INDUSTRIAL RELATIONS (ADS 465)

1.0 INTRODUCTION

1.1 DEFINITION

Industrial Relations (IR) is about the management of an equitable employment

relationship between the employer, the employee and the government within the complex
framework of law, culture, convention and rules. According to Salamon 2000, it is also
about the confrontation of group interests tinged with ideologies and how the different
parties sometimes submerge self interest through the lack of collective will, and cooperation with each other, in the pursuit of broader goals for the common benefits.
According to Dunlop 1993, Industrial Relations is the dimensions that impact upon
this relationship may be ideological, technological, societal, economic and legal in nature.
IR is not only about industrial disputes and work problems that crop up every now and
then when the employment system has broken down. It is about how production can be
upgraded through mutual understanding and compliance of certain acceptable rules that
govern the two direct parties in the employment relationship (Salamon 2000, Jackson
1991). It is associated and their trade unions and also the government witth its arbitation
system (Aminuddin 1999, Balakrishnan 2002). Industrial Relations focuses on areas such
as laws and rules which impact on the work environment. It also focus on the terms and
conditions of work and the rights of employers and employees. Then, it focus on the
processes by which the rules and terms are made, etc the decision making process.

INDUSTRIAL RELATIONS (ADS 465)

1.2 OBJECTIVE OF INDUSTRIAL RELATIONS

The objective of industrial relations is to safeguard the interest of labor and

management by securing the highest level of mutual understanding and good-will among
all those sections in the industry which participate in the process of productions. It also to
avoid industrial conflict, develop harmonious relations and to improve the economic
conditions of workers in the existing state of industrial management and political
government. Industrial relations also used to protect management and labor interests by
securing mutual relations between the two groups and to avoid disputes between
management and labor to create a harmonizing relationship so that productivity can be
increased.

It is to ensure full employment and reduce absenteeism, hence, increasing productivity

and profit. Industrial relations provide better wages and living conditions to labor so
misunderstanding between management and labor are reduced to a minimum level. It also
to bring about government control over plants where losses are running high, or where
products are produced in the public interest.

INDUSTRIAL RELATIONS (ADS 465)

1.3 IMPORTANCE OF INDUSTRIAL RELATIONS

Several groups of people need to understand the theory and practice of industrial relations
as follows:

a. Workers
to make them know their rights and obligations under the employment laws,
aware of the benefits can be gained or risks might be faced by joining trade
union and develop healthy attitude towards workplace.

b. Trade union leaders

to enable them perform their roles effectively in protecting workers from
greedy employers.

c. Managers
to ensure their effectiveness in dealing with workforce, in improving
productivity and increasing profitability of the organisation.

d. Officers and executives in human resource and industrial relations

departments
to carry out their job responsibilities particularly in improving their human
skills in order to administer the system wisely .
(Maimunah Aminuddin : 2006 : pp 4 - 6)

INDUSTRIAL RELATIONS (ADS 465)

e. Students
they are future workers, trade unionists, managers, lawyers,
officers/executives and employers.