INDUSTRIAL RELATIONS

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INDUSTRIAL
RELATIONS
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INDUSTRIAL RELATIONS
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CONTENT
1.0 INDUSTRIAL RELATIONS
1.1 Define “Industrial Relations”.
• Industrial relations is the study of how people in power make decisions which effect the
relationships between employers and Employees.
• Industrial relations is a multidisciplinary field that studies the employment relationship. Industrial
relations is increasingly being called employment relations or employee relations because of
the importance of non-industrial employment relationships; this move is sometimes seen as
further broadening of the human resource management trend. Indeed, some authors now
define human resource management as synonymous with employee relations. Other authors
see employee relations as dealing only with non-unionized workers, whereas labor relations is
seen as dealing with unionized workers. Industrial relations studies examine various employment
situations, not just ones with a unionized workforce. However, according to Bruce E. Kaufman
"To a large degree, most scholars regard trade unionism, collective bargaining and labor-management
relations, and the national labor policy and labor law within which they are
embedded, as the core subjects of the field."
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Summary:
• IR Can be the cause of success or failure of business.
• IR is effected by the macro environment
• The government and unions play a vital role in IR negotiations, from these negotiations laws
sometimes are altered.
• Governments have control through legislation to enforce things such as working conditions and
pay. They generally rely on independent tribunals to settle the matters of industrial conflict.
• IRC (Industrial Relations Commission) is responsible for the majority of the conciliation and
arbitration in this country
• Unions effectiveness depends largely on the number of workers in registered unions vs's the
amount which are independent
• Employers like employees don't all have the one union but have ones specialized for their
particular area
• Different types of trade unions have different policies and practices, power and influence
• Larger firms (with generally larger number of employees) have quite a lot of people involved
with the IR of the business
Industrial relation means the relationship between employers and employees in course of
employment in industrial organizations. However, the concept of Industrial Relations has a
broader meaning. In a broad sense, the term Industrial Relations includes the relationship
between the various unions, between the state and the unions as well as those between the
various employers and the government. Relations of all those associated in an industry may be
called Industrial Relations.
According to International Labour Organization, Industrial relations comprise
relationships between the state on one hand and the employer’s and
employee’s organization on the other, and the relationship among the
occupational organizations themselves.
Definition: According to J.T. Dunlop, “Industrial relations are the complex interrelations among
managers, workers and agencies of the government”

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Features of Industrial Relations:
1. Industrial relations are outcomes of employment relationships in an industrial enterprise. These
relations cannot exist without the two parties namely employers and employees.
2. Industrial relations system creates rules and regulations to maintain harmonious relations.
3. The government intervenes to shape the industrial relations through laws, rules, agreements,
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terms, charters etc.
4. Several parties are involved in the Industrial relations system. The main parties are employers
and their associations, employees and their unions and the government. These three parties
interact within economic and social environment to shape the Industrial relations structure.
5. Industrial relations are a dynamic and developing concept, not a static one. They undergo
changes with changing structure and scenario of the industry as and when change occurs.
6. Industrial relations include both individual relations and collective relationships.
Objectives of Industrial Relations:
1. To maintain industrial democracy based on participation of labour in the management and
gains of industry.
2. To raise productivity by reducing tendency of high labour turnover and absenteeism.
3. To ensure workers’ participation in management of the company by giving them a fair say in
decision-making and framing policies.
4. To establish a proper channel of communication.
5. To increase the morale and discipline of the employees.
6. To safeguard the interests of the labour as well as management by securing the highest level of
mutual understanding and goodwill between all sections in an industry.
7. To avoid all forms of industrial conflicts so as to ensure industrial peace by providing better
living and working standards for the workers.
8. To bring about government control over such industrial units which are running at a loss for
protecting the livelihood of the employees.
To safeguard the interest of labor and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the
process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an essential
factor in the productivity of workers and the industrial progress of a country.
To raise productivity to a higher level in an era of full employment by lessening the tendency to
high turnover and frequency absenteeism.
• To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the industry and of the country as
well.
• To eliminate or minimize the number of strikes, lockouts and gheraos(to surround
management) by providing reasonable wages, improved living and working conditions,
said fringe benefits.
• To improve the economic conditions of workers in the existing state of industrial
managements and political government.
• Socialization of industries by making the state itself a major employer

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• Vesting of a proprietary interest of the workers in the industries in which they are employed.
Importance of Industrial Relations:
1. Uninterrupted Production: The most important benefit of industrial benefits is that it ensures
continuity of production. This means continuous employment for all involved right from
managers to workers. There is uninterrupted flow of income for all. Smooth running of industries
is important for manufacturers, if their products are perishable goods and to consumers if the
goods are for mass consumption (essential commodities, food grains etc.). Good industrial
relations bring industrial peace which in turn tends to increase production.
2. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. Strikes,
grievances and lockouts are some of the reflections of Industrial unrest. Industrial peace helps
in promoting co-operation and increasing production. Thus good Industrial relations help in
establishing Industrial democracy, discipline and a conducive workplace environment.
3. High morale: Good Industrial relations improve the morale of the employees and motivate the
worker workers to work more and better.
4. Reduced wastage: Good Industrial relations are maintained on the basis of co-operation and
recognition of each other. It helps to reduce wastage of material, manpower and costs.
5. Contributes to economic growth and development.
Causes of poor Industrial Relations:
1. Economic causes: Often poor wages and poor working conditions are the main causes for
unhealthy relations between management and labour. Unauthorized deductions from wages,
lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other
economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out
plant and machinery, poor layout, unsatisfactory maintenance etc.
2. Organizational causes: Faulty communications system, unfair practices, non-recognition of
trade unions and labour laws are also some other causes of poor relations in industry.
3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations.
Dissatisfaction with job and personal life culminates into Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit and performance, poor
interpersonal relations are the psychological reasons for unsatisfactory employer-employee
relations.
5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade
unions system prevailing in the country has been one of the most responsible causes for
Industrial disputes in the country.
Suggestions to improve Industrial Relations:
1. Sound personnel policies: Policies and procedures concerning the compensation, transfer and
promotion, etc. of employees should be fair and transparent. All policies and rules relating to
Industrial relations should be fair and transparent to everybody in the enterprise and to the
union leaders.
2. Participative management: Employees should associate workers and unions in the formulation
and implementation of HR policies and practices.
3. Responsible unions: A strong trade union is an asset to the employer. Trade unions should
adopt a responsible rather than political approach to industrial relations.
4. Employee welfare: Employers should recognize the need for the welfare of workers. They must
ensure reasonable wages, satisfactory working conditions, and other necessary facilities for
labour. Management should have a genuine concern for the welfare and betterment of the
working class.
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5. Grievance procedure: A well-established and properly administered system committed to the
timely and satisfactory redressal of employee’s grievances can be very helpful in improving
Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers.
6. Constructive attitude: Both management and trade unions should adopt positive attitude
towards each other. Management must recognize unions as the spokesmen of the workers’
grievances and as custodians of their interests. The employer should accept workers as equal
partners in a joint endeavor for good Industrial relations.
7. Creating a proper communication channel to avoid grievances and misunderstandings
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among employees
8. Education and training imparted to the employees
Dunlop's Contribution to Industrial Relations
One of the significant theories of industrial labor relations was put forth by John Dunlop in the
1950s. According to Dunlop industrial relations system consists of three agents – management
organizations, workers and formal/informal ways they are organized and government agencies.
These actors and their organizations are located within an environment – defined in terms of
technology, labor and product markets, and the distribution of power in wider society as it
impacts upon individuals and workplace. Within this environment, actors interact with each other,
negotiate and use economic/political power in process of determining rules that constitute the
output of the industrial relations system.
He proposed that three parties—employers, labor unions, and government-- are the key actors in
a modern industrial relations system. He also argued that none of these institutions could act in an
autonomous or independent fashion. Instead they were shaped, at least to some extent, by their
market, technological and political contexts.
Thus it can be said that industrial relations is a social sub system subject to three environmental
constraints- the markets, distribution of power in society and technology.
Dunlop's model identifies three key factors to be considered in conducting an analysis of the
management-labor relationship:
1. Environmental or external economic, technological, political, legal and social forces that
impact employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of
industrial relations may be regarded as a system in the sense that each of them more or less
intimately affects each of the others so that they constitute a group of arrangements for dealing
with certain matters and are collectively responsible for certain results”.
In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are
the product of interaction between three key “actors” – workers/unions, employers and associated
organizations and government
The Dunlop’s model gives great significance to external or environmental forces. In other words,
management, labor, and the government possess a shared ideology that defines their roles within
the relationship and provides stability to the system.

