Approaches to Industrial Relation

Week-1
Chapter -1

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 Human resources is charged with the overall
responsibility for implementing strategies and policies
relating to the management of individuals.

The field of human resources management is greatly

influenced and shaped by the country and the laws
governing employment issues.

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 Industrial law
law of the land and code of conduct
organizations are governed by legal rules and
regulations
standardised practices that are followed in managing
the human capital
the social structure provides legal framework for
dealing with employee and labour
Thus the industrial law refers to the legal rules that
prevail in various industries found in any country.

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 Relationship between management and employees or
among employees and their organization that
characterize and grow out of employment.

Yoder defined IR as “ a relationship between

management and employees or among employees and
their organization, that characterize and grow out of
employment.”

According to ILO, “ IRs deal with either the

relationships between the state and the employers and
the workers’ organization or the relation between the
occupational organizations themselves.”
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 IR in Bangladesh 1969- “Industrial Relations
Ordinance” integration of
1947- “Industrial Disputes (Labour Disputes Act, 1965)
1926- “Trade
Act”. It placed the conciliation and (Trade Unions Act,
Union Act”
and arbitration machinery for the 1965) which made
introduced by
settlement of industrial disputes provisions for recognition of
British rulers
on a permanent footing collective bargaining agents

“Bangladesh Labor Act, 2006”

1929- “Trade 1965- “The East Pakistan
Disputes Act”. Trade Unions Act” was
It had put enacted cancelling the Amendment of 2013
restrictions on Trade Unions Act, 1926
strikes in
public utility
Amendment of 2018
services

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Note:
 1926- “Trade Union Act”, was introduced by British rulers. The main purpose of the Act
was to provide for the registration of trade unions and in certain respects, define the law
relating to registered trade unions. But the Act did NOT contain any provision regarding
strikes.
 1929- “Trade Disputes Act” was introduced. It had put restrictions on strikes in public
utility services. The Act provided for the establishment of tribunals to adjudicate upon the
labour disputes
 1947- “Industrial Disputes Act” was introduces. It placed the conciliation and arbitration
machinery for the settlement of industrial disputes on a permanent footing
 1965- “The East Pakistan Trade Unions Act” was enacted cancelling the Trade Unions
Act, 1926. The Act could not facilitate healthy growth of trade unions as it was more
restrictive on the freedom of association and right to organize
The period between 1947 and 1969 was thus marked by a host of repressive laws and
witnessed labour agitation and widespread industrial unrest.
 1969- “Industrial Relations Ordinance” which was an integration of (Labour Disputes
Act, 1965) and (Trade Unions Act, 1965) which made provisions for recognition of
collective bargaining agents for establishment or group of establishments. It was a
landmark development in the evolution of collective bargaining in Bangladesh.
Since
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independence of Bangladesh, no major development took place in the history of labor
legislation till the enactment of the “Bangladesh Labour Act, 2006”
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 Dunlopian Model

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 The major industries of Bangladesh constitutes of 10 sectors:
Agriculture, forestry and fisheries (i.e. - Tea garden)
Mining and quarrying
Manufacturing (i.e. - RMG)
Electricity gas and water
Construction
Trade, hotel and restaurant
Transport, storage and communication
Finance and business services and real estate
Health, education public administration and defense
Community and personal services
Out of these industries Construction and Agriculture Industries do NOT fall
under the provisions of Bangladesh labor Law 2006 as the workers in
9 those industries are considered as INFORMAL WORKERS
 Labor law ‘06

The Labour Law of Bangladesh is a complex and curious

mix of different legislations, regulations and ordinances.
Before the adoption of Labour Act of 2006, there were
about 46 laws enforced in Bangladesh encompassing
labour and industrial sectors. After the enactment of the
Labour Act, twenty five of the prevailing enactments
stood repealed and were amalgamated.

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 The constitution of the peoples republic of Bangladesh
provides provisions for fundamental rights and freedoms
which is aimed to create a society free from exploitations.

The Fundamental Rights cover, equality before the law;

prohibition of discrimination on grounds of religion, race,
caste, sex or place of birth; equality of opportunity in matters
of public employment, protection of rights, freedom to form
assembly and associations etc.

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 Nature of organisations
Apart from all these historical sources the type of law or
rule that is followed in any particular business also
depends on the nature of the organisation.
For industrial relation purposes organisations are
categorised mainly as –
1. Unitary
2. Pluralistic
3. Marxist/Radical

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 Unitary organisation
The unitary perspective is based upon the assumption
that the organisation and the members are "one happy
family", where management and other members of the
staff all share a common purpose, emphasizing mutual
cooperation and they have a set of common values,
interests and objectives.
Furthermore, unitarism has a paternalistic approach
where it demands on employee’s loyalty.

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 Main elements of the unitary perspective:

1. single source of authority in organization, which is usually the management, and

opposition leaders are non-existent (Ross and Bamber 2009: 25).
2. the role of organizational leaders is to promote loyalty and commitment among
workers (Farnham 1993: 36, and Ackers and Payne 1998: 540).
3. organizations are seen as consisting of teams that are working together for mutual
goals, and there are also no conflicts of interests between managers and employees
(Leat 2001: 23).
4. the management should exemplify strong leadership to attain organizational objectives
(Farnham 1993: 36).
5. Trade unions are not seen as essential for the harmonious management. (Ackers and
Payne 1998: 540, and Dzimbiri 2008: 2).
6. conflicts in the organization are perceived negatively; they are dysfunctional and lead
to disloyalty, thereby impairing the well-being of the organization (Giles 1989: 131;
Farnham 1993: 36, and Curseu et al. 2009: 20).
7. the state is autonomous and shapes industrial relations systems (IR) (Giles 1989: 131).

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 Advantage Drawback

helps to develop a  conflict with organisations

harmonious relationship is seen as an irrational
throughout the organisation.  tries to suppress the
directs all members towards members who may react
a common goal which to company rules.
facilitates business  trade unions are regarded
objectives.
as unnecessary.
creates employee loyalty
management is more
cooperative towards
members rights & liabilities.

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 Pluralistic organisation
In pluralistic organisations management and employees
are considered to have their own rights and liabilities.
That in one hand the management on the other the trade
union or associations.
more united workforce and can manage their own
conflicts with management through unity.

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 Main elements of the pluralist perspective:
 First, pluralist theory believes that the workplace is composed of diverse
sets of beliefs, values, attitudes, and behaviors (Giles 1989: 131).
 Second, there are opposing sources of leadership and attachment in
organizations (Farnham 1993: 36).  
 Third, conflicts are inevitable because there are inherent competing
interests (Dabscheck 1989: 59, and Dzimbiri 2008: 3).
 Fourth, the role of the management is to umpire among competing interests
(Farnham 1993: 36). 
 Fifth, Trade unions are legitimate representatives of employees, and they
are viewed positively because they help employees in emphasizing their
decision-making powers (Leat 2001:23).
 Sixth, ER stability can be attained through a series of concessions and
negotiations between managers and employers through the collective
bargaining process (Bacon and Storey 2000: 410 and Kaufman 2008: 321).

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 HRD Approach/balance between 2
HRD approach recognizes employees as the greatest assets
and believes they can be managed through incentives,
atmosphere & treatment
Develop people through training and retraining
Greater involvement of employees
Integrate human need with organizational requirements.
Proactive & collaborative (Carrot and stick but mostly
carrot) carrot incentive based)-stick-discipline ,
punishment)
Teamwork
Mix of uni and pluri

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