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Industrial Relations : Introduction
• Labour management relation, employee
employer relations, union management relations,
personal relations, human relations and so on.
• IR is the relationship between employees and
management in the day - to - day working of
• IR describe relationships between management
and employees or among employees and their
organisations that characterise or grow out of
Three main participants in IR
• Workers and their organisation: trade union
• Employers and their organisation: Associations
• Government: plays an increasing role in IR by protecting
the interest of employees and employers.
Pakistani Constitution and IR
Constitutional rights : adequate means of livelihood,
equal pay for equal work, similar working conditions,
living wages, etc.
• Article 11 of the constitution prohibits all forms of
slavery, forced labour & child labour;
• Article 17 provides for a fundamental right to
exercise the freedom of associated form unions;
• Article 18 proscribes the right of its citizens to enter
upon any lawful profession or occupation and to
conduct any lawful trade or business;
• Article 25 lays down the right to equality before the
law and prohibition of discrimination on the grounds
of sex alone;
Article 37(e) makes provision for securing just and humane conditions of
work ensuring that children and women are not employed in vocations
unsuited to their age or sex & for maternity benefits for women in
The Modern IR Concept
Ownership Focus Means Result /
Govt & Big
Hire and Fire
Objectives of IR
• Develop and retain employee-employer relationship.
• To enhance the economic status of the worker by
improving wages, benefits and by helping the worker
in evolving sound budget.
• To regulate the production by minimizing industrial
conflicts through state control.
• To socialize industries by making the government as
Objectives of IR cont…….
• To provide an opportunity to the workers to have
a say in the management and decision-making.
(workers participation in decision making)
• To improve workers as strength with a view to
solve their problems through mutual negotiations
and consultation with the management.
• To avoid industrial conflict and their
• To extend and maintain industrial democracy.
Conditions for Good IR
• Past record of IR
• Satisfaction of economic needs of workers
• Social and psychological needs of workers
• Off-the-job conditions of workers
• Strong and enlightened labor unions
• Negotiations skills & attitudes of workers and
• Public policy & legislation
• Education, training and development
• Inter-personal relations
Factors affecting Industrial Relations
• Institutional Factors – State policy, labour
laws, collective bargaining agreement, labour
• Economic Factors – type of business
organization sole proprietorship, partnership,
MNC, Govt Economic Policies, labour supply in
• Social Factors – Cast, colour, social values,
norms, social status
• Technological Factors – introduction of new
and improved technology
• Psychological Factors – owners attitude,
perception of workforce, motivation, morale.
• Political Factors – political system, system of
government political philosophy, attitude of
government towards trade unions.
• Global Factors – international relations, global
conflicts, international labour agreements.
• Tripartism: Consultancy.
• Encouragement of Voluntarism: govt given code
of discipline, code of conduct and code of
efficiency and welfare.
• Interventions: Government also plays an
interventions role, in the form of conciliation and
• Employer: Government also plays the role of
Evolution of IR in India
• Employee – employer relationship
• Employers are the people who own the
instrument and material of production and
employ the workers.
• Relationship between employee-employer was
informal, personal and intimate since the
business and industrial establishments were
• The growth of the giant sized joint stock
companies and business corporations, which
employed thousands of workers changed the
• In India occupations were carried on by small
manufacturers in their cottages, mostly on
• Slavery was common.
• Master-slave relations later on converted to
• The Indian craft and arts were badly damaged
during the invasions of foreign invaders, which
lasted about 700 years
• After invasion of East India Company in 1883, the
British Industrialist developed some industries
(cotton, jute, railways plantation, coal mines, etc.)
• Industrial relations is a by product of industrial
revolution , it originates from excessive
exploitation of workers by the owners of
• Trade unions were resisted and crushed by
• The first world war is the first milestone
enroute to industrial relations in India.
• After war prices of consumer good goes up
and workers were unable to afford it.
• Other events which accelerated the pace of
– Success of Russian Revolution in 1917
– Formulation of ILO
– AITUC was established in 1920
– In 1924 labour party Government formed in U.K.
– The Indian Trade Union Act 1926
– Royal commission on Labour (1929-31) was
• By the end of 19th century and start of 20th
century govt. started paying attention towards
inhuman working conditions of mine & factory
• British Government set up a Royal Commission
on labour (1929-1931) to conduct a study on the
working conditions of Indian Labour.
• As a result of the same conciliation and
adjudication were formulated.
• After Independence Industrial Dispute Act, 1947
• Which laid down a comprehensive dispute
settlement machinery to be applicable to all
states and passed three important Central Labour
– The Minimum Wages Act 1948,
– The Employees State Insurance Act 1948
– The Employees Provident Funds Act 1952
• Five year plans of India
• In 1969 first National Commission on Labour was
formed and many banks, sick textile mills, sick
steel plants were nationalized.
• New Economic Policies in 1991
• "Trade Union" means any combination, whether
temporary or permanent, formed primarily for the
purpose of regulating the relations between
workmen and employers or between workmen and
workmen, or between employers and employers, or
for imposing restrictive conditions on the conduct of
any trade or business
• Trade unions are formed to protect and promote the
interests of their members. Their primary function is
to protect the interests of workers against
discrimination and unfair labor practices.
• Voice in decisions affecting workers
• Member services
(a) Education and training
(b) Legal assistance
(c) Financial discounts
(d) Welfare benefits
Functions of Trade unions
(i) Militant functions
a) To achieve higher wages and better working
b) To raise the status of workers as a part of
c) To protect labors against victimization and
(ii) Fraternal functions
• To take up welfare measures for improving the
morale of workers
• To generate self confidence among workers
• To encourage sincerity and discipline among workers
• To provide opportunities for promotion and growth
• To protect women workers against discrimination
Importance Of Trade Unions
• Trade unions help in accelerated pace of economic
development in many ways as follows:
– by helping in the recruitment and selection of
– by inculcating discipline among the workforce
– by enabling settlement of industrial disputes in a
– by helping social adjustments. Workers have to adjust
themselves to the new working conditions, the new
rules and policies. Workers coming from different
backgrounds may become disorganized, unsatisfied
and frustrated. Unions help them in such adjustment.
Social responsibilities of trade unions include:
• promoting and maintaining national
integration by reducing the number of
• incorporating a sense of corporate social
responsibility in workers
• achieving industrial peace
Trade Unionism In India
Indian trade union movement can be divided
into three phases.
* The first phase (1850 to1900)
* The second phase (1900 to 1946)
* The third phase (in 1947).
Trade Union Act 25 March 1926
• The trade Unions Act, 1926 provides for registration
of trade unions with a view to render lawful
organisation of labour to enable collective
bargaining. It also confers on a registered trade union
certain protection and privileges.