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PERSPECTIVES OF INDUSTRIAL RELATIONS
1. Unitary perspective
In unitarism, the organization is perceived as an integrated and harmonious system, viewed as
one happy family. A core assumption of unitary approach is that management and staff, and all
members of the organization share the same objectives, interests and purposes; thus working
together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism has a
paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as
unnecessary and conflict is perceived as disruptive.
From employee point of view, unitary approach means that:
• Working practices should be flexible. Individuals should be business process improvement
oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.
• If a union is recognized, its role is that of a further means of communication between
groups of staff and the company.
• The emphasis is on good relationships and sound terms and conditions of employment.
• Employee participation in workplace decisions is enabled. This helps in empowering
individuals in their roles and emphasizes team work, innovation, creativity, discretion in
problem-solving, quality and improvement groups etc.
• Employees should feel that the skills and expertise of managers supports their endeavors.
From employer point of view, unitary approach means that:
• Staffing policies should try to unify effort, inspire and motivate employees.
• The organization's wider objectives should be properly communicated and discussed with
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staff.
• Reward systems should be so designed as to foster to secure loyalty and commitment.
• Line managers should take ownership of their team/staffing responsibilities.
• Staff-management conflicts - from the perspective of the unitary framework - are seen as
arising from lack of information, inadequate presentation of management's policies.
• The personal objectives of every individual employed in the business should be discussed
with them and integrated with the organization’s needs.
2. Pluralistic perspective
In pluralism the organization is perceived as being made up of powerful and divergent
sub-groups - management and trade unions. This approach sees conflicts of interest and
disagreements between managers and workers over the distribution of profits as normal
and inescapable. Consequently, the role of management would lean less towards
enforcing and controlling and more toward persuasion and co-ordination. Trade unions
are deemed as legitimate representatives of employees. Conflict is dealt by collective
bargaining and is viewed not necessarily as a bad thing and if managed could in fact
be channelled towards evolution and positive change. Realistic managers should
accept conflict to occur. There is a greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:

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• The firm should have industrial relations and personnel specialists who advise managers
and provide specialist services in respect of staffing and matters relating to union
consultation and negotiation.
• Independent external arbitrators should be used to assist in the resolution of disputes.
• Union recognition should be encouraged and union representatives given scope to carry
out their representative duties
• Comprehensive collective agreements should be negotiated with unions
3. Marxist perspective
This view of industrial relations is a byproduct of a theory of capitalist society and social change.
Marx argued that:
I Weakness and contradiction inherent in the capitalist system would result in revolution and the
ascendancy of socialism over capitalism.
I Capitalism would foster monopolies.
I Wages (costs to the capitalist) would be minimized to a subsistence level.
I Capitalists and workers would compete/be in contention to win ground and establish their
constant win-lose struggles would be evident.
This perspective focuses on the fundamental division of interest between capital and labor, and
sees workplace relations against this background. It is concerned with the structure and nature of
society and assumes that the conflict in employment relationship is reflective of the structure of the
society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers
to their exploitation by capital.
1.2 Discuss the concept of ‘Industrial Relations’.
Concept of Industrial Relations:
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any
productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we
mean “the relationships that exist within the industry between the employer and his workmen.” The term
industrial relations explains the relationship between employees and management which stem directly
or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within the organizational
settings. The field of industrial relations looks at the relationship between management and workers,
particularly groups of workers represented by a union. Industrial relations are basically the interactions
between employers, employees and the government, and the institutions and associations through
which such interactions are mediated.
The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was
broadly defined to include the relationships and interactions between employers and employees. From
this perspective, industrial relations covers all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor) relations. Now its
meaning has become more specific and restricted. Accordingly, industrial relations pertains to the
study and practice of collective bargaining, trade unionism, and labor-management relations, while
human resource management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the relationships between
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individual workers, the relationships between workers and their employer, the relationships between
employers, the relationships employers and workers have with the organizations formed to promote
their respective interests, and the relations between those organizations, at all levels. Industrial relations
also includes the processes through which these relationships are expressed (such as, collective
bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the
management of conflict between employers, workers and trade unions, when it arises.
1.3 Explain the role of participants in industrial
relations.
An industrial relations system consists of the whole gamut of relationships between
employers and employees and employers which are managed by the means of conflict and
cooperation.
A sound industrial relations system is one in which relationships between management and
employees (and their representatives) on the one hand, and between them and the State
on the other, are more harmonious and cooperative than conflictual and creates an
environment conducive to economic efficiency and the motivation, productivity and
development of the employee and generates employee loyalty and mutual trust.
Actors in the IR system:
Three main parties are directly involved in industrial relations:
Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them.
Management can also affect workers’ interests by exercising their right to relocate, close or merge the
factory or to introduce technological changes.
Employees: Workers seek to improve the terms and conditions of their employment. They exchange
views with management and voice their grievances. They also want to share decision making powers
of management. Workers generally unite to form unions against the management and get support
from these unions.
Government: The central and state government influences and regulates industrial relations through
laws, rules, agreements, awards of court and the like. It also includes third parties and labor and tribunal
courts.
SCOPE:
The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it
means that the employer, employee relationship confines itself to the relationship that emerges out of
the day to day association of the management and the labor. In its wider sense, industrial relations
include the relationship between an employee and an employer in the course of the running of an
industry and may project it to spheres, which may transgress to the areas of quality control, marketing,
price fixation and disposition of profits among others.

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The scope or industrial relations is quite vast. The main issues involved here include the following:
1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders
4. Workers participation in management
5. Unfair labor practices
The Role of Government in Industrial Relations
Industry and government work together to keep the economy moving.
The government plays a vital role in the industrial operations of the Zimbabwe. From economic
development to taxation laws and labor policies, government actions help bring about a
system of uniformity and policy within the workplace.
The Role of Industrial Relations
o The government's role in industrial relations is vitally important to the economy and
establishes a relationship between employers and trade unions.
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Laws
o The government establishes laws that must be abided in the workplace. Some of these
include taxation, federal minimum wage and child labor laws.
Regulations
o In an industrial work setting, many hazards present themselves to workers. One of the
most effective watchdogs between the government and the employer is the
Occupational Safety Health Administration (OSHA). Safety regulations mandated by
the government are policed through this organization.
The Most Recent Role
o As the economic downturn became reality, the government had to take an
aggressive role to try to prevent another Great Depression. Through the Troubled Asset
Relief Fund, also known as TARP, money was given to big corporations in trouble to
avoid a collapse and drive the economy further down.
• Industrial relations describes the complex series of interactions and communications between
industry management and employee unions.
• Aside from employers and employees, the government is the most influential force in the field
of industrial relations.
Industrial Relations and Politics
o The top-level management of an industry represent financially powerful organizations,
while employee unions wield strong voter/populist support.
These two types of organizations are among the most politically influential. Both
petition and lobby to influence the outcome of elections or the creation of legislation.
Laws and Regulations
o Governments have created extensive legislation designed to protect and regulate
employees and employers. The field of industrial relations is constantly evolving to meet
the demands of new legislation and regulations.
Regulation of Public Services
o The employers and employees of industries that provide an essential public service
operate under heavier restrictions than members of other industries.
Either party must notify the government before striking or instituting a lockout. The
government may forcefully settle a dispute if a compromise is not reached quickly.
Court Rulings
o Industrial relations disputes that cannot be resolved independently are often resolved
as legal disputes in court. The ruling in the case creates a precedent, which shapes
future, similar conflicts, and may result in the creation of legislation.
Growing influence of government
o The government has become an increasingly prominent figure in the industrial relations
arena. Management and unions often depend on the government to resolve disputes
or change legislation to resolve a conflict.

