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The Role of Industrial Relationsand Labor Legislation in

maintaining IndustrialDemocracy and Harmony By

Dr. Battu & Mr. Puttu

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The Role of I. R and L. L in maintaining Industrial Democracy and Harmony

1) Puttu Guru Prasad,*M.Com, LL.B, P.G.D.F.T.M, M.B.A, M.Phil, (PhD ),Professor, K L U Business School,K L University, Andhra Pradesh.pgp4 [email protected]

2) Dr. Nagaraju Battu,*Professor and Research Director,

Bommidala Department of HRM,Acharya Nagarjuna University,[email protected]

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Industrial progress

Industrial relations has become one of themost delicate and complex problems of modern industrial societ y. Industrial progressis impossible without cooperation of laborsand harmonious relationships .It is in the interest of all to create and

maintain good relations between emplo yeesand emplo yers

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Industrial Relations

T he term industrial relations explain therelationship between emplo yees andmanagement which stem directl y or indirectl yfrom unionemplo yee relationship .Industrial relations includes collectivebargaining, workers participation in

management, and grievance and disputesettlement .

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The National Commission on Labor

A ccording to NCL, industrial relations affectsnot merel y the interests of the twoparticipants labor and management, butalso the economic and social goals of thenation .T o regulate these relations in sociall y

desirable channels is the function of the Stateand Central Governments to performeffectivel y.

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The Influencing factors of I.R

Institutional factorsEconomic factors

Social factorsT echnological factorsPs ychological factors

Political factorsEnterprise-related factorsGlobal factors

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Labor Legislation

D espite various studies done in Indiaindicating tangible benefits from liberalizationof labour markets, Indian labour laws stillremain highl y restrictive due to politicaleconom y constraints

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Labor laws and industrial relations

Labor laws and industrial relations areimportant for all organizations especiall ywhich are operating at international level .Labor laws and industrial relations conceptsdiffer according to countr y and region andaccording to the t ype of industr y concerned .

T he y should be flexible and take prevailinglocal factors .

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The evolution of Industrial Relations

T he industrial relations began in India a longtime ago . F rom the successive invasions of Moguls to Britishers, the industrial relationswere greatl y influenced b y autocratic rule,less pa y, poor living conditions and harshtreatment b y the management .

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D uring the British rule the first cotton mill wasestablished in Mumbai in 1853, and a Jute millwas established in Kolkata in 1855 . the working

conditions of workers, however, were still ver yworse with low wages, harsh behavior of themanagement, and this give rise to variousdisputes involving the management andemplo yees .Hence, factories act of 1881( British) wasestablished, and granted certain rights toworkers .

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T he first world war was an opportunit y indisguise for local factories in India . Prices of allproducts went up and profits soared , however,wages of lower emplo yees were still the same .T here were various strikes and disputesbetween management and emplo yees .D

uring this time, the workmens compensationact 1923, the trade union act 1926 and the tradedisputes act 1917 were established

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T he years following World War II involved themost workers upheaval, and saw theestablishment of Industrial Emplo yment act1946, and Industrial D isputes act1947,Minimum Wages act, Factories act, andEmplo yees state insurance act in 1948

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Thomas A . Kochan

D efined the IR in his book CollectiveBargaining and Industrial Relations as allaspects of people at work, but there are stillsome aspects which are totall y neglected atwork place like Industrial Hygiene, andErgonomics .

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John Dunlop

Whether the nature of IR issues is sufficientl y uniqueto justif y considering IR a true discipline has beencontroversial . T he author of Industrial relations

s ystems theor y, D unlop argued and contends thatindustrial relations is a genuine discipline .T o fully appreciate the multifaceted nature of man yindustrial relations issues, one must draw from a

variet y of perspectives, including economics,ps ycholog y, sociolog y, political science, and law,among others .

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Pro to Non-unionizationT

he post LPG era paved the wa y for IT

and IT

enabledservice sector growth . T he emplo yees are highl y skilledpersons with high pa y packages .Naturall y their jobs are guaranteed and the y work in their intellectual capacities, strive for quick self promotion

rather than mass promotions .T he private investors prefer non-unionized environment,and the Government introduced the investor friendl ylegislation for the promotion of Industrial econom y.T he emplo yees and as well as Investors are against

union activates .T his causes the decline in number of unions in past four decades in India .

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Employee relations through HR policies

T he unions emerge as a result of managementsmistakes .T hats wh y, all the I T based T echnical industriesare vigilant in maintaining good emplo yeerelations through HR policies and implementingall legitimate facilities for the full satisfaction of

the emplo yees .

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Retaining the Employees - throughWork life balance,Emplo yee participation in decision making,Encouraging Whistle blowers,360 degrees appraisal s ystem,Medical Insurance policies,Housing quarters, Housing loans, Car loansBetter office ambiance,Hygiene work conditions,Brand image and lo yally,High pa y packages,

Sweat Equit y,Preferential allotment of shares to emplo yees,Pa y holida ys for training and development,Job securit y, enrichment, satisfaction,

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Industrial Relations includes

Narrow definition:- Management of Labor organizations, collective bargaining,negotiations, industrial conflicts, grievanceprocedures, arbitration and mediation and

other dispute resolution techniques,Maintaining industrial democrac y.Broad definition:- T raining and development,workforce diversit y, compensation, selection

and staffing, emplo yment legislation such aslaws on pension, safet y, minimum wages andpersonal laws .

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Karl Marx

Worlds Intellectual father of Industrialrelations, predicted that the pathologicalconflict escalating into inevitable classwarfare between workers and capitalists,results in ultimate demise of capitalism .

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John R. Commons

T he A merica intellectual father of Industrialrelations and his followers argued thatcollective bargaining and legislation couldtemper the excesses of capitalism, allowingworkers and management to resolve their conflicts for the sake of greater common

interests within the capitalist economics ystem .

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Employee involvement programs

By the 1980s, innovation came to beassociated more with the nonunion sector,and with unionization falling, the power of theunionized sector as a model to be emulatedby nonunion firms was diminished in tandem .Man y innovations like emplo yee involvement

programs, team concepts, qualit y circles,emplo yee empowerment etc ., are moreclosel y associated with the nonunion sector .

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Statue and judicial decisions

T he public polic y on emplo yment matters hadshifted from a reliance on collective bargaining tomore of an emphasis on individual worker rights

established b y statue and judicial decisions .Equal emplo yment opportunit y laws and judicialdecisions narrowing the notion of emplo yment-at-will( emplo yer and emplo yee are free to enter or

terminate an emplo yment relationship at an y time for good reasons, bad reasons, or no reason in theabsence of formal contract)

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W orks councils

We should seriousl y consider establishing workscouncils similar to those in man y European nations .Works councils are legall y mandated emplo yeerepresentation mechanisms independent of unions whichrequires that all emplo yees elect representatives to theworks council to confer with management and to ensurethat workers statutor y rights are observed .A lthough the y do not bargain over wages and benefits,

works councils address man y of the issues that unionshave traditionall y addressed including la yoffs, disciplines ystems, and workplace safet y.

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Conclusion

Industrial relations and labor legislations arehaving c yclical effect on the harmoniousindustrial growth .

Now the private investments are pouringinto I T and I T enabled industries , where theworkers are pro to non-unionization, and theGovernment also recognized the need for enacting equal emplo yment opportunit ylegislation and Investor friendl y Regulationsfor the promotion of industrial econom y.

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Presented by Dr. Battu and

Mr. PuttuT hank you

&

A ny QuestionsPlease

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