Unit 1: Industrial relations & trade unions
Industrial Relations and Labour Laws notes · PTU syllabus (BBA 531-18)
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Unit summary
Industrial relations (IR) is the relationship between employers, employees and their unions, with the government as a third party. This unit covers the concept, objectives, scope, importance and participants of IR, factors affecting it, approaches to IR, and trade unions — their objectives, types, structure, functions and the Trade Unions Act, 1926.
After this unit you can
- Define industrial relations and explain its objectives, scope and importance
- Identify the participants and the factors affecting IR
- Compare the approaches to IR
- Explain trade unions and the main provisions of the Trade Unions Act, 1926
PTU syllabus topics
- Concepts
- objectives
- scope
- importance and participants of IR
- factors affecting IR
- approaches to IR
- trade union concepts
- objectives
- types
- structure and functions
- Trade Unions Act 1926
Employers
And their associations
Employees
And trade unions
Government
Laws, machinery, policy
Courts and tribunals
Settle disputes
Topic 1
Concept, objectives, scope and importance
Industrial relations refers to the relations between management and employees, and between employers' and workers' organisations, in an industrial setting, along with the role of the state. Objectives: industrial peace, higher productivity, protection of workers' interests, fair wages and conditions, and avoidance of strikes and lockouts. Scope: labour-management relations, collective bargaining, grievance handling, workers' participation, dispute settlement and labour welfare. Importance: uninterrupted production, reduced conflict, better morale, economic growth and social justice.
Topic 2
Participants and factors affecting IR
Employers
And employers' associations
Employees
And trade unions
Government
Labour laws, machinery, labour courts
Factors: economic conditions, technology, labour laws and government policy, management attitudes, union strength and leadership, and social and cultural factors.
Topic 3
Approaches to industrial relations
Unitary
Organisation is one team with common goals
Conflict is abnormal, caused by troublemakers
Pluralistic
Many groups with different interests
Conflict is natural; resolved through bargaining
Marxist (radical)
Conflict between capital and labour
Conflict is inevitable under capitalism
Systems (Dunlop)
Actors, contexts and ideology produce rules
Managed through rule-making
Gandhian
Trusteeship, non-violence, cooperation
Resolved through mutual respect and arbitration
Topic 4
Trade unions
A trade union is a voluntary organisation of workers formed to protect and promote their interests through collective action.
- Objectives: better wages and conditions, job security, welfare, participation in management.
- Types: craft unions (one trade), industrial unions (whole industry), general unions and federations (national centres like INTUC, AITUC, BMS, CITU).
- Functions: militant (collective bargaining, strikes) and fraternal (welfare, education, mutual help).
- Structure: plant-level unions, industry-level federations, and central trade union organisations.
Trade Unions Act, 1926: provides for the registration of unions (minimum seven members, with at least 10% or 100 workers of the establishment, whichever is less); registered unions get legal status, immunity from certain civil and criminal liability for legitimate trade dispute activities, and a general fund and optional political fund. (The Industrial Relations Code, 2020 consolidates this law with others.)
Key terms
- Industrial relations
- Relations between employers, employees, unions and government
- Pluralistic approach
- Sees conflict as natural between interest groups
- Trade union
- A voluntary association of workers protecting their interests
- Collective bargaining
- Negotiation between employers and unions
- Central trade union organisation
- A national federation of unions
Quick revision
- Participants: employers, employees/unions, government.
- Approaches: unitary, pluralistic, Marxist, systems, Gandhian.
- Union functions: militant and fraternal.
- Trade Unions Act 1926: registration, legal status, immunities.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.Define industrial relations.
- Q2.Name the participants in industrial relations.
- Q3.Differentiate between the unitary and pluralistic approaches.
- Q4.What is a trade union?
- Q5.State two benefits of registration under the Trade Unions Act.
Long-answer questions
- Q1.Explain the objectives, scope and importance of industrial relations.
- Q2.Explain the approaches to industrial relations.
- Q3.Explain the objectives, types and functions of trade unions and the Trade Unions Act, 1926.
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