System Model of IR in India(DUNLOP)

Dunlop’s System Theory

(1958)

•In this system, he considered Industrial Relation as

a sub-system of Society.
• Industrial Relation system could be divided into
four Interrelated elements.
 Dunlop’s System Theory
(1958)
• An industrial relations system at any one time in its
development is regarded as comprised of certain actors,
certain contexts, an ideology which binds the industrial
relations system together and a body of rules created to
govern the actors at the workplace and work community.
 Dunlop’s Framework

Processes Output
Input

Actors Bargaining
Environmental Conciliation
Contents Arbitration Rules
Ideology Law making

Feedback
 Dunlop’s System Theory
(1958)
•The Actors:
•Managers and Their repesentatives
•Workers
•Specialized Govt. Agencies.
 Dunlop’s System Theory
(1958)
• The significant aspects of the environment in which
the actors interact are :
 The technological characteristics of the organization, the
workplace and work community.
 The Product and factors markets or budgetary constraints that
impinge on the actors.
 The locus and distribution of power in the larger society.
 Dunlop’s System Theory
(1958)
•Ideology: An ideology is a set of ideas and beliefs
commonly held by the actors to bind and integrate
the system together as an entity.
•The ideology and philosophy of a stable
environment involves a congruence or
compatibility among these view and the rest of the
system.
Dunlop’s System Theory
(1958)
Substance of Sound Industrial System

•The structure of the economy and the labour

market.
•Legal Framework and labour standards.
•The nature and the degree of Government
Interventions.
•Collective Bargaining and workers
Participation.
 Competition on the basis of Cheap Labour

•Falling Employment Intensity and Jobless Growth:

Cars do not buy Cars, people do.
•If larger labour force in a country remains
unemployed ,it will lead to a decline in the demand
for goods and services. Further, decline in job
opportunities.
•Informalization of work and deterioration in
conditions of employment: The proportion of workforce
has been increasing in India and as a consequence ,the
conditions of employment have generally tended to
deteriorate.
• Disinvestment, Deregulation and
Decentralization:
• Disinvestment:
• It changes ownership, which may bring out changes in the
work organization and employment.
• It changes the work organization by necessitating retraining
and re-deployment.
• It affects the rights of workers and trade union, including job
security, income security and social security.
• Trade union, management and govt. together need to respond
the challenges through various innovative measures.
• Deregulation: In the sphere of labour laws
usually erosion of interest of workers and
trade unions.
• Decentralization: It refers to a shift in
consideration of industrial relation issues from
macro to micro and from Industry to the
enterprise level.
New Actors and New Dynamics in Industrial
Relation

• New Actors and Emerging Dynamics:

• In the post globalization era, consumers and
community are have begun to assert themselves and
play a significant role.
• Workers and unions in particular asked to assert
their rights without impinging the rights of others.
• Increasingly trade-unions see a future for themselves
by aligning with the interest of the wider society.
• Changed mindset of the Judiciary, Legislature
and Executive:
• Labour reforms take into consideration the concern
of the Industry.
• The conciliation machinery shows concern for issues
relating to productivity, competitiveness, flexibility,
modernization, retraining and redeployment.
• Declining Trade Union Density:
• Trade unions are yet to conceive and implement meaningful
strategies to make unionism relevant and appealing to these
new diverse groups.
• The government has taken an initiative to consider the realm
• of social security benefits, there is a prospect of
rise of trade union membership.
• However the need for union is even felt in the
IT industry after the Industry faced recession
and downsizing.
• Worker Militancy replaced by Employer
Militancy:
• The economic reform introduced in 1991 signify the
country’s quest for global economic integration.
• Workers were more circumspect and hence reluctant
to go for strikes and realization about the imperative
• Need to consider survival of Industry as a pre-
requisite for employment and income security.
• Trade unions were hesitant to give a call for strike
because it may lead to loss of jobs.
• Trade unions becoming more defensive rather than
offensive with employer can be seen in shift in their
actions from strikes to law suites.
• Collective Bargaining:
• There is shift in level of coordination and bargaining
from national/sectoral to enterprise level.
• The bargaining power of trade-union shrinking.
• Towards Fair Globalization:
• A process of globalization based on universally
shared values.
• It demands respect for obligations and duties under
international laws.
• A sustainable path for development must provide
opportunities for all, expand sustainable livelihood.
• A more democratic governance of globalization must
allow for greater voice and participation of workers.
Rise and Profile of Industrial Workers in
India
• It  refers to employment in the economy of Indiaa.
• In 2012, there were around 487 million workers in India, the
second largest after China.[
• Of these over 94 percent work in unincorporated, un-
organised enterprises ranging from push-cart vendors to
home-based diamond and gem polishing operations.
• The organized sector includes workers employed by the
government, state-owned enterprises and private sector
enterprises.
• In 2008, the organized sector employed 27.5 million workers,
of which 17.3 million worked for government or government
owned entities.[4]
• Over 94 percent of India's working
population is part of the unorganised sector.
[2]
 
• In local terms, organised sector or formal
sector in India refers to licensed
organisations, that is, those who are
registered and pay GST. These include the
publicly traded companies, incorporated or
formally registered entities, corporations,
factories, shopping malls, hotels, and large
businesses. 
• Un-organised sector, also known as own
account enterprises, refers to all unlicensed,
self-employed or unregistered economic
activity such as owner manned general stores,
handicrafts and handloom workers, rural
traders, farmers, etc
• This classification categorized India's un-organised
labour force by occupation, nature of employment,
specially distressed categories and service categories.

• The un-organised occupational groups include small

and marginal farmers, landless agricultural laborers,
sharecroppers, fishermen, those engaged in animal
husbandry, beedi rolling, labeling and packing, building
and construction workers, leather workers, weavers,
artisans, salt workers, workers in brick kilns and stone
quarries, workers in saw mills, and workers in oil mills.
• A separate category based on nature of employment
includes attached agricultural laborers, bonded laborers,
migrant workers, contract and casual laborers.
• Another separate category dedicated to distressed un-
organised sector includes toddy tappers, scavengers,
carriers of head loads, drivers of animal driven vehicles,
loaders and un-loaders.
• The last un-organised labour category includes service
workers such as midwives, domestic workers, barbers,
vegetable and fruit vendors, newspaper vendors,
pavement vendors, hand cart operators, and the un-
organised.
THANK YOU