The author examines the popular beliefs about the industrial relations system in Gujarat in the light of some quantitative data and other information based on personal observations and discussions. It is argued that the relatively peaceful and conciliatory climate of labour-management relations in Gujarat is a product of the Gandhian legacy, the cultural pattern of the region, the nature of leadership in industry and trade unions, they main characteristics of the working class and the positive approach adopted by politicians and administrators concerned with labour issues. It is however pointed out that industrial relations in Gujarat have undergone rapid changes in the context of changes taking place in the industrial structure, the socio-economic composition of workers, the systems of management and the ideological basis of trade union leadership. The author suggests that it would be useful in the long run for all sections of the industrial community in Gujarat to make a realistic assessment of the changing situation and find ways to retain the strength of the traditional system in the face of the challenge posed by a variety of factors.