CONCEPT OF INDUSTRIAL RELATIONS:

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. The term industrial relations explains the relationship between
employees and management which stem directly or indirectly from union-employer
relationship.
DEFINITION
Industrial Relations are viewed as the process by which people and their organisation interact
at the place of work to establish the terms and conditions of employment. The process of
interaction stressed not just the resulting standard. Finally, the whole process is viewed as a
system. In order to emphasis the interrelation among people their work, organisation and the
standards in industrial management.

The term Industrial Relations commonly denotes employee-employer relations in both
organized and unorganized sectors of the economy. IR is also know as labour management
relations or labour relations, union management, Human relations

According to J.Henry : Industrial Relation is an art, the art of living together for the purpose of
production.

Nature of IR:-
Emphasize, IR is concerned with the relationship between management and workers and the
role of regulating mechanism in resolving any industrial dispute.

SCOPE

1) IR covers the following areas:
- Collective bargaining
- Role of management, unions and government
- Machinery for resolution of industrial disputes.
- Labour legislation
- IR training
- Grievance and disciplinary policy

2) IR is characteristics by both conflict and co-operation. This is the boris of adverse
relationship. So the focus of IR is on the study of the attitudes, relationship practices and
procedures developed by the contending parties to resolve or at least minimize conflicts.

3) IR is concerned by laws, rules and regulations agree vied conditions, policy framework,
government transactions, co-operation between management and labour.

4.) To raise productivity to a higher level in an era of full employment by labour turn over and
frequent absenteeism.


Importance of Industrial Relation (IR):-

IR is the key for increased productivity in industrial establishment. IR main objectives is to
protect workers interest and to improve their economic conditions.

1. IR pattern organized sector and its impact on unorganized sector.
The pattern of IR in the organized sector of economy has a definite impact on labour-
management relations in the un-organized sector. The trends and pattern established in the
organized sector Spillover or influences the practices of even the most unorganized industries.
This happen because there is always pressure from a variety of groups on unorganized firm to
match its employment and working conditions, benefits etc. with that of organized one.

2. Unions are important force in the Indian political system.
The impact of Indian Trade Union on the political system is much wider than an industry. The
Indian trade unions which are a fall-out of the politician system are invariably used by both the
ruling and opposition parties. In addition, the union sponsored by the ruling party to influence
the legislative process through their interest lobbying activities.

3. Status Difference in the workers of public and private sector.
In India, with the adoption of socialistic pattern of society subsequent acceptance of Industrial
policy resolution of 1956, the public sector was entered with the responsibility to accelerate the
economic development of the country.

4. Cordial atmosphere.
Good IR not only maintain coordinal atmosphere in industry but also facilities production and
industrial growth.

5. Healthy Labour-Management Relations:
The existence of strong, well-organized, democratic and responsible trade unions and
associations of employers. These Organisations enhance the job security of employees, help in
increased and give labour a dignified role in society.

6. Maintenance of Industrial peace:-
Industrial peace can be largely nurtured through the following means:-
Machinery should be set up for the prevention and settlements of industrial disputes.
The government should have the power to refer disputes to adjudication when the situation
tends to get out of hand and is faced with economic collapse due to continue stoppage of
production on account of long strikes/lockouts when it is in the public interest to do so during
periods of emerging or when there is fear of foreign attack or when production needs to be
carried on without interruption.



7. Development of Industrial Democracy:
Recognition of Human Rights in industry. Increase in labour productivity. The availability of
proper work environment. Little to all of us realize that it is the people who creates problem
everywhere and it is only who can find solutions too. If there is a problem from employees
there is a solution also. Viewing every problem seriously resorting the manipulation style of IR
which emphasis the need of the labour.


