Labor Management Relations

Labor-Management relations are the most complicated set of relations that any HR Manager has to deal with. Efficient maintenance of labor relations helps the HR Managers in developing a harmonious environment within the organization which, in turn, helps the organization in effectively achieving its goals and objectives.

Well-managed labor relations provide a competitive advantage to the organization by negating the hassles arising out of labor or union related issues and conflicts.

With increasing competitiveness and mounting pressure of accomplishing the business’s strategic goals, it has become essential for an organization to acquire an effective and dependable labor relations support. For the same, the organization may opt for the services of an HR Consulting Firm.

An HR Consulting Firm broadly covers one or many of the following aspects of labor relations as per the requirements of the organization:

  • Legal/statutory compliances: An organization may opt for the services of an HR Consultant in order to maintain the legal requirements in relation to the existing labor laws of the country. This is more important for a company having its business expanded to different lands, hence, the codes of law changing accordingly.

    A proper statutory compliance prevents unnecessary legal hassles and associated financial burden.

    The practices and documents of the organization are thoroughly audited by the HR Consultant against the current legal requirements. Also, new contracts and documents can be drafted as per the legislative detailing. Proper procedures for labor terminations also require efficient working on the part of an HR Consultant as per law.

  • Labor Relations Management: Conflicts and deteriorating relations at workplace have an adverse impact on the overall productivity of the organization. Apart from increasing legal bills, such a situation adds to building up an environment of distrust among labor and hampers their motivation levels.

    An HR Consultant, in such a scenario, provides impetus in improving the everyday dealing between the labor and management. He works towards promoting an environment of collaboration, understanding and mutual trust among the labor and management by carrying out various training programmes, discussions, facilitation workshops and joint exercises between labor and management customized to the specific needs of the organization. Thus, HR Consultants assists in improving labor-employer relations.

  • Trade/Labor Union Dealing and Avoidance: An HR Consultant assists in handling situations of strikes and lock-outs by working as a mediator between the labor and management, and contributing towards collective bargaining. Further, working pro-actively, an HR Consultant can facilitate in avoidance of such unions in the organization.

    Labor audit and employee satisfaction surveys are crucial tools in assessing the vulnerability of the satisfaction levels of labor in the organization. An HR Consultant utilizes these tools to diagnose the chances of formation of trade union within the organization. It helps in understanding the position of the employer’s policies and processes vis-a-vis the employee’s expectations. The gaps within the existing policies and employee’s expectations are then worked upon by the HR Consultant to improve the satisfaction levels of labor, thereby contributing in avoidance of trade union within the organization.

  • Labor Grievance Management: Grievance management by properly guided mediations is a welcome alternative to proceeding into arbitration immediately. This helps in achieving a resolution by mutual consent, thereby, avoiding untoward conflicts and costly litigation process.

    More so, resolving grievances by resorting to such methods as mediations by HR Consultants assists in keeping up with the reputation of the organization as a responsible and employee oriented organization.

    The HR Consultants work with an unbiased approach in opening up a clear and effective communication line between the concerned parties, along with putting in there valuable inputs where ever necessary to end up with an amicable and appropriate solution to the problem. Such an activity also facilitates in developing a positive labor relations environment within the organization. Further, a proactive feedback mechanism developed by the HR Consultant greatly helps in decreasing the rate of grievances among the labor.

Investing in productive labor relations is as significant as investing in any other effective business partnership. Hence, a well managed labor and union relation plays an instrumental role in dealing with the changing and challenging business propositions in current economic scenario.

❮❮   Previous Next   ❯❯

Authorship/Referencing - About the Author(s)

The article is Written and Reviewed by Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to and the content page url.