Industrial relations involves the relationships between employees, employers, and the government within organizational settings. It covers all aspects of the employment relationship, including how employees and employers interact through collective bargaining, grievance procedures, and dispute resolution. Industrial relations aims to establish stable relationships between employers and labor unions while also promoting productivity, employment opportunities, and living standards.

1. Industrial Relations
LAKEN MARAIS
2013

2. What is IR ???
Relationships between employees & employers within the
organizational settings.
Employees: Workers seek to improve the terms and conditions of
employment. They exchange views with management and voice
grievances. They also want to share decision making of
management. Workers generally unite to form unions against the
management and get support from these unions
Employers: Employers possess certain rights. They have the right
to hire and fire them. Management can also affect workers’
interests by exercising their right to relocate, close or merge the
factory or to introduce technological changes.
Government: The central and state government influences and
regulates industrial relations through laws, rules, agreements.

4. IR is concerned with:
Focusing on Collectives (not Individuals):
Management/Labour unions.
How two parties (Employers & Labour Unions) interact with
the State.
IR covers ALL aspects of the Employment relationship:
HR, employee relations, & labour relations.
Major Role: Manage relationship between Employing
organisations & relevant organs of state, e.g. CCMA

6. Impact on Productivity
• Complex relationships arise out of the Workplace which
impacts on productivity
• These Include:
1. Relationships between workers
2. Relationship between workers & their employer.
3. Relationship between employers.
4. Relationships employers & workers have with organizations
formed to promote their respective interests
5. Relations between organizations at all levels.
6. IR deals with processes through which these relationships
are expressed: Collective bargaining, Grievance & Dispute
settlement, Management of conflict between
employers, workers, & trade unions.

7. Levels of IR
NATIONAL
LEVEL
INDUSTRY
LEVEL
• FORMULATION OF LABOUR RELATIONS POLICY:
• e.g. Tripartism, LRA, State.
• COLLECTIVE BARGAINING
• Btw employer organisations & unions, determination of wages, terms of
employment.
• MORE DIRECT RELATIONSHIP
• Btw employers & workers, although unions often represent workers
interests.
ENTERPRISE
LEVEL

9. “Sound” IR System
Employment creation, job
security, increased
employment opportunities.
Raising living standards
through better working terms
& conditions.
Society-wide productivity
improvement, industrial
competitiveness, minimising
workplace conflict, resolution
of industrial conflict through
peaceful means

10. MASLOW HIERARCHY

11. Theoretical Perspectives &
Ideologies of IR
• PLURALIST: Employer & workers have conflicting goals but are
interdependent.
• UNITARISM: Regards the employer & workers as having
similar goals & being committed to achieving those goals.
• RADICALISM: Views workers as owners of capital, & social
corporatism views that employers & workers have the same
goals, who appreciate structured conflict & the presence of
trade unions.

12. Justice Perceptions
• Distributive Justice: Employees must perceive FAIRNESS of
outcomes & distribution of Justice.
• Procedural Justice: Employees must perceive that processes &
procedures are FAIR.
• Interpersonal Justice: Employees must perceive the treatment
they receive from employers as FAIR & they must feel that
they are communicated to about the REASONS for decisions.

13. Power Dynamics
• Power can be INTERPERSONAL or SOCIAL UNIT POWER.
• INTERPERSONAL POWER: Between employer & Employee
• SOCIAL UNIT POWER: Between employers as represented by
employers’ organizations & employees as represented by
trade unions.
• Therefore, Power is gained through:
Reward, legitimacy, coercion, knowledge or reference.

14. Conflict Dynamics
• Dynamic process concerning change, which influences
emotions.
• Caused by:
Different values
Attitudes
Perceptions
Different objectives
Communication obstacles
Lack of resources
Personality differences
• Co-operation & Participation dynamics: Co-operation & jointdecision-making & participation is KEY in employment
relationship to avoid conflict.

15. Factors Influencing Labour
Relations
Social Factors
Political Factors
Economic Factors
Institutional Factors
Micro/Organisational Factors
Technological factors
International Factors

21. Roles/Functions of Trade
Unions
Recruitment of members
Liaising with Union officials
Consulting & Negotiating with employers
Ensuring management sticks to the rules/law
Organising & attending meetings
Participating in workplace forums & health & safety committees
Engaging in Collective Bargaining
Creation of Collective Agreements
Enrolling members to the Union
Discussing workplace problems/issues with management
Acting as liaison between employees & management discussing
valid complaints, ensuring management uses official languages to
communicate to discuss particular resolutions of management with
employees.

23. ………
• Collective process in which representatives of both
management & employees participate.
• Continuous process which aims at establishing stable
relationships between parties involved.
• Not only involves Bargaining agreement, but also
Implementation of agreement.
• Attempts to achieve discipline in the industry.
• Flexible approach, as parties involved have to adopt flexible
attitude towards negotiations.