Causes of Poor Industrial Relations and Recommendations

Industrial relations refer to the professional relationships and interactions between employers and employees relationships. A good industrial relations is one in which both employers and employees are satisfied with their duties and responsibilities, and there is a healthy work relationship between the two parties.

One the other hand, poor industrial relations occur when employers and employees do not agree on many issues, and they go through numerous incidences of strikes, litigations, and collective bargaining agreements often fail. Poor industrial relations are the result of a number of socio-economic, political and psychological factors, which are as follows:

  • Uninteresting Nature of work
  • Political Nature of Unions
  • Poor Wages
  • Occupational Instability
  • Poor behavioural climate

Uninteresting Nature of Work

The problem of poor industrial relations is essentially a product of large scale production which has made man subordinate to the machine. Due to specialization, a worker in a factory performs only a minor operation in the entire production process. This has made him lose his sense of pleasure, pride and satisfaction from work, which he used to get. This dissatisfaction of the worker on the shop floor generally culminates into big strikes and lockouts.

Political Nature of Unions

Another major irritant to good industrial relations is the politicization of labour unions by outside political leaders. This leads to multiple unions and inter-union rivalry. Inter –union rivalry depresses both a union’s membership and its finances. As such, unions are unable to be effective.

Poor Wages

Too much tight or complicated wage and incentive and pay systems are a cause of poor industrial relations. Wage and salary differentials between occupations also create a feeling of inequality and mar good industrial relations.

Occupational Instability

Occupational stability makes workers feel secure on their jobs, and as such positive industrial relations.

Poor Behavioural Climate

The behavioural climate of an organisation which is made up of its culture, traditions and methods of action may by either favourable to the worker or unfavourable. Favourable climate helps the worker meet his economic, social and psychological needs. It produces a good image of the organisation in his mind. An unfavourable climate prevents a worker from meeting his various types of needs and produce a negative impression of organisation. This drives the worker to seek membership of a militant labour organisation to vent his negative feelings. This causes poor industrial relations.

Suggestions to Improve Industrial Relations

  • Both management and unions should develop constructive attitudes towards each other.
  • All basic policies and procedures relating to industrial relations should be clear to everybody in the organisation and to the union leaders
  • The personnel manager should remove any distrust by convincing the union of the company’s integrity and his own sincerity and honesty.
  • The personnel manager should not vie with the union to gain workers loyalty. He should not try to win them away from the union
  • Management should encourage the right kind of union leadership
  • After a settlement is reached between the employer and employee’s unions the agreement should be properly enforce.

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