Industrial Harmony

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Industrial Harmony


While industrial peace calls for both a negative approach, the attainment of industrial harmony essentially calls for a positive and constructive approach to the resolution of industrial disputes. Therefore, the Commission has declared ‘political bias; influence. This was necessary in view of the emerging multi-party governments in the country.


The Commission has noted certain weaknesses in the working of the existing industrial relations machinery, namely; Discretion given to government in matters of delay, expense, largely ad hoc nature of machinery involved and reference to disputes. Therefore, to make industrial

To make the machinery more effective and more acceptable, suitable modification should be made in the existing machinery.


Industrial Relations Commission:


The commission recommended:


“Constitution of an Industrial Relations Commission, on a permanent basis, both at the State level and at the Centre.


The State IRC will deal with disputes in respect of industries for which the State Government is the appropriate authority, while the National IRC will deal with disputes involving questions of national importance or affecting or likely to affect establishments located in more than one State. One of the major reasons for suggesting these commissions is the desire to eliminate the possibility of political influence disturbing or distorting industrial peace in the country.


“The commission will have both judicial and non-judicial members. The Judicial Members as well as the Chairperson of the National/State IRC are to be appointed from amongst persons eligible for appointment as Judges of High Courts. Non-judicial members are not required to have qualifications to hold judicial positions, but must otherwise be distinguished in the fields of industry, labor or management.


“The IRC will be a high powered body independent of the executive. The main functions of these IRCs would be a) adjudication in industrial disputes, b) conciliation, and c) certification of unions as representative unions.


“The Conciliation Wing shall consist of a Conciliation Office with prescribed qualifications and status.


Separate branch of National/State IRC.

“If the parties agree to avail such services, the Commission may provide an arbitrator from amongst its members/officers.

“All collective agreements must be registered with the IRC.” An award made by the IRC in relation to a dispute

Should be binding on all workers in the establishment(s) and employer(s) by the recognized union.


Labor Court:


The commission recommended for the following:



  1. i) Establishment of Labor Courts in each State. The number and location of such courts are to be decided by the appropriate government.


) The members of the Labor Court shall be appointed by the Government on the recommendation of the High Court.

iii) Labor courts shall deal with disputes relating to rights, obligations, interpretation and implementation of awards and claims arising under relevant provision of laws or agreement as well as disputes relating to unfair labor practices.

  1. iv) Labor Courts shall be the courts where all disputes specified above shall be tried and their award shall be enforced. Proceedings instituted by the parties for the enforcement of rights falling under the above categories shall be entertained in that regard.
  2. v) In certain clearly defined cases an appeal from the decision of the Labor Court lies to the High Court within whose jurisdiction/territory the Court is situated. 1) State intervention on labor/industrial relations began when the British government in India was forced to protect its commercial interests in labor, the first attempts to regulate labor included the Assam Labor Act, the Violation of Workmen’s Contract Act , 1859, and the Employers and Workmen (Disputes) Act, 1860. The purpose of these Acts was to protect the social system against labor rather than to protect labor against the social system.


deterioration in working conditions, due to over-development of industrial units; unnecessarily low wages and consequent discontent of the working class; growing indiscipline of the workers; strained relations between labor and management; Formation of ILO; Rise of AITUC (1920) and demands higher than wages; Better working and living conditions gave rise to serious industrial problems and created labor problems of large dimensions. The situation went out of control in Bombay and Bengal. So committees were appointed to look into the matter.





scope of industrial relations



Industrial relations in a narrow sense means the relationship arising out of the day-to-day working and interactions between employees and employers. But when taken in a wider sense, it also includes labor relations, i.e. the relationship between workers themselves and different groups in industry and public relations.

That is, the relationship between industry and society. According to Singh, “historical, economic, social, psychological, demographic, technological,



Business, Political and Legal Variables”. In other words, industrial relations has a wide scope and includes the following aspects:

  1. a) Establish and maintain good personal relationships in the industry
  2. b) Ensuring manpower development
  3. c) Connecting various persons associated with the industry.
  4. d) To create a sense of belonging in the minds of the workers
  5. e) To establish good industrial climate and peace
  6. f) Promotion of production as well as industrial and economic development
  7. g) Maximizing social welfare
  8. h) To provide ways and means for a healthy and effective government intervention in the management of the industrial sector.





  industrial relations work



Good industrial relations perform the following functions and are therefore very important and essential. they

1) Establish relationship between managers and managed

2) Bridging the gap between employers and employees.

3) To protect the interests of both the workers and the management

4) Establishment and maintenance of industrial democracy

5) To increase industrial productivity and contribute to the economic development of the country.

6) Avoid unhealthy atmosphere like strike, gherao or lockout in the industry.

7) Ensure better involvement and participation of employees in the production process.

