Industrial

Relations And
Trade Unions

ABIR LAL SAHA.

RASHID QUERESHI.
ANKIT RAI.
MUPPANENI
KISHORE.
ABHILASH BOITAI.
PRITHVI KHANNA.

Industrial Relations

Concerned with the systems, rules and procedures

used by unions & employers to determine the
reward for effort & other conditions of
employment, to protect the interests of the
employed and their employers and to regulate the
ways in which employers treat their employees

The Industrial Relations can be referred to as LabourManagement, Employee-Employer relations.

Importance of Industrial Relations

Uninterrupted production
Reduction in Industrial Disputes
High morale
Benefit to workers and management as well
Improves productivity (or) Reduces Wastage
Foster Industrial Peace
Promote Industrial Democracy

Unitary Approach
Union

co-operate with the mgt. & the mgt.s right to manage is accepted
They seek direct negotiations with employees.
Assumption: Common interest & promotion of harmony No strikes
are there.

Pluralistic Approach
It perceives:

Trade union as legitimate representatives of employee interests.

Stability in IR as the product of concessions and compromises between mgt. &
unions.

Conflict between Mgt. and workers is understood as inevitable.

Conflict is also viewed as very useful for innovation and growth.

Marxist Approach

Regard conflict as Pluralists

Marxists see conflict as a product of the capitalist society.

Conflict arises due to the division in the society between those

who own resources and those who have only labor to offer.

For Marxist all strikes are political.

Parties Involved in Industrial

Relations
Trade Union

Employees

Employers

Government

Industrial
Relations

Employer
Associations

Courts &
Tribunals

Employees

To redress the bargaining advantage on one-on-one 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.

Employers

Creating and sustaining employee motivation

Ensuring commitment from employees

Negotiating terms and conditions of employment with TU

leaders

Sharing decision making with employees

Employers Association

Develop healthy and stable industrial relations.

Promote collective bargaining at different levels.
Bring a unified employers viewpoint on the issues of industrial
relations to the government in a concerted manner.
Represent in the meetings of ILC and SLC boards in conformity
with tripartite approach to labour matter.
Employers Associations are formed to promote and protect
interests of employers in Trade and industry.

Employers Association

Primary Objective

Promote and protect the interest of employers engaged in industry,

trade and commerce in India.

Study, analyse and disseminate information relating to labour

policy, labour management relations, collective bargaining, etc.

Offer advice concerning various aspects of labour policy.

Liaise with Union Government and initiate steps that are

representative and legislative in nature.

Employers Association

Secondary Objective

Train and develop staff and members.

Obtain data on wages and conditions of work in industries

attached to them. Come out with surveys, research-based
reports on issues of importance to both labour and
management.

Take up projects for social and family welfare.

Employers Association

Secondary Objective

Deal with safety and health at work place and working

environment.

Initiate steps to improve public image and improve public

relations.

Educate the public regarding the character, scope, importance

and needs of trade, industry and commerce represented by
members.

Role Of Government

The State, as of today, regulates the relationship

between the management and the Labour and seeks to
protect the interests of both the groups. The
government has set up wage boards, Labour courts,
tribunals and enacted laws to lay down norms and to
enforce their compliance.

Factors Affecting Employee Relations

Strategy

Internal Factors

The attitudes of managements to employees and unions.

The attitudes of employees to management.
The inevitability of the differences of opinion between
managements and unions
The extents to which the management can or wants to
exercise absolute authority to enforce decisions affecting the
interest of employees.

Factors Affecting Employee Relations

Strategy

Internal Factors

The present and likely future strength of unions.

The extent to which there is one dominating union or the
existence of multiple unions leading to inter union rivalry.
The extent to which effective and agreed procedures for
discussing and resolving grievances or handling disputes exist
within the company

Factors Affecting Employee Relations

Strategy

Internal Factors

The effectiveness of managers and supervisor in dealing with

the problems and disputes related to industrial relations
The prosperity of the company, the degree to which it is
expanding, stagnating or running down and the extent to
which technological changes are likely to effect employment
conditions and opportunities.

Factors Affecting Employee Relations

Strategy

External Factors

The militancy of the unions-nationally or locally.

The effectiveness of the union and its officials and the extent
to which the officials can and do control the activities of
supervisors within company.
The authority and effectiveness of the employers association.

Factors Affecting Employee Relations

Strategy

External Factors

The effectiveness of any national or local procedure

agreements that may exists.
The employment and pay situation nationally and locally.
The legal framework within which Industrial Relations exits.

Trade Union

Formed to protect and promote the interests of their

members
Primary function is to protect the interests of workers
against discrimination and unfair labor practices

Trade Union
Objectives:
Representation (Workers Interests)
Negotiation (Collective Bargaining)
Voice in decisions (Lay off, Retrenchment) affecting
workers
Member Service (Education, Training, Welfare,
Discounts, Loans)

Trade Union
Functions
Militant functions
Fraternal functions

Its Importance

For industrial peace

Decisions taken through the process of collective bargaining and

negotiations between employer and unions are more influential
Effective communication between the workers and the management

Economic development

Recruitment & selection

Discipline among workforce
Settlement of ID in rational manner

Its Purpose

Employment Protection and Job Creation.

Economic Protection.
Social Status - Identity.
Political Role - Democratic Institution
Societal Obligation - Transformation.
Competitiveness / Sustainable Development.

Advantages and Benefits

Sense of Belongingness
Platform for self expression
Betterment of relationships
Sense of Participation
Sense of Security
Greater Bargaining Power
Minimize Discrimination

Growth Of Trade Union In India

Trade unions are organizations of workers formed to

protect the rights and interests of workers through
collective action.
In India, the first quarter of the 20th century gave the
birth of the trade union movement.A series of strikes
were declared in India in the twenties. The success of
most of these strikes led to the organization of many
unions.

Growth Of Trade Union In India

In 1920, the All India Trade Union Congress (AITUC) was set up. In 1926, the
Trade Unions Act was passed which gave a legal status to the registered trade
unions.

Subsequently many trade unions were formed such as:

Indian National Trade Union Congress (INTUC),
Centre of Indian Trade Unions (CITU),
Hind Mazdoor Sabha (HMS),
Bharatiya Mazdoor Sangha (BMS),
United Trade Union Congress (UTUC), and
National Federation of Independent Trade Unions (NFITU).

Growth Of Trade Union In India

It was not until the close of First World War, that the
modern trade Union movement really took permanent
roots in Indian Soil.
The establishment of Bombay Mill Hands Association is
considered as the first phase of the trade union
movement in India. In 1905, the Printers Association of
Calcutta and Dock Union Board in Bombay were formed.

Growth Of Trade Union In India

There was labour unrest in India at the end of the First

World War. In several industries, the workers went on
strikes to secure wage increases. The Russian
Revolution and the Industrial Labour Organization have
inspired the Indian labourers to launch trade unions like
the Spinners Union and Weavers Union which had been
established in Madras and Ahmedabad respectively.

Growth Of Trade Union In India

But the important step in the history of Indian trade

unionism was the foundation of All India Trade Union
Congress in 1920. There had been a steady progress of
trade union movement in India. However, the decision
of the Madras High Court that the formation of trade
union is illegal stood in the way of its development.

Problems for Trade Union

Finance.

Low Membership.

Lack of interest.

Trade union leadership

Multiple Unions.

Problems for Trade Union

Union Rivalry.

Heterogeneous nature of labour.

Absence of paid office bearers.

Illiteracy .

Uneven Growth.

Thank You For Your Time