Post independence status of Labour

legislation in India

Labour legislation

• Industrial jurisprudence .Master and servant.Laissez-faire.Employer’s policy to hire & fire.Industrial tribunals.

• Tripartism. • Principles of social justice, social equity,

international uniformity and national economy.

• Various labour legislation in india.

Labour legislation in India• The term ‘ labour legislation. ‘

• The need for labour legislation in India.

Necessary for health ,safety and welfare of the workers.

Necessary to protect workers against oppressive terms as individual worker is economically weak and has little bargaining power.

To encourage and facilitate the workers in the organisation.

To deal with industrial disputes.

To enforce social insurance and Labour welfare schemes in one.

Labour legislation in India

• Objectives.Preservation of health, safety and welfare of

workers.Maintenance of good relations between

employers and employees.• Principles of labour legislation.

Social justice.The essence of democracy is ensuring social

justice to all sections of the community .

Labour legislation in IndiaSocial justice

This demands the protection of those who

cannot protect themselves. In modern industrial set up, workers left to

themselves, are unable to protect their interest.

Therefore, the state has to intervene to help them by granting them freedom of association, the power of collective bargaining, and by providing for mediation or arbitration, in case of industrial conflict.

Labour legislation in India• Social equity .

Legislation based on this principle provides for achievement of definite standards.

Standards in terms of living, position in society, etc of the working population.

The standards for the working class can be achieved by bringing about changes in law of our land.

Power to change the law is exercised by the government.

Labour legislation in India• National economy.

Ensure normal growth of industry for the benefit of the nation as a whole.

Satisfy the physical and intellectual needs of the citizens.

Ensure the growth of industrial efficiency, such as to adjust the wage system, with a view to increase the productivity and prosperity of the workers.

• International uniformity.Since its inception, securing minimum standards (for

the working population-worldwide) on a uniform basis in respect of all Labour matters has been the main objective of ILO.

Labour legislation in India• International uniformity.– To this end, conventions are passed at the

conferences of ILO.– As a member of ILO,adopting these conventions

would require appropriate legislation to to be brought about.

– The influence of International Labour conventions has been significant in shaping the course of Labour legislation in India.

• The Constitution of India.Justice -social economic & political.

Labour legislation in IndiaLiberty – of thought, expression, belief, faith&worship.Equality- of status & opportunity. Fraternity-assuring the dignity of individual , unity &

integration of the nation.• Article 19.

Article 19 (1) (a)-freedom of speech and expression.Article 19 (1) (b)-right to assemble peacefully without

arms. Article 19 (1) (c)-Right to form associations or unions.

Labour legislation in India• Interpretation of article 19 (importance for

Labour).

• Directive principles of state policy.Article 38.

Promote welfare of people by securing and protecting as effectively as it may a social order in which justice social, economic and political shall inform all institutions of the national life.

Labour legislation in IndiaThe state shall in particular, strive to minimise the

inequalities in status , facilities and opportunities, not only amongst the individuals but also amongst groups of people residing in different areas or engage in different vocations.

-commentsArticle 39.

Article 39 (a) -that the citizens, men and women equally have the right to an adequate means of livelihood.

Article 39(b)-the ownership and control of material resources of the community are so distributed as best to sub serve the common good.

Labour legislation in IndiaArticle 39 (c)-that the operation of economic

system do not result in concentration of wealth and means of production to the common detriment.

Article 39 (d)-that there is equal pay for equal work for both men and women.

Article 39 (e)-that the health and strength of workers, that men and women and tender age of children are not abused and citizens are not forced by economic necessity to enter a vocation, unsuited for their age and strength.

Labour legislation in IndiaArticle 39 (f)-that the children are given

opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity, and that childhood and youth are protected against exploitation, and against moral and material abandonment.

- comments.• Article 41- right to work, to education and to

public assistance in certain cases. -comments.

Labour legislation in India• Article 42-provision of just and humane

conditions of work and maternity relief.• Article 43-living wage for workers. - comments.• Article 43 –A----participation of workers in

management of industries. - Comments.

Concept of organised and unorganised sectors

• Organised sector.