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Management Role in Industrial Relations?
Industry management is one of two key players in the realm of industrial relations. Industrial relations
describes the relationship between management (often top-level management) and employee
organizations (like unions).
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Top-level management
o Top-level management must communicate and negotiate with employee
organizations to avoid strikes, law-suits and protests. This level of management interacts
with employee organizations on a large-scale, as opposed to lower tiers of
management which mostly rely on human resources to conduct employee
interactions.
Low-level management
o Low-level (or local) management interacts with employees on an individual basis
(often through a human resources department). All levels of management are
involved in industrial relations, but low-level management has little or no say in big-picture
decisions (employee compensation and benefit alterations).
Managements purpose in industrial relations
o In an industrial relations negotiation, management represents the interest of the
company (and shareholders if applicable). Management must work with employees to
develop compensation packages and policies that are acceptable for both parties.
Problems for management in industrial relations
o When the relationship between management and employees sour, management may
be forced to develop a crisis-management plan. If an employee organization initiates
a large-scale strike or protest, management must act quickly (either give-in to
employee demands or find an alternate solution) to avoid crippling profit losses.
History of management's involvement in industrial relations
o Historically, management is depicted as a foe of employees and their organizations.
While this stereotype is not entirely true, the media often portrays management as the
bad guy of the two organizations (unions are usually cast as the hero of the little
guy). This negative media attention (and historical stereotype) can lead to extremely
damaging public relations, which can eventually cripple an entire industry.
The Role of Trade Unions in Industrial Relations
Trade unions, also known as labor unions in the Zimbabwe, are organizations of workers in a common
trade who have organized into groups dedicated to improving the workers' work life. A trade union
generally negotiates with employers on behalf of its members, advocating for improvements such as
better working conditions, compensation and job security. These unions play an important role in
industrial relations -- the relationship between employees and employers.
Function
o In industrial relations, trade unions represent the interest of their members. By contrast,
an employer represents his own interests, as well as the interests of those with financial
stakes in the company. However, because both trade unions and employers can only
earn a livelihood through the continued viability of the businesses that they work for
and own, both parties will defend the interests of their industry.
Effects
o The advocacy of trade unions has provided a number of improvements in the working

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conditions of many workers. For example, in the coal industry, advocacy by the UMA
has led to safer working conditions for coal miners. However, given trade unions work in
the interests of their members specifically, rather than the companies that employ
these workers, unions can sometimes advocate policies that, while beneficial to
workers in the short term, may harm the company's long-term health.
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Expert Insight
o According to Bernhard Ebbinghaus, a professor at the Industrial Relations Research
Institute and European Union Center at the University of Wisconsin, Madison, the role of
trade unions changed significantly in the last decades of the 20th century. As union
membership declined due to structural changes in the economy, unions became
more active in maintaining vestiges of the welfare state. This includes resisting
privatization of public institutions and roles, and advocating for public benefits for a
country's citizens.
Importance of Industrial Relations:
The healthy industrial relations are key to the progress and success. Their significance
may be discussed as under –
1. Uninterrupted production – The most important benefit of industrial relations is that this
ensures continuity of production. This means, continuous employment for all from
manager to workers. The resources are fully utilized, resulting in the maximum possible
production. There is uninterrupted flow of income for all. Smooth running of an industry is
of vital importance for several other industries; to other industries if the products are
intermediaries or inputs; to exporters if these are export goods; to consumers and workers,
if these are goods of mass consumption.
2. Reduction in Industrial Disputes – Good industrial relations reduce the industrial disputes.
Disputes are reflections of the failure of basic human urges or motivations to secure
adequate satisfaction or expression which are fully cured by good industrial relations.
Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of
industrial unrest which do not spring up in an atmosphere of industrial peace. It helps
promoting co-operation and increasing production.
3. High morale – Good industrial relations improve the morale of the employees. Employees
work with great zeal with the feeling in mind that the interest of employer and employees is
one and the same, i.e. to increase production. Every worker feels that he is a co-owner of
the gains of industry. The employer in his turn must realize that the gains of industry are not
for him along but they should be shared equally and generously with his workers. In other
words, complete unity of thought and action is the main achievement of industrial peace.
It increases the place of workers in the society and their ego is satisfied. It naturally affects
production because mighty co-operative efforts alone can produce great results.
4. Mental Revolution – The main object of industrial relation is a complete mental revolution of
workers and employees. The industrial peace lies ultimately in a transformed outlook on the
part of both. It is the business of leadership in the ranks of workers, employees and
Government to work out a new relationship in consonance with a spirit of true democracy.
Both should think themselves as partners of the industry and the role of workers in such a
partnership should be recognized. On the other hand, workers must recognize employer’s
authority. It will naturally have impact on production because they recognize the interest
of each other.
6. Reduced Wastage – Good industrial relations are maintained on the basis of cooperation
and recognition of each other. It will help increase production. Wastages of man,
material and machines are reduced to the minimum and thus national interest is
protected.

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Thus, it is evident that good industrial relations is the basis of higher production with
minimum cost and higher profits. It also results in increased efficiency of workers. New and
new projects may be introduced for the welfare of the workers and to promote the morale
of the people at work. An economy organized for planned production and distribution,
aiming at the realization of social justice and welfare of the massage can function
effectively only in an atmosphere of industrial peace. If the twin objectives of rapid
national development and increased social justice are to be achieved, there must be
harmonious relationship between management and labor.
1.4 Differentiate between Industrial Relations and
human relations.
DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMAN RELATIONS:
The term “Industrial Relations” is different from “Human Relations”. Industrial relations refer to the
relations between the employees and the employer in an industry. Human relations refer to a
personnel-management policy to be adopted in industrial organizations to develop a sense of
belongingness in the workers improves their efficiency and treat them as human beings and make a
partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement between employees
and employers. On the other hand, problems of human relations are personal in character and are
related to the behavior of worker where morale and social elements predominated. Human relations
approach is personnel philosophy which can be applied by the management of an undertaking. The
problem of industrial relations is usually dealt with a three levels – the level of undertaking, the industry
and at the national level. To sum up the term “Industrial Relations” is more wide and comprehensive
and the term “Human Relations” is a part of it.
Determining factors of industrial relations –
Good industrial relations depend on a great variety of factors. Some of the more obvious ones are
listed below:
1. History of industrial relations – No enterprise can escape its good and bad history of industrial
relations. A good history is marked by harmonious relationship between management and workers.
A bad history by contrast is characterized by militant strikes and lockouts. Both types of history have a
tendency to perpetuate themselves. Once militancy is established as a mode of operations there is a
tendency for militancy to continue. Or once harmonious relationship is established there is a tendency
for harmony to continue.
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2. Economic satisfaction of workers – Psychologists recognize that human needs have a certain priority.
Need number one is the basic survival need. Much of men conducted are dominated by this need.
Man works because he wants to survive. This is all the more for underdeveloped countries where
workers are still living under subsistence conditions. Hence economic satisfaction of workers is another
important prerequisite for good industrial relations.
3. Social and Psychological satisfaction – Identifying the social and psychological urges of workers is a
very important steps in the direction of building good industrial relations. A man does not live by bread
alone. He has several other needs besides his physical needs which should also be given due attention
by the employer. An organization is a joint venture involving a climate of human and social
relationships wherein each participant feels that he is fulfilling his needs and contributing to the needs
of others. This supportive climate requires economic rewards as well as social and psychological