8) Avoid industrial conflicts and maintain harmonious relations which are essential for efficiency in production.


Good industrial relations not only maintain a cordial atmosphere in the industry but it also facilitates production and industrial growth. Above all, it protects the rights of the workers and the reputation and interests of the management. Thus, good industrial relations can be used as an effective weapon by the workers and the managers and the government.


Brief History of Industrial Relations in India


Although only relatively recently have industrial relations succeeded in establishing an organizational base in India,



The origin of industrial relations goes back to

For the origin of the industry itself. Industrial relations in India have passed through several phases and have been influenced by various factors such as social, economic and political.


Cordial socio-economic relations existed in the early medieval period. The hunting stage, pastoral stage, agriculture and rural economy offered little scope for the practice of systematic industrial relations. Even when the slave system arose, it is believed that the masters were considerate towards the slaves.


According to Kautilya, organized industrial relations were absent even in the early medieval period. 4th century BC From the late 10th century AD, the relationship between employers and workers was based on justice and equality. Thus, industrial relations were cordial and based on mutual respect and understanding.


There was not much scope for industrial development during the early British period. India was just a colonial market for British goods. However, industries began to emerge in the early to late 19th century. The workers were forced to work in deplorable conditions and were also exploited by their contractors.


days before independence

The employment and wage situation was bad. Workers were hired and fired as the principle of demand and supply governed industrial relations and employers were in a dominant position. The leaders made efforts to improve the condition of the workers. But things didn’t really improve. This encouraged revolutionary movements. The Employers and Workmen (Disputes) Act 1860 was used to settle wage disputes. Besides, there was hardly any law to protect the interests of the workers.


After World War I, the concept of industrial relations assumed a new dimension in which workers resorted to violence and employers resorted to lockouts. As a result, the government enacted the Trade Disputes Act, 1929 to promote speedy settlement of industrial disputes. It was based on the British Industrial Courts Act 1919, but differed in not providing any permanent mechanism for the settlement of disputes.


There was intense industrial unrest in 1938 which prompted the Bombay government to enact the Bombay Industrial Relations (BIR) Act. For the first time, a permanent mechanism called the Industrial Court was established to settle disputes. It was replaced by the BIR Act 1946 which was amended four times. After World War II, India faced a number of socio-economic problems, including an increasingly turbulent industrial relations situation.



  Industrial Relations in the Post-Independence Period:


An important step towards improving industrial relations after independence was in the form of enactment of the Industrial Disputes Act 1947. It not only provided a permanent mechanism to settle industrial disputes but also made them binding and legally enforceable. An industrial convention was also organized in India. Industrial cease fire resolution was passed to maintain industrial harmony. In addition, the Indian Labor Conference (ILC) a tripartite body was established to look into the problem of industrial relations in India. It was formed to establish co-operation between the government, employers and trade unions.


An important feature of industrial relations in the post-independence period was the change in the attitude of the government towards labor and their problems, between 1947 and 1956, several labor laws were enacted to protect the interests of industrial workers. Initially these laws covered labor issues like seniority, wage rates, paid leave, social security etc., but the emphasis shifted from legal enactments to voluntary arrangements. This resulted in the introduction of the Code of Discipline in 1958 which unfortunately met with limited success and use. It served more as a moral guideline rather than a legal enactment. As a result, the government relied on legislation to regulate labor management relations and tried to structure industrial relations machinery at the plant level in the form of works committees and/or joint management councils (JMCs). As the political scenario in the country is closely linked to industrial relations, several political and international events influenced the course of industrial relations in the country.


With the Industrial Revolution (which ushered in great changes in society, first in Great Britain in the late eighteenth century and then, around 1830, in France, Belgium and the United States, Germany around 1850, Sweden and Japan in the 1870s Around 1890, in Canada and the USSR, and by the end of that century in other countries of the world, including Japan and India), capital became an important factor. It was capital that brought machinery more than skill, which accounted for ride productivity, the labor operating the machines being relatively untrained and easily replaceable in skill requirements

As technology became more sophisticated and workers organized, they gained increasing power; But capital remained the central factor in an economy of mass production. The government was primarily concerned with ensuring calm labor management relations; and employers maintaining a dependable labor force. Neither showed much concern for skill development.




In modern industrial society, the role of labor as a factor of production has become increasingly important. The world in which the bulk of the labor force was engaged in the production of goods is disappearing, as is the world in which agriculture dominated the economic landscape, the shift from manufacturing to service and information processing activities, and the increasing pace of technological change made manpower a major component of the nation’s well-being and development. In the ‘service oriented’ era, the quality, quantity and utilization of human resources is of central importance. Capital and natural resource endowments are important factors in advanced countries; But it is labor – human resource – that contributes most to the contemporary ‘wealth of the nation’! “Human beings”, according to Frederick Harbissian, are “active agents who accumulate capital, exploit nature resources, create social, economic and political organization and drive national development”. For food, there is a continuous increase in production. Labor is a major beneficiary as well as a major contributor to prosperity and development. express the bulk of the national product

are distributed to the workers in the form of wages and salaries. The expansion of total output has improved the welfare of these workers.


