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Aditi Ghosh, IIT Kharagpur
Aditi Ghosh 10IP60002 RGSOIPL, IIT Kharagpur 1
BRIEF BACKGROUND COMMISSIONS ON LABOUR
± Understanding the changes in structure of industrial relations ± Observe the changing conditions of work & workers ± Reports the best indicator of evolution of state policy on labour ± Reports made from:
Direct observations & enquiries Memorandums submitted by industrialists, labour unions, individuals
Aditi Ghosh, IIT Kharagpur 2
vi.THE COMMISSIONS SET UP SO FAR i. Royal Commission on Labour in India (1929) Labour Investigation Committee (1946) National Commission on Labour (1st) (1967) Commissions on Women & Labour (1974-88) National Commission on Rural Labour (1991) Second National Commission on Labour (2002) Aditi Ghosh. v. IIT Kharagpur 3 . iii. ii. iv.
HIGHLIGHTS OF THE 1st NATIONAL LABOUR COMMISSION social security social welfare wages social insurance industrial relations industrial adjudication collective bargaining Aditi Ghosh. IIT Kharagpur 4 .
REASONS FOR CONSTITUTION OF THE 2nd NCL 3 decades had passed since the first NCL Report was submitted (1967) ± Significant increase in the number of labour force ± industrialisation and urbanisation the changes in the economic system introduced in 1991 ± radical changes in the domestic industrial climate and labour market changes in various spheres of IR and labour market ± introduction of "uncertainties" requiring a "new look to the labour law Aditi Ghosh. IIT Kharagpur 5 .
to suggest rationalisation of existing laws relating to labour in the organised sector. to suggest an Umbrella Legislation for ensuring a minimum level of protection to the workers in the unorganised sector. to build harmonious relations Aditi Ghosh.OBJECTIVES OF THE 2ND NCL. II. Other objectives: ± note developments post liberalisation and globalisation Rapid technological changes demands and effects on working class. government and all sections of the society. to increase the economic efficiency and competitiveness of the Industry. IIT Kharagpur 6 . industry. 2002 Terms of Reference: I. ± ± ± to make recommendations on the laws and systems to offer protection and welfare to the working population.
METHODOLOGY ADOPTED BY The Commission a) arranged consultation / conferences in the major cities of India to get the opinion of the Industry. b) circulated a questionnaire across the industry and the society in terms of the reference c) surveys conducted both in organised and unorganised sector the high powered body comprised: ± two full-time members ± seven part-time members government. IIT Kharagpur 7 . workers and NGOs. public. industry. 1st meeting in November 1999 7 draft bills were submitted alongside the Report Aditi Ghosh. educationalists and institutions.
in comparison with neighbouring countries. Impact of globalisation . 4. 8. Approach to review laws. Unorganised sector. IIT Kharagpur 8 . Labour administration. 5. Social security. Other matters. Aditi Ghosh. Women and Child labour. 11.CHAPTERS IN THE 2002 RECOMMENDATIONS 1. 3. 2. 9. Review of laws. Industrial Development and Progress after independence. 6. 12. 7. Skill development. The terms of the reference of the Commission Introductory review. 10.
IIT Kharagpur 9 .AREAS FOR RECOMMENDATIONS employment skills and training necessary for acquiring and retaining employability and employment healthy industrial relations laws to promote harmonious industrial relations machinery for speedy and just solution of equality and social security Aditi Ghosh.
irrespective of wage/salary. to have uniform policy on holidays ± 3 national holidays be gazetted ± 2 days determined by State ± 10 restricted holidays each year Flexible working hrs 9h/day. compensation for over time Exclude some highly paid jobs from purview of workman (Airlines Pilot) and include in proposed law for protection of non-workman Or cut-off limit of remuneration. outside the rank of worker Existing set of labour laws broadly grouped as: (i) Industrial relations (ii) Wages (iii) Social security (iv) Safety (v) Welfare and working conditions Aditi Ghosh. say 25. 48h/week.000pm not be an ordinary workman keep supervisory personnel. IIT Kharagpur 10 .GENERAL RECOMMENDATIONS Central & State govt.
