History of Industrialization and conflicts

The ancient and mediaeval economies of India were more or less dependent on agriculture
and foreign trade, and artisans thrived under guild systems that were patronised by the state.
However, the countryside was not dependent on the state for livelihood but just expected
security from foreign invasion, theft, dacoity, and life security. However, Indian society was
riddled with more caste discrimination, but the existence of class discrimination was not a
visible characteristic of ancient and mediaeval society.

But, in modern times, the scientific advance of the west and the favourable market in colonies
channelised the industrial revolution, which transformed western societies completely. In the
late 18th century and in the first half of the 19th century, we saw the rise of a new industrialist
class and simmering inequalities between the working class and the industrialist class in
Britain and later in other parts of the world. The mechanisation of production and
industrialisation added new concerns in western society about social security, better working
conditions and minimum wages, which resulted in trade unionism and the "charterist
movement". The effect of industrialization on society and the economy was also seen in other
parts of the world in the late 19th and 20th centuries. 

However, industrialization in India began in the late 19 th century in the jute and textile
sectors, and later in the 20th century, it encompassed heavy industries too. This began the era
of class, caste, and other social conflict in the new economy of India. World War One and its
impact gave rise to trade unionism, which later coupled with left-wing trade unionism, forced
erstwhile The British Indian Government began to codify legislation like the Trade Unions
Act, 1926 and the Trade Disputes Act, 1929; and later, the impact of World War 2 and
unrest in society resulted in mass retrenchment, which in turn led the state to intrigue and
enact legislation like the Industrial Employment Act, 1946, and the Bombay Industrial
Relations Act, 1946.

However, in post-independence India, the formation and proliferation of new trade unions
like the All India Trade Union Congress (AITUC) and the Indian National Trade Union
Congress (INTUC) resulted in the politization of trade unions. Although industrialisation in
independent India can categorically be divided into three phases, first from 1947 to 1992,
where the state played a dominant and conservative role; second from 1992, after
Liberalisation, Privatisation and Globalisation (LPG) reforms, till 2014, when the state and
market played an equally important role in the open economy; and third, after 2014, to the
way ahead, where the state is trying to make the economy market-driven. But, the concerns of
trade unios always remain same irrespective of state driven or market driven economy which
are: -
(i) Demand for Wages and Allowances:
(ii) Demand for Bonus
(iii) Personnel and Retrenchment
(iv) Demand for Improved Working Conditions:
(v) Protection from Lockouts.

Need of labour laws

Historical reasons are well justified that there was always tussle between employers and
employees because of non-uniform wages, increase in wages were never been on par with
inflation and price rise. Hence to address this problem Government brought “The Code on
Wages, 2019”, which encompasses all the employees in organized as well as unorganized
sector, and to regulate wage and bonus payments in all employments, to providing equal
remuneration to employees performing work of a similar nature in every industry, trade and
business. Altogether various central and state legislations are overlapping which results into
misgovernance and non-uniformity of business environment. The government is trying to
create an atmosphere to make ease in business process hence it brought changes in, The
Industrial Disputes Act, 1947; The Trade Unions Act, 1926 and The Industrial Employment
(Standing Orders) Act, 1946 by bringing The Code on Industrial Relations, 2020.
The revitalisation of Indian economy is much needed in present context after a period of high
unemployment rate, decrease in GDP growth rate, an unprecedented health crisis (COVID-
19) which eventually resulted into migrant crisis and consistent period of inflation and price
rise forced state to cultivate more business conducive environment and to boost
manufacturing sector which eventually tilted towards genesis of liberal policies based on
contract labour. The balance between working condition and social security also taken care
by government which lead codification of legislations like ‘’The Code on Occupational
Safety, Health and Working Conditions, 2020’’ seeks to regulate the health and safety
conditions to protect worker from occupational hazards and “The Code on Social Security,
2020” which aims to consolidates nine laws related to social security and maternity benefits.
But, the new labour laws specially the laws on social security could not satisfy working class
as it increased long working hours, caped allowances up to 50 percent of income, and
importantly deduction to provident fund as per income raises and easy hire and fire policy
disappointed working class which totally dependent upon business firms and market.
Following the developments in Indian economy, the role of business firms become very
important to cater social needs of working class.
Role of business firms and way forward
As state sought confidence in business firms so, the firms should also behave responsibly by
implementing policies in secular manner. Mass personnel retrenchment should be avoided,
even in case of contract labours. Labours should be informed prior before retrenchment and
lockouts should be avoided in case of conflict. The training became very important and
should not be compromised which will reduce occupational hazards. Safety equipment and
guidelines on vulnerable occupational sites should be followed properly. Water and sanitation
needs should be taken care and a welfare officer could be recruited to cater of all basic needs
and to create humane environment.
Payment of wages should be on regular basis without any delay and raises should be on par
with inflation and price rise. Maternity benefits should be provided even in case of casual and
a contract labour, participation of labour in major business decisions and transparency should
be maintained to avoid conflicts. Grievance redressal mechanism should be responsive and
less time consuming.
Though state endeavour to make governance efficient and cultivate business environment
resulted into new liberal industrial policy, in turn business firms also have to make endeavour
in much demanding social needs of working class. Thus state and its franchise with
cooperation and coordination with market and firms could contribute to social as well as
economic needs.

References:
1. https://www.cvs.edu.in/upload/Causes%20of%20Industrial%20Disputes%20and%20settlement
%20mechanism%20in%20India.pdf
2. https://www.clearias.com/trade-unions-history-labour-unions-in-india/
3. https://www.globallegalinsights.com/practice-areas/employment-and-labour-laws-and-regulations/india
4. https://www.indiaspend.com/why-trade-unions-are-opposing-labour-law-reforms/
5. https://www.financialexpress.com/money/new-labour-codes-how-will-they-impact-social-security-
take-home-salary/2220976/