Labor relation can define as “the relationship between labor or employee and the employer” (as Cambridge Dictionary). Labor relations is combined with the unionize employment situations. Labor relations is expecting to study about relationship of labors in unionize culture. Labor relation is a subject of industrial relations, and social, political and economic parameters are influencing to the labor relations too. Under labor relations, it is need to cover labor law, history, union organization, bargaining, contract of employment etc. Both public and private sector should be aware about the labor relations to continue and follow harmonious working conditions. To enhance harmonious labor relations, governments are involving to create acts, rules and regulations and the institutes such as labor tribunals all around the world. In USA, National Labor Relations Act (in 1935) was established & empowered to regulate labor relations in private sector, and public sector labor relations is regulated by the Civil Service Reform Act of 1978. Civil Service Reform Act established the many of related bodies to function the act and its rules. Also Civil Service Reform Act was abolished some of institutions/bodies or modified them. Many countries all over the world have their own labor relations strategies– labor laws and traditions to regulate their labor relations according to the law that they are following (ex: Roman-Dutch Law). Rules of the different countries may be differing on one to another, but the core of rules or the frame is similar to each other, such as eliminating child labor, provide safe working conditions etc. (There are several organizations working under the labor laws/ labor act and that is an equal situation could be observed in other countries too). Labor acts are empowering labor tribunals and it helps to protect rights of the labors. Labor relation acts are always established to protect labors and it is also expecting to provide equal rights to both employer and employee.
International Labor Organization (ILO) was pronounced standards for maintain good labor relations and conditions. Members of United Nations are to be expected to follow the standards of ILO.
Many of labor relation acts are accepting the unionization in work places, collective bargaining and collective agreement. Collective bargaining and collective agreement processes are helping to organizations to maintain good labor relations with its employees.
Maintain harmonious labor relations are important to run a company/organization because of, production of service or a good is depend on human resources out of other resources such as financial, technological and natural resources. Apart from other resources, the only living resource is human resource. Employers must pay attention on the subjects such as leave procedures, health and safety, compensation, job security etc.; to maintain good labor relations as well as all above subjects.
Good relationship with labor helps to maintain loyalty, effective and efficient, and productive works from the workers as expecting by employers.
By many of labor relation acts, employees are permitted to call meetings to unionize, join with trade unions or labor unions as they like, receive fair compensation and working conditions, receive protection in jobs etc. Some organizations are not following guidelines of labor acts regulated them some times, and any occasion that government or relevant agency found that they are guilty for the behavior, will be punished or amerce or executed by the law.