Perspectives of industrial relations

Unitary perspective
In unitarism, the organization is perceived as an integrated and harmonious system, viewed as
one happy family. A core assumption of unitary approach is that management and staff, and all
members of the organization share the same objectives, interests and purposes; thus working
together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism has a
paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as
unnecessary and conflict is perceived as disruptive.
Pluralistic perspective
In pluralism the organization is perceived as being made up of powerful and divergent sub-
groups - management and trade unions. This approach sees conflicts of interest and
disagreements between managers and workers over the distribution of profits as normal and
inescapable. Consequently, the role of management would lean less towards enforcing and
controlling and more toward persuasion and co-ordination. Trade unions are deemed as
legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed
not necessarily as a bad thing and if managed could in fact be channeled towards evolution and
positive change.Realistic managers should accept conflict to occur. There is a greater propensity
for conflict rather than harmony.
Marxist Perspective
This perspective focuses on the fundamental division of interest between capital and labor, and
sees workplace relations against this background. It is concerned with the structure and nature
of society and assumes that the conflict in employment relationship is reflective of the
structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural
response of workers to their exploitation by capital.

The subject of Labour is placed in the Concurrent List of the Constitution of India, which empowers both
Central and State Governments to make laws on various labour matters. With globalization and
Liberalization there had been many changes in the socio - economic conditions throughout the
World. The open trade policy warranted the Labour laws to be updated to match with the changing
needs. All the Labour enactments are of immense value to the nation as they have a direct bearing with
the common man because Indian industries till date are manpower intensive and Workers are the most
important asset/backbone of the Country whose interest cannot be compromised at any cost. The
Central Labour Laws administered by the IR Division are as under:-

1. Industrial Disputes Act, 1947
2. The Trade Unions Act, 1926
3. The Plantations Labour Act, 1951
4. The Industrial Employment (Standing Orders) Act, 1946
5. The Weekly Holidays Act, 1942
6. The Participation of Workers in Management Bill, 1990

Besides handling the above mentioned Central Acts, the following State Acts are also examined in the
Ministry to ensure whether the amendments proposed by the states are Constitutionally valid; whether
there is any conflict with any existing Central Law, and, if so, whether the conflict may be consciously
permitted; and whether the proposed State enactments involve any deviation from existing national or
Central policy to its detriment, or would be hindrance to enactment of uniform laws for the country.
1. The Shops & Establishments Act.
2. The National & Festival Holidays Act.















Industrialization plays a vital role in the economic development of a Nation and the key resource for any
industry to flourish is its labour. If the workforce is motivated and efficient, they are capable of bringing a
turn around even in industries which are not performing well. It is the responsibility of the State to
safeguard the interests of workers, as envisaged in the Constitution. In order to maintain a balance
between two key factors of the industry, i.e. the management and workers, the entrepreneurs are
required to comply with certain regulations as are laid down in our Labour Laws. This helps to build
confidence amongst the workers and maintains harmonious industrial relations between the two key
partners of the industry.

The Industrial Relations (IR) Division of the Union Ministry of Labour & Employment is committed to
create a harmonious employer-employee relationship in the country. This is achieved through prevention
and settlement of Industrial Disputes, and strict enforcement of Labour Laws in the industrial
establishments falling in the Central sphere. For this purpose, there exists a well defined and effective
Central Industrial Relations Machinery (CIRM). The IR Division is also entrusted with the responsibility of
policy formulation and amendment of various Central Labour Acts which primarily aim at providing an
environment for harmonious industrial relations. The Acts administered by IR Division are The Industrial
Disputes Act, 1947, The Trade Unions Act, 1926, The Plantations Labour Act, 1951, The Industrial
Employment (Standing Orders) Act, 1946, The Weekly Holidays Act, 1942 and two State Acts, viz., The
Shops & Establishments Act and The National & Festival Holidays Act. The IR Division also deals with
applications for permission of Lay-off, Retrenchment and Closure received from industrial establishments
falling under the Central sphere under Chapter V-B of Industrial Disputes Act, 1947.

The IR Division, through the CIRM, carries out General Verification of membership of Trade Unions and
the verification of membership Trade Unions in the industrial establishments falling under the Central
Sphere. The cadre management of the Central Labour Service and administration of Central Government
Industrial Tribunal-cum-Labour Courts (CGIT-cum-LCs) is also the responsibility of this Division.

The IR Division is headed by a Joint Secretary, who is supported by three Officers of the level of
Director/Deputy Secretary and a complement of Officers and Staff.