Concept of Labour Relation

Labour relation is the relationship between the organization, management and workers. It was looked upon a fire fighting function to resolve labour disputes. A labour relation involves industrial or trade union relations, dealing with people collectively by processes of involvement and participation, and handling grievances.
An important aspect of trade union relations is negotiating. Labour relations are affected by economical social cultural, political, legal, technological and occupational force. It covers the area like unionism. Collective bargaining, discipline, labours legislation etc.

According to Johannes Schregle, “Labour relations denote the relationship between workers and employers, between worker’s organizations and employers organizations and between their respective organizations and public authorities.”

According to HA Clegg, “ Labour relation is the study of workers and their trade unions, management, employer’s association and the state institutions concerned with the regulation of employment.”

In modern sense, labour relations is concerned with three major actors
  • Worker, represented by trade unions
  • Employers, represented by employers associations
  • Society, represented by the government and various pressure groups. 
The actors in labour relations are concerned with managing the interrelationships among the various actors of it and the key actors are:
  1. The workers: They are one who possesses skills and who does the real job. Workers are represented by trade union. Trade union work to protect the social and job security of the workers as well as promotes healthy relationship between the management and the workers.
  2. Employers: They give job to the workers and negotiate terms and conditions of employment with the unions. They are represented by employer’s associations as well as which protects the interest of employers.
  3. Society: There is government and pressure groups under this category. The government regulates and controls the rules and regulates the concerning labour and other things. It enforces the compliance of laws. There are special interest groups, who lobby and pressurize government to enact or withdrew laws to protect the interests of labour or employers.
Actors of Labour Relations

Process of Labour Relation

The process of labour relations consists of following steps.
  1. Unionization: The process of labour relations begins only with the formal establishment of a union and its recognition by the employers.
  2. Dispute or conflict situation: They are the conditions, which impose in uniting of workers. There arise some disputes between the management and employee regarding the wages, benefits, working conditions or term of employment or other welfare activities and to solve them there is need of developing better labour relations.
  3. Collective bargaining/ negotiation: The union and the management sit on at one table to bargain or negotiate the problems and demands of the workers.
  4. Settlement of contract: This is the compromise between union and the management and is in written form and agreed upon by the management and union members.
  5. Contract administration: The agreed upon contract are administered by; communicating the contract to all union members and management personnel. Implementing it, interpreting the contract and grievance resolution and monitoring of activities during the contract period.

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