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rewards such as workers’ participation in management, job enrichment, suggestion schemes, re-dressal
of grievances etc.
4. Off-the-Job Conditions – An employer employs a whole person rather than certain separate
characteristics. A person’s traits are all part of one system making up a whole man. His home life is not
separable from his work life and his emotional condition is not separate from his physical condition.
Hence for good industrial relations it is not enough that the worker’s factory life alone should be taken
care of his off-the-job conditions should also be improved to make the industrial relations better.
5. Enlightened Trade Unions – The most important condition necessary for good industrial relations is a
strong and enlightened labor movement which may help to promote the status of labor without
harming the interests of management, Unions should talk of employee contribution and responsibility.
Unions should exhort workers to produce more, persuade management to pay more, mobilize public
opinion on vital labor issues and help Government to enact progressive labor laws.
6. Negotiating skills and attitudes of management and workers – Both management and workers’
representation in the area of industrial relations come from a great variety of backgrounds in terms of
training, education, experience and attitudes. These varying backgrounds play a major role in shaping
the character of industrial relations. Generally speaking, well-trained and experienced negotiators who
are motivated by a desire for industrial peace create a bargaining atmosphere conducive to the
writing of a just and equitable collective agreement. On the other hand, ignorant, inexperienced and
ill-trained persons fail because they do not recognize that collective bargaining is a difficult human
activity which deals as much in the emotions of people as in their economic interests. It requires careful
preparation and top –notch executive competence. It is not usually accomplished by some easy trick
or gimmick. Parties must have trust and confidence in each other. They must possess empathy, i.e. they
should be able to perceive a problem from the opposite angle with an open mind. They should put
themselves in the shoes of the other party and then diagnose the problem. Other factors which help to
create mutual trust are respect for the law and breadth of the vision. Both parties should show full
respect for legal and voluntary obligations and should avoid the tendency to make a mountain of a
mole hill.
7. Public policy and legislation: - when Government, regulates employee relations, it becomes a third
major force determining industrial relations the first two being the employer and the union. Human
behavior is then further complicated as all three forces interact in a single employee relation situation.
Nonetheless, government in all countries intervenes in management – union relationship by enforcing
labor laws and by insisting that the goals of whole society shall take precedence over those of either of
the parties. Government intervention helps in three different ways 1) it helps in catching and solving
problems before they become serious. Almost everyone agrees that it is better to prevent fires them to
try stopping them after they start; 2) It provides a formalized means to the workers and employers to
give emotional release to their dissatisfaction; and 3) It acts as a check and balance upon arbitrary
and capricious management action.
8. Better education: - with rising skills and education workers’ expectations in respect of rewards
increase. It is a common knowledge that the industrial worker in India is generally illiterate and is misled
by outside trade union leaders who have their own axe to grind. Better workers’ education can be a
solution to this problem. This alone can provide worker with a proper sense of responsibility, which they
owe to the organization in particular, and to the community in general.
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http://govindam.org/
9. Nature of industry: - In those industries where the costs constitute a major proportion of the total cast,
lowering down the labor costs become important when the product is not a necessity and therefore,
there is a little possibility to pass additional costs on to consumer. Such periods, level of employment
and wages rise in decline in employment and wages. This makes workers unhappy and destroys good
industrial relations

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Difference Between Industrial Relations and Employee Relations
Industrial Relations vs. Employee Relations
Most of us think we know what industrial relations are. The study of employment and labor market is
what makes the subject matter of this vast area of research. It is a field that analyzes the factors that
affect the workplace. However, it is the workplace that directly affects our style of living and even our
culture in a lot of ways. There is another related concept called employee relations that confuses many
because of its similarities with industrial relations. It is a fact that looking at a workplace from the
perspective of workers unions is no longer relevant in these times. Let us see if there is any difference
between these two related concepts.
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Industrial Relations
The field of study that covers employment relationships in their entirety is called industrial relations. In
general, it is believed to be the study of relations between the employees and employers. There are a
multitude of factors at play at the workplace that shape up the relations between workers, employers,
and the government. The field of industrial relations came into existence with the advent of the
industrial revolution as an important tool to understand the complex relations between employers and
employees. There are many different ways to look at industrial relations as there are the perspectives of
workers, employers, government, and the perspective of the society. If you are a worker, you would
obviously associate industrial relations with better wages, safety at workplace, job security, and training
at workplace. On the other hand, industrial relations for an employer are all about productivity, conflict
resolution and employment laws.
Employee Relations
‘Employee relations’ is a concept that is being preferred over the older industrial relations because of
the realization that there is much more at the workplace than industrial relations could look or cover. In
general, employee relations can be considered to be a study of relations between employees as well
as employer and employees so as to find ways of resolving conflicts and to help in improving
productivity of the organization by increasing motivation and morale of the workers. The field is
concerned with providing information to employees regarding the goals of the organization so that
they have a better understanding of the aims and policies of the management. Employees are also
informed about their poor performances and ways and means to correct performance. Employee
relations also take care of grievances and the problems of the employees and let them know all about
their rights and what to do in case of discrimination.
What is the difference between Industrial Relations and Employee Relations?
• Though it was industrial relations that came into existence earlier, it is employee relations that is
increasingly being used to refer to workplace relations these days.
• Falling union memberships around the world have made people realize that relations between
employers and employees are more important than the focus given to these relations by industrial
relations.
• It is human beings called employees that form the backbone of all operations in an organization and
the study of relations between employees and employees and employers are more important than the
laws and institutions that govern relations at the workplace.

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FUNDAMENTAL RIGHTS OF EMPLOYEES
ACT EXTRACT
4 Employees’ entitlement to membership of trade unions and workers committees
(1) Notwithstanding anything contained in any other enactment, every employee shall, as between
himself and his employer, have the following rights—
(a) the right, if he so desires, to be a member or an officer of a trade union;
(b) where he is a member or an officer of a trade, the right to engage in the lawful activities of such
trade union for the advancement or protection of his interests;
(c) the right to take part in the formation and registration of a trade union;
(d) the same rights, mutatis mutandis, as are set out in paragraphs (a), (b), and (c) in relation to
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workers committees.
(2) Every employee shall have the right to be a member of a trade union which is registered for the
undertaking or industry in which he is employed if he complies with the conditions of membership.
(3) No term or condition of employment and no offer of employment shall include a requirement
that an employee or prospective employee shall undertake—
(a) if he is a member or officer of a trade union or workers committee, to relinquish his membership or
office of such trade union or workers committee; or
(b) not to take part in the formation of a trade union or workers committee;
and any such requirement shall be void.
(4) Without prejudice to any other remedy that may be available to him in any competent court,
any person who is aggrieved by any infringement or threatened infringement of a right specified in
subsection (1) shall be entitled to apply under Part XII for either or both of the following remedies—
(a) an order directing the employer or other party concerned to cease the infringement or
threatened infringement, as the case may be;
(b) an order for damages for any loss or prospective loss caused either directly or indirectly, as a result
of the infringement or threatened infringement, as the case may be.
4A Prohibition of forced labour
(1) Subject to subsection (2), no person shall be required to perform forced labour.
(2) For the purposes of subsection (1) “forced labour” does not include—
(a) any labour required in consequence of the sentence or order of a court; or
(b) labour required of any person while he is lawfully detained which, though not required in
consequence of the sentence or order of a court—
(i) is reasonably necessary in the interests of hygiene or for the maintenance or management of
the place at which he is detained; or
(ii) is permitted in terms of any other enactment;
or
(c) any labour required of a member of a disciplined force in pursuance of his duties as such or any
labour required of any person by virtue of an enactment in place of service as a member of any
such force; or
(d) any labour required by way of parental discipline; or
(e) any labour required by virtue of an enactment during a period of public emergency or in the
event of any other emergency or disaster that threatens the life or well-being of the community,
to the extent that the requiring of such labour is reasonably justifiable in the circumstances of any
situation arising or existing during that period or as a result of that other emergency or disaster, for
the purpose of dealing with that situation.
(3) Any person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not
exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine
and such imprisonment.
5 Protection of employees against discrimination
(1) No employer shall discriminate against any employee or prospective employee on grounds of
race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS status or,
subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the definition of
“disabled person” in that Act, in relation to—
(a) the advertisement of employment; or
(b) the recruitment for employment; or
(c) the creation, classification or abolition of jobs or posts; or
(d) the determination or allocation of wages, salaries, pensions, accommodation, leave or other such
benefits; or
(e) the choice of persons for jobs or posts, training, advancement, apprenticeships, transfer,
promotion or retrenchment; or
(f) the provision of facilities related to or connected with employment; or
(g) any other matter related to employment.
(2) No person shall discriminate against any employee or prospective employee on the grounds of
race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS status or,
subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the definition of
“disabled person” in that Act, in relation to—
(a) the advertisement of employment; or
(b) the recruitment of persons; or
(c) the introduction of prospective employees for jobs or posts; or
(d) any other matter related to employment.

