Unit 4: Industrial relations

Industrial relations (IR) are the relationships between management and workers and their organisations, and the role of the state in regulating them. Dale Yoder defines IR as "a whole field of relationships that exist because of the necessary collaboration of men and women in the employment processes of industry".

Importance

• Industrial peace and uninterrupted production.
• Higher productivity and quality.
• Industrial democracy — workers' voice in decisions.
• Fewer strikes, lockouts and absenteeism.
• Better wages and welfare; reduced labour turnover.
• Economic growth and attraction of investment.

• IR Code, 2020: Industrial Tribunals with a judicial member and an administrative member; National Industrial Tribunal for disputes of national importance; individual workers can approach the tribunal directly for discharge/dismissal disputes after 45 days of conciliation.

Collective bargaining is the process of negotiation between employers and organised workers (through unions) to determine terms and conditions of employment (ILO).

• Features: collective, bipartite, continuous, flexible, dynamic, a form of industrial democracy.
• Types (Chamberlain): conjunctive (distributive — fixing shares), cooperative (mutual dependence), integrative (problem-solving, win-win), concessionary (union gives up gains to save jobs), productivity bargaining (wages linked to productivity).
• Levels: plant level, industry level (banking — IBA and unions), national level.

Negotiation skills

• Preparation (data on wages, productivity), knowing BATNA, setting target and resistance points, active listening, separating people from the problem, focusing on interests not positions, creating options for mutual gain (Fisher and Ury — principled negotiation), documenting agreements.

Workers' participation in management is a system in which workers have a say in decision-making in the organisation.

• Objectives: industrial democracy, harmony, higher productivity, worker development, recognition of human dignity.
• Growth in India: Article 43A of the Constitution (42nd Amendment, 1976) — the State shall secure participation of workers in management; works committees (ID Act 1947); Joint Management Councils (1958); Shop councils and joint councils (1975 scheme); 1983 scheme; Participation of Workers in Management Bill (1990, not passed).

• Other forms: collective bargaining, workers' cooperatives, employee stock ownership (ESOPs), self-managed teams.
• Reasons for limited success in India: lack of trust, multiplicity of unions, management reluctance, illiteracy, lack of legal backing.

• Negotiation is the give-and-take process of reaching agreement; skills — preparation, listening, BATNA, creative options, maintaining relationships.
• Collective settlements: bipartite settlements (signed by employer and union) and settlements arrived at in conciliation (binding on all workers under the Industrial Disputes Act/IR Code).

Grievance redressal procedure

• IR Code, 2020: every establishment with 20 or more workers must have a Grievance Redressal Committee (up to 10 members, equal representation, a woman member); resolve within 30 days.
• Principles: prompt handling, fair and impartial, confidentiality, written records, follow-up.

• Discipline: orderly conduct as per rules; positive (constructive) discipline builds self-control; negative (punitive) discipline uses penalties.
• Hot-stove rule (McGregor): discipline should be immediate, consistent, impersonal and with advance warning.

• Counselling: helping employees with work or personal problems affecting performance — directive, non-directive and participative counselling; EAPs.

• HRIS (human resource information system): software to collect, store and analyse HR data — employee records, payroll, attendance, recruitment (ATS), performance, learning (LMS), analytics; examples — SAP SuccessFactors, Workday, Darwinbox, Zoho People.
• HR audit: systematic review of HR policies, practices and outcomes to check compliance and effectiveness — approaches: comparative, compliance, objectives-based, outside authority; covers recruitment, training, appraisal, pay, IR, legal compliance, HR records; ends with an audit report and action plan.