INDUSTRIAL RELATION AN INTRODUCTION

An Industry..
An Industry means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by an agency Including a contractor) for the production , supply or distribution of goods or services with a view to satisfy human wants. For example any hospital or dispenseries, educational industry , khadi industry ,any government activity related to production etc..

Meaning of IR
Simply the relationship between employer and employee. The relation between employer vs employer and employees vs. employees. The relation between the management and trade union. The relation between the management and the government .

..is the.
..IR is the relationship between the employer and employees ,employees and employees and employees and trade unions and the process by which people and their organizations interact at the place of work to establish the terms and conditions of employment.

IR
IR deals with the manpower of the enterprise and the management which is concerned with whether machine operator, skilled worker or manager. ON the basis of above description one can say that IR has three major variables Workers Managers and Government. IR is also called as labour management relation .

Features
1. Employer Employee interaction-consist of employer employee relation. 2. web of rules- formed by the interaction of the govt, the industry and the labour. 3. Dynamic in nature. 4. interactive and consultative in nature. 5. has wide coverage. 6. Government plays an important role. ************

Importance of IR
Uninterrupted productionThe most important benefit of industrial relations is that this ensures continuity of production .This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in then maximum possible production.

Cont
High morale - Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.

Cont
Mental Revolution - The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other.

Cont..
5. New Programmes - New programmes for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. 6. Reduced Wastage - Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.

In Depth
IR as an association includes various variables like workers, supervisory staff, management and employers. It creates an industrial relationship which affects and influences the economic, social and political life of whole community. It creates a series of social relationships which have an impact not only on the relation between employers and employee but also on the industry as a whole and community at large.

. We can say..
Therefore, IR is an inherent aspect of industrial life and could be classified as: Labor Management relations at plant and industry level. Group relations among various groups of workers. Community relations between industry and society.main purpose being.

Cont.
.. Development of healthy labor management relation Maintenance of industrial peace and avoidance of industrial strife Development and Growth of Industrial democracy.

The function of the IR staff

Administration , including overall organisation, supervision and co-ordination of industrial relations policies and programmes. Liasion with outside groups and personnel departments . The drafting of regulation, rules, laws, orders and their construction and interpretation. Position classification, including overall direction of job analysis, salary and wage administration, wage survey and pay schedules.

Cont
Recruitment and employment of workers and other staff, Employment testing Placement, including induction and assignment Training of apprentices, production workers, foreman and executives. Performance reports and merit ratings.

 Employee counseling, medical and health services, safety services Public relation, employee relation Employee records for all purposes Benefit ,retirement and pension programmes.

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IN Nutshell..
Thus, from the above discussion, it is evident that good industrial relation is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the mass can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship.

Collective Bargaining
.a process by which the representatives of labour organization and the representatives of business organization meet and attempt to negotiate a contract or agreement which specifies the nature of the employee-union relationship. .a process by which employers on the one hand and representatives of employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services.

In depth
CB is a legislative process in the sense that it formulates terms and condition under which labour and management may cooperate and work together over a certain period it is a judicial process as in every collective agreement there is a provision regarding the interpretation of the agreement and how any difference of opinion about the intention or scope of a particular clause is to be resolved..it is also an executive process as both management and union undertake to implement the agreement signed.

Cont
In other words, it is the process to protect the interests of the employers and employees to determine the employment condition ,to fix the wage and salary and achieve the objectives of the organization as a whole.

Process ofCB
six major steps are involved in the process of collective bargaining..It works as follows
4
Identifying bargaining issues Preparation for negotiation Reaching the agreement

2
negotiation

Ratifying the agreement

Administration of the agreement

Cont..
Step 3Negotiation is an art which begins with each side presenting its initial demands .it goes on for days until a final agreement is reached. One of the model proposed by Walton & Mckersie
Basically they distinguish the following four systems of activity or sub-processes in labour negotiations, each having its own function:

A) Distributive Bargaining- This is a straight art haggling over the distribution of the amount.

Cont..
Therefore under this type of bargaining, economic issues like wages, salaries, bonus etc. are discussed. B) Integrative bargaining- in this, issues where no party losses are discussed. Such issues may be a better training programme ,a better job evaluation system etc. C) Attitudinal Structuring- under this the attitude of both parties are shaped and reshaped. For e.g. trust, friendliness or hostility between labour and management are discussed. D) Intra organizational Bargaining in this bitterness is sort out within same horizontal level.

Points to be remembered in Negotiation Process

Composition of the negotiating Team Ready availability of relevant material Good beginning Continuity of talks Problem Solving attitude ****************

Importance of collective bargaining In Management

From a Management point of view- The main object of the org is to get the work done by the employees at minimum cost and thus earn a high rate of profits. Maximum utilization of workers is a must for the effective mgt. For this purpose cooperation is required from the side of the employees and collective bargaining is a device to get and promote cooperation. It is regarded as the best remedial measure for maintain the cordial relationship. From Labour point of view- Labours has a poor bargaining power as a result , employer succeed in exploiting the labour. Through the process of collective bargaining certain restriction are imposed on the employers, which upholds them in exploiting the labour class.

 From trade union point of view- TU are the bargaining agents for the workers. The main function of the trade union is to protect the interests of workers through constructive programmers and CB is one of the devices to attain that objective through negotiations with the employers.

From Govt point of view- Govt is also concern with the process of CB. Govt passes and implements several labour legislation and desires it to be implemented in its true sense. if any persons violates the laws, govt enforces it by force. CB prevents the govt from using any force

CONT.
because an amicable agreement can be reached b/w employer and employees for implementing the legislative provision .Labour problem shall be minimized through CB and industrial peace shall be promoted without any force.

Pre-requisites of CB
Mutual Recognition Mutual accommodation Single strong union Efficient and permanent bargaining machinery Bargainers must have authority Political climate should be favorable.

Structure of CB
It includes..
Wage rate, shift or overtime ,method, period and payment of wage rate, Allowances ,holiday pay, leave with pay Hours of work, holidays ,vacation, leave rules etc Lay-off of workers, demotion,discharge,promotion,transfer, Grievance procedures including steps, time limitations and provision for arbritations.

Cont.
Safety and health facility Setting up of standards for production, methods and procedures Recognition of trade union and its authority Maintaining discipline ,provision for indiscipline, Provision for retirement benefits such as pension, gratuity, Provident fund etc, Bonus, labour welfare ,social securities measures, arbitration clause..etc. *************