An effort contributed by different factors for achieving organizational goal and objectives is known as labor relation. An industry is a group of firms. The court is a law enacting body. They all have contribution in any respect to the organization. Joint effort of all the actors for industrialization is essential. So, it refers to the relation between the management, employee and the organization. They are linked with each other. The study of this whole relation is labor relation.
Labor relation has board area. It has a wide importance and implication. Collective bargaining, managerial role, the role of employee's association, government role, labor law, a mechanism for setting industrial disputes, personal grievances, industrial relation training are included in labor relation. It helps to maintain the employee loyalty and mutual trust in the organization.
According to the John T. Dunlop," Labor relations are complex of inter-relation among workers, managers, and government."
According to the H. A. Clegg," Labor relations are the study of the workers and their trade unions, management, employers association, and the state institutions. Institutions concerned with the regulation of employment".
In short, relation between labor, society, employer, government etc. is known as labor relation. In other words, labor relation is concerned with the relationship between an organization and its employees.
Labor relation is for effectiveness of an organization. There are different actors involved in industrial environment which should have harmonization as well as collaboration through which following objectives of labor relation can be achieved.
Organizational effectiveness: All the actor of labor relation can be satisfied through cordial relationship among them. It leads to motivation and job performance quality increases. Increment of quality of job performance increases profit, maximizes shareholder's wealth and social welfare activities. Labor relation helps to develop healthy labor-management relations to achieve the overall goals of the national development.
Industrial peace: Industrial peace is a state of no disputes, no grievances and no conflicts which can be maintained by good relation.End disputes, grievances, and conflicts are caused due to pay discrimination, unscientific rewards, and unscientific job design. Labor relation helps to maintain the good environment in the organization.
Harmonious relation: Harmonious relation is needed for the industrial development of the country. All the actors of labor relation like government, court, labor union, industrial union etc. should develop harmonious relation by developing labor relation. The harmonious relation is the key to productivity profit and quality of work life.
Change management: Change is compulsory in dynamic environment. Good labor relation makes a favorable environment for adopting changing environment. Actors involved in labor relation are ready to follow positive change so that management can manage change or changes.
Minimizes industrial disputes: The objectives of labor relation is to minimize industrial disputes, tensions and disruptions. Labor relation overcomes all kinds of unwilling events. Industrial environment becomes favorable.
Promotes industrial democracy: Democracy is a method and designation of law and ruling style with the involvement of all stakeholders. Generally, workers from all levels are involved in decision-making process. All the actors of industrial environment get the opportunity of decision making.
Effective communication: Effective communication is a need of today's business world. Communication must be in two ways.Effective communication promotes industrial activities to do in a progressive manner. Labor relation opens bar of communication and effective communication develops. It helps to maintain favorable work climate through effective communication and participative culture.
All aspect of making industrial relation good are actors of industrial relation system. Actors play an important role in running the organization.The key actors in labor relation are workers, employers, and society.
Workers: They are workers working in the organized sector. They sell labor and their skills. Number of workers increase in the organization in its growth and expansion. Union of workers represents all the workers to deliver their voice to the management to fulfill their expectation and act for collective bargaining. Union promotes and protects the mutual interest of workers. It is represented by the trade unions.
Employers: Employers are the buyers of labor and worker's skills. They hire and fire the workers. Employers create a job to achieve the organizational goal through effective performance. Employers play key role in labor relation. They have their own association to protect and promote their mutual interest. Employer's association represents employer in collective bargaining. It is represented by employers associations.
Society: Government and pressure groups are included in the society. Government regulates and monitors employee's and worker's association. Government sets labor court, labor act and wages board. They promote labor relation. Court take decision on issues related to labor disputes. There should be relationship between employer and court. Court is legal friend of other actors involve in the labor relation system. Decision of court is to be accepted respectfully. It includes the third party, labor and tribunals courts. It is represented by the government and other various pressures group.
Monetary causes: Economic causes are the normal reasons for mechanical question. They can resemble reward, working condition, pay requests, state of occupation and modern affliction. Ascend in the typical cost for basic items constrains the laborers to request more wages to meet the increasing average cost for basic items list. This carries them into clashes with their boss who are never eager to pay more wages to specialists.
Administrative causes: Managerial causes are for the most part out of line treatment of the union part or non-acknowledgment of union by the administration. Bosses don't counsel worker's parties for enrollment and determination process, exchange, advancement and improvement of representatives are the reason for the debate .
Political causes: Political causes are the after effect of political obstruction, union competition, aggregate bartering and assortment of work laws. Most exchange unions are subsidiary with some political gatherings.
Labor relation overcomes all kinds of unwilling events. Disputes are very common in unions. A disagreement between workers and employers are known as labor disputes. Wages and conditions, unfair dismissals, environmental issues, occupational health and safety are the common subjects for labor disputes. This dispute leads to loss of production, loss of profit, loss of a market shoe, low employee morale and organization will be collapsed. Right disputes and interest disputes are the two types of disputes that occur between employers and workers. They manifest in the form of lockouts, strikes and other various industrial actions. Labor disputes are broadly classified into three groups. They are economic, managerial and political causes.
Economic causes: Economic causes are the common causes of industrial disputes. They can be a bonus, working condition, compensation demands, the condition of employment and industrial sickness. Rise in the cost of living forces the workers to demand more wages to meet the rising cost of living index. This brings them into conflicts with their employers who are never willing to pay more wages to workers.
Managerial causes: Managerial causes are mostly unfair treatment of the union member or non-recognition of union by the management. Employers do not consult labor unions for recruitment and selection process, transfer, promotion and development of employees.
Political causes: Political causes are the result of political interference, union rivalry, collective bargaining and multiplicity of labor laws. Most trade unions are affiliated with some political parties. Political pressures influence collective bargaining that makes settlement difficult and complex and agreement is not reached.
The procedure that is required in the settlement of question in Nepal. They are depicted underneath:
Collective bargaining: Collective bargaining is a procedure through which employers and employees build up the terms and states of occupation in unionized working environments. It refers to an arrangement, settlement and organization of a period bond agreement, among work and administration to settle dispute.
Grievance methodology: Grievance systems is a testing stuff and offices upward correspondence. It is a formal hierarchical component for managing worker grievance.
Conciliation: Conciliation is a procedure whereby an outsider gives help with setting disputes. The settlement of the disputes depends on the agreement of the parties involved. It generally deals with interest disputes.
Mediation: Mediation is a process whereby the third party is active and submits proposals for dispute settlement. The party involved in dispute is free to accept or reject such proposals.
Adjudication: Adjudication is an effective method to settle disputes. It is a process of mandatory settlement of dispute by ordinary courts, labor or a tribunal. The verdict of adjudication is binding on the both parties.
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