1. MOUNT KENYA UNIVERSITY
NAIROBI CAMPUS
NAME: GEOFFREY OGOLLA OJWANG
REG.NO: BCOM/2013/48580
UNIT: HUMAN RESOURCEMANAGEMENT
CODE: BBM 3107
LECT: MARY GITHINJI
TERM PAPER
LABOUR RELATIONS
1. Meaning and definition
2. Importance of Labour Relations
3. Players and parties to Labour Relations
4. Causes of poor Labour Relations
5. Effects of poor Labour Relations
6. Ways and approaches of maintaining good Labour Relations
7. Role of HR Manager in Labour Relations
1. Meaning and definition of Labour Relations
Labour Relations, also known as Industrial Relations, is the study of how employers and
employees work together to create a fair workplace. Labour relations are combined with the
unionized employment situations where it is expected to study about relationship of
employees and employers in unionized culture.

2. Labour relation is a subject of influence of industrial relations, and social, political and
economic parameter. Under labour relations, there is need to cover labour law, history,
union organization, bargaining, contract of employment etc.
Both public and private sector should be aware about the labour relations to continue and
follow harmonious working conditions. To enhance harmonious labour relations,
governments are involved to create acts, rules and regulations and the institutes such as
labour tribunals all around the world.
2. Importance of Labour Relations
1. Uninterrupted production
a. It is the most important benefit of industrial relations.
b. It ensures continuity of production.
c. It provides continuous employment to all.
d. Optimum use of available resources in order to gain maximum possible production.
e. Continuous flow of income for all.
2. Reduction in Industrial Dispute
a. Cordial Industrial relations helps in reducing industrial disputes, disputes are reflections
of the failure of basic motivation in order secure satisfaction among employees. Some
reflections of industrial unrest include strikes, lockouts, chaos and grievances.
b. It promotes industrial peace with cordial industrial relations; disputes can be settled
through co-operation.
3. High morale - Industrial relation improves the morale of employees
a. Employee feels that he is co-owner of the profits of industry.

3. b. High morale induces employees to work with high energy as they feel that their interest
co-ordinates with organizational interest.
c. In order to maintain good Industrial relations employer need to realize and share
equally the profits of industry generously with employees
d. Unity of thought and action against workers and management is main achievement of
industrial peace.
e. Effective industrial relations boost morale of workers which leads to positive effect in
production.
4. Mental revolution
a. Effective Industrial Relations brings mental revolution among employees which bring
complete overhaul in the outlook of employees.
b. Employees, employer and government need to work out a new relationship in
consonance with spirit of true democracy where each thinks of themselves as partners in
industry.
c. Industrial peace ultimately lies in transformed outlook.
5. Economic growth and Development
It promotes economic growth and development, effective industrial relations lead to
increase efficiency and higher productivity, which ultimately results in economic
development.
6. Discourages unfair practices
Cordial industrial relations discourage unfair practices on part of both management and
unions. Industrial relations leads to formation of machineries in order to solve problems
confronted by management, employees and unions through mutual understanding and
negotiations to which both parties are bound; this results in banning of unfair labour
practices.

4. 7. Enactment of statutory provisions
Industrial relations enable essential use of certain labour laws in order to protect and
promote the welfare of employees and safeguards interests of all parties against unfair
means or practices.
3. Players and Parties to Labour Relations
A labour or industrial relations systemreflects the interaction between the main actors in it:
the state, the employer (or employers or an employers’ association), trade unions and
employees (who may participate or not in unions and other bodies affording workers’
representation).
The parties include;
 The trade unions
 The shop stewards or employee representatives
 The Trade Union Congress (TUC).
 Management
 Employer’s Organizations
 The Confederation of British Industry
 Various institutions, agencies and officers
 The State
1. The Trade Union
Their main purpose traditionally is to protect the interest of their members by
balancing the power between the employers and employees. Trade unions provide
workers with a collective voice to make their wishes known to management and thus
bring actual and desired conditions closer together.
Trade unions looks much into employee welfare like terms of employment such as
pay, working hours and holidays, as well as handling employment grievances,
discipline and redundancy.
In summary, trade unions have two specific roles namely, to secure, through
collective bargaining, improved terms and conditions for their members, and to
provide protection, support and advice to their members as individual employees.

