The mass movement of employees from rural to urban regions resulted in a labour surplus and fierce rivalry among industries. In general, there were few rules protecting employees, and companies prioritised cost-cutting above employee care.

The origin and history of the labour-organisation relationship…

 ‘Labour relations’ is commonly is referred to as a connection between a company, management, and its employees. In order for an organisation to succeed and have high productivity, it must maintain strong employee relationships. The idea is completely dependent on a healthy and safe work environment, 100% participation and dedication from all employees, motivating incentives, and an effective communication system facilitated by HR within the company. It is imperative to organisational growth and will help create a trend of low attrition in the organisation.

With the Industrial Revolution began the history of labour-management interaction in the mid 1860s. The mass movement of employees from rural to urban regions resulted in a labour surplus and fierce rivalry among industries. In general, there were few rules protecting employees, and companies prioritised cost-cutting above employee care. Employees who participated in union activities were frequently sacked by their employers. The Knights of Labour, the first national labour union, controlled labour-management relations by organising political actions and arbitrating disputes in favour of employees.

World War II gave birth to the classic labour-management relationship model. After the war, America was the only industrialised country with a substantially undamaged infrastructure. As a result, the United States has dominated global commerce and American business has prospered. Because of the great demand for labour, employees had a lot of negotiating power to acquire improved working conditions. Businesses rapidly embraced unions and agreed to numerous requests, including a regular work week commitment, job stability, and low insurance payments. Workers and management came to a stalemate, but firms seldom included employees in decision-making.

 A budding Indian labour union movement was recognised and protected under the Trade Unions Act of 1926. After independence, the number of unions increased significantly, although the majority of them are tiny and exclusively work for one company. The government recorded 1,825 strikes and lockouts in 1990. Approximately 1.3 million workers were involved in these labour disputes. Strikes and lockouts have fluctuated in frequency and severity from year to year. Employees in rural areas and urban unorganised industries are lonely, insecure, and exploited, in stark contrast to the position of unionised workers in many modern enterprises who have the union to assist them and prevent employee exploitation.

Labour relations in the 21st century

Labour management success: the curious case of TVS

TVS, a century-old organisation with a remarkable accomplishment: it's never had a significant labour problem. The group's original firm, TVS & Sons, was founded in 1911 and has never had a protest. The working conditions at TVS are just exceptional. During the global financial crisis of 2008, nearly 60 years later, management at TVS & Sons attempted to temporarily decrease workers' salaries but left it up to them to determine how much they would forgo. Employees agreed rather than complaining; while management had expected a 5% decrease suggestion, the employees surprised them by proposing a 15% reduction.

 The need for codified labour act

The goal of the labour relations act is to support industrial development, fair labour practices, security, democracy, and social progress as well as to safeguard everyone in the workplace. These are achieved by:-

Maintaining amicable relations between employees and management, as well as applying the law when necessary.

•  Legal representation in the execution of labour standards, Labour law and regulations.

•   Providing mental and physical wellbeing and fostering industrial harmony.

•  Building an appropriate communication mechanism in the workplace

•   Implementing the necessary environmental and organisational changes

•  Limiting the use of industrial activities such as lockouts, strikes, demonstrations, and so on.

•   Maintaining organisational stability and effectiveness

The tricky nature of the labour-organisation relationship:

Maruti Suzuki and Air India

In the year 2012, at Maruti Suzuki India Limited's Manesar factory, a worker's suspension for misbehaving with his shop-floor supervisor resulted in a violent conflict between workers and management. Workers set fire to the Swift and Dzire plant's management wing. Awanish Kumar Dev, the general manager of human resources, died as a result of his burn injuries. When the police arrived, the employees continued their violent protest and succeeded in  injuring nine policemen  and over a hundred supervisors, including two Japanese ex-pats.

Since 2013, MSIL has deliberately reduced its use of contract labourers. Temporary workers are recruited for brief periods of time, often 7 to 8 months, with no assurance of re-engagement at the conclusion of the term.

A group of Air India ground employees and engineers had a strike planned to start November 2 in protest of a government decision requiring them to vacate their office premises six months after the airline's sale. The airline management and the regional labour commissioner received strike notices from a joint action committee of Air India unions. The protesting unions include the Air Corporation Employees Union, the Aviation Industry Employees Guild, and the All-India Service Engineers Association.

The strike notice was delivered to AI by the deputy chief labour commissioner, who also scheduled a meeting between the two sides for October 27. A union circular to members asking them not to submit to the pledge said that  status quo will be preserved. On October 5, AI informed over 7,000 employees that they must file an undertaking by October 20 stating that they will quit their accommodation six months after privatisation. The colonies are on property that AAI has leased to AI in perpetuity, according to the unions' strike warning. The Mumbai airport is a tenant, and AI has no need to quit the colonies and hand over the property to the airport, according to the statement.

Pandemic and labour relations

When the Karnataka government and the Department of Labour went in and played a significant role in enabling the reconciliation between all parties, a labour strike at Toyota Kirloskar Motor's Bidadi-based manufacturing facility in Karnataka came to an end.

The manufacturer had to declare a lockout at the plant in November of last year after employees' union members staged a sit-in strike on the manufacturing grounds to protest the suspension of a worker. Later, the corporation made a last plea to all other members to return to work by March 5 in order to secure future synergies based on mutual trust and to respect the conditions of their mutual agreement, thereby ending the strike.

As a result of the pandemic, many companies have chosen wage reductions, salary deferrals, and the removal of dynamic elements, perks, and privileges that make up the owner's cost to the firm, frequently in cooperation with their workers.

The pandemic has forced many firms to make the tough option of laying off staff in order to keep their company running. Victims of forced downsizing and layoffs have lost their jobs and are stressed as a result of the abrupt shift in their financial life and uncertainty about their future employment prospects.

Many employees who were dissatisfied with the concept of a salary decrease remained with their company out of force, clinging on to the job since they did not have a choice or an alternative offer due to a weak labour market.

The pandemic has also had a substantial impact on work performance. Many companies have had to make adjustments to their workplace location criteria. This shift put a lot of pressure on both workers and employers to modify how they assist employees deal with the upheaval and change brought on by the pandemic .

A solution to a crisis: post covid measures

 Businesses are putting a fresh emphasis on labour relations as they begin to bring remote workers back into the office. When employees re-enter physical locations, problems that had eased during the pandemic may re-emerge. It's never been more important for managers to put in more effort. Positive employee relationships lead to higher turnover and increased productivity. There is a lot at risk during this crucial rebuilding time.

 Here are some ideas for  senior managers to enhance employee relations within an organisation to produce improvement in this area and maintain a happier and more productive workforce.

•  Make sure that the company's purpose is not only a part of your everyday routine but that your workers practice it. Discuss plans and get employees enthusiastic about the future of the company.

•  Seek recommendations on how to improve the company's productivity - focusing just on areas where you would like to see growth is a great way to start. As a consequence, staff will be given some direction on how to utilise their creativity.

•  Keep in touch with the staff at all times. Maintain consistent communication with them on the company's policies, methods, and decisions. Keep your employees informed; aware staff will make sound decisions and will remain engaged and productive. As a result, they will feel like they are part of the organisation's extended family.

•  Tell your workers about the importance of a healthy diet, exercise, and stress management and encourage breaks. When it comes to handling absences due to stress, companies may suffer substantial expenditures, so make sure you recognise the signs early and act quickly to fix any long-term difficulties.

•  Employee relations are essentially about your investment in your employees. Your employees are also crucial to your company's success, so don't take them for granted or your productivity and profit will suffer.