43977424 Industrial Relations Ppt
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INDUSTRIAL RELATIONS Abin Manuel S4 MBA Group 1
Contents • • • • • • •
Industrial Relation Meaning and Definition Participants in IR Objectives of IR Scope and Nature of IR Importance of Industrial Relations Contemporary issues in IR Measures to Improve IR 2
Simply the relationship between employer and employee is called Industrial Relation. But it also covers the relation between employer vs. employer and employees vs. employees. To safeguard the interests of the all the parties, harmonious relationship is necessary for both employers and employees of the production. In order to maintain good relationship with the employees, the main functions of every organization should be to avoid any dispute with them or settle it as early as possible, so as to ensure industrial peace and harmony with higher productivity. The Industrial Relation relations is also called as labor - management, employee-employers relations. 3
Definitions Industrial Relation deals with the manpower of the enterprise and the management which is concerned with – whether machine operator, skilled worker or manager. Industrial Relation is a relation between 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.” - Industrial dispute Act 1947 4
PARTIES TO IR EMPLOYERS
COURTS & TRIBUNALS 5
Three main parties are directly involved in industrial relations: Employers: Employers possess certain rights vis-à-vis labors. 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. Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts. 6
• Industrial relations are characterized by both conflict and co-operation. So the focus of industrial relations is on the study of the attitudes, relationships, practices and procedures developed by the contending parties to resolve or at least minimize conflicts.
OBJECTIVES OF IR • To enhance economic status of worker • To avoid industrial conflicts and their consequences • To extend and maintain industrial democracy • To provide an opportunity to the worker to have a say in the management decision making 8
• To regulate production by minimizing conflicts • To provide forum to the workers to solve their problems through mutual negotiations and consultations with management • To encourage and develop trade union in order to develop workers collective strength
NATURE OF IR • IR arise out of employer employee relations • IR is a web of rules: formed by the interaction of Govt, industry & labor • IR is multi dimensional: influenced by complex set of institutional. economic & technological factors 10
• IR is dynamic and changing: keep pace with employee expectations, trade unions, employer associations and other economic and social institutions of society • IR is characterized by forces of conflict and compromise. Individual differences and disagreements resolved through constructive means. • Govt influences and shapes IR: with its laws, rules, agreements through executive and judicial machinery 11
• Scope of IR is very wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining, participatory schemes and dispute settlement mechanism etc • Interactive and consultative in nature: in resolving conflict, controversies and disputes between labor and management.
SCOPE OF IR Scope • The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labour management relations, creating industrial peace and developing industrial democracy
The cordial and healthy labour management relations could be brought in• by safeguarding the interest of the workers; • by fixing reasonable wages; • by providing good working conditions; • by providing other social security measures;
• by maintaining healthy trade unions; • by collective bargaining. The industrial peace could be attained – • by setting industrial disputes through mutual understanding and agreement; • by evolving various legal measure and setting up various machineries such as Works Committee, Boards of Conciliation, Labour Courts etc. 15
The industrial democracy could be achieved – • by allowing workers to take part in management; and • by recognition of human rights.
Importance of Industrial Relations The healthy industrial relations are key to the progress and success. Their significance may be discussed as under1. Uninterrupted production – The 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 the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. 17
• 2. Reduction in Industrial Disputes – Good industrial relation reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
• 3. 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 co19 operative efforts alone can produce great results.
• 4. 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. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. 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 employer’s authority. It will naturally have impact on production because they recognize the interest of each other. 20
• 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.
Contemporary issues in IR • Low Wages. Low wages have been a perennial problem and have been a source of industrial dispute for years despite the existence of Payment of Wages Act and the Minimum Wages Act. The acts do not seem to be solving the problem due to their poor implementation. In many of the factories, workers are still given wages below subsistence level, which leads to high degree of dissatisfaction and subsequent decrease in productivity. In many industries, the minimum wages have not been revised at par to compensate for it.
• Ignorance and illiteracy. Various labour laws that have beer made would be beneficial to the workers if implemented properly. For this it is important that the workers themselves understand the underlying principles and provisions of the law and demand whatever is due to them. With high rate of ignorance and illiteracy prevailing among the workers, it car be imagined how many of them know about the laws. It is here that the exploitation of workers takes place and legal provisions are ignored totally.
Industrial Housing. Another burning issue in the industrial relations field is that of accommodation to the industrial employees. Here the problem is that the firms are not able to provide accommodation to the employees and further that the house rent allowance (HRA) that they provide is not sufficient to keep pace with the ever -rising demands of the landlords Child Labour. The law requires that no child below the age of 14 is allowed to work in any factory and the adolescent is not allowed to work in hazardous conditions. The Supreme Court has passed a ruling strictly prohibiting the employment of children in any kind of factory. But still one finds instances of violation of law.
• Employment of Women. In the Indian cultural setup, the employment of women is a major problem even though things have started changing in the recent times. There are special provisions regarding the employment of women in the Factories Act, which prohibit employment of women during the night shift and also on heavy machinery. Under the Equal Remuneration Act, women are entitled to equality of wages at par with the male workers. Some employers don't follow the above provisions in letter and spirit and continue to exploit the women workers by virtue of their strong position and because of mass illiteracy and superstition among the women workers.
Measures to Improve IR • • • • • • • •
Progressive Management out look Strong & Stable Unions Mutual Trust. Mutual Accommodation Sincere Implementation of Agreements Workers participation in Management Sound personnel policies Government's Role. 26
• 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.
Thank You Have a Great Day Ahead.