INTRODUCTION – STATE INTERVENTION IN

INDUSTRIAL RELATIONS
• Ever growing industrialization has led to –
 Expansion of the size of work-force
 Growth of labour laws and regulations
 Adoption of welfare programmes in the field of
labour
 Increasing importance of trade unions
 Growing international interactions
On account of the above factors, a neutral and
responsible body has to formulate labour
policies and programmes and take care of their
implementation, etc.
 WHY STATE INTERVENTION?
The role of the State in industrial relations is
determined by its political, ideological and social-
economic orientation
The State has a direct interest in preserving the
industrial peace in the country
In all developed and developing countries, steps have
been taken by the State to promote a healthy growth of
trade union and set up a well-organized industrial
relations machinery to achieve industrial peace and
harmony
The twin objectives of the State are:
1. To reduce production losses due industrial disputes
2. To assist the employers and employees towards the
settlement of industrial disputes through the
conciliation and arbitration machinery
 NEED FOR STATE INTERVENTION IN INDIA
• The labour unions are relatively weak
• Profound mistrust of the employer as a profit seeking
exploiter (Tripartite agreements are must)
• At times of labour unrest, as the guardian of the people
and of the economy, the State has to intervene and
adopt polices to ensure social justice and industrial
peace [ESMA]
• The Constitution of India has made it imperative for the
State to intervene in labour matters
• Labour is in the concurrent list
• The Directive Principles of the Constitution enjoin upon
the State to establish a welfare state and to look after
the interests of the weaker sections of the society
 ROLE OF STATE [LABOUR ADMINISTRATION]
Formulation of labour policy consistent with the needs
of the society
Establishment of uniform stds of labour and adoption
of steps for their effective observance and enforcement
Improvement of working & living conditions of wkrs
Special protection to women and young persons
Maintenance of industrial peace & harmony
Identification of rights and obligations of the parties
and ensuring their effective compliance
Promotion of cooperation among the parties &
encourage consultation btw employers & workers
Making avail Govt. services for ensuring compliance
 LABOUR ADMIN MACHINERY OF CTRL GOVT.
• The Ministry of Labour (GOI) is the centre for decisions &
consideration of all questions relating to labour.
• It is a centrl admin machinery for formulation of labour policy,
enforcement of labour laws and promotion of labour welfare
• It guides, controls and co-ordinates activities of all organizations
and agencies involved in labour administration (centre or states)
• The main subjects include:
 Labour policy and legislation
 Health, safety & welfare of labourers
 Social security for labour
 Policy related to spl target groups [women & child]
 Imigration of labour for employment abroad
 Employment services & vocational training
 Workers’ education, etc.
ATTACHED OFFICES UNDER THE MINISTRY
OF LABOUR
AUTONOMOUS BODIES
OTHER OFFICES
LABOUR ADMINISTRATION MACHINERY OF STATE GOVT
[LOCAL]
 TYPES OF STATE INTERVENTION
TYPE OF INTERVENTION
Establishment & Protection of
workers’ rights
Protection for the vulnerable
Establishment of minimum
compensation for work
Assurance of decent working
conditions
SPECIFIC GUARANTEES AND
POLICIES
• Right to associate and organize
• Right to bargain collectively
• Minimum working age
• Equality of wages and
employment opportunities
• Special provisions for women
• Minimum wages
•Minimum non-wage benefits
and overtime
• Minimum occupational health
& safety
• Maximum hours of work
EXAMPLES
• Workers can form unions
• Workers can negotiate wages
• Workers can strike work
• Children below 15/18 are not
allowed to work
• No workers can be paid a lower
wage or be excluded on the basis
of gender, caste, religion, etc.
• Maternity leave, no night shift,
etc.
• Worker are to be paid minimum
hourly wage
• Housing or medical benefits,
OT @ double the wage rate
• Work place must have proper
ventilation, lighting etc.
• 8 / 48 / 52, etc.
 CONTD . . . . .
TYPE OF SPECIFIC EXAMPLES
INTERVENTION GUARANTEES AND
POLICIES
Provision of income • Social security • Lay-off &
security Retrenchment
compensation
•Job security & • Workers have some
severance pay rights not be
dismissed & right to
compensation as per
S.O.
•Public works • Ty employment in
provided for those
willing to work in
times of weak labour
demand
 RELEVENT ARTICLES
• ARTICLE 39: THE STATE SHALL, IN PARTICULAR,
DIRECT ITS POLICY TOWARDS SECURING –
(A) THAT THERE IS EQUAL PAY FOR EQUAL WORK
FOR BOTH MEN AND WOMEN
(B) THAT THE HEALTH & STRENGTH OF WORKERS,
MEN AND WOMEN, AND THE TENDER AGE OF
CHILDREN ARE NOT ABUSED AND THE CITIZENS
ARE NOT FORCED BY ECONOMIC NECESSITY TO
ENTER VOCATIONS UNSUITED FOR THEIR AGE
OR STRENGTH
 RELEVANT ARTICLES
• ARTICLE 41: THE STATE SHALL, WITHIN THE LIMITS
OF ITS ECONOMIC CAPACITY AND DEVELOPMENT,
MAKE EFFECTIVE PROVISION FOR SECURING THE
RIGHT TO WORK, TO EDUCATION AND TO PUBLIC
ASSISTANCES IN CASES OF UNEMPLOYMENT, OLD
AGE, SICKNESS AND DISABLEMENT AND OTHER
CASES OF UNDER-SERVED WANTS
• ARTICLE 42: THE STATE SHALL MAKE PROVISIONS
FOR SECURING JUST AND HUMAN CONDITIONS OF
WORK AND FOR MATERNITY RELIEF
 RELEVANT ARTICLES
• ARTICLE 43: The State shall endeavour to secure, by
suitable legislation or economic organization or in any
other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work
ensuring a decent standard of life and full employment,
leisure and social and cultural opportunities. The State
shall endeavour to promote cottage industries on an
individual or cooperative basis in rural areas
• ARTICLE 43-A: The State shall take steps, by suitable
legislation or in any other way, to secure participation of
workers in the development of undertakings,
establishments or other organizations engaged in any
industry [worker participation in management]
 PROBLEMS CONERNING THE ROLE OF
GOVERNMENT IN INDUSTRAIL RELATIONS
Persons who are appointed to the post of Labour Minister
are expected to have an in-depth understanding of the
historical, social and economic dimensions of the subject,
apart from basic empathy and sensitivity so essential for
handling labour issues but in actual practice, this does not
happen
Trade unions have political & ideological affiliations
Too many Tripartite committees in a year, resulting in paying
only lip-service to tripartism
Undue delay for adjudication of disputes through labour
courts/tribunals
 Different judgments of the apex court at diff times.
 EVALUATION & SUGGESTIONS
• FUNCTIONARIES INVOLVED IN LABOUR
ADMINISTRATION ARE NUMERICALLY
INADEQUATE ?!!!
• LABOUR ADMINISTRATORS ARE ASSIGNED
MULTIFARIOUS WORK ?!!!
• TEDIOUS PROCEDURE INVOLVED IN PROSECUTION
AND COGNIZANCE OF OFFENCES?!!!
• INADEQUATE SKILL AND INEFFICIENCY OF THE
ADMINISTRATIVE PERSONNEL?!!!