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(2a) No employer shall fail to pay equal remuneration to male and female employees for work of
equal value.
(3) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and liable to a fine
not exceeding level eight or to imprisonment for a period not exceeding two years or to both such fine
any person who is aggrieved by any act or omission of an employer in contravention of subsection (1)
shall be entitled to claim or apply under Part XII, as the case may be, for either or both of the following
remedies—
(a) damages from the employer for any loss caused directly or indirectly as a result of the
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contravention;
(b) an order directing the employer to redress the contravention, including an order to employ any
person, notwithstanding that the vacancy in question has already been filled and notwithstanding
that the employer may be liable to any claim arising from the need to dismiss or terminate the
services of any other employee who has been engaged.
any person who is aggrieved by any act or omission of any person in contravention of subsection (2)
shall be entitled to claim or apply under Part XII, as the case may be, for either or both of the following
remedies—
(a) damages from such person for any loss caused either directly or indirectly as a result of the
contravention;
(b) an order directing such person to redress the contravention.
(6) For the purposes of this section, a person shall be deemed to have discriminated if his act or
omission causes or is likely to cause persons of a particular race, tribe, place of origin, political opinion,
colour, creed or gender to be treated—
(a) less favourably; or
(b) more favourably;
than persons of another race, tribe, place of origin, political opinion, colour, creed or gender, unless it is
shown that such act or omission was not attributable wholly or mainly to the race, tribe, place of origin,
political opinion, colour, creed or gender of the persons concerned.
(6a) Where, notwithstanding that any act or omission referred to in subsection (6) is not attributable
wholly or mainly to the race, tribe, place of origin, political opinion, colour creed or gender of a person,
it is nevertheless shown that any act, practice or requirement by an employer causes persons of a
particular description by race, tribe, place of origin, political opinion, colour, creed or gender to be
treated less favourably than persons of any other such description, it shall be presumed, unless the act,
practice or requirement concerned can be justified on any of the grounds specified in subsection (7),
that such person was unlawfully discriminated against.
(7) Notwithstanding subsections (1) and (2), no person shall be deemed to have discriminated
against another person—
(a) on the grounds of gender or pregnancy where—
(i) in accordance with this Act or any other law, he provides special conditions for female
employees; or
(ii) in accordance with this Act or any other law, or in the interests of decency or propriety, he
distinguishes between employees of different genders; or
(iii) it is shown that the act or omission concerned was done or omitted to be done, as the case
may be, by or on behalf of a men’s or women’s or boys’ or girls’ organization in the bona fide
pursuit of the lawful objects of such organization;
(b) on the grounds of political opinion or creed where it is shown that the act or omission concerned
was done or omitted to be done, as the case may be, by or on behalf of a political, cultural or
religious organization in the bona-fide pursuit of the lawful objects of such organization;
(c) on the grounds of race or gender if the act or omission complained of arises from the
implementation by the employer of any employment policy or practice aimed at the
advancement of persons who have been historically disadvantaged by discriminatory laws or
practices;
(d) if the act or omission complained of arises from the implementation by the employer of any
employment policy or practice aimed at assisting disabled persons as defined in the Disabled
Persons Act [Chapter 17:01];
(e) if any distinction, exclusion or preference in respect of a particular job is based on the narrowly
defined inherent operational requirements, needs and necessities of that particular job.
(8) It shall be no defence to a charge in respect of a contravention of subsection (1) or (2) to prove
that—
(a) the employee or prospective employee concerned was not in fact taken into employment by the
employer concerned or that such employee would, in any case, not have been taken into such
employment for any other lawful reason; or
(b) the employee or prospective employee concerned has left or has not left the employment of the
employer concerned; or
(c) the employee or prospective employee concerned has subsequently been taken into
employment by the employer concerned in circumstances showing that he has not been
discriminated against; or
(d) the employer concerned subsequently withdrew or did not fill the vacancy; or
(e) the person charged is no longer committing any contravention of subsection (1) or (2); or
(f) the employee or prospective employee concerned was party to the alleged contravention or did
not complain about it; or
(g) it was in the business interests of the person charged to commit the contravention; or

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(h) the contract or agreement which forms the subject of the charge was entered into prior to the
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fixed date.
6 Protection of employees’ right to fair labour standards
(1) No employer shall—
(a) pay any employee a wage which is lower than that to fair labour specified for such employee by
law or by agreement made under this Act; or
(b) require any employee to work more than the maximum hours permitted by law or by agreement
made under this Act for such employee; or
(c) fail to provide such conditions of employment as are specified by law or as may be specified by
agreement made under this Act; or
(d) require any employee to work under any conditions or situations which are below those
prescribed by law or by the conventional practice of the occupation for the protection of such
employee’s health or safety; or
(e) hinder, obstruct or prevent any employee from, or penalise him for, seeking access to any lawful
proceedings that may be available to him to enable him lawfully to advance or protect his rights
or interests as an employee.
(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to a fine not
exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine
7 Protection of employees’ right to democracy in the work place
(1) No person shall—
(a) hinder, obstruct or prevent any employee from forming or conducting any workers committee for
the purpose of airing any grievance, negotiating any matter or advancing or protecting the rights
or interests of employees;
(b) threaten any employee with any reprisal for any lawful action taken by him in advancing or
protecting his rights or interests.
(2) Every employer shall permit a labour officer or a representative of the appropriate trade union, if
any, to have reasonable access to his employees at their place of work during working hours for the
purpose of—
(a) advising the employees on the law relating to their employment; and
(b) advising and assisting the employees in regard to the formation or conducting of workers
committees and trade unions; and
(c) ensuring that the rights and interests of the employees are protected and advanced;
and shall provide such labour officer or representative of the appropriate trade union or employment
board, if any, with reasonable facilities and access for the exercise of such functions.
(3) Any person who contravenes subsection (1) or (2) shall be guilty of an offence and liable to a fine
not exceeding level seven or to imprisonment for a period not exceeding two years or to both such fine
(4) Notwithstanding subsection (3), nothing done to prevent any disruption of normal production
processes, or any interference with the efficient running of an undertaking or industry shall be held to
be in contravention of subsection (1) or (2).

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1.5 Discuss ways in which employees may be organized in trade
unions or staff association membership.
Make notes
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ACT EXTRACT
27 Right to form trade unions or employers organizations
(1) Subject to this Act, any group of employees may form a trade union.
(2) Subject to this Act, any group of employers may form an employers organization.
(3) Subject to this Act, any group of trade unions or employers organizations may form a federation.
28 Requirements for formation of trade unions and employers organizations
(1) Every trade union, employers organization or federation shall—
(a) subject to subsection (2), before it raises funds from any source; and
(b) within six months of its formation;
adopt a written constitution which shall provide for—
(i) the qualifications for membership, including membership fees, if any; and
(ii) the right of any person to membership if he is prepared to abide by the rules and conditions
of membership; and
(iii) the number of officials and office bearers, their powers and functions and their appointment
or election; and
(iv) the holding of annual general meetings; and
(v) the submission by any official or office bearer to re-appointment or re-election if a petition
therefor is made—
A. within one year of his appointment or election, as the case may be, by not less than
three quarters; or
B. later than one year of his appointment or election, as the case may be, by not less than
one quarter;
of the members of the trade union, employers organization or federation; and
(vi) the call and conduct of meetings of members or representatives of members of the trade
union, employers organization or federation; and
(vii) the prohibition of discrimination against any members or class of members on grounds of
race, tribe, place of origin, political opinion, colour, creed, gender, pregnancy, HIV/AIDS
status or, subject to the Disabled Persons Act [Chapter 17:01], any disability referred to in the
definition of disabled person in that Act; and
(viii) the amendment of the constitution; and
(ix) the winding up of the trade union, employers organization, or federation;
and failure to so provide in the constitution shall constitute an unfair labour practice by the trade union,
employers organization, or federation concerned.
(2) A trade union, employers organization or federation may, notwithstanding subsection (1) and
before it has adopted a written constitution in terms of that subsection, raise funds in respect of
membership fees to an amount not exceeding such amount as may be specified by the Minister by
statutory instrumentfor the purposes of this subsection.
(3) Every trade union, employers organization or federation shall, within six months of its formation,
submit two copies of its constitution to the Minister, and shall within one month of any amendment of its
constitution submit copies of such amendment with a statement of the purpose thereof to the persons
and authorities mentioned in this subsection.
(4) It shall be the duty of every official or office bearer of a trade union, employers organization or
federation to ensure compliance with this section.
29 Registration of trade unions and employers organizations and privileges thereof
(1) Subject to this Act, any trade union, employers organization or federation may, if it so desires,
apply for registration.
(2) Every trade union, employers organization or federation shall, upon registration, become a body
corporate and shall in its corporate name be capable of suing and being sued, of purchasing or
otherwise acquiring, holding or alienating property, movable or immovable, and of doing any other
act or thing which its constitution requires or permits it to do, or which a body corporate may, by law,
do.
(3) [Repealed]
(4) Subject to this Act, a registered trade union or federation of such unions shall be entitled—

