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Role of state in IR

Role of state in IR
 Government intervention in IR is as old as the
industry itself. Howe ever, till the 19th century,
governments everywhere followed the laissez
faire policy- they left IR to the managers and
workers who were required to solve the
problems themselves.
 Towards the end of the 19th century, the
attitude of the governments changed, and
intervention became a reality.
 The state, as of today, regulates the relationship
between the management and the labour and
seeks to protect the interest of both the groups.
 The government has set up wage boards, labour
courts, tribunals and enacted laws to lay down
norms and to enforce their compliance.
 The state endeavor to correct, through effective
industrial relations, an imbalanced, disordered
and maladjusted social and economic order with
a view to reshaping the complex socio- economic
relationship following technological and
economic progress. It also controls and
disciplines the parties concerned and adjust
their conflicting interest.
 In this process, it protects some and restrains
others, depending upon the situation
Three actors of IR
 The major participants or actors of industrial relation
are workers and their organizations, management and
the government etc.
 Workers and their organizations:- The workers play
an important role in industrial relations. The workers
have working age, educational background, family
background, psychological factors, culture, skills
attitude towards other work etc.
  Worker’s organizations prominently known as trade
unions play their role more prominently in trade
unions. The main purpose of trade unions is to protect
the worker’s economic interest through collective
bargaining and by bringing pressure on management
through economic and political tactics. Trade union
factors include leadership, finances, activities etc.
 Employers and their organizations:-
Employer is a crucial factor in industrial
relations. Employers employ worker, pays
the wages and various allowances, regulates
the working relations through various rules,
regulations and by enforcing labour laws.
 He expects the worker to follow the rules,
regulations and laws and also expects them
to contribute their resources to the
maximum. Employer from their
organizations to equate their bargaining
power with that of trade unions. Employer’s
organizations protect the interest of the
employer forcing the trade unions and
government.
Government :- government exerts its
influence on industrial relations
through its labour policy, industrial
relations policy, implementing labour
laws, the process of conciliation and
adjudication by playing the role of a
mediator etc. it tries to regulate the
activities and behavior of both
employees organizations and
employers' organizations.
THANK YOU….

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