Sales Promotion Employees (Conditions of Service) Act. resolution of individual and collective disputes of workers avoidance of the term industry better coverage of domestic service terms go slow and work to rule must be regarded as misconduct Withdrawal of Essential Services Maintenance Act consolidate fragmented Trade Unions: ± incentivize.ID Act. leave. upgrade registration-eligibility criteria Aditi Ghosh. 1946. 1926. level of protection to managerial and other (excluded) employees too against unfair dismissal or removal Consolidate acts. health and welfare. IIT Kharagpur 11 .into Law on Labour Management Relations ± Workman gender neutral expression worker ± Agreements arbitration adjudication enact special law for small scale units ± provisions . payment of bonus compensation in case of lay off. payment of wages. The TU Act. retrenchment and closure.securing safety. awards of work. Industrial Employment (SO) Act. 1976 .Industrial Relations and Trade Unions Min. 1947.
every establishment to have grievance redressal committee ± representatives from workers and employers Lay-off. electricity. by Labour 12 . Retrenchment & Closure of Establishments ± ± ± ± train workers help develop new skills pay adequate compensation offer outsourced jobs to retrenched workers Prior permission not necessary in respect of lay-off and retrenchment 2 months notice to workers or equal pay Strike ± socially essential services . Contd.51% of workers support the strike ± refer for compulsory arbitrationIIT Kharagpur Relations Commission Aditi Ghosh. medical services.union having 66% support else proportionate representation to union having 25% support recognition granted to a union to be valid for 4yrs. sanitation.water supply. transport ± only by the recognised negotiating agent after strike ballot . check-off system over secret ballot for selecting negotiating agent ± ± ± ± Loyalty ascertainment payment of subscription fee compulsory for establishment with >300 workers to be selected for recognition .
IIT Kharagpur 13 . contract labour to be remunerated at the rate of a regular worker Aditi Ghosh.Contract Labour/Casual Temporary Workers contract labour not to be engaged for core production / service activities except on sporadic seasonal demand no worker should be kept continuously as a Casual or temporary worker against a permanent job for more than 2 yrs.
Wages Wages & remuneration different terms Bonus payments before festivals ± Excess 20% bonus subject to negotiations Enhance wage ceilings: ± reckoning entitlement .to be notified by Central Government no need for any wage board for fixing wage rates for workers in any industry Aditi Ghosh.Rs.Rs.3500/- requirement for a national minimum wage .7500/± calculation of bonus . IIT Kharagpur 14 .
Service Conditions etc enactment of a general law relating to hours of work. working hrs in a day/week Reduced hrs for adolescents prohibition of underground work in mines for women workers Transport facility by employer to women working in night shifts No exemption of SEZ from labour laws Canteen.Working Conditions. all cases must be disposed of in a span of 3 hearings Non-discrimination between public and private sector in law enforcement Aditi Ghosh. IIT Kharagpur 15 . creche etc. refreshments facilities. leave and working conditions omnibus law for safety at the work place and in different activities ± ± ± ± ± ± Max.
leprosy affected or mentally sick persons Train able-bodied beggars to help secure employment Set up permanent commission for disaster management on the lines of election commission constitute high powered national security authority preferably under the Chairmanship of a Prime Minister of India social security fund of India and social security of each State may be set up.to be provided by State Replace 'workman' with 'employee make Workers' Compensation Act applicable convert it from an employers' liability scheme to a social insurance scheme unemployment insurance scheme could be found Need for National Scheme for pension for differently-abled. IIT be wholly non-contributory 16 ± 3) social assistance scheme which will Kharagpur . ± 2) subsidised insurance / welfare fund type of partly contributory and partly socially assisted schemes and Aditi Ghosh. 3 kinds of social security schemes: ± 1) social insurance type of contributory scheme.Social Security Elementary level of security consider as a fundamental human right .
IIT Kharagpur 17 .Dispute Settlement Lowest-level labour court ± ± ± ± labour-management dispute workman s compensation claim disputes on coverage of labour laws disputes related to social security Labour Relations Commission ± Identify negotiating agent ± Appellate body after Lowest-level labour court ± Collective dispute if not resolved bilaterally or in conciliation or arbitration constitution of an ± All India Labour Judicial Services for high-level labour adjudicating functionaries ± All India Labour Administrative Services Labour laws concurrent list Centre-State exchange of officers Aditi Ghosh.