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(a) to be assisted by a labour officer or designated agent of the appropriate employment council in
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its dealings with employers; and
(b) through its duly authorized representatives, to the right of access to employees conferred by
subsection (2) of section seven; and
(c) to be provided by employers with the names and other relevant particulars, including particulars
as to wages of all employees who are employed in the industry or undertaking for which the trade
union or federation is registered, and who are members of the trade union or federation
concerned; and
(d) to make representations to a determining authority or the Labour Court; and
(e) … {Repealed]
(f) to form or be represented on any employment council; and
(g) to recommend collective job action; and
(h) to levy, collect, sue for and recover union dues; and
(i) to act as an agent union in terms of section thirty-one;and
(j) to exercise any other right or privilege conferred by this Act on registered trade unions or
federations thereof.
(4a) In addition to the privileges specified in subsection (4), an official or office-bearer of a registered
trade union or federation shall be entitled to take such reasonable paid or unpaid leave during working
hours as may be agreed under a collective bargaining agreement for the purpose of enabling the
official or office-bearer to perform the functions of his office:
Provided that if the parties negotiating a collective bargaining agreement fail to agree on the
extent of paid or unpaid leave for the purposes of this subsection, either or both of the parties to the
dispute may refer the matter to a labour officer who shall thereupon deal with it in terms of section 93.
(5) Subject to this Act, a registered employers organization shall be entitled—
(a) to be assisted by a labour officer or a designated agent of the appropriate employment council
in its dealings with trade unions or workers committees; and
(b) through its duly authorized representatives, to be provided by trade unions and workers
committees with the names and other relevant particulars of all their members; and
(c) to make representations to a determining authority or the Labour Court; and
(d) … {Repealed]
(e) to form or be represented on any employment council; and
(f) to exercise any other right or privilege conferred by this Act on registered employers organizations.
30 Unregistered trade unions and employers organizations
(1) No unregistered trade union or employers organization may in its corporate name—
(a) make representations to the Labour Court; or
(b) be assisted by a labour officer or a designated agent of any employment council.
(2) No unregistered trade union or employers organization may, whether in its corporate name or
through any of its members—
(a) … {Repealed]
(b) form or be represented on any employment council; or
(c) be entitled to be provided with the particulars specified in paragraph (c) of subsection (4) or
paragraph (b) of subsection (5) of section twenty-nine.
(3) No unregistered trade union may, whether in its corporate name or otherwise—
(a) recommend collective job action; or
(b) have the right of access to employees conferred by subsection (2) of section seven;or
(c) levy, collect or recover union dues by means of a check-off scheme.
31 When trade union may act as agent union
(1) Subject to subsection (2), a registered trade union may act as the agent union of employees in
any undertaking or industry who are not otherwise represented by a registered trade union if—
(a) not less than fifty per centum of the employees concerned arein favour of such trade union
representing them; or
(b) an unregistered trade union or a registered trade union which otherwise represents the employees
concerned requests the registered trade union to act as its agent union; or
(c) the Minister so requests.
(2) Except where the Minister has requested a registered trade union to act as an agent union or has
consented to such a request in terms of paragraph (c) of subsection (1), a registered trade union that
desires so to act shall apply to the Minister in writing, setting out the circumstances giving rise to the
application.
(3) On receipt of an application in terms of subsection (2), the Minister may, after taking into
account—

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(a) the extent to which the registered trade union appreciates the interests and needs of the
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employees concerned; and
(b) the views of any employers or employees who may be affected; and
(c) any levies or dues the registered trade union proposes to levy from the employees concerned;
and
(d) the ability of the registered trade union to act as an agent union;
grant or refuse the application.
(4) No registered trade union shall act as an agent union—
(a) for a period of more than three years unless, before the expiry of three years after commencing so
to act, the Minister extends such period; or
(b) after a trade union representing the employees concerned has been registered or has re-acquired
its competency to represent the employees concerned.
(5) A registered federation of trade unions may act, mutatis mutandis,as an agent union with respect
to the members of one of its component unions or undertakings.
(6) The Minister may on his own initiative or on the application of any interested party, at any time,
revoke the authority of a registered trade union or federation of trade unions to act as an agent union.
32 Agent union to disclose other agencies
A registered trade union or federation of trade unions which is acting as an agent union for any
employees may, in terms of section thirty-one,become the agent union for any other employees if it
discloses to such other employees its prior agency.
33 Application for registration
(1) Every application for registration by a trade union or employers organization or federation shall,
subject to section thirty-four,be made to the Registrar in the prescribed form.
(2) The Registrar shall cause notice to be published in the Gazette of every application made in
terms of this section, and in such notice shall invite any person who wishes to make any representations
relating to the application to lodge such representations with the Registrar within such period, not
being less than thirty days from the date of the notice, as may be specified in the notice, and to state
whether or not he wishes to appear in support of his representations at accreditation proceedings.
34 Requirements of application for registration
An application for registration of a trade union or employers organization or federation shall contain
the following information—
(a) the name of the trade union or employers organization or federation; and
(b) the names and relevant particulars of the persons intending to secure the registration; and
(c) the coverage of the proposed trade union or employers organization or federation with regard to
the undertakings or industries concerned, with such exclusions as may be intended; and
(d) the affiliates to and the affiliations of the trade union or employers organization or federation,
including international, national or local unions, organizations or workers communities; and
(e) sources of funds and material, both current and anticipated, for organizing the trade union or
employers organization or federation, and the address of its bank;
and shall be accompanied by a copy of its constitution or operational rules.
35 Requirements of constitution of registered trade unions or employers organizations
The constitution of every registered trade union or employers organization or federation shall, in
addition to the matters referred to in section twenty-eight,provide for—
(a) consultation between the various governing bodies or branches of the trade union or employers
organization and members thereof before such trade union or employers organization or
federation—
(i) enters upon a collective bargaining agreement; or
(ii) recommends collective job action; or
(iii) embarks upon any new programme which is likely to substantially affect the rights and
interests of its members; or
(iv) increases fees and other dues payable by its members; or
(v) assigns an official to represent its members in a particular matter that is of considerable
significance to its members;
and
(b) the keeping of books of accounts and the submission of such books of accounts for auditing
within three months of the end of each financial year, and the making available to members of
certified true copies of the audited accounts and the auditor’s report thereon; and

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(c) the prohibition of the use of union or association dues of the trade union or employers
organization or federation for electioneering for the trade union or employers organization or
federation or for political purposes; and
(d) [Repealed]
(e) the equitable sharing of the funds of the trade union or employers organization with any of its
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branches; and
(f) the maintenance of a register of members and a record of the fees, if any, paid by each member
and the periods to which those fees relate; and
(g) the giving to any person who is refused membership or who is expelled of written reasons for such
refusal or expulsion; and
(h) such other matters as may be prescribed.
36 Registration of trade unions, employers organizations and federations
(1) Subject to this Act, the Registrar may, after considering any representations lodged in terms of
subsection (2) of section thirty-three and after the holding of accreditation proceedings, if any, grant or
refuse an application for the registration of a trade union or employers organization or federation.
(2) When granting any application for registration in terms of subsection (1), the Registrar may, after
consultation with the applicant, increase or reduce the interests or area in respect of which the
applicant applied for registration.
(3) Where the Registrar grants an application for registration of a trade union or employers
organization, he shall enter in his register—
(a) the name of the trade union or employers organization; and
(b) every undertaking or industry in respect of which the trade union or employers organization is
registered; and
(c) such other particulars as may be prescribed;
and shall issue the trade union or employers organization with a certificate of registration in the
prescribed form.
(4) The Registrar shall, on request, supply any interested person with his reasons for any decision
made by him in terms of this section.
37
[Repealed]
38
[Repealed]
1.5 Describe the main forms of company structure
and relate them to purpose and methods of
communications with the workforce.
MAKE NOTES
The starting point for any effective enterprise policy to install procedures and mechanisms to promote
sound labour relations is communication, because it is relevant to a whole range of issues and other
matters such as productivity, small group activities, joint consultation, performance appraisals, and
motivation, as well as to organizational performance.
The performance of an organization is affected by the manner in which that organization
communicates with its employees. This involves information exchange, and not merely one-way
communication. The performance of employees in an organization is conditioned by the performance
of others in the organization. Changes in an organization can be brought about in an effective way
where there is sufficient understanding between management and employees. For this purpose two-way
communication tends to enhance understanding and cooperation and influence behaviour in a
desired direction. But for effective two-way communication there should be a knowledge of
communication and communication skills, a structure of communication channels, and access by all
employees to such channels. Communication is essential not only in relation to existing employees but
also in relation to new employees who must be made aware of what the job entails. Making available
to employees the means of communicating their opinions and problems is also important to an
effective performance appraisal system.
The link between productivity and communication is to be found in the fact that proper productivity
management requires concerted or joint action between management and workers. For this purpose
confidence between management and workers is essential, and the starting point of confidence-

