Approaches to Industrial Relations & The Role of Trade Unions
Approaches to Industrial Relations
Industrial relations (IR) are complex and influenced by social, economic, and psychological factors. Different schools of thought offer different approaches to explain and manage these relationships.
1. Psychological Approach
This approach attributes IR problems to differences in perception. Labour and Management see things differently.
Workers: Dissatisfaction with pay or conditions makes them aggressive (strikes).
Employers: Feel restricted by regulations and demanding workers, leading to lockouts.
Key Insight: Conflict arises from motives like power, status, and recognition, not just money.
2. Sociological Approach
This looks at societal changes affecting workers.
Factors: Urbanization, housing shortages, pollution, and the breakdown of the joint family system cause stress and “culture pollution.”
Key Insight: External social misery impacts workplace behavior, requiring continuous analysis of social factors.
3. Human Relations Approach
This approach argues that people are motivated by social and psychological factors, not just money.
Core Belief: Employees are not machines. Their behavior is shaped by feelings, sentiments, and informal groups.
Solution: Managers need social skills. They must explain the importance of jobs, encourage participation, and integrate individual goals with organizational goals to reduce conflict.
4. Giri Approach (V.V. Giri)
Proposed by V.V. Giri (former President of India), this approach emphasizes collective bargaining and internal settlement.
Key Belief: Outside interference (like courts) should be avoided.
Solution: Disputes should be settled through voluntary negotiations and bipartite machinery within the industry.
5. Gandhian Approach
Based on truth and non-violence (Satyagraha).
Right to Strike: Accepted, but only for a just cause and in a peaceful manner.
Trusteeship Theory: Wealth belongs to society, not the owner. The employer is a “trustee” who should serve society’s interests. Workers are co-partners.
Solution: If employers fail, workers should appeal to their conscience or use non-violent non-cooperation.
6. HRD (Human Resource Development) Approach
This modern approach views employees as the organization’s greatest asset.
Core Belief: People have unlimited potential that can be developed with the right climate.
Manager’s Role: Shifts from “policeman” to “developer, coach, and mentor.”
Tools: Team building, training, open communication, and empowering employees to take decisions.
Trade Unions: Voice of the Workforce
Trade Union Definition:
British Ministry of Labour: “All organizations of employees… known to include among their functions that of negotiating with their employees with the object of regulating conditions of employment.”
Dale Yoder: “A continuing long-term association of employees… formed for the purpose of protecting their mutual interests.”
Objectives & Role of Trade Unions
Improve Conditions: Secure fair wages and better working/living conditions.
Cooperation: Offer cooperation to improve production and discipline.
Growth: Enlarge opportunities for training and promotion.
Identity: Promote an identity of interests between workers and the industry.
Welfare: Provide educational, cultural, and recreational facilities.
Security: Safeguard tenure (job security).
Advantages of Trade Unions
For Labour: Prevents exploitation, unites the workforce, provides education, and increases bargaining power.
For Employers: Helps avoid/pacify conflicts through collective talks, provides a stable workforce, and promotes unity.
For Society: Represents the manpower of the country, helping the government frame better labor laws.
Weaknesses of Trade Unions in India
Despite having over 43,000 registered unions, the movement in India suffers from significant weaknesses:
Fragmentation: Too many small unions with small memberships prevent them from hiring experts or having strong bargaining power.
Political Influence: Unions are often controlled by political parties/leaders rather than workers, turning them into political tools.
Outside Leadership: Dependence on outsiders (social workers, politicians) retards the growth of internal leadership.
Intra-Union Rivalry: Conflicts between rival unions weaken the movement.
Financial Crunch: Low membership fees lead to weak financial positions.
Concentration: Activity is concentrated mostly in metropolitan areas and large industries, leaving other sectors unrepresented.
Causes of Slow Progress
The National Commission on Labour identified key reasons for slow progress and recommended:
Settling rivalries (“One Union, One Industry”).
Reducing political influence by building internal leadership.
Canceling registration of dormant unions.
Raising membership fees to improve finances.
History: Growth of Trade Unions in India
The movement evolved through six key phases:
1875-1918 (Origin): Started with agitations against poor conditions. First registered union: Amalgamated Society of Railway Workmen of India (1897).
1918-1924 (Early Growth): Post-WWI economic distress spurred growth. AITUC formed in 1920. Trade Union Act passed in 1926.
1924-1935 (Split): Ideological differences led to splits (communists vs. non-communists).
1935-1939 (Unity): New constitution led to unity among unions.
1939-1946 (WWII Era): INTUC established in 1946.
1947-Present (Modern Era): Rapid increase in the number of unions after independence, driven by new spirit and economic distress
To understand how conflicts are resolved in organizations, please read Grievance & Disciplinary Procedure. Click here to read the full article.