IIT Kharagpur 18 .Unorganized Sector Characteristics ± ± ± ± ± ± ± ± ± ± ± ± ± ± Low wages & earnings More women employment percentages Employment of family labour. child labour and migrant labour Piece-rate payments Home-based work or contractual work Seasoned or intermittent employment Lack of organization into Trade Unions Casual and multiple jobs Existence of debt bondage Existence of co-operatives of self-employed workers Dependence on others for supply of raw material Less access to capital Health hazards Sub-sectoral laws and sub-sectoral systems Aditi Ghosh.
job security. safety and social security Recognition of these workers Issue Identification card Improve economic status of women ownership & control over assets simplification of judicial procedures enable unorganised workers to obtain legal redress Right to work be made as a fundamental right Central fund welfare & social security of women workers Separate wing in labour dept.Recommendations for Unorganized Sector Need for new and separate umbrella legislation ± ± ± ± ± ± ± ± Main heads .minimum wages. direction. for unorganized sector Set up Equal Opportunities Commission powers of investigation. IIT Kharagpur 19 . advice and monitoring ± Set up Tripartite Boards Implementation of legislation Empower women workers and give visibility Aditi Ghosh.
rewarding the employers who manage to have their units declared sick Provisions of section 9A of the Industrial Disputes Act relating to change in conditions of service diluted and rendered practically ineffective in favour of employers Green signal for unfettered freedom to contract out non-core jobs completely and also core jobs. subject to some limitations No to industry level wage boards No secret ballot for selection of bargaining agent Aditi Ghosh.CRITICISM Freedom to hire and fire to all establishments employing up to 300 workers Varying rates of compensation to workers. IIT Kharagpur 20 .
Punitive prescriptions for illegal strike Go Slow . Allow wide spread registration of Membership Based Organisations' of women workers under the TU Act .Contd. IIT Kharagpur 21 .trade union movement division on gender lines Aditi Ghosh. Work to Rule termed misconduct A facade of equating lock out with strike Curtailment of holidays 8 hour work day concept tampered with Separate law for small industries Supervisors irrespective of salary and employees in higher bracket of salaries to be outside the purview of labour laws.
± composition. IIT Kharagpur 22 . ± Terms of reference and the framework they suggest. ± questionnaire ± Hidden pro-employer agenda ± No consultation with Unions ± weaken union movement ± hurt labour welfare Aditi Ghosh.Opposition by trade unions ± process of constitution of SNCL.
INDUSTRIAL DISPUTES (AMENDMENT) ACT 2010 Aditi Ghosh. IIT Kharagpur 23 .
± subsidiary companies set up by the principal undertaking and autonomous bodies owned or controlled by the State Government. ± subsidiary companies set up by the principal undertaking and ± autonomous bodies owned or controlled by the Central Government. 2.10. Aditi Ghosh. Amendment of the term appropriate Government defined under section 2(a) of the Act ± to amplify the existing definition. Enhancement of wage ceiling for coverage . or the Central Public Sector Undertaking.INDUSTRIAL DISPUTES (AMENDMENT) ACT 2010 .000 .from Rs. which includes the State Public Sector Undertaking. or ± any corporation. ± State Government is also covered under the definition of appropriate Government in relation to any other industrial dispute. established by or under any law laid by the Parliament.the highlights 1.1600 per month to Rs. IIT Kharagpur 24 . ± company in which more than 51 percent of the paid up share is held by the Central Government.under section 2(s) of the Act.
empowering the Labour Court or Tribunal to execute the awards. 4. ± Earlier only appropriate government could approach Tribunal and Labour Court disputes under Section 2A. direct access for the workman to the Labour Court or Tribunal in case of disputes arising out of section 2A of the Act. orders or settlements arrived at by Labour Court or Tribunal . IIT Kharagpur 25 . Grievance Redressal Machinery in every Industrial establishment employing 20 or more workmen for resolution of individual grievances ± maximum 6 committee members ± Inclusion of atleast 1 woman member in the committee ± redressal within 30 days on receipt of application. 6. now will include: ± Deputy Chief Labour Commissioner (Central) ± State Joint Labour Commissioner ± Grade III officers of the Indian Legal Service 5.Contd. Expanding the scope of qualifications of Presiding Officers of Labour Courts or Tribunals under sections 7 and 7A of the Act. 3. Aditi Ghosh.
IIT Kharagpur 26 .Thank You!! Aditi Ghosh.
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