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
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
Employees’ organization i.e. trade
unions are political institutions that
put pressure on management for the
better economic and social interest of
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
Causes of industrial dispute:
Wages and allowances: - When there is no proper and fair
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
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