Human Resource Management
Module 11
Industrial Relations
11.1 INTRODUCTION
Industrial relations are the relations between two or more
employers, two or more employees productive and healthy
atmosphere in the industry and protect the social and
economic condition of a country, or employers & employees.
Employers, employees and the government are three parties
related to industrial relations. It helps in motivating
employees, which further leads to an increase in their
productivity.
2
11.2 FUNDAMENTALS OF INDUSTRIAL
RELATIONS
Industrial relations consist of two different terms, industry and
relations. An industry refers to any productive activity by any
individual or group of individuals.
• According to Dale Yoder, industrial relation refers to a
relationship between management and employees or among
employees and their organization that characterizes and
grows out of employment.
3
11.2.2 ESSENTIALS FOR EFFECTIVE INDUSTRIAL
RELATIONS
Harmonious industrial relations depend on employees
and employer’s relationship in an industry. A supportive
interaction between the two is an outcome of congenial
working conditions.
The health of industrial relations also depends on the
abilities of trade unions and employers’ associations.
4
The following are the requisites for maintaining effective industrial
relations:
• Effective trade unions
• Effective regulations
• Maintenance of healthy working conditions
• Protection of employees’ interests
5
11.3 INDUSTRIAL DISPUTES
Industrial Dispute means any dispute or difference between
employers and employers or between employers and
workmen, or between workmen and workmen, which is
connected with the employment or non-employment or the
terms of employment or with the conditions of labor, of any
person.
6
11.3.1 SETTLEMENT OF DISPUTES
The most effective tools for the settlement of industrial disputes are as follows:
• Consultation
• Conciliation
• Voluntary arbitration
• Adjudication
• Collective bargaining
7
11.4 COLLECTIVE BARGAINING
Collective bargaining is a type of negotiation between
employees and employers. It is done collectively for all
employees instead of individual employees. This involves
negotiation over a common interest of employees and
employer. The representatives of both the parties engaged
in collective bargaining perform this function. They mutually
agree on any issue in this process.
8
11.4.1 TYPES OF COLLECTIVE BARGAINING
Collective bargaining establishes regulation on both, the employer
and employees, to arrive at a mutual benefit.
Distributive Supportive Productive
bargaining bargaining bargaining
Combined
bargaining
9
11.4.2 IMPORTANCE OF COLLECTIVE
BARGAINING
The approach of collective bargaining in resolving industrial
life disputes is quite significant. Trade unions approach the
deployment of their functions through the process of
collective bargaining together with the representative of the
management. This approach benefits the employee,
employer and the society as a whole. Following points
explain the benefits of collective bargaining for the
employee, employer and the society:
10
• Employee’s benefit:
• Provides respect to employee views
• Develops responsibility towards the organisation
• Increases the understanding of workers in industrial issue
and reduces misunderstanding with the employer
• Gives chance to present employees’ point of view before
the employer
• Secures employee benefits from being hampered by the
employer
11
• Employer’s benefit:
• Support to employee motivation and increased
employee morale
• Provide machinery of dispute settlement through a
healthy process
• Reduce the chances of industrial unrest
• Provide two-way communication with the
employees 12
• Social benefit:
• Ensures peaceful and healthy industrial environment
• Supports economic growth through industrial growth
• Stands to be the most significant aspect in industrial relations
• Secures civil rights as well as human rights of individuals
• Restricts the exploitation of labour by management
• Leads to social equality by participation and support in industrial life
13
11.4.3 PROCESS OF COLECTIVE BARGANINING
Identification of the issue
Constitution of parties in negotiation
Determination of particulars
Bargaining
Arriving at mutual agreement
Record keeping
14
11.5 CONCEPTS OF EMPLOYEE WELFARE
According to International Labour Organization,
workers welfare should be understood as services,
facilities and amenities, which may be estimated or in
the vicinity of undertakings to enable employees to
perform their work in healthy and peaceful
surroundings and to avail facilities which improve their
health and bring high morale.
15
11.6 HEALTH ISSUES IN THE WORKPLACE
The health of employees is important for the
organization's success. Employee’s health refers
to the soundness of his or her physical and
mental status. It is directly related to the health of
organisation.
16
11.6.1 TYPES OF HEALTH
The health of an employee is affected by the conditions of
the place at work. The health of an employee can be
divided into two classes as follows:
• Physical health: It involves soundness of physical
conditions of a worker such as body temperature, injuries
and body pain.
• Mental health: This involves soundness of mental
conditions of a worker such as, stress, tension and peace
of mind.
17
11.6.2 SIGNIFICANCE OF EMPLOYEES’ HEALTH
The significance of health is realized only
when it is lost or harmed. According to a
famous saying ‘Health is wealth’, an
employee’s health is not only wealth for him
or her, but also for the organisation he or she
works for.
18
11.6.3 LEGAL PROVISIONS FOR HEALTH IN
INDIA
There are legal enforcements regarding the
maintenance of health condition of employees at work
place.
Every employer is bound to provide essential facilities
for keeping employees in a good health condition.
19
Health Provisions Under Factories Act, 1947
Section 11 to 20 of the Factories Act, 1947 deal with
provisions related to the health of the employer employed in
a factory. The major provisions under the Act are discussed
as follows:
• Cleanliness (Section 11)
• Disposal of wastes and effluents (Section 12)
• Ventilation and temperature (Section 13)
20
• Dust and fume (Section 14)
• Artificial humidification (Section 15)
• Overcrowding (Section 16)
• Lighting (Section 17)
• Drinking water (Section 18)
• Latrines and urinals (Section 19)
• Spittoons (Section 20)
21
11.7 EMPLOYEES’ SAFETY IN THE
WORKPLACE
The safety of an employee relates to protecting
employees from risk of any industrial accident. Every
employer is legally responsible to provide and maintain
adequate safe and healthy work environment to
prevent any industrial accident. An employee is safe if
he or she is protected from any type of harm or loss
that may take place during the working hours in an
organisation.
22
11.7.1 INDUSTRIAL ACCIDENTS
An industrial accident is an unexpected and unforeseen event
that happens within an industrial establishment, causing loss and
damage to employees working in that establishment. The
damage can be in the form of bodily injury, loss of any ability
partially or fully, and loss of life of an employee.
23
Types of Industrial Accidents
The industrial accidents can be categorized based on severity
involved in it. In this regard, there are two categories of accidents
described as follows:
• Minor accidents
• Major accidents
24
11.7.2 LEGAL PROVISIONS FOR SAFETY
Provisions for Safety Under the Factories Act, 1947
Fencing of machinery
Work on or near machinery in motion
Employment of young persons on dangerous machines
Striking gear and devices for cutting off power
25
Self-acting machines
Casing of new machinery
Prohibition of employment of women and children near cotton-openers
Hoist and lifts
Lifting machines, chains, ropes and lifting tackles
Revolving machinery
26
Safety Provisions under Mines Act, 1952
The safety of workers employed in mines is regulated
through provisions under Mines Act. These provisions are
applicable to all types of mines including coal, atomic,
minerals and oil mines. It provides for establishment of
the Directorate General of Mines safety to frame rules
and enforce them to the safety of mining workers.
27
The major provisions under the Act necessarily involve the
following:
• Periodic inspection of mines to ensure safe working
conditions.
• Investigation into industrial accidents, dangerous processes
and complaints reported by workers related to the work
conditions.
• Granting statutory permissions for some specific mining
operations.
• Developing safety legislation and standards.
• Ensuring that safety measures are being followed by
workers
28
29