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2

1. IR is a relationship between management and

employees or among employees and their
organizations, that characteristics and grow out of
employment.

2. IR may be defined as the complex of inter- relations

among workers, managers and government.
 Œharacteristics of IR


1. An outcome of relationship in industry.

2. It create rules and regulations to maintain piece
and harmony.
3. Important parts of IR are employees and their
organization, employer and their association and
government.
4. It has a role of management, union and
government.
 bjective of IR
£

1. To promote and develop labor management

relation.
2. To regulate the production by minimizing industrial
conflicts
3. To provide opptunity to workers to involve in
decision making process with management.
4. To encourage and develop trade unions in order to
improve the workers' strength.
 Role of Trade Unions in IR
º

1. Achieving higher wages

2. To offer responsive co-operation in improving level
of production, discipline etc.
3. To promote individual and collective welfare
4. To improve working and living conditions
5. To enlarge the opportunities of promotion and
training.
 Role of Employers rganisation
ÿ

- Dromote and protect of the interest of employers

engaged in Industry, Trade and Œommerce.\
- Advice offering
- Bridge between Union Government
- Train and develop staff members of concern
members of Associations
 
X

A. ASSŒ AM- Associated Œhamber of Œommerce

(1920)
B. FIŒŒ- Federation of Indian Œhamber of Œommerce
(1927)
Œ. IE- International rganization of Employers
(1920)
 IL in IR
A

o IL establish in 1919, on April 19 by Versailles

Deace Œonference
o India become member of IL in 1919
 IL
´

 !"
 #!#


o Full employment and o The International

raising of standard of Œonference
living o The governing body
o Adequate protection o The international labor
for the life and health office
of the workers
o The assurance of
educational and
vocational opportunity
Stru
 Functions of IL
å

o Œonditions of work
o Œhild works
o Migrant workers
o ealth, Safety and Welfare
o Social Security
o Manpower organization and Vocational Training
 $# !%
2
$
&""'!% '!%
a) Trade Union a) Œonciliation
b) Joint Œonsultation 1. Œonciliation fficer
1. Work Œommittee 2. Board of Œonciliation
2. Joint Management 3. Œourt of Inquiry
Œouncil
b) Voluntary arbitration
c) Standing rders
d) Grievance Drocedure
c) Œompulsory Arbitration
1. Labor Œourt
e) Œode of Discipline
2. Industrial Tribunal
3. National Tribunal
Actors in IR systems
o 3 main parties are directly involved in IR:
1. Employers :
It possess certain rights vis-à-vis labors. They have
the right to hire and fire them . Management can
also affect worker·s by exercising their right to
relocate , close or merge the factory or to
introduce technological change .
2.Employees :

o 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 from
unions against the management and get support
from these unions .
3.Goverment
o The central and state government influences and
regulates IR through laws , rules , agreements etc..
It also includes third parties and labor and tribunal
courts .
Glossary f IR
For better understanding of IR various terms need to
be defined here:
1. INDUSTRY
2. EMDLYER
3. EMDLYEE
4. EMDLYMENT
5. LABR MARKET
1. INDUSTRY
Industrial Disputes Act 1947 defines an industry as any
systematic activity carried on by co-operation between an
employer and his workmen for the production, supply or
distribution of goods or services with a view to satisfy
human wants or wishes whether or not any capital has been
invested for the purpose of carrying on such activity; or such
activity is carried on with a motive to make any gain or
profit. Thus, an industry is a whole gamut of activities that
are carried on by an employer with the help of his
employees and labors for production and distribution of
goods to earn profits .
2.EMDLYER
An employer can be defined from different perspectives as:-
‡ a person or business that pays a wage or fixed payment to other
person(s) in exchange for the services of such persons.
‡ a person who directly engages a worker/employee in employment.
‡ any person who employs, whether directly or through another person or
agency, one or more employees in any scheduled employment in
respect of which minimum rates of wages have been fixed.
As per Industrial Disputes Act 1947 an employer means:-
‡ in relation to an industry carried on by or under the authority of any
department of [the Œentral Government or a State Government], the
authority prescribed in this behalf, or where no authority is prescribed,
the head of the department;
‡ in relation to an industry carried on by or on behalf of a local authority,
the chief executive officer of that authority;
3. EMDLYEE
o Employee is a person who is hired by another person or business for a
wage or fixed payment in exchange for personal services and who
does not provide the services as part of an independent business.
o An employee is any individual employed by an employer.
o A person who works for a public or private employer and receives
remuneration in wages or salary by his employer while working on a
commission basis, piece-rates or time rate.
o Employee, as per Employee State Insurance Act 1948, is any person
employed for wages in or in connection with work of a factory or
establishment to which the act applies.
4.EMDLYMENT

The state of being employed or having a job.

5.LABR MARKET
The market in which workers compete for jobs and
employers compete for workers. It acts as the
external source from which organizations attract
employees. These markets occur because different
conditions characterize different geographical
areas industries, occupations, and professions at any
given time.
Scope of IR
The main issues involved here include the following:

1. Œollective Bargaining
2. Machinery for settlement of IL
3. Standing rders
4. Workers Darticipation In management
5. Unfair Labor Dractices