Special feature of industrial work:


With the rapidly changing pace of industrialization, there has been a fundamental change in the scale of production, in the environment of work organization and industrial relations. The deployment of a large number of legislatively protected workforce has resulted in an exodus of people from the city today; The traditional Indian worker is largely cut off from his native governance house. The problem of migration has assumed a new dimension. There has been a drastic change in the employer-employee interaction pattern.


Some of the characteristics of modern industrial work/economy are:

  1. i) Industry is a complex socio-technical system where a large number of people, workers, supervisory and managerial personnel and employers work together to achieve their individual goals. This association results in group relations which influence the economic, social and political life of the whole community but a wide gulf exists in the personal relations between the employees and the employers.
  2. ii) The economy is characterized by large-scale production that often uses large amounts of capital equipment per worker. The organization is highly specialized and diverse and many jobs still require substantial further training. A worker rarely creates a complete product that is a complete work.




Fragmented and repetitive, which does not bring personal satisfaction to the individual. Many people work in clerical, technical and professional occupations, and this ‘white-collar’ segment of the labor force grows at a much faster rate than the “blue-collar” segment.

iii) Industrial work curtails the freedom of the worker. The wage earner has to find work for a living and while he is employed, his work details are closely regulated, controlled and directed. Another person specifies the time the work is to be done, the nature of the work, the materials and equipment to be used, the speed of the work, and the quantity and quality of output expected of me.

  1. iv) A large enterprise act specifying the power and responsibilities of everyone from the top executive down to the worker. They are all forced to operate within a framework of regulations governing production and cost targets, product equipment, promotion, discharge, and many other things. As a result of these regulations, workers often lost their independence and status as independent producers. They are treated as “second class citizens” in the machine
  2. v) Workers new to industry often find it difficult to observe discipline in industry, as they perceive it to be rigid and arbitrary, hence the early stages of industrialization are usually filled with labor unrest and spontaneous/personal protests, which take the form of expression. High rates of sporadic strikes and riots are found. Eventually the protest is channeled into workers’ organizations, whose activities typically include both political action and defense of the workers’ interests in the plant.
  3. vi) Demand for products, technology, marketing force and specialized skills are in a state of constant flux. It is true that these duties provide more productive work at higher pay; But they also produce hob insecure

Even among the employees, employers many times fail to pass the test of intentions. Interference of workers due to environmental hazards. So they either resort to the elder. Large-scale modernization or being forced to down the shutters, in both cases, workers’ worth. Workers’ satisfaction suffers in such circumstances. Commitment and productivity are severely affected.

vii) Every worker hunts for his own job and every employer hunts for his own worker. As wages for job seekers eat up the idea of a mayor, employers often use them as magnets to attract labor. In the labor market, the system of salary negotiation is commonly spoken. So wages are largely determined by the supply and demand situation in the labor market.

viii) Industrial work is wage work, employers buy and workers sell their product which is labor when workers become wages,




The earner, his employer, becomes the owner of the equipment and materials of production and products. Employers want to buy labor cheaply and you workers want to sell it expensively: With the divergence of their interests, the buyer of these services is often likely to have a varying amount of conflict, discontent, discontent and industrial unrest, workers especially. Interested in higher wages. Healthy working conditions, opportunity to pursue satisfactory work, some voice in the management of Industrial Off Air. When they are denied the same, each of them asserts their rights, resulting in industrial conflict.


Importance of Industrial Relations:


Industrial relations are one of the most delicate and complex elements of modern industrial society. With increasing prosperity and rising wages, workers earned higher wages and received better education; And there’s sophistication and more mobility generally. Career patterns have changed. A large number of people have left their farms and factories

wages and salaries have become breadwinners in difficult circumstances. Hence a large population including women and children is concentrated in a few urban areas; And this population is characterized by ignorance, poverty and diverse conflicting ideologies. The organizations in which they are employed have grown and shifted from individual to corporate ownership. There is also a status-dominated secondary group-oriented, universal and a spring sophisticated class in urban areas. Workers have their own unions and employers’ bargaining bodies, both of which compete with each other and try to show their respective strengths. The government played an increasing role in industrial relations, partly by being an employer for millions of workers and partly by regulating working conditions in privately owned industries and establishments. Rapid changes in the techniques and methods of production have eliminated long-established jobs and created opportunities that require different patterns of experience and education, industrial unrest by not meeting the many demands of workers is born. All these changes have made the employer-employee relationship more complex. Therefore, a clear understanding of these is essential to avoid industrial strike.


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