INDUSTRIAL relations are the most critical component of human resource management. Other elements of HRM, such as recr­u­i­tment, determination of salary and perquisites, performance and job evaluation, training and development, discipline handling, etc may be handled through the skills and experience of HR personnel. However, managing industrial relations requires many other traits in the individual, such as knowledge of labour laws, good communication skills, patience, perseverance and a cool temperament, analytical thinking and the ability to handle crises.

In the West, no distinction is drawn between the terms ‘employee relations’ and ‘industrial relations’; both are considered a common title for the industrial relations function within personnel management. Employee relations have been defined by the dictionary of human relations, published by Oxford University Press, as follows: “The term underlines the fact that industrial relations is not confined to the study of trade unions but embraces the broad pattern of employee management, including systems of direct communication and employee involvement that target the individual worker.”

In Pakistan, the term ‘industrial relations’ is considered a separate area, which is quite comprehensively governed by the provisions of the Industrial Relations Ordinance, 1969. As is evident from the following preamble of the ordinance, its scope is quite large and encompasses various activities of unions, management of forums and collective bargaining: “An ordinance to amend and consolidate the law relating to the formation of trade unions, the regulation of relations between employers and workmen and the avoidance and settlement of any differences or disputes arising between them.”

In most companies in Pakistan, employees are divided into two broad categories: management and non-management. The management employees are placed in higher cadres and their terms and conditions of employment are quite different from those of non-management staff.

If there is a union in the organisation, the latter are called ‘unionised staff’ and their terms of employment are based on the provisions of a collective labour agreement signed with the union. Their employment is protected by labour laws and does not depend upon the whims of the employer.

The absence of a union means unilateral decisions by the management.

In companies where there are no unions, decisions about periodical increases in salary and benefits are taken unilaterally by management. Whether or not non-management staff like such increases, they have to accept them as there is no choice. In such companies, the rights of workers guaranteed under various labour laws are also not secure, as management is not accountable to anyone to oblige them.

Till the late 1960s, union activities were confined to public-sector organisations. When the PPP took over the government in December 1971, unions mushroomed in industrial and commercial establishments. Their activities accelerated to such an extent that employers had to avail the services of industrial relations managers to manage them. Most IRMs had neither the experience nor the expertise to handle tough situations, which gave a free hand to the unions.

There was acute labour unrest in factories, leading to disruption of operations, reduction in output and even closure of establishments. This situation lasted till the end of the 1970s, after which there was a sudden decline in the activities of unions and their federations. Nevertheless, the need for IRMs remains, to handle disputes with unions if and when they arise.

Being a difficult area that requires tolerance and strong interpersonal skills from practitioners, there is an extreme dearth of competent industrial relations pro­fessionals in the country. Stu­dents are advi­s­­ed to learn throu­­gh trial and error and from ment­o­­rs and case studies.

Here are a few tips which may help expedite learning in the field: IRMs should maintain close liaisons with external lawyers who represent their company in employment-related court cases. Attending court along with the lawyer will give them an opportunity to learn how the court perceives actions taken by the organisation against employees. Based on learnings from the court, the IRM may amend their approach while handling similar cases in the future.

It is also essential for IRMs to maintain a working relationship with their counterparts in other organisations for the purpose of information sharing. They may learn about how similar situations were handled by their counterparts. While interacting, IRMs may become aware of work-related information, which is important for them to know and make use of if needed.

Besides the above, the best source for IRMs to acquire knowledge and experience is their own organisation, from where they can learn the art of negotiating with the union, with its charter of demands, sitting along with senior members of the team.

The writer is a consultant in human resources at Aga Khan University.

Published in Dawn, June 20th, 2022