Industrial Relations

INDUSTRIAL RELATIONS

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Introduction

·       It refers to the relationship between an Employer & Employees in the area of employment in an industrial organization

·       Collectively it is used to mark the relationship between management and workers

 

Definition, Scope & Importance of IR

·       Definition

o   “IR are the complex interrelations among managers, workers and agencies of the government” (J.T Dunlop)

·       Scope

o   Trade unionism

o   Collective bargaining

o   Workers participation

o   Discipline

o   Industrial disputes

·       Importance

o   Uninterrupted Production

o   Reduction of Industrial Waste

o   High Morale

o   Reduced Wastage

o   Contribute to economic growth & development

 

Features & Objectives of IR

·       Features

o   These are the outcomes of employment relationships in an organization

o   IR create rules and regulations to maintain the harmonious relations

o   In IR, the government intervenes to shape the IR through

§  Laws

§  Rules

§  Agreements

§  Terms

§  Charters

·       Objectives

o   To maintain the industrial democracy

o   To raise the productivity by reducing absenteeism

o   To establish a proper channel for communication

o   To avoid all types of Industrial conflicts

o   To safeguard the interests of labor

 

Causes of Poor IR and their Solutions

·       Causes

o   Economic Causes

§  Poor wages

§  Poor working conditions

§  Absence of promotion

o   Organizational Causes

§  Faulty communication system

§  Unfair practices

§  Non recognition of trade

o   Social Causes

§  Uninteresting nature of work

§  Dissatisfaction with job

§  Personal life culminates

o   Psychological Causes

§  Lack of job security

§  Performance

§  Poor interpersonal relations

o   Political causes

§  Multiple unions

§  Defective trade unions

§  Industrial disputes

·       Solutions

o   Sound personnel policies

o   Participative management

o   Responsible unions

o   Employee welfare

o   Grievance procedure

o   Constructive attitude

o   Proper communication channel

o   Education & training

 

IR Influence on Staff Behavior

·       High employee loyalty

·       Increased motivation

·       Decreased conflict chances at workplace

·       Build the trust

·       Improves the confidence

·       Ensures a better workplace culture

·       Enhancement of Work-life balance

·       Better employee engagement

 Applicable Labor Laws in Hospitals

(A) General Labor Laws Applicable

  1. Factories Act, 1948 (where applicable) – Governs working conditions, health, safety, and welfare of hospital employees (if categorized as factory under law).
  2. Shops and Establishments Act (State-specific) – Regulates working hours, leave, holidays, wages, and service conditions in hospitals and nursing homes.
  3. Minimum Wages Act, 1948 – Ensures hospital staff (nurses, ward boys, housekeeping, technicians) receive minimum prescribed wages.
  4. Payment of Wages Act, 1936 – Regulates timely payment of wages without unauthorized deductions.
  5. Payment of Bonus Act, 1965 – Provides for payment of annual bonus to eligible hospital staff.
  6. Payment of Gratuity Act, 1972 – Ensures gratuity benefits for hospital employees completing 5+ years of service.
  7. Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 – Provides retirement benefits and financial security.
  8. Employees’ State Insurance (ESI) Act, 1948 – Provides medical benefits, maternity benefits, and sickness benefits to hospital employees.
  9. Workmen’s Compensation Act, 1923 – Compensation for injury or death during employment.
  10. Industrial Disputes Act, 1947 – Settlement of disputes between hospital management and employees/unions.
  11. Trade Union Act, 1926 – Governs the formation and rights of trade unions among hospital staff.

(B) Special Provisions Relevant to Hospitals

  1. Clinical Establishments (Registration and Regulation) Act, 2010 – Indirectly impacts labor as it mandates minimum standards of facilities and staffing.
  2. Maternity Benefit Act, 1961 – Maternity leave and benefits for female hospital employees.
  3. Equal Remuneration Act, 1976 – Equal pay for male and female staff performing similar duties.
  4. Occupational Safety, Health and Working Conditions Code, 2020 (new labor code) – Ensures safety of healthcare workers exposed to infections, radiation, and hazards.
  5. Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 – Mandatory Internal Complaints Committee (ICC) in hospitals.
  6. Apprentices Act, 1961 – Engaging apprentices and trainees in hospital labs, pharmacy, and administration.

Role of Hospital Administration in Labor Relations

(A) Compliance and Implementation

  • Ensure compliance with labor laws, social security laws (ESI, PF, gratuity).
  • Maintain proper records of attendance, wages, leave, and service conditions.
  • Conduct periodic audits to avoid legal disputes.

(B) Communication and Participation

  • Promote open communication between management and staff through regular meetings.
  • Encourage Workers’ Participation in Management (WPM) – involving nurses, technicians, and junior staff in decision-making.
  • Establish grievance redressal mechanisms.

(C) Conflict Prevention and Resolution

  • Prevent strikes, lockouts, or work-to-rule situations that can directly harm patients.
  • Act as mediator in resolving disputes between unions and management.
  • Use tools like collective bargaining, arbitration, and conciliation.

(D) Employee Welfare and Motivation

  • Provide safe working conditions, proper duty hours, rest breaks, and overtime benefits.
  • Implement welfare schemes: housing, canteen, transport, medical facilities.
  • Ensure professional growth through training and development.

(E) Union Relations

  • Recognize and work with trade unions of nurses, paramedics, and non-medical staff.
  • Negotiate fair wage settlements, service conditions, and staff welfare.
  • Avoid victimization or unfair labor practices.

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