Labor relation is defined s the interrelationship between workers, employers, government and other social authorities. In other words, it is a common ground to harmonize the discrepancies between workers, employees and society.
Purpose of labor relation:
The purposes of labor relation are as follows:
1. Institutionalization of relationship:
The major objective of labor relation is to develop harmonious relation under legal framework. Labor relation generates the understanding of rules and regulation and helps all parties to act or work accordingly. E.g. the trade union- Act describes the role and responsibility of union members, the Labor Act makes provision for the welfare and right of the employees for collective bargaining.
2. Industrial peace:
Labor relation ensures industrial peace through collective bargaining. Any problem created or generated is handled effectively through negotiation and discussion that helps on fostering peace in an organization.
3. Open communication:
Labor relation encourages open communication between concerned parties i.e. labor union, management and government etc. Open communication clarified the issues and grievances of labor, which is helpful in solving them constructively.
4. Change management:
Change management is only possible when there is acceptance of change by labors. Labor relation encourages innovation and imagination, to make a firm competitive in the local as well as global scenario, which is how change management is possible.
Effective coordination and cooperation are necessary for enhancing productivity in an So, to improve efficiency of both employees and organization, labor relation plays vital roles.
Actors of industrial relation system
The key actors of labor relation system are workers, employers and society.
1. Workers and Unions:
Workers are the people who sell their physical and intellectual skills and abilities to the organization. Without them organization cannot imagine of any implementation of their plans and activities. So, in developing a sound industrial relation they play a direct role. And any issues of the workers if not addressed effectively may leads to strike, lockout etc.
The representative body which negotiates with the employers for the mutual interest of workers is called unions. The workers problems are vocal by unions. It is an organization of workers which inform, warm and pressurize the employers to address the workers problems constructively. Along with the workers the union also play vital role in creating the sound industrial relation.
2. Employers and Employers’ association:
Employers are the people who buy the physical and intellectual skills and abilities of They are the job creators. They are the entrepreneur, innovator, mangers etc, determined to achieve their mission by collectively utilizing the effort of workers. So, in generating a sound labor relation, their role is vital. Employers are represented by employers’ association. They vocal on the welfare of employers and involve in negotiating with labor unions for mutual benefits. Thus, along with the employers this association also play important role in creating a sound labor relation system.
Society includes both government and other pressure groups.
Government formulates rules and regulation, monitors the activities of both labors and employers, and enforces the compliances of law in labor relation. It plays vital role in institutionalizing the labor relation.
Other actor in labor relation system is pressure groups .These are the special interest group like Human Right Commission, Civic Society, Environmentalist ,media etc. They lobby and pressurize government to protect the interest of labor and employers.