicts or disagreements that arise between employers and
employees in the workplace. Industrial disputes can encompass a range of issues, including but not limited to wages, working conditions, employment terms, and other matters
related to employment relationships. There are various methods of resolving industrial disputes like negotiations, conciliation, mediation and arbitration. Every organization or
management or the trade union has the right and freedom to choose anyone method to resolve the industrial disputes.

 Negotiation: This is an informal and direct communication process where representatives of employers and employees try to reach a mutually acceptable agreement. This
can involve discussions, compromise, and bargaining to find common ground on issues such as wages, working hours, and conditions.

 Mediation: In mediation, an impartial third party, known as a mediator, assists the disputing parties in reaching a voluntary and mutually acceptable resolution. The
mediator facilitates communication, helps identify common interests, and proposes potential solutions. However, the mediator does not have the authority to impose a
decision on the parties.

 Conciliation: Similar to mediation, conciliation involves the intervention of a third party. However, a conciliator may take a more active role in proposing solutions and
making recommendations. The goal is still to encourage the parties to reach an agreement voluntarily.

 Arbitration: In arbitration, a neutral third party, called an arbitrator, is appointed to listen to both sides of the dispute and make a binding decision. The decision is often
based on evidence and arguments presented by the parties. Arbitration is a more formal process than negotiation, mediation, or conciliation and is often used when the
parties want a resolution that is enforceable.
 Industrial Harmony

 Industrial harmony in the context of industrial relations refers to a state of peaceful and cooperative coexistence between employers and
employees within an organization or an industry. It involves the establishment and maintenance of positive relationships between management
and labor to ensure a smooth and productive work environment. Industrial harmony is characterized by mutual understanding, trust, and
collaboration between the various stakeholders in the industrial setting.

 The concept of industrial harmony is closely associated with the broader field of industrial relations, which deals with the relationships
between employers, employees, and the government. When industrial harmony is achieved, it can lead to increased productivity, job
satisfaction, and overall organizational success. Conversely, a lack of industrial harmony may result in strikes, disputes, and a negative impact
on both the workforce and the organization as a whole.

 It implies a healthy and cooperative working relationship between employers and employees. It covers four broad areas of cooperation:
responsibilities, employment policy, collective bargaining, and communi.cation
 Collective Bargaining
 Collective bargaining is a process used by employers and employees, typically through their representatives, to negotiate terms and conditions of employment. This
negotiation process aims to reach agreements on issues such as wages, working hours, working conditions, benefits, and other aspects of the employment relationship.
Collective bargaining is a key element in industrial relations, helping to establish a balance of power between employers and employees.

 In the context of industrial disputes, collective bargaining plays a crucial role in preventing and resolving conflicts between labor and management. When disagreements
arise regarding employment terms or conditions, both parties engage in negotiations to find mutually acceptable solutions. The negotiations may involve representatives
from labor unions or employee associations negotiating on behalf of workers and representatives from the management or employer's side.

 Collective bargaining is seen as a means to promote industrial peace and maintain a fair balance of power between employers and employees. It provides a structured and
organized way for parties to address their concerns and reach agreements that benefit both sides, thereby reducing the likelihood of prolonged industrial disputes.

 Collective bargaining is the process of negotiating the employment terms between an employer and a group of workers. The process takes place between company
management and a labor union. Concerns and issues that may come up during collective bargaining include working conditions, salaries and compensation, working hours,
and benefits. The goal of collective bargaining is to come up with a collective bargaining agreement or contract. There are several types of collective bargaining, including
composite concessionary, distributive, integrative, and productivity bargaining.
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