5. 2. Shop Stewards
Shop stewards are employee representatives who are or may be responsible for
plant negotiations, probably with the advice of the full time officials. They are
involved in settling disputes, grievances and representing individual employees faced
with disciplinary matters or grievances.
3. The State
As the source of legislation, the state exerts an inevitable influence on the
emergence and development of a labour relations system. Laws can hinder or foster,
directly or indirectly, the establishment of organizations representing workers and
employers. Legislation also sets a minimum level of worker protection and lays down
“the rules of the game”. Laws can provide lesser or greater protection for a worker
who refuses to perform work he or she reasonably considers to be too hazardous, or
for one who acts as a health and safety representative.
The state also has an impact on how a labour relations system may function. If
effective enforcement of the law is afforded through a labour inspectorate,
collective bargaining can pick up where the law leaves off. If, however, the state
infrastructure for having rights vindicated or for assisting in the resolution of
disputes that emerge between employers and workers is weak, they will be left
more to their own devices to develop alternative institutions or arrangements.
3. Employers
Employers–that’s, providers of work–are usually differentiated in industrial relations
systems depending upon whether they are in the private or the public sector.
Employers have common interests to defend and precise causes to advance. In organizing
themselves, they pursue several aims which in turn determine the character of their
organizations. Where issues centre essentially on social matters and industrial relations,
including collective bargaining, occupational health and safety, human resource
development, labour law and wages, the desire for co-ordinated action has led to the
creation of employers’ organizations, which are always voluntary in nature.

6. 4. Causes of Poor Labour Relations
 Mental inertia on the part of management and labour;
 An intolerant attitude of contempt towards the workers on the part of management.
 Inadequate fixation of wage or wage structure;
 Unhealthy working conditions;
 Indiscipline;
 Lack of human relations skill on the part of supervisors and other managers;
 Desire on the part of the workers for higher bonus or DA and the corresponding
desire of the employers to give as little as possible;
 Inappropriate introduction of automation without providing the right climate;
 Unduly heavy workloads;
 Inadequate welfare facilities;
 Dispute on sharing the gains of productivity;
 Unfair labour practices, like victimization and undue dismissal;
 Retrenchment, dismissals and lock-outs on the part of management and strikes on
the part of the workers;
 Inter-union rivalries; and
 General economic and political environment, such as rising prices, strikes by others,
and general indiscipline having their effect on the employees’ attitudes.
5. Effects of Poor Labour Relations
a) Effect on Workers
(i) Loss of wages,
(ii) Physical injury or death on account of violence during labour unrest,

7. (iii) Excesses by employers,
(iv) Economic losses,
(v) Bitterness in relations,
(vi) Adverse effect on career.
b) Effect on Employers / Industrialists
(i) Less production,
(ii) Less Profit,
(iii) Bad effect on organisation,
(iv) Bad effect on human relations,
(v) Damage to machines and equipment,
(vi) Adverse effect on development of companies,
(vii) Burden of fixed expenses.
c) Effect on Government
(i) Loss of revenue (less recovery of income tax. sales tax, etc.)
(ii) Lack of order in society,
(iii) Blame by different parties.
d) Effect on Consumers
(i) Rise in prices,
(ii) Scarcity of goods,
(iii) Bad effect on quality of goods.
e) Other Effects
(i) Adverse effect on International Trade (Fall in exports and rise in imports),
(ii) Hindrance in Economic Development of the country,
(iii) Uncertainty in economy.

