Issues and Challenges of industrial relations in India

10th July 2021 0 By indiafreenotes

Industrial relations climate/situation is greatly influenced by the issues-economic, non-economic governed by service contract/terms and conditions of employment. Besides, the issues not covered under service rules viz., behavioural, and attitudinal issues influence IRs pattern.

They mobilize public opinion on vital labour issues and help the government in enacting progressive labour laws. They develop right kind of leadership, avoid multiplicity of unionism and union rivalry. Hence, a strong, responsible and enlightened trade union promote healthy industrial relations.

Maintaining Industrial Peace:

Industrial peace is essential to increase production and ensure healthy relations between the workers and employers.

The following measures help attain industrial peace:

  1. Industrial disputes can be settled with the help of legislative enactment such as The Trade Unions Act, The Industrial Disputes Act and Work Committees and by Joint Management Councils.
  2. The Government should be empowered to refer disputes to adjudication, specially when the situation gets out of hand. Government intervention is required during frequent stoppage of production due to long strikes or lockouts.
  3. Forums based on the code of discipline in industry, the code of conduct, the code of efficiency, etc. can be set up to settle disputes.

Conflict Management:

Conflicts at the workplace affect the physical and mental health of the people. This has a bearing on organisational performance. Therefore, it is important to recognise, understand, and resolve conflicts in labour relations.

Trust and Co-Operation:

Trust and co-operation are essential in labour relations. They help build a partnership between workers and employers and both groups to work together. Lack of trust and co-operation between the two groups can result in conflicts, disputes and strikes. That slows down the productivity of the organisation.


  • International labour standards, their importance and implications.
  • Globalisation has brought about internationalisation of employees; transnational, multi-location employees with cross cultural characteristics.
  • WTO, IMF, WB and their influence
  • Consumer forums, environment activists, citizens forum at time clash with TUs.
  • Manpower diversities: Multi-racial, Multinational, multicultural, multi-lingual and multi-ethnic manpower requires different system/mind set to deal with.
  • New management practices like Casualism, contracting, off-locating, out-sourcing part time/home based work/flextime, Team working/Quality Circles/Total Quality Management.
  • Highly educated, careerist, ambitious manpower.
  • IT revolution has changed the complexion of workplaces; Lesser manpower, Multi-skilled and Committed to profession.
  • Individual/decentralised bargaining is replacing collective bargaining.
  • Performance linked packages are the order of the day.