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EVOLUTION OF INDUSTRIALRELATIONS IN INDIA

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OBJECTIVES

To understand the journey of industrial

relations from its very inception and itsdifferent stages till date.

To present the shape of thing to come.

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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

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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 employeremployee 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

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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 oflaw and order under the Mughals.

The commercial character of East India Co. did not

change the conditions of workers.

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Industrial relations during colonial

period

Industrial relation is a by product of industrial revolutionand it owes its origin from excessive exploitation ofworkers by owners of industries.

The first world war is the first milestone enroute toindustrial 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

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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.

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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 thedefence of India rules

Bringing all the interests together at a common forum for

shaping labour policy

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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 ofindustrial disputes;

Discussion of all matters of all india importance

as between employers and employees

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Industrial Relations In PostIndependent Era

We inherited industrial relations legacies

from our colonial masters with colonialmindset, habits & culture

Coincidentally our freedom struggle

coincided with the struggle by the workingclass for better industrial relations.

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Most of our leaders were influenced by Fabinsocialist and Marxist

These philosophies got reflected in ourconstitution-

The preamble of the constitution

The fundamental rights The directive principle of state policies.

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The aftermath of independence saw the

mushroom growth of trade unions and aplethora of labour legislation and this led to

bitter industrial relations.

This was the period when industrial policy

resolution, 1956 facilitated the growth of thePSU both at the centre and state level

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In the year 1975 the voluntary schemes for workersparticipation in the Mgt. and workers educationschemes

In the year 1969 the first national commission onlabour was formed.

This is also the period when nationalisation ofindustry was at peak

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In the post independence period, especially the later

portion of 70s and 80s, the Indian judicial has

displayed unprecedented judicial activism by givingpro-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 controlledindustrial relations scenario in the late 80s.

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In post Globalisation Period from 1991

till Date

The traditional IR was reactive, negative,

passive, ad-hoc and legalistic. It was selfishby virtue of being confined to its own

members, without having any concern for

business organisations or society at large.

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Trade unions are marginalised and keptoutside the main stream of business.

Introduction of state of art technology,innovation , creativity and strategic alignment

of divergent resources.

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Emerging Business Scenario

In the post industrial society, technological

revolution has created a situation wherespace, distance and time have lost their

relevance.

The business skyline is completely changing

by continuous mergers and acquisitionsacross the globe.

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Hence, India embarked on a new Economic

Policy. Some of the features of this policywere as under:-

Core sector have been opened for private

sectors

Disinvestment of PSUs have become reality

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Multinationals are allowed to invest in India innon strategic sectors- inflow of FDIs

Banking and insurance sectors are opened toinvestment 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.

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Core conventions(forced labour, child labour,

etc.) of ILO started influencing our trade andbusiness.

New players like consumer forums, NGOs,

environmental compaigners and electronic

media are replacing trade unions in manygrey areas.

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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.

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Disinvestment/privatisation and VRS are almostaccepted facts of industrial relations.

Changing pattern of compensation

Well paying secure, low-productive jobs in organised

sector are replaced by low paying more insecureproductive jobs in unorganised sector.

Pro labour stance of Govt. is getting reduced.