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building is sharing information (and not merely 'top-town' communication). This has prompted the view
that productivity management is also information management - information helps to promote the
commitment that is necessary to improve productivity. Two-way communication can also promote
productivity improvement through innovation and creativity.
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Effective communication would:
Create an atmosphere of trust, which is important to promoting increased productivity. If
the environment generates mistrust, workers are likely to be suspicious as to whether they
are receiving a fair share of the benefits of productivity gains. Without two-way
communication workers would not be in a position even to judge whether their share is a
fair one.
Promote an atmosphere of 'intimacy' and commitment to the group, which in turn would
bind people together and prompt cooperation. It is basic human psychology that a high
degree of communication and working together for a common goal tend to create a
feeling of intimacy among those involved in these processes.
Promote - especially where the elements of trust and intimacy are present integration of
the worker in the activities of the group and a feeling of 'belonging' leading to greater
motivation and productivity.
Promote participation, which involves common goals, teamwork, discipline/commitment
and cooperation. Communication is a great motivator and makes people feel secure in
their jobs, helps to identify the contribution of workers with the enterprise's success, and
enhances the quality of working life. It therefore leads to greater job satisfaction.
Develop the skills and attitudes of the individual, engendering self-confidence and a sense
of self worth. In a highly hierarchical and 'top-down' form of management there is little
scope for development of the individual which is needed for innovation and creativity
which, in turn, promote better productivity. Innovation and creativity result in better
utilization of available resources which, in the final analysis, is what productivity is.
Create a high degree of consensus in decision making. With consensus implementation of
decisions will be quicker and easier because disputes or differences of opinion would be
less likely compared to enterprises where decisions are taken unilaterally with little
consultation and information-sharing.

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2.0 TRADE UNIONISM
2.1 Define a ‘trade union’.
A trade union is an organization of workers who have banded together to achieve common goals such
as protecting the integrity of its trade, achieving higher pay, increasing the number of employees an
employer hires, and better working conditions. The trade union, through its leadership, bargains with the
employer on behalf of union members (rank and file members) and negotiates labour contracts
(collective bargaining) with employers. The most common purpose of these associations or unions is
maintaining or improving the conditions of their employment.[1]
This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring,
firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by
a union are binding on the rank and file members and the employer and in some cases on other non-member
workers. Trade unions traditionally have a constitution which details the governance of their
bargaining unit and also have governance at various levels of government depending on the industry
that binds them legally to their negotiations and functioning.
Over the last three hundred years, trade unions have developed into a number of forms. Aside from
collective bargaining, activities vary, but may include:
• Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a
range of benefits to insure members against unemployment, ill health, old age and funeral
expenses. In many developed countries, these functions have been assumed by the state;
however, the provision of professional training, legal advice and representation for members is
still an important benefit of trade union membership.
• Protection of workers: Unions prevent exploitation of workers, increase their wages thereby
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reducing inequality.
• Industrial action: trade unions may enforce strikes or resistance to lockouts in furtherance of
particular goals.
• Political activity: trade unions may promote legislation favorable to the interests of their
members or workers as a whole. To this end they may pursue campaigns, undertake lobbying,
or financially support individual candidates or parties (such as the Labor Party in Britain) for
public office. In some countries (e.g., the Nordic countries and the Philippines), trade unions
may be invited to participate in government hearings about educational or other labor market
reforms.
Trade unions are now accepted as valuable institutions helping to regulate the labour markets in our
country. The concept of social partnership is helping to further this acceptance, and is elevating the
trade union from its well-entrenched role at the micro level, within firms, to the macro level where it can
contribute to national planning and national development.
A trade union is an organization based on membership of employees in various trades, occupations
and professions, whose major focus is the representation of its members at the workplace and in the
wider society. It particularly seeks to advance its interest through the process of rule-making and
collective bargaining.
According to the interpretation clauses in the Industrial Relations Act a Trade Union is
An association or organization registered as a trade union for the purposes of the
regulation of the relations between workmen and masters, or between workmen and
workmen, or between masters and masters, or the imposing of restrictive conditions on
the conduct of any trade or business, and also the provision of benefits to members,
not being an association or organization of employers.

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2.2 Outline the principal forms of employer organization.
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Make notes
2.3 Consider the advantages and disadvantages of recognizing
a trade union for collective bargaining purposes.
QWhat are the advantages and disadvantages for management and employees from
recognizing a union for the purposes of collective bargaining?
Definition of collective bargaining
“Employees do not negotiate individually and on their own behalf, but do so collectively though
representative.” (The Donovan Commission, 168).
Collective bargaining can be defined as an arrangement for settling wages and conditions of
employment by an agreement between an employer, and an association of employees. It has been
regarded traditionally e.g. by Webbs (10), as the collective alternative to individual bargaining.
“It is not an act of exchange itself but, rather a rule making process designed to control the terms of
employment contracts.” (Flanders, 168)
Chamberlain (151) consider that collective bargaining fulfills three functions
• a means of contracting for the sale of labor
• a form of industrial government
• a method of management
The collective bargaining process can be viewed by three different perspectives which are not
necessarily conflicting its other and each of these perspectives represents a different stage in
bargaining process.
The first one is that collective bargaining regulates the sale of labour. This is the marketing concept of
collective bargaining and is concerned with the labour with is bought and sold in the market place. In
other words it takes into account the terms and condition under which is labour bought e.g. working
hours and working conditions. It is more a economic approach to the nature of collective bargaining
and shows the exchange relationships between employers and employees.
By the second perspective collective bargaining is viewed as a form of industrial government. This is the
governmental concept of collective bargaining. In this case is seen as a political power relationship. It
determines the relations between management and trade union representatives and finds solutions by
modifying the terms of collective agreements when necessary. As a governmental concept collective
bargaining is focused on the continuity of management union relationship and the continuous process
of rule making which takes place between the two groups.
The third and the last perspective is the industrial relation or managerial relations concept of collective
bargaining. Here it is just a simple system of industrial relations where management and unions have
equal than competing interests.

