BACKGROUND OF THE STUDY.      

Employer and employee relation refers to the communication that takes place between representative of employees and employers. Much of the relations involve employee and employers working together. Indeed part of the European Union social policy is to create a system of shared responsibility of employers and employees for practice, conditions and other areas of life. This policy of shared responsibility is called co – determination discussion between employees employers typically covers the following areas, pay, bonuses, the work environment, disputes work schedule, grievances, health and safety, hours of work and production targets.

The advisory conciliation and arbitration service (ACAS) was set up in 1974 to try and create more harmonious working relationship in the country. It negotiates in disputes between employers and employees as well as establishing codes practice and principles for harmonious relationship. It has been tremendously successful in it works because today, there are relatively four employment relation dispute in the country. Successful employer / employee relation involved striking a balance of interest from the employer’s point of view.

Industrial relation is about the right to manage the ability to plan for the company so that it can continue to be a success, to make profit for its share holders and to keep its employees motivated. From the employees’ point of view, it is all about securing the best possible conditions and living standard of employees where employees are not happy with working condition, this frequently leads to high labour turnover, bad time keeping high level of absenteeism. It may also in the form of slackness by individuals, poor working, and deliberate time wasting and similar practices. Other evidence of discontent will be revealed in complaints friction ignoring rules and apathy. There are a number of forms of organized traded unite actions including; withdrawal of goodwill, working strictly to the rules set out in work rulebooks and sticking rigidly to only doing task set out clearly in a job description, refusing to work overtime and going on strike.

All of these actions are undesirable

1       They reduce company’s profitability and its ability to fulfill orders.

2       They harm employment prospects and reduce ways of employee.

3       The lead to fostering discontent.

4       They cause problem to customers and the economy as a whole.

          Thus it is important to create harmonious workplace for the benefit of all           concerned.