• The unorganised sector.

Small in employment, size and associated with low capital intensity and lower productivity.

These are not constituted as a separate legal entities for which balance sheet of assets and liabilities may be available.

It consists of casual and contributing family workers; self-employed persons in an organised sector and private household, who are not eligible for paid , sick or annual leave or for any Social Security benefits given to employer.

Unorganised sector means a person who works for wages or income directly or through agencies or contractor. Eg.Rickshaw owner, trade, transport etc.

Trade unionism and trade union act 1926

• Gives immunity to the trade unions against certain forms of civil and criminal action.

• Facilitated registration, internal democracy, a role for outsider and permission for raising a political fund subject to separate accounting requirement.

• The act facilitates unionisation both in the organised and unorganised sectors.

Concept of organised and unorganised sectors

• Work status in India92% of the workforce are in unorganised /informal

sector while only 8% vote in the formal sector/organised sector.

05,may 2005 -petition submitted to a committee of Lok Sabha demanded for the provision of social security along with guarantee and regulation of employment.

The un-organised sector workers Social Security Bill has alsready received the approval of the President of India.

Wage determination in the unorganised sector

• For the unorganised sector, the most useful instrument is the minimum wages act 1948.

• the concept of security and employment started with the public sector undertakings.

• The labour laws for both public sector and private-sector industry are more or less the same, the difference lay in the implementation of the laws.

Private sector

Organised sector

Unorganised sector

Globalisation• The industry was not prepared for the

challenge posed by globalisation.Neither the employer nor the trade unions knew

about the effects of globalisation.The government was in deep slumber and the

country was taken by surprise.The Indian consumer was exposed to international

goods at highly competitive prices.

Globalisation Impact of changed economic scenario on

government functioning.The first 50 years of independence was pro-Labour

thinking.• present scenario.

The employer /industrialists, have been vehemently pressing for labour reforms for making Indian industry competitive for attracting more of foreign direct investment.

The existing laws slow down the growth and job creation.

Structural Analysis of labour Reforms

• Any change or reform in labour law will depend on for competitive forces as under:-Trade unionEmployerPolitical partiesGovernment

• Social Security. social security aspect were never adequately

focused.Social Security like unemployment in insurance,skill

retaining and retooling, multi skilling etc is presently missing and needs to be explicitly demonstrated.

Social Security Employee Provident fund scheme.

Employee state insurance scheme.

No built-in mechanisms to neutralise/compensate for adverse fallout of globalisation, like closures, retrenchments etc.

Social Security system in China.

Structural Analysis of labour Reforms

• Lack of harmonisation and interstate differences in Labour laws.While Labour law is a central subject, its

implementation in different states is different.Labour market rigidity or flexibility also very from

state to state.• Regulation of contract labour.

The contract labour (prohibition and regulation) act 1970.Provides a mechanism for registration of contractors (if

more than 20 workers are engaged)

Regulation of contract labour.

• The contract labour (prohibition and regulation) act 1970. Appointment of a tripartite advisory board.

• Supreme Court ruling of 1960 and 1972.• Notification of year 1976.• Anamoly in 1970 act.• Growing agitation for abolition of employment of

contract labour.Opinion of union leaders.

the law may forbid retrenchments or closure, but in practice, employers simply stop paying salaries or running Mills.

Regulation of contract labour.

employment security only in theory .

Owners prevented from downsizing, see no point in putting more money or effort to revamp. Instead they strip the assets of their ailing companies.

Greater use of casual and contract workers, and the growing realisation of Labour reflected through employers preference to outsource drivers, gardeners, Canteen staff, etc.

Industrial development act (I D ACT), 1947

• Deals with core Labour issues like investigation and settlements of industrial disputes, regulation of strikes, lockouts, layoffs, retrenchment and other related matters.

• As per chapter VB of the act, it is compulsory for any industrial establishment, employing more than hundred workers to seek permission before resorting to layoff, retrenchments & closure.

Industrial development act (I D ACT), 1947

• Employers want that the limit of application of chapter VB should be raised to 1000. Thus, the industry will have global competence. They will be less legal battles.

• Conclusion.