INDUSTRIAL RELATIONS OF BUSINESS

1. INDUSTRY
Industry refers to activities
involved in conversion of raw
materials in to useful products

2. Industrial Relations
Industrial relation means the
relationship between employers
and employees in course of
employment in industrial
organizations.

3. According to J.T. Dunlop,
“Industrial relations are the
complex inter-relations among
managers, workers and
agencies of the government”

4. Features of Industrial
Relations:

5. 1. Industrial relations are outcomes of
employment relationships in an
industrial enterprise.
These relations cannot exist without the
two parties namely employers and
employees.

6. 2. Industrial relations system creates
rules and regulations to maintain
harmonious relations.
3. The government intervenes to
shape the industrial relations
through laws, rules, agreements,
terms, charters etc.

7. Objectives of Industrial Relations:
1.Tomaintainindustrialdemocracybasedon
participationoflabourinthemanagementand
gainsofindustry.
2.Toraiseproductivitybyreducingtendencyof
highlabourturnoverandabsenteeism.

8. 3.Toensureworkers’participationinmanagement
ofthecompanyby givingthemafairsayin
decision-makingandframingpolicies.
4.Toestablishaproperchannelof
communication.
5.Toincreasethemoraleanddisciplineofthe
employees.

9. IMPORTANCE OF INDUSTRIAL
RELATIONS

10. Good industrial relations are
necessary for the following reasons:
1. To help in the economic progress of
a country.
The problem of an increase in
productivity is essentially the problem
of maintaining good industrial
relations.

11. 2. To help establish and maintain
true industrial democracy which is
a prerequisite for the
establishment of a socialist
society.

12. 3. To help management
both in the formulation of
informed labour relations
policies and in their
translation into action.

13. 4. To help government in making
laws forbidding unfair practices of
unions and employers.
In a climate of good industrial
relations, every party works for the
solidarity of workers’ movement.

14. 5. To boost the discipline and morale
of workers. Maintenance of
discipline ensures orderliness,
effectiveness, and economy in the
use of resources.
On the other hand, lack of discipline
means waste, accidents, and
confusion.

15. Introduction to Trade
Unions Act

16. According to the Trade Unions Act, 1926,
‘trade union’ means “any combination,
whether temporary or permanent, formed
primarily for the purpose of regulating the
relations between workmen and employers
or between workmen and workmen or
between employers and employers, or for
imposing restrictive conditions on the
conduct of any trade or business

17. Trade Union
Movement in India

18. The trade union movement in India
started with the forming of Bombay Mill
Hands Association in 1890 by N.K.
Lokhands.
In 1897, Amalgamated Society of
Railway Servants, Printers Union of
Calcutta in 1905, Madras and Calcutta
postal Unions 1907 were the other
associations formed in the beginning of
this movement.

19. The primary objective of trade unions is
to promote and protect the interests of
its members. Besides a trade union has
also to accomplish certain social
responsibilities.
It must be remembered that a trade
union besides fighting for the rights of
workers must also see to it that they are
discharging their responsibilities
towards assigned work.

20. Meaning and Definition of
Trade Union:

21. Atradeunionisanassociationofworkersformed with
theobject ofimprovingtheconditionsofworkers.
Itisformed forprotecting theinterestsofworkers.
Workershavelittlebargainingcapacitywhentheyare
unorganized.
Infact,tradeunionmovementbeganagainstthe
exploitationof workers bycertainmanagements
underthecapitalistsystem.

22. objectivesoftrade
unions

23. 1. Ensure Security of
Workers:
This involves continued employment of
workers, prevent retrenchment, lay off or
lock-outs. Restrict application of “fire” or
dismissal or discharge and VRS.

24. 2. Obtain Better Economic
Returns
This involves wages hike at
periodic intervals, bonus at higher
rate, other admissible allowances,
subsidized canteen and transport
facilities.

25. 3. Secure Power To Influence
Management:
This involves workers’ participation
in management, decision making,
role of union in policy decisions
affecting workers, and staff
members.

26. 4. Secure Power To Influence
Government:
This involves influence on government to pass
labour legislation which improves working
conditions, safety, welfare, security and
retirement benefits of workers and their
dependents, seek redressal of grievances as and
when needed.

27. Functions of a Trade Union
1 To secure fair wages to workers.
2. To safeguardsecurity of tenure andimprove conditions of
service.
3. To enlarge opportunities for promotion andtraining.

28. 4. To improve working andliving conditions.
5. To promote identity of interests of workers with their
industry.
6. To offer responsive co-operation in improving levels of
production and productivity, discipline andhigh standards of
quality

29. Role of trade unions

30. 1.Improvingtheirbargainingpower inorderto
createalevelplayingfieldfortheworkers,
2.SupporttoSecuringbetter wagesandbenefitsto
workers,
3.Supporting workersindisputeswiththe
managementthroughnegotiationsandstrikes,
Securingbetterworkingconditionsforworkers,
4.Availingofbetter wages,compensationpackages
andsocialsecuritybenefits,
Regularizationofemployment.