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As collective bargaining between employees and trade unions matures we have a progress from the
first perspective to the second one and finally to the last one. The nature and depth of collective
bargaining differs not only between different negotiating parties but also within the same negotiating
groups in different time. The essence of the collective bargaining process is its representative nature, its
power basis, its adaptability, and its flexibility to particular circumstances. (1)
The objective of collective bargaining is a collective agreement between the union and the employer.
This agreement governs wages and benefits for the employees it cover for a fixed period of time. This
fixed term collective agreement provides a period of labour peace. Strikes and lock-outs are allowed
only when a collective agreement has expired, and then only after the collective agreement process
has taken place.
Such an agreement requires that workers are involved in the settlement of wages and conditions as a
group and implies, therefore, that they are organized and represented by a trade union which has
obtained the right to negotiate on behalf of its members. It is necessary also that some recognized
procedure for negotiation has been established. These conditions are necessary in order have the
existence of collective bargaining.
Collective bargaining allows freedom of association and exists in all industrialized countries. However it
varies between different countries or even between different organizations in the same country, and it
evolves over the time.
The result of collective bargaining process are the collective agreements. There are two types of such
agreements, the procedural and the substantive.
Procedural agreements regulate the relations between employers and employees, define the
bargaining units and determine the status and facilities for trade union representatives in the
bargaining process.
Substantive agreements on the other hand, are concerned with the definition of jobs, the wage of
employees and the conditions under which they work.
Collective bargaining agreements contain the current detailed settlements of wages and conditions
together with a specification of the procedures to be taken in the event of any dispute. It is not only
entails reaching an agreement on terms, but also extends to their subsequent interpretation and
administration in the day to day relationship of the parties involved.
As far as, trade unions are recognized by employers for the purposes of collective bargaining, unions
are trying by negotiating with employers on behalf of their members to secure job for employees, and
to achieve formal or informal acceptance of the arrangements for redundancy and work sharing.
There are also trying to improve the working hours and the pay system during holidays. Lately the
working hours per week have been reduced. Another main objective of unions’ negotiations is to
improve the working conditions in order employees to avoid working accidents by persuading
employers and government to provide to employees the right job equipment e.g. protective clothes.
The collective bargaining is a process of resolving the conflicting desires of employers and unions.
In case of a disagreement between the two parties we may have strikes, lock-outs or some other
sanctions not only from employees but from employers as well (e.g. lock-outs, threats of liquidation
e.t.c.). Each of the two parties have their own weapons against a possible disagreement or in order to
threat the other party.
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The costs of a disagreement for the employer are the loss of profits during a dispute or even the loss of
consumers goodwill by not be able to respond to order dates. On the other hand employees are
loosing their income by participating in trade union sanctions. This has as a result employees not to be
able to meet their future financial commitments.
The cost of agreement to each party is the difference between its future income, flow on its own, and
on its opponent’s terms. Neither the employer nor the union necessarily exert their full bargaining power
but may hold potential gains in reserve for the future.
Collective bargaining has its own structure which is the structure of any stable bargaining agreements.
This structure includes the bargaining units, bargaining levels, bargaining form and the bargaining
scope.
The bargaining units are the members which take part in the collective bargaining which are
employers or management on one hand and employees and trade unions on the other.
The bargaining levels is about the levels in which bargaining takes place. These levels are the multi-employer
or single employer bargaining which is subdivided to centralized and decentalized
bargaining. These are different methods which are used by employers according to different
circumstances.
The bargaining form is concerned with the formality or informality of the bargaining process, if it is
written or unwritten respectively.
Finally the bargaining scope is about the subjects of negotiations between the two parties, what desires
are going to be negotiated between management and trade unions.
Different structures of collective bargaining have different drawbacks to each or the two parties, it
depends on the certain time that collective bargaining is taken place which structure is going to be
implemented, and how it is going to be formed. The structure varies also according to the demands of
each party and the conditions under which bargaining takes place.
By the recognition of trade unions by employers for collective bargaining purposes there are many
impacts on employers-management and trade unions-employees respectively. The relationship
between these two parties is based on the bargaining power that each party enjoys. For that reason if
there is not a reasonable power between the two sides, the one with the greater power will be able to
impose its policies and demands on the other side. This means that employers or employees may
ultimately impose sanctions on their weaker opponent. The most usual sanctions are strike, lock-outs,
threats of removal the plant and machinery, withdrawing of overtime or mass suspension, stoppages
e.t.c.
In order to examine the impacts of collective bargaining we must first classify it into ‘multi-employer
bargaining’ and ‘single employer bargaining. Single employer bargaining can be subdivided into
centralized and decentralized bargaining.
Multi-employer bargaining is where a number of employers can reach an industry-wide or national
agreement on pay and conditions with the recognized unions in the industry as a whole.
With decentralized bargaining, enterprises may have full delegated authority to settle pay claims and
other conditions of employment.
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Employer adopt their own strategy concerned with bargaining levels in order to deal with trade union.
It depends on the certain time and different conditions under which bargaining is taken place and can
even change their bargaining levels between different times of negotiation.
Each one of the different classifications has its own drawbacks to both sides. With ‘multi-employer’
bargaining employers are having the best use of their negotiating resources. However as management
remains in certain establishment levels it is easier for management to concentrate on managing the
business effectively. They can also treat employees equitably and they are preventing pay ‘leap-frogging’
by the unions. There are also certain disadvantages like the reduction of the opportunity to
negotiate domestic deals to cope with local labour market conditions. A second one is that employers
are paying something for nothing to all employees, thus requiring changes in working practices and
productivity to be negotiated locally. Finally some employers have to pay more than they can afford
because of their business condition.
On the other hand the advantages for trade unions are that ‘multi-employer’ concentrates on unions
bargaining power and negotiating skills, all employees get something and the unions role is established
and legislated throughout the industry. In contrast to these benefits their ability to negotiate more
important and beneficial desires is reduced locally and the maintenance of close day-to-day
relationships at company level is not needed.
As far as the centralized bargaining is concerned employers have uniform terms and conditions within
the company. Its is easier to estimate labour costs and the relationship between the negotiating parties
is more stable. They have also cheaper parity claims. Its major disadvantages are that the conflicting
demands are derived from diverse product markets like labour markets and technology. There is also a
formalization of collective agreements, the communication becomes harder and it is difficult to monitor
workplace arrangements effectively.
For the trade union centralized bargaining provides more effective and efficient use of union resources
and negotiating skills and better coordination between bargaining groups. However the status and
power of shop stewards is weaker and it creates tensions in decentralized unions, such as in the
engineering workers union, where considerable autonomy is vested locally.
Finally with decentralized bargaining managers have better managerial authority for industrial relations
and they have also improved lines of communication with helps them to find faster solution in order to
face potential disputes. Another advantage is that management is more possible to achieve a flexible
approach to workplace change, and the shop steward power is consolidated so there are better
communication lines for intraplant employees. The disadvantages of decentralized bargaining are that
claims for pay parity rise between different workplaces and negotiating groups because of the need to
monitor of labour cost control becomes more difficult and complicated.
As a conclusion we see that collective bargaining is the method by which employers on one hand and
trade unions on the other are trying to negotiate. Trade unions act on behalf of their members which
are the employees. The negotiations subject is about employees and the improvement of their wage
and conditions of work.
Collective bargaining is a flexible process and can be applied and adopted to wide variety of
contexts, where the parties want this. It is influenced by many factors like the state of economy,
managerial relations, public and legal policy, the bargaining power of employers or employees e.t.c.
For that reason it is not stable and varies according to the certain conditions under which is
implemented.
Collective bargaining is more likely to exist in Public sector rather than in Private and in manual workers
rather than in non-manual. It depends also on the kind of business, for example it is more likely used by
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manufacturing companies. Its existence depends very much on employers as they have to recognize a
trade union and they also form the different classifications of collective bargaining.
2.4 Function of workers’ committees and collective
bargaining strategies.
Formation of workers committees
(1) Subject to this Act and any regulations, employees employed by any one employer may appoint
or elect a workers committee to represent their interests:
Provided that no managerial employee shall be appointed or elected to a workers committee, nor
shall a workers committee represent the interests of managerial employees, unless such workers
committee is composed solely of managerial employees appointed or elected to represent their
interests.
(1a) Subject to subsection (1b), the composition and procedure of a workers committee shall be as
determined by the employees at the workplace concerned.
(1b) Notwithstanding subsection (1a), if a trade union is registered to represent the interests of not less
than fifty per centum of the employees at the workplace where a workers committee is to be
established, every member of the workers committee shall be a member of the trade union
concerned.
(2) For the purposes of appointing or electing a workers committee, employees shall be entitled to—
(a) be assisted by a labour officer or a representative of the appropriate trade union; and
(b) reasonable facilities to communicate with each other and meet together during working hours at
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their place of work; and
(c) be provided by their employer with the names and relevant particulars of all employees
employed by him;
so however, that the ordinary conduct of the employer’s business is not unduly interfered with.
(3) In the event of any dispute arising in relation to the exercise of any right referred to in subsection
(2), either party to the dispute may refer to it to the labour officer mentioned in paragraph (a) of that
subsection, or, in the absence of such labour officer, any other labour officer, and the determination of
the labour officer on the dispute shall be final unless the parties agree to refer it to voluntary arbitration.
Functions of workers committees
(1) A workers committee shall—
(a) subject to this Act, represent the employees concerned in any matter affecting their rights and
interests; and
(b) subject to subsection (3), be entitled to negotiate with the employer concerned a collective
bargaining agreement relating to the terms and conditions of employment of the employees
concerned; and
(c) subject to Part XIII, be entitled to recommend collective job action to the employees concerned;
and
(d) where a works council is or is to be constituted at any workplace, elect some of its members to
represent employees on the works council.
(2) Subject to subsection (3), where a workers committee has been appointed or elected to
represent employees, no person other than such workers committee and the appropriate trade union,
if any, may—
(a) act or purport to act for the employees in negotiating any collective bargaining agreement; or
(b) direct or recommend collective job action to the employees.
(3) Where an appropriate trade union exists for any employees, a workers committee of those
employees may negotiate a collective bargaining agreement with an employer—
(a) in the case where the trade union has no collective bargaining agreement with the employer
concerned, only to the extent that such negotiation is authorized in writing by the trade union
concerned; or
(b) in the case where there is a collective bargaining agreement, only to the extent permitted by
such collective bargaining agreement; or
(c) where the Minister certifies in writing that—
(i) the issue in question was omitted from or included in the principal collective bargaining
agreement when it should not have been so omitted or included; and

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