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Unit 13: Industrial Relations

freedom, between authority and industrial democracy, between bargaining and cooperation, Notes
and between conflicting interests of the individual, the group and the community
Thus, healthy industrial relation is the key to the progress and success. Their significance may be
discussed as under:
1. 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.
2. 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 co-operation and increasing production.
3. 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.
4. 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 employer's
authority. It will naturally have impact on production because they recognize the interest
of each other.

5. 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 relation 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.

13.3 Collective Bargaining

Collective bargaining is a procedure by which the terms and conditions of workers are regulated
by agreements between their bargaining agents and employers. The basic objective of collective

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