Factors Affecting Industrial Relations

Good industrial relations help to keep your company operating in the most efficient manner by helping to maintain a high morale among your employees. When approaching the subject, its most helpful to think of it as an art rather than a science for the most successful outcome.

Communication

Communication serves as an essential factor in industrial relations. Communication between labor and capital allows workers to remain fully informed of their workplace expectations as well as any changes that may affect them. Management will become aware of problems or concerns as they occur, rather than finding out about them once they've reached a critical point. This allows them to address the issues in a timely manner.

Unions

Unions have a direct affect on industrial relations in a number of ways. Once a union comes to a workplace, individual employees no longer negotiate on their own behalf. Instead, they are collectively represented by a third party. This gives employees the feeling that they have more than a voice and provides a means for employees to collectively arbitrate any labor disputes. Additionally, unions can also complicate matters when they bring the concerns of a third party, such as the union, into a negation process.

Wage and Benefits

The most obvious factor affecting industrial relations are wage and benefit issues. Wages and benefits don't single handily enhance the operation of industrial relations, however, they do help employees feel more appreciated which generally translates into a better work performance. When wages and benefits are held in line with industry standards, or above, this helps to keep worker discontent contained.