MS-223-MANAGEMENT OF INDUSTRIAL RELATIONS

Rani Durgavati Vishva Vidyalaya Jabalpur (M.P.)

By :- Ashish kumar Yadav

Unit 1 1. Introduction

2. Industrial conflict, Industrial Dispute-

1. meaning

2. classification &

3. impacts.

3. Causes of industrial dispute

1. prevention &

2. settlement of dispute

4. Methods for settlement of industrial dispute

1. Theory of Consensus in Industrial Society.

Introduction

Industrial relations play an important role in ensuring security to the working class as well as economic progress for the nation. Good labor – management relations are sine qua non for increasing production and improved productivity ; and without industrial harmony, economic harmony is not possible .

 

Industrial Relations Defined

• The labor dictionary defines Industrial Relations as the relations between employees and employers in industry.

• According to Dale Yoder “industrial relations describe relationship between the management and employees or among employees and their organization, that characterize the labor force in all part of the world.

• The international institute of labor relations has defined it as “social relations in production”.

Actors in the IR system:

The scope of Industrial Relations

The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor.

In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.

The scope of Industrial Relations

The scope or industrial relations is quite vast. The main issues involved here include the following :-

1. Collective bargaining

2. Machinery for settlement of industrial disputes

3. Standing orders

4. Workers participation in management

5. Unfair labor practices

• To safeguard the interest of labor and management

• To avoid industrial conflict or strife and develop harmonious relations

• To raise productivity to a higher level

• To establish and promote the growth of an industrial democracy

• To eliminate or minimize the number of strikes, lockouts .

• To improve the economic conditions of workers in the existing state of industrial managements and political government.

• Socialization of industries by making the state itself a major employer

• Vesting of a proprietary interest of the workers in the industries in which they are employed.

Objectives of Industrial Relations

Industrial Conflict • Industrial conflict is the situation where

disagreements arise between employees’ and employers over matters related to the working conditions. 

• Conflict is endemic among human grouping because of the divergent interests which are usually diametrically opposed. While employers must maximize his profit by reducing to the minimum level the cost of production which is usually at the detriment of the employees, employees (usually represented by trade union)seek to secure a work condition of a bearable standard and better remuneration. 

Types of Industrial ConflictIndustrial conflict occurs when employees express their dissatisfaction with management over the current state of the management-employee relationship. The causes of such dissatisfaction are typically matters related to regular wage payment, wage increase or remunerations according to terms of the employment contract. Employees can express such dissatisfaction in formal or informal ways. Formal methods are organized and are planned in advance, while informal ones are spontaneous and unorganized, usually taking management by surprise. There are different types of formal and informal industrial conflicts.

Types of Industrial Conflict

• Strike • Work-to-rule• Absenteeism • Sabotage

Formal and Informal Conflict

While informal conflict in an industrial organization is usually associated with low skilled and purely

educated workmen and such conflicts are generally unorganized, exhibited in individual

actions such as absenteeism, sabotage, theft etc.

Formal conflict on the other hand is associated with high skilled and well educated workers who are

properly organized and such formal conflict is usually spearheaded by union leaders who are referred to as "agitators". Example of conflict is strike or withdrawal of service.

Causes

Wage demands

1.Usually occur when an agreement expires or esp. concerning overtime payments.

2.Many employees may believe they need to be paid more but the employer may not agree.

3.In times of inflationary pressures such as GST, rising oil n interest rates employees are likely to seek wage increases to maintain their standards of living.

Causes

Working conditions

1. Employees take action if there is a risk to either their or others at the workplace. OH&S act provides guidelines.

2. Common esp. where there are chances of damage to hearing, lungs or eyes.

3. Disputes can happen over staff facilities like kitchens, parking and the equipment used by workers.

Causes

Management policies

1. These include concerns over leave entitlements such as sick leave, holiday leave, promotion and redundancy

2. Management may change policies without adequate consultation n this creates a change to custom and practice.

3. Globalization has encouraged this conflict

Causes

Political and Social issues

Involves wider issues (environmental and political) where employees take action to support a cause. - Employees are less likely to take strong action to support a cause given the reduced union power in the WRA.

Industrial Dispute

• An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment.

Industrial Dispute

As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor, of any person. 

Methods for settlement of industrial dispute

• Collective bargaining • Conciliation• Adjudication• Voluntary arbitration

Measures For Improving Industrial Relations

• Strong and Stable Union• Mutual Trust:• Workers’ Participation in Management• Mutual Accommodation• Sincere Implementation of Agreements• Sound Personnel Policies: • Government’s Role• Progressive Outlook