2. CONTENTS:
Meaning of industrial relations.
Causes of disputes.
Methods of settlement of disputes.
Trade union.
Functions of trade union.
3. INDUSTRIAL RELATIONS (IR)
MEANING:
Industrial relations is concerned with the relationship
between management and workers and the role of
regulatory mechanism in resolving any industrial
dispute.
Industrial relations are governed by system of rules
and regulations concerning work, work place and
working community.
4. CAUSES OF INDUSTRIAL DISPUTES
1) Wage demands.
2) Retrenchment.
3) Union rivalry.
4) Political interference.
5) Unfair Labour practices.
5. WAGE DEMANDS
By far, the most important cause for dispute
relates to wages. The demand for wages has
never been fully met because of inflation and
high cost of living.
Since cost of living index is increasing workers
generally bargain for higher wages to meet the
rising cost of living index and to increase their
standard of living.
6. RETRENCHMENT
When the employers dismiss or demote any
worker or group of workers, all the workers of
the establishment join together against the
employer and so dispute erupts.
7. UNION RIVALRY
Multiplicity of unions leads to inter-union
rivalries. If one union agrees to a wage
settlement, another union will oppose it. The
consequence is never ending disputes.
8. POLITICAL INTERFERENCE
Major trade unions are affiliated to political
parties.
Each political party, somehow engineers
strikes and bandhs to demonstrate its
political strength.
Invariably, the political party which is in
power favors that trade union organisation
which is affiliated to it. And results in labour
conflicts and disputes.
9. UNFAIR LABOUR PRACTICES
Some of the disputes are management inspired. The
following points justify the assertion:
• Disinterest of management to discuss with the
workers and their representatives.
• Taking management side by the management
officials while discussing the issues.
• Disinterest of management in involving the
workers in decision-making
10. METHODS OF SETTLEMENT OF
DISPUTES
1. Collective bargaining
2. Code of discipline
3. Grievance procedure
4. Arbitration
5. Conciliation
6. Adjudication
7. Consultative machinery
11. 1. COLLECTIVE BARGAINING
Collective bargaining is probably the most
effective method of resolving industrial disputes.
It occurs when representatives of a labour union
meet management representatives to determine
employees’ wages and benefits, to create or
revise work rules, and to resolve disputes or
violations of the labour contract.
12. 2. CODE OF DISCIPLINE
In this method, the duties and responsibilities of
both the parties are defined. When these norms are
strictly followed, the probability of disputes can be
reduced.
The main objectives of the code are:
• To promote co-operation between parties.
• To eliminate all forms of coercion, intimidation,
and violence in IR.
• To avoid work stoppages.
• To maintain discipline in industry.
13. 3. GRIEVANCE PROCEDURE
Grievance procedure is a step by step process an
employee must follow to get his or her complaint
addressed satisfactorily. In this process, the formal
(written) complaint moves from one level of authority
to the next higher level.
Grievance procedure is a formal communication
between an employee and the management designed
for the settlement of a grievance. The grievance
procedures differ from organization to organization.
14. 4. CONCILIATION
Conciliation is a process by which representatives
of workers and employers are brought together
before a third party with a view to persuade them
to arrive at an agreement by mutual discussion
between them.
The third party may be one individual or a group
of people. The alternative name for third party is
mediators.
15. 5. ARBITRATION
Arbitration is a procedure in which a neutral third party
studies the bargaining situation, listens to both the parties
and gathers information, an then makes recommendations
that are binding on the parties.
Arbitration is effective as a means of resolving disputes
because it is:
I. Established by the parties themselves and the decision is
acceptable to them,
2. Relatively expeditious when compared to courts or
tribunals. Delays are cut down and settlements are speed
up.
16. 6. ADJUDICATION
Adjudication means a mandatory settlement of
an industrial dispute by a labour court or a
tribunal.
Section 10 of the Industrial Disputes Act, 1947,
provides for reference of a dispute to labour court
or tribunal.
The system of adjudication is the most
significant instrument of resolving disputes. But,
it has been criticized because of the delay
involved in resolving disputes.
17. 7. CONSULTATIVE MACHINERY
Towards the end it is essential to refer to the
Consultative machinery set by the government
to resolve conflicts.
Consultative machinery refers to bipartite and
tripartite bodies operating at the plant, industry,
state and national levels.
The purpose of these bodies to bring the parties
together for mutual settlement of disputes.
18. TRADE UNION
A Labor union, or trade union, is an organization of
workers who have joined together to achieve goals in
areas such as wages and working conditions.
The union negotiates contracts and conditions with
employers, keeping employee satisfaction high and
protecting workers from unsafe or unfair working
conditions.
19. WHY DO WORKERS JOIN UNIONS ?
To attain economic security.
To improve their bargaining power and
balance it with that of management.
To inform worker’s views, aims, ideas and
dissatisfaction to the management.
To secure protection from unexpected events
like illness, accidents, injury etc..
To satisfy social needs.
20. FUNCTIONS OF TRADE UNIONS
The National Commission on Labour has pointed out the
following basic functions:
To secure for workers fair wages.
To safeguard interest of the workers.
To establish contacts between workers and employers
To enlarge opportunities for promotion and training.
To improve working and living conditions.
To provide educational, cultural and recreational
facilities.
To promote individual and collective welfare.
