The increase of size in industry and their expansion at other locations felt to categorize industries in terms of size, turn over, type of industry such as mass consumable products or luxury items, different regulatory authorities came into existence. The number of employees in different sections, associates in distribution chain increased. This resulted to understand different state & national laws as well as global laws. This along with different labour laws & trade unions were formed and these associations were given power to negotiate working conditions, disputes and there was provision of a periodical review. The environment brought into several disputes between industries and workers, regulatory authorities, taxation department, vendors & distribution chain associates etc. The HR section, have been dealing with internal disputes and Legal section, have been dealing with regulatory authorities etc.
The relations between Management and its employees are very important for Industrial Relations and its smooth functioning. Good Industrial Relations will lead to motivated employees as a result this will give rise to enhanced Productivity. If industrial relations are poor employees will be demotivated and productivity would be compromised with a high turnover of staff. Departure of experienced and trained staff would affect the output. This may result into recruitment of new & untrained staff. They would take time to match with trained staff. This will exhaust resources and invite industrial disputes.
There may be several types of Industrial Disputes. Unsatisfactory working conditions, wages not at par with peers in other organizations, unfair dismissal, poor staff and boss relations, discrimination and introduction to new technology without specific training, limited growth opportunities. These conditions give rise to dissatisfaction among staff and may lead to demonstration and revolt. The workers form a body under frame work of labour law and elect their office bearers. Trade Unions become an organization, who represents employee’s views with their employers. Union members elect a committee to represent them in negotiations with the employers.
Trade Union helps in increased bargaining power, with their skilled negotiators. They also take help of consultants or councillors, to handle bargaining. Trade unions have done greater service to improve job security of workers; hence this resulted in improved living standards of the workers. It also has some limitations, where trade union cannot organize a strike or any other industrial action without getting the majority’s approval.
Disputes maybe of several types:
• Departmental disputes are ones which have received the approval of workers at large. The union must then decide the type and the timing of the settlement.
• Individuals having charges of integrity or indiscipline has no union approval.
• A strike without advance notice is an unofficial one. This is unfair and creates a situation that brings embarrassment to the management and unpleasant relationship.
Response of Employer
Few employers attempt a lock out to dismantle the strike. This can happen when an employer declares lock outs or suspends staff during an industrial dispute. This is viewed as an act to break the strikers’ morale.
A more reasonable approach is to start negotiating a settlement with those involved. This can be resolved with dialogues between employees’ unions and employers. If unresolved it may lead to help from the Labour Relation Council.
Consequences of industrial relations conflict
• Less productivity, more costs
• Cut in profits
• Degrading company’s image
• Hindrance in recruiting new staff
• Loss of working hours
Solution for Industrial Conflicts:
• Discuss issue with level headed representative of the union.
• The union would follow the grievance procedure agreed with the employer.
• If no agreement arrives, representatives can talk directly to the management.
• If there is no agreement on the issue it can be taken to the Labour Department which provides the conflict resolution services.
• It there is still no solution then an ARBITRATION SERVICE is provided for group conflict resolution.
The industrial disputes, lead to disadvantage for both parties, hence a reasonably good environment should be there in place. There should be activities where their employees and their family members can be involved. There could be welfare programmes from management. Their issues can be resolved and they should be rewarded & self-motivated. Management including team leaders have greater responsibility towards all this. A pleasant relationship means, more productivity, better contribution to the economy of the state.