LABOUR RELATION

Labour relation can refer broadly to any dealings between management and workers about employment conditions. Three partners of Industrial Relations
Trade Union:

Trade unions try to protect interest of workers, they insist upon the development of cultural and educational qualities of there members.
Employers & their organizations:

They try to protect the interest of employers, to create healthy industrial atmosphere, so that the objectives of the organization may be achieved. They try to get full co-operation of workers for achieving this objective.

 Government:

The government plays an important role in establishing better industrial relations. Government passes various laws to protect the interest of both employers and employees.

Concept of labour Relations

The term labour Relations comprises of two terms: labour and Relations. labour refers to any individual (or a group of individuals) is (are) engaged by relations that exist within the industry between the employer and his workmen. The term labour relations explains the relationship between employees and management .

objectives of labour relation

To safeguard the interest of labour and management by

highest level of mutual understanding for better production.

To avoid industrial conflict and develope harmonious relation. To raise productivity to a higher level in an era of full employment.

To establish and promote the growth of an industrial

democracy based on labour partnership in the sharing of profits and of managerial decisions

 To eliminate number of strikes, lockouts by providing

reasonable wages, improved living and working conditions.

To improve the economic conditions of workers in the

existing state of industrial managements and political government.

Causes of poor Industrial Relations

The main reasons of poor Industrial relations is attitude of

management and labour towards each other. Inadequate fixation of wages or improper wage structure. Indiscipline Unhealthy working conditions at the workplace. Lack of human relations skills on the part of supervisors and managers. Desire of workers for higher bonus, wages or daily allowances.

 Desire of employers to pay as little as possible to its workers.

Inadequate welfare facilities. Dispute on sharing the gains of productivity. Retrenchment, dismissal and lockouts by the management. General economic and political environment such as rising

prices, strikes by others and general indiscipline having their effect on the employees attitudes.

Effects of Bad Industrial Relations

Effect on Workers:

(i) Loss of wages (ii) Physical injury or death on account of violence during labour unrest (iii) Excesses by employers (iv) Economic losses (v) Bitterness in relations (vi) Adverse affect on career.
Effect on Employers / Industrialists:

(i) Less production (ii) Less Profit (iii) Bad affect on organisation (iv) Bad effect on human relations (v) Damage to machines and equipments (vi) Adverse effect on development of companies (vii) Burden of fixed expenses.

 Effect on Government:

(i) Loss of revenue (less recovery of income tax. sales tax, etc.) (ii) Lack of order in society, (iii) Blame by different parties.
Effect on Consumers:

(i) Rise in prices, (ii) Scarcity of goods, (iii) Bad affect on quality of goods.
Other Effects:

(i) Adverse affect on International Trade (Fall in exports and rise in imports), (ii) Hindrance in Economic Development of the country, (iii) Uncertainty in economy.

Requirements of a Successful labour relation

Top Management Support Sound Personnel Policies Adequate Practices should be developed by professionals

Detailed Supervisory Training

Follow-up of Results

WHAT IS DISPUTE?
Every human being has certain requirement like economic

needs, social needs, security requirements. When these requirement do not get satisfied then result is DISPUTE between worker & capitalist/employer. Dispute is a type of human behavior which occurs when two or more parties are in opposition or in battle.

Dispute in Industries
Industrial dispute means any dispute or difference between employee and employer or between employers & workmen or between workmen and workmen, which is connected with employment or non employment of the terms of employment or the condition of work of any person.

Type of industrial dispute

Industrial dispute

INDIVIDUAL DISPUTE
(Such as dispute related to reinstatement, compensation etc.)

COLLECTIVE DISPUTE (Such as dispute related to wages, bonus, profit sharing, hours of work etc.)

Causes of industrial disputes

1. Psychological causes Authoritarian leadership ii. Clash of personalities iii. Difficulty in adjusting in given condition or with each other iv. Strict discipline v. Demand for self respect & recognition by workers
i.

2.Institutional causes Non recognition of trade/labour union by the management ii. Matter of collective bargaining iii. Unfair condition and practices iv. Pressure on workers to avoid participation in trade unions.
i.

3.Ecomnomic causes

(a)Terms & condition of employment: i. Dispute on promotion, lay off, retrenchment ii. More work hours iii. Working in night shift

(b) Working condition : i. Working condition such as too hot, too cold, dusty, noisy etc ii. Improper plant and work place layout iii. Frequent product design changes etc.

(c) Wages & other benefits : i. Inadequate wages ii. Poor fringe benefits iii. No bonus or other incentive etc. (d) Denial of Legal & Other Right of Workers i. Proceeding against labour law and regulation ii. Violation of already made agreement

Result of industrial disputes

1) Strike
2) Boycott 3) Picketing 4) Gheraos 5) Lockout

6) Termination of service of striking employees

What is collective bargaining?

Collective bargaining is a technique used for compromising the

conflicting interests of employees and employer.

It is called collective because the employees as a group select

representatives to meet and consult with management.

Characteristics of collective bargaining

Group action
Flexible and mobile

Two party process

Continuous process

Characteristics of collective bargaining

Dynamic
Industrial democracy at work

Not a competitive process

An art

Importance of collective bargaining

Increase the economic strength of unions and management Maintaining stable peace in the industry Avoid interruptions in work like strikes, go-slow tactics etc. Lay down fair rates of wages and norms of working conditions

Forms of collective bargaining

Single plant bargaining
Multiple plant bargaining

Multiple employee bargaining

Forms of collective bargaining in India

Negotiated by officers
Negotiated by parties

Negotiated on voluntary basis

Conditions for success of collective bargaining

Equal bargaining power of trade union and management
Free consultation and free enterprise

Representative union
Mutual confidence and good faith in each other

Proactive approach by management

Conditions for success of collective bargaining

Quick disposal of issues
Successful implementation of previous agreements

Workers should think beyond salaries

Emphasis upon Problem solving, Not legalism Union cooperation

Functions of collective bargaining

Increase the Economic strength of employees and management
Establish uniform conditions of employment

Secure a prompt and fair redressal of grievances

Lay down fair rates of wages and other norms of working

conditions

Functions of collective bargaining

Promote the stability and prosperity of company
It provides a solution to the problem of sickness in industry and

ensures old age pension benefits

It extends the democratic principles from political to industrial

field

Collective bargaining process

There are following stages in collective bargaining,
(i) Identification of problem

(ii) Preparing for negotiations

(iii) Negotiations of agreement (iv) stage of contract administration

Reasons for shift towards individual bargaining

Declining role of trade unions
Proactive approach used by organisations

Competency based salaries and benefits

Shift in loyalty from organisation to profession Increased rate of employee turnover