EVOLUTION OF INDUSTRIAL RELATIONS IN INDIA

OBJECTIVES
 To

understand the journey of industrial relations from its very inception and its different stages till date. present the shape of thing to come.

 To

CONTENTS
     

Industrial relations in India prior to British raj Industrial relations during colonial period Industrial relations in post independence era Industrial relations in post globalisation period till date Emerging business scenario Changing dimensions of IR in India

Industrial relations in India prior to British raj

 

 

India was predominately a pastral and agrarian economy during ancient medieval times. Trade and business were few and far A large no. of occupations were carried on by small mfrs. in their cottages, mostly on hereditary basis. Slavery & seldom were common. The employer – employee relation were those of master & slave. Ancient scriptures and laws of our country laid emphasis on the promotion and maintenance of peaceful relations between capital and labour

The Indian work of arts and crafts were badly damaged during the invasions of foreign invaders, which lasted for last 700 years. The conditions deteriorated to such an extent that there was hardly any difference between an artisan and a slave. The situation improved only after the restoration of law and order under the Mughals. The commercial character of East India Co. did not change the conditions of workers.

Industrial relations during colonial period

Industrial relation is a by product of industrial revolution and it owes its origin from excessive exploitation of workers by owners of industries. The first world war is the first milestone enroute to industrial relations in India. Many other events happened which accelerated the pace of industrial relations during the period:The success of Russian Revolution in 1917 Establishment of ILO 1919 Constitutional development in India 1919

   

    

Establishment of AITUC In 1920. Formation of the labour party govt. in the U.K. in1924. The indian trade union act of 1926. The trade dispute act 1929. Formation of royal commission on labour, 1929-31.

The second world war gave a new spurt in the industrial relations field. The govt. of India embarked upon a two-fold action for maintaining industrial relations:Statutory regulation of industrial relations through the defence of India rules Bringing all the interests together at a common forum for shaping labour policy

 The

objectives, set before the two tripartite bodies at the time of their inception in1942, were: Promotion of uniformity in labour legislation;  Laying down of a procedurefor the settlement of industrial disputes;  Discussion of all matters of all india importance as between employers and employees

Industrial Relations In PostIndependent Er a
 We

inherited industrial relations legacies from our colonial masters with colonial mindset, habits & culture our freedom struggle coincided with the struggle by the working class for better industrial relations.

 Coincidentally

 Most

of our leaders were influenced by Fabin socialist and Marxist  These philosophies got reflected in our constitution The preamble of the constitution  The fundamental rights  The directive principle of state policies.

 The

aftermath of independence saw the mushroom growth of trade unions and a plethora of labour legislation and this led to bitter industrial relations.  This was the period when industrial policy resolution, 1956 facilitated the growth of the PSU both at the centre and state level

 In

the year 1975 the voluntary schemes for workers’ participation in the Mgt. and workers education schemes  In the year 1969 the first national commission on labour was formed.  This is also the period when nationalisation of industry was at peak

In the post independence period, especially the later portion of 70s and 80s, the Indian judicial has displayed unprecedented judicial activism by giving pro-labour judgements, which had tremendous inpact on industrial relations. The result was that we has a pampered labour class and a stagnant, protected, regulated and controlled industrial relations scenario in the late 80s.

In post Globalisation Period from 1991 till Date
 The

traditional IR was reactive, negative, passive, ad-hoc and legalistic. It was selfish by virtue of being confined to its own members, without having any concern for business organisations or society at large.

 Trade

unions are marginalised and kept outside the main stream of business. of state of art technology, innovation , creativity and strategic alignment of divergent resources.

 Introduction

Emerging Business Scenario
 In

the post industrial society, technological revolution has created a situation where space, distance and time have lost their relevance.  The business skyline is completely changing by continuous mergers and acquisitions across the globe.

 Hence,

India embarked on a new Economic Policy. Some of the features of this policy were as under: Core sector have been opened for private sectors  Disinvestment of PSU’s have become reality

 Multinationals

are allowed to invest in India in non strategic sectors- inflow of FDIs  Banking and insurance sectors are opened to investment buy foreign FIIs.  Restrictions and regulations on industrial licensing and inspections were relaxed.  India, being member of WTO, IMF and WB,declared as its policy to follow guidelines.

 Core

conventions(forced labour, child labour, etc.) of ILO started influencing our trade and business.  New players like consumer forums, NGOs, environmental compaigners and electronic media are replacing trade unions in many grey areas.

Changing Dimensions of Industrial Relations In India
 Traditional

IR is giving way to emerging employee relations.

 Features
 

The institution of trade union is getting weak The institution of collective bargaining is being decentralized.

Disinvestment/privatisation and VRS are almost accepted facts of industrial relations. Changing pattern of compensation Well paying secure, low-productive jobs in organised sector are replaced by low paying more insecure productive jobs in unorganised sector. Pro labour stance of Govt. is getting reduced.

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