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Labor Relations and Indusrtial Relations SystemGroup C:Laxmi BelbaseMamata ThapaliyaPrasanna DuttaRasna ShresthaRoshani GhimireSuraksha Koirala

Labor RelationsLabor relations can be defined as the relationship between labor or employee and the employer (Cambridge Dictionary).Labor relations is the management specialty emphasizing skills that managers and union leaders can use to minimize costly forms of conflict and to seek win-win solutions to disagreements.

Labor RelationsLabor relations is combined with the unionize employment situations. Labor relations is expecting to study about relationship of labors in unionize culture. Labor relation is a subject of industrial relations, and social, political and economic parameters are influencing to the labor relations tooActors Of Labor Relationsthe statethe employer (or employers or an employers association) trade unions employees (who may participate or not in unions and other bodies affording workers representation)Labor Relations ProcessLogical sequence of four events: (1) workers desire collective representation,(2) union begins its organizing campaign,(3) collective negotiations lead to a contract, and (4) the contract is administered

The Labor Relations Process(1)Workers Seek Collective Representation(2)Union BeginsOrganizing Process(3)Collective Negotiations Get Contract(4)Contract Is AdministeredManagement and Its Representatives

Labor and Its Representatives

Laws and Regulations6The Labor Relations Process begins when individual employees perceive that their own best interests are better served through organized collective bargaining than through one-on-one negotiation with management for improved wages and benefits. As illustrated on the slide, this logical sequence of events can be broken down into four steps: Workers Seek Collective Representation. Usually due to a perceived need to shift power to a more equal footing, this desire motivates individuals to organize to bargain collectively.Union Begins Organizing Process. A union begins its efforts to persuade a majority of employees that it can better serve their interests in negotiation with management than other alternatives.Collective Negotiations Lead to a Contract. In this stage the invested union bargains collectively with management to receive a contract. Teaching Tip: This is a two-edged sword for management. On the one hand, management resents the loss of control brought on by collective bargaining. On the other hand, the labor force is typically more predictable and manageable when it accepts a collectively bargained agreement.Contract Is Administered. The signing of a contract helps to reduce uncertainty for both sides as clear policies and procedures are set forth for the activities of labor and management during the length of the new contract.Industrial RelationsProfessor Barnash (1954) defined IR as Area of study and practice concerned with the administration of the employment function in modern public and private enterprise. This function involves workers, unions, managers, government and various publics.

Industrial RelationsIndustrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the communityIndustrial Relations SystemOne 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. Industrial Relations SystemWithin 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 partiesemployers, 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 contextsIndustrial Relations SystemIndustrial Relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.ActorsEmployers Labor UnionGovernment

Trade UnionsA labor union or trade union is an organization run by and for workers who have come together to achieve common goals in fair wages and working conditions.

A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives.

Objectives of Trade UnionsRepresentationNegotiationVoice in decisions affecting workersMember services Education and training Legal assistanceFinancial discounts Welfare benefits

Functions Of Trade Unions

Militant functions

To achieve higher wages and better working conditionsTo raise the status of workers as a part of industryTo protect labors against victimization and injustice

Functions Of Trade Unions

(ii) Fraternal functions

To take up welfare measures for improving the morale of workers

To generate self confidence among workers

To encourage sincerity and discipline among workers

To provide opportunities for promotion and growth

To protect women workers against discrimination

Importance of Trade UnionsThe existence of a strong and recognized trade union is a pre-requisite to industrial peace. Decisions taken through the process of collective bargaining and negotiations between employer and unions are more influential. Trade are helpful in effective communication between the workers and the management. They provide the advice and support to ensure that the differences of opinion do not turn into major conflicts. The central function of a trade union is to represent people at work and protect their interests. Importance of Trade UnionsTrade unions help in accelerated pace of economic development in many ways as follows:by helping in the recruitment and selection of workers.by inculcating discipline among the workforceby enabling settlement of industrial disputes in a rational mannerby helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules and policies. Workers coming from different backgrounds may become disorganized, unsatisfied and frustrated. Unions help them in such adjustment.

Importance of Trade UnionsSome important social responsibilities of trade unions include:promoting and maintaining national integration by reducing the number of industrial disputesincorporating a sense of corporate social responsibility in workersachieving industrial peace

Reasons for Joining UnionsGreater Bargaining PowerMinimize DiscriminationSense of SecuritySense of ParticipationSense of BelongingnessPlatform for Self ExpressionBetterment of Relationships

RefrencesManaging Human Resources, 12e, by Bohlander/Snell/Sherman 2001 South-Western/Thomson Learning