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Industrial relations and labour laws:                                     Bookmark and Share
Industrial relations

Industrial relation refers to the relation between all the parties related to the industry or organization. It is very important to maintain good industrial relation that all the parties cooperate with each other. Parties to the industrial relation are following



          State Government

Relation may be among employees, among employers or between employee and employer and between government, employers and employee collectively.

Government plays a vital role for the regulation of industrial peace by making rules and regulations regarding conduct in organization.

Employees’ organization i.e. trade unions are political institutions that put pressure on management for the better economic and social interest of the workers.

Employers and their organizations always try to regulate the behavior of the employees for getting better output. Industrial dispute arises commonly due to their high demands from the workers at low economic rewards.


Significance of Good Industrial relation:

For the good industrial relation or industrial peace all parties should play their individual role fairly. Industrial peace is the situation when there is no industrial dispute and there is a pleasant relation between labour unions & management and among workers also. Following are the factors which indicates the good industrial relation..

High Productivity: - Workers will work efficiently which result in higher productivity.

Industrial democracy: - Sound industrial relations are achieved in democratic environment and when there is a provision of expression of views by workers and management consults them in routine transactions which can affect workers. Long term agreement can be done by collective bargaining under which there is a mutual decision regarding employment terms.

Fair benefits to workers: - If the workers are getting economic and non economic benefits time by time it shows that there is a cordial relation between workers and management.

Facilitation to change: - Process of change can be made easily by creating work environment friendly and cooperative and advantage of new technology inventions and innovation can be taken easily.

Moreover under industrial peace worker’s morale will be high and they will contribute for the organizations development by giving high productivity also workers will get high income recognition and increased job satisfaction.


Causes of industrial dispute:

Wages and allowances: - When there is no proper and fair wage policy

Bonus: - When bonus is not given as expected

Personnel retrenchment: - Whenever employees are dismissed and there are layoffs due to some reasons.

Indiscipline and violence: - When employees create indiscipline in work premises and there

Working hours and leave: - Problems regarding working hours and leave also create industrial unrest.

Miscellaneous reasons: - Resistance to change, rumours, non recognition of trade unions, lack of proper communication.

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