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Employee & Labor Relations


Employee & Labor Relations deal with the employee issues, problems, doubts, queries and the grievances. There have been set up of Employee Relations department separately in every organization which has maximum number of employees on the minimum wages or are laborers and hence a separate and specialized and skilled manpower is required who can handle the grievances of the laborers.


The various functions and responsibilities of an employee relations department are as follows

a. It provides guidance and counseling to the employees related to their performance and even the disciplinary issues.
b. Handling the complaints of the various employees and giving them the possible solutions.
c. Maintaining and developing positive attitude and relations among the various employees.
d. Involving in negotiations and the collective bargaining processes.

Labor Relations are very essential to be maintained as otherwise, there would be lot of problems in the production, manufacturing and the service delivery as these employees and the labor support the organization in terms of sales as well as the business expansion. These people work hard day and night in the production and the manufacturing division to get the targets fulfilled.

They convert the inputs into outputs by acting on the raw-materials and converting them into the finished goods. They also form the Unions which lay down the rules, policies and the regulations for these employees. They never say anything to the management directly as Union Leader represents the entire case before the management and the Union Leader is the most popular person who has full power and authority to act on behalf of the labor staff.

Labor issues are never small and easy one as it sometimes takes grave shape as happened with the Maruti Suzuki in the month of July 2012, wherein the employees were not given the hike as expected by them and they acted revengefully and burned the people, resources and the entire office equipment and the infrastructure. Similarly a lot of these kinds of instances have happened in the past too with other companies like Moser bear etc.

Employee relation has been a very sensitive area of application and hence needs to be looked and solved with a major caution and after having detailed view point even from the experts as it may suddenly break or make a team, a company and its people as the labor drawing the minimum wages are not educated much so can’t be made to understand very easily as they think from the emotional angle or point of view.


The various advantages of the employee relations are as follow: -

A. A specialized and skilled manager can better handle the minimum wages and labor level people.

B. The grievances are such that a soft skill person with no experience or background of solving the issues can’t handle.

The employee & labor relations are to be kept clear, transparent so that the union leader and the labor team is clear on the management objective and even the management understands their problems and solves them and give them emotional as well as financial support to avoid any kind of future issues or problems.

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