This document discusses industrial relations in India, including employment trends from 1991-2015. It notes that while primary sector employment declined, secondary sector elasticity increased marginally to 0.68 from 2009-2012. Tertiary sector elasticity also declined. This "jobless growth" means increased output does not proportionately increase jobs. The roles of employees, employers, government, and unions in industrial relations are described. Objectives include avoiding conflict and improving productivity and living standards. Causes of poor relations and ways to develop healthy relations are provided.

1. Industrial Relations
Introduction
By
Dr. Anugamini Srivastava

2. Population

3. Gross Domestic Product

4. Employed persons

5. Unemployment rate

6. 1991 2015
Increase of 151
million labors
337 million 488 million

7. by

9. Employment elasticity
• The percentage change in employment due to percentage change
in output or GDP.
• The extent to which employment can increase due to an increase
in GDP.
• E.g. Employment elasticity means that for every Rs. 100 increase
in GDP, only 4 new employment opportunities were created in
this period

10. Primary sector
• Primary sector (agriculture) absorbs
bulk of the workforce, but due to
stagnant productivity and other factors
the ability to create new jobs waned in
this sector over the years.
• employment elasticity became negative
(-0.05) during 2004-05 to 2009-10, and
further deteriorated to (-0.29) during
2009-10 to 2011-12.

11. Secondary sector
• On the other side, secondary
sector witnessed a continuous
increase in employment elasticity,
though the increase has been
marginal.
• In 2009-10 and 2011-12, elasticity
in secondary sector (industry) was
0.68, which means that almost 70
per cent employment generation
is possible for 100 per cent
increase in output/production in
secondary sector.

12. Tertiary sector
• Tertiary sector was high
during the early 1990s, but
since then it has been
showing a downward
trend.
• It decreased from 0.57
during 1983 to 1993-94 to
0.10 during 2009- 10 to
2011-12.

13. “Jobless Growth” - less labour absorbent
• Gross deterioration of employment
elasticity in primary sector means that any
effort to improve the productivity or output
in the primary sector results into net job
loss.
• Policy and other economic boosts for
secondary sector (industry) are needed to
revive employment generation.
• Any rise in tertiary (services) output will
not be able to create adequate proportional
increase in employment.

14. ‘Jobless growth’ will only ensure that the
demographic dividend becomes a demographic
curse.
Jobs increase
• Paytm- mixing technology with banking
• Payment banks
• Educational courses and vocational courses
Job decrease
• Nokia – shut down
• Zomato – 10 % layout
• IT sectors – salary reduction; retrenchment

15. Industrial relations
EMPLOYEESEMPLOYER

16. Industrial relations
EMPLOYEESEMPLOYER
GOVERNMENT

17. Industrial relations
EMPLOYEESEMPLOYER
GOVERNMENT
Trade Unions

18. Industrial relations
EMPLOYEESEMPLOYER
GOVERNMENT
Trade Unions
Employer associations

19. EmployeesEmployer
Government
Trade Unions
Employer
associations
Courts and tribunals

20. Definition
• The term „Industrial Relations‟ comprises of two terms: ‘Industry’
and ‘Relations’
• “Industry” refers to “any productive activity in which an
individual (or a group of individuals) is (are) engaged”.
• By “relations” we mean “the relationships that exist within the
industry between the employer and his workmen.

21. Role of employee
• To redress the bargaining advantage on one-on-on basis
• To secure better terms and conditions for their members
• To obtain improved status for the worker in his/her work
• To increase implementation of democratic way of decision making at various
levels

22. Role of employer
• Creating and sustaining employee motivation
• Ensuring commitment from employees
• Negotiating terms and conditions of employment with TU leaders
• Sharing decision making with employees

23. Government
• Labor policies
• Labor laws
• Industrial tribunals
• Wage boards
• Industrial relations policy

24. Objectives of IR
• Safeguard the interest of labor and management
• Securing mutual understanding and good-will
• Avoid industrial conflict or strife and develop
harmonious relations.
• Raise productivity
• Reduce turnover and frequency absenteeism.
• Improve the economic conditions of workers
• Provide better wages and living conditions to labor.
• Bring government control over plants where losses are
running high, or where products are produced in the
public interest

25. Causes of poor IR
• Attitude of the management towards the workers
• Inadequate wages or 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.
• Separations
• Inter-union rivals.

26. Ways to develop healthy IR
• Developing trust between Labor & Management
• Maintenance of Industrial Peace
• Continuous feedback & monitoring
• Professional approach
• Existence of sound, democratic TU