8. 6. Ways and Approaches of Maintaining Good Labour Relations
The following measures should be taken to achieve good labour relations:
a) Strong and Stable Union: A strong and stable union in each industrial enterprise is
essential for good labour relations. The employers can easily ignore a weak union on
the plea that it hardly represents the workers. The agreement with such a union will
hardly be honoured by a large section of workforce. Therefore, there must be strong
and stable unions in every enterprise to represent the majority of workers and
negotiate with the management about the terms and conditions of service.
b) Mutual Trust: Both management and labour should help in the development of an
atmosphere of mutual cooperation, confidence and respect. Management should
adopt a progressive outlook and should recognize the rights of workers. Similarly,
labour unions should persuade their members to work for the common objectives of
the organization. Both the management and the unions should have faith in
collective bargaining and other peaceful methods of settling disputes.
c) Workers’ Participation in Management: The participation of workers in the
management of the industrial unit should be encouraged by making effective use of
works committees, joint consultation and other methods. This will improve
communication between managers and workers, increase productivity and lead to
greater effectiveness.
d) The Mutual Accommodation: The employers must recognize the right of collective
bargaining of the trade unions. In any organization, there must be a great emphasis
on mutual accommodation rather than conflict or uncompromising attitude. One
must clearly understand that conflicting attitude does not lead to amicable labour
relations; it may foster union militancy as the union reacts by engaging in pressure
tactics. The approach must be of mutual “give and take rather than “take or leave.”
The management should be willing to co-operate rather than blackmail the workers.
e) Sincere Implementation of Agreements: The management should sincerely
implement the settlements reached with the trade unions. The agreements between
the management and the unions should be enforced both in letter and spirit. If the
agreements are not implemented then both the union and management stop
trusting each other. An environment of uncertainty is created. To avoid this, efforts
should be made at both ends to ensure the follow up of the agreements.

9. f) Sound Personnel Policies: The following points should be noted regarding the
personnel policies. The policies should be:
o Formulated in consultation with the workers and their representatives if they
are to be implemented effectively.
o Clearly stated so that there is no confusion in the mind of anybody.
o Implementation of the policies should be uniform throughout the organization to
ensure fair treatment to each worker.
g) Government’s Role: The Government should play an active role for promoting
industrial peace. It should make law for the compulsory recognition of a
representative union in each industrial unit. It should intervene to settle disputes
if the management and the workers are unable to settle their disputes. This will
restore organizational harmony.
h) Progressive Outlook: There should be progressive outlook of the management of
each industrial enterprise. It should be conscious of its obligations and
responsibilities to the owners of the business, the employees, the consumers and
the nation. The management must recognize the rights of workers to organize
unions to protect their economic and social interests.
7. Role of HR Manager in Labour Relations
1. To keep abreast of labour law (legislation and precedents) and to advise
managers about their responsibilities: e.g. to observe requirements in respect of
employing disabled persons, not to discriminate, not to disclose 'spent'
convictions of employees, to observe codes of practice etc. in relation to
discipline and redundancy, and similarly to determine organizational policies (in
conjunction with other managers) relevant to legal and moral requirements.
2. To conduct (or assist in the conduct) of either local negotiations (within the
organization) or similarly to act as the employer's representative in national
negotiations.
3. To ensure that agreements reached are interpreted so as to make sense to those
who must operate them at the appropriate level within the organization.

10. 4. To monitor the observance of agreements and to produce policies that ensures
that agreements are followed within the organization: An example would be the
policy to be followed on the appointment of a new but experienced recruit in
relation to the offered salary where there is a choice of increments to be given for
experience, ability or qualification.
5. To correct the situations which go wrong: 'Face' is of some importance in most
organizations and operating at a ‘remote’ staff level personnel manager can correct
industrial relations errors made at local level without occasioning any loss of dignity
(face) at the working level. 'Human resource management' and the obscurity of its
reasoning can be blamed for matters which go wrong at plant level and for
unwelcome changes, variations of comfortable 'arrangements' and practices and
unpopular interpretation of agreements.
6. To provide the impetus for the introduction of joint consultation and worker
participation in decision-making in the organization. Formal agreement in respect
of working conditions and behaviour could never cover every situation likely to arise.
Moreover the more demanding the task (in terms of the mental contribution by the
worker to its completion) the more highly–educated the workers need to be and the
more they will want to be consulted about and involved in the details of work life.
7. To provide statistics and information about workforce numbers, costs, skills etc.
 as relevant to negotiations (i.e. the cost of pay rises or compromise
proposals, effect on differentials and possible recruitment/retention
consequences of this or whether agreement needs to be known instantly);
 to maintain personnel records of training, experience, achievements,
qualifications, awards and possibly pension and other records;
 to produce data of interest to management in respect of personnel matters
like absentee figures and costs, statistics of sickness absence, costs of welfare
and other employee services, statements about development in policies by
other organizations, ideas for innovations;
 To advise upon or operate directly, grievance, redundancy, disciplinary and
other procedures.

11. SUMMARY OF HR MANAGEMENT’S ROLE IN LABOUR RELATIONS