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Industrial relation means the relationship between employers and employees in

course of employment in industrial organisations. However, the concept of Industrial


Relations has a broader meaning. In a broad sense, the term Industrial Relations
includes the relationship between the various unions, between the state and the
unions as well as those between the various employers and the government.
Relations of all those associated in an industry may be called Industrial Relations.
According to International Labour Organisation, Industrial relations
comprise relationships between the state on one hand and the employers and
employees organisation on the other, and the relationship among the occupational
organisations themselves.

Definition: According to J.T. Dunlop, Industrial relations are the complex


interrelations among managers, workers and agencies of the government

Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour
unrest is mental laziness on the part of both management and labour. Management is not
sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissezfaire policy, until it is faced with strikes and more serious unrest. Even with regard to methods of
work, management does not bother to devise the best method but leaves it mainly to the
subordinates to work it out for themselves. Contempt on the part of the employers towards the
workers is another major cause. However, the following are briefly the causes of poor industrial
relations:

Mental inertia on the part of management and labour;

An intolerant attitude of contempt of contempt towards the workers on the part of


management.

Inadequate fixation of wage or wage structure;

Unhealthy working conditions;

Indiscipline;

Lack of human relations skill on the part of supervisors and other managers;

Desire on the part of the workers for higher bonus or DA and the corresponding desire of
the employers to give as little as possible;

Inappropriate introduction of automation without providing the right climate;

Unduly heavy workloads;

Inadequate welfare facilities;

Dispute on sharing the gains of productivity;

Unfair labour practices, like victimization and undue dismissal;

Retrenchment, dismissals and lock-outs on the part of management and strikes on the
part of the workers;

Inter-union rivalries; and

General economic and political environment, such as rising prices, strikes by others, and
general indiscipline having their effect on the employees attitudes.

Causes of poor Industrial Relations:


1. Economic causes: Often poor wages and poor working conditions are the
main causes for unhealthy relations between management and labour.
Unauthorised deductions from wages, lack of fringe benefits, absence of
promotion opportunities, faulty incentive schemes are other economic
causes. Other causes for Industrial conflicts are inadequate infrastructure,
worn-out plant and machinery, poor layout, unsatisfactory maintenance etc.
2. Organisational causes: Faulty communications system, unfair practices,
non-recognition of trade unions and labour laws are also some other causes
of poor relations in industry.
3. Social causes: Uninteresting nature of work is the main social cause of poor
Industrial relations. Dissatisfaction with job and personal life culminates into
Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit and
performance, poor interpersonal relations are the psychological reasons for
unsatisfactory employer-employee relations.
Political causes: Multiple unions, inter-union rivalry weaken the trade
unions. Defective trade unions system prevailing in the country has been one
of the most responsible causes for Industrial disputes in the country.
Effects of Bad Industrial Relations
Industrial relations are of great importance in industrial life. These relations have great bearing
on the economic, social and political spheres of our society. If in an organisation, relations
between labour and management are cordial, there will be industrial peace and interests of both
the parties will be automatically safeguarded. However, organisations where industrial relations
are strained, the organisations have to face lot of problems. The atmosphere of such
organisations is always surcharged with industrial unrest leading either to strikes or lockouts.
Organisations which ignore the importance of industrial relations face high cost of production.
Adverse effect on efficiency, low-grade production, negligence in the execution of work,
absenteeism among the workers, high rate of labour turn-over etc. are the evils that result from

poor industrial relations.


Lack of cordiality in industrial relations not only adversely affects the interests of the labourers
and employers but also cause harm to different sections of society. They are faced with lot of
difficulties and problems.
Demerits of bad industrial relations can be expressed as under:

Effect on Workers: (i) Loss of wages, (ii) Physical injury or death on account of violence
during labour unrest, (iii) Excesses by employers, (iv) Economic losses, (v) Bitterness in
relations, (vi) Adverse affect on career.

Effect on Employers / Industrialists: (i) Less production, (ii) Less Profit, (iii) Bad affect
on organisation, (iv) Bad effect on human relations, (v) Damage to machines and
equipments, (vi) Adverse effect on development of companies, (vii) Burden of fixed
expenses.

Effect on Government: (i) Loss of revenue (less recovery of income tax. sales tax, etc.)
(ii) Lack of order in society, (iii) Blame by different parties.

Effect on Consumers: (i) Rise in prices, (ii) Scarcity of goods, (iii) Bad affect on quality
of goods.

Other Effects: (i) Adverse affect on International Trade (Fall in exports and rise in
imports), (ii) Hindrance in Economic Development of the country, (iii) Uncertainty in
economy.

To conclude, it can be said that almost all sections of the society suffer loss in one way or the
other due to bad industrial relations. In order to maintain peace in industrial units it is of utmost
importance that employers and workers should make constant endeavour to establish cordial
human relations.

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