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    The Importance of IR: Industrial Relations

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    IRFAN KARIM
    Good industrial relations are key to business success. They ensure continuous production and income, reduce disputes, improve employee morale, foster a mental revolution toward cooperation, and minimize wastage. When management and labor work as partners, seeing each other's interests as aligned, production increases through mighty cooperative efforts with minimum costs and maximum efficiency and profits. Harmonious labor-management relations are essential for rapid national development, increased social justice, and effective functioning of the economy.

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    The Importance of IR: Industrial Relations

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    IRFAN KARIM
    104 views2 pages
    Good industrial relations are key to business success. They ensure continuous production and income, reduce disputes, improve employee morale, foster a mental revolution toward cooperation, and minimize wastage. When management and labor work as partners, seeing each other's interests as aligned, production increases through mighty cooperative efforts with minimum costs and maximum efficiency and profits. Harmonious labor-management relations are essential for rapid national development, increased social justice, and effective functioning of the economy.

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    The Importance of IR

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    The Importance of IR

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    Good industrial relations are key to business success. They ensure continuous production and income, reduce disputes, improve employee morale, foster a mental revolution toward cooperation, and minimize wastage. When management and labor work as partners, seeing each other's interests as aligned, production increases through mighty cooperative efforts with minimum costs and maximum efficiency and profits. Harmonious labor-management relations are essential for rapid national development, increased social justice, and effective functioning of the economy.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    104 views2 pages

    The Importance of IR: Industrial Relations

    Uploaded by

    IRFAN KARIM
    Good industrial relations are key to business success. They ensure continuous production and income, reduce disputes, improve employee morale, foster a mental revolution toward cooperation, and minimize wastage. When management and labor work as partners, seeing each other's interests as aligned, production increases through mighty cooperative efforts with minimum costs and maximum efficiency and profits. Harmonious labor-management relations are essential for rapid national development, increased social justice, and effective functioning of the economy.

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    The importance of IR

    The healthy industrial relations are key to the progress and success. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting cooperation and increasing production. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

    Issues With Labor Unions


    Trade unions rose to prominence at a point when industrialized countries were growing at a staggering rate, employee safety was often secondary to profits and job security was nonexistent. Today, many of those issues have been corrected, in large part by the work of unions. Modern unions have shifted their focus to a number of targeted issues and work with management to protect the interests of its members in those areas.

    Job Stability
    One of the most fundamental issues for union leaders and members is long-term job stability. Unions believe that companies have a duty to retain hard-working employees and fight layoffs and terminations. In many cases, they argue for job stability in a community, fighting against company plans to reduce the number of employees, even through attrition. Company management often argues that this prevents the organization from keeping pace with technology, which reduces the reliance on certain employees, making them less competitive. They also feel that the protection of jobs at all costs prevents the company from getting rid of poor performers.

    Pension Protection
    Unions have become increasingly interested in protecting the pension plans offered to its members as part of their compensation plan. Pension plans that were badly managed by employers, to the detriment of the staff, have brought the issue to the forefront. Unions fight hard for appropriate oversight of the funds, which they believe are rightfully owned by their members. Company executives feel that as the contributors to the funds, they have the right to manage them as part of the corporate portfolio, benefiting from tax reductions and credits. They argue that a few high-profile failures do not constitute a pattern of mismanagement.

    Collective Bargaining
    The power of trade unions lies in their ability to negotiate with management on behalf of the entire unionized workforce. Their strongest weapon is their right to stop work, should the negotiations fail. They use collective bargaining to fight for higher wages, better benefits and safer work conditions. Company executives don't always agree with collective bargaining because it treats the entire workforce as equals and does not recognize the difference between workers who excel and thrive and those who perform poorly. They argue that compensating employees on performance is better for the company than compensating the collective.

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