TOWARDS HARMONIOUS INDUSTRIAL
RELATIONS
Dr. P.D.Shenoy
Labour Secretary, Government of
India
India took a bold and far-reaching
step in the early 90’s to re-orient its economy. Since then the strategy
has been to accelerate growth by linking Indian economy to the world economic
order. This implied greater interaction at international level in trade,
technology, investment and enhanced mobility of the labour force. Barriers
have progressively been reduced to facilitate globalization of Indian economy.
The globalization process has speeded
up the economic growth rate making the Indian economy one of the ten fastest
growing economies in the world. The average annual growth in the post-reforms
period between 1992-93 and 2000-01 has been 6.1 per cent, which is higher
than the average growth of 5.8 per cent during the preceding decade. We
have now set an ambitious target of 8 per cent GDP growth per annum during
the 10th Plan. According to a study by the Confederation of Indian Industries
(CII) to achieve the 8 per cent growth rate, the Indian industry will have
to grow at 11 per cent.
Higher growth rate is possible in
a climate of harmonious industrial relations. It will contribute to higher
investment, improved productivity and efficiency needed for competing in
global markets. The accelerated growth in the 90s has been attributed to
a significant improvement to the industrial relations scenario according
to a Labour bureau survey. The mandays lost due to strikes and lockouts
during the last decade has indicated a declining trend. At present, the
mandays lost is less than 0.5 per cent of the number of mandays worked.
This reflects a sense of discipline and responsibility among workers.
Industrial harmony, which is no
doubt vital to the success of the country’s planned economic development,
is equally necessary to promote social cohesion and create goals among
all those involved in integrating individual, sectional interests with
those of the enterprise at the micro level and those of the nation at the
macro level.
Workers are interested in decent
wages, social security, speedy redressal of grievances and in having a
say in decisions in matters that vitally affect them. They are interested
in their growth, welfare, and development. Employers, on the other hand,
would like to see that workers are disciplined and that there is an increase
in productivity and profitability. They also wish to properly utilize human
resources and have some degree of flexibility in personnel decisions to
adjust enterprise policies to meet the emerging competitive environment
blended with high technology.
The process of glabalisation
has led to growth in the informal sector as establishments
increasingly go for outsourcing
of work. This has extended he formal sector.
Various labour laws including provision
of social security and dispute rederessal mechanism
need a reappraisal in view of the
emerging scenario.
The Government considers its responsibility
to maintain industrial peace and harmony in order to safeguard the interests
of workers and employers and ensure the continued availability of their
joint products and services at reasonable prices. The State has, therefore,
assumed powers to regulate labour relations. It has, since Independence,
encouraged mutual settlement, collective bargaining, conciliation, voluntary
arbitration and adjudication as the principal means of resolving industrial
conflicts. It has also recognised trade union rights of workers and their
promotion through democratic means and has intervened through legislative
action for enhancing living and working conditions of workers and promoting
social security.
Indian labour force had a tremendous
increase both in magnitude and quality as the country witnessed an unprecedented
growth in industrialisation and urbanization for four decades since 1950.
The Government set up a National Commission on Labour in mid 1960s to ensure
a better deal for workers and a co-operative and healthy industrial relationship.
The Commission under the Chairmanship of Justice Gajendragadkar, a former
Chief Justice of India, produced a wealth of information and recommendations
that guided a spate of labour legislations during the next thirty years.
The guiding principles of the labour-related laws were to promote workers’
welfare and ensure social security but without disturbing industrial harmony.
Since the appointment of the First
National Commission on Labour, there has been a sea change in the labour
scene because of manifold increase in industrial activities, adoption of
several labour standards of the International Labour Organization (ILO)
and introduction of new economic policy in 1991 which has, as already mentioned,
set forth the process of globalization. This has changed the country’s
mindset. Protectionism, which the Indian industry enjoyed for over four
decades, is giving way to liberalization, privatization and competition,
which have a tremendous impact on the labour force. The emerging scenario
of globalization makes it imperative for a new thinking in the labour market.
Opinion has been expressed from
time to time that nearly 165 labour laws need a review to tune them with
the future needs and demands. The industry has been crying for amending
the labour laws to remove ‘roadblocks’ in increasing efficiency among the
labour force or in introducing new technologies and rationalize their manpower
base. The Indian Labour Conference too, at its 34th Session in April 1999,
expressed the view that provisions of a large number of labour laws enacted
by the Centre and the States had become either obsolete or redundant in
the light of fast and sweeping changes taking place. It recommended creation
of an appropriate mechanism for review, simplification, rationalization,
and suitable codification of labour laws with a view to removing all irritants
and stumbling blocks. In October 1999 the Second National Commission on
Labour (NCL) was appointed under the chairmanship of a former Labour Minister,
Shri Ravindra Varma. The recommendations of the Second Labour Commission
come at a time when the economy is facing a host of challenges while moving
away from controls to competition. These include the ailing public sector
undertakings, disinvestment, voluntary retirement schemes and infrastructural
weaknesses. The definition of the ‘worker’ in view of the revolution in
the information technology industry, tremendous growth in the service sector
and the emergence of ‘knowledge workers’ needs a re-thinking.
The process of globalization has
led to growth in the informal sector as establishments increasingly go
for outsourcing of work. This has extended the formal sector into the informal
sector. Various labour laws including provision of social security and
dispute redressal mechanism need a reappraisal in view of the emerging
scenario. Moreover, they need to be extended with necessary modifications
to the workers in the informal sector who constitute over 90 per cent of
the country’s labour force. This is important for a healthy industrial
climate in the country.
There is no substitute for growth
and it has to be with social justice, necessary for a harmonious and peaceful
industrial climate. Inaugurating the 38th session of the Indian Labour
Conference, the Prime Minister Shri Atal Bihari Vajpayee, emphasized that
reforms should have a human face. Commenting upon the industrial relations,
the Prime Minister asserted that labour force is important and indispensable
in today’s age of technological revolution and economic liberalization.
Shri Vajpayee said that technology and capital are the creation of labour
and there is no conflict between labour and capital in Indian philosophy.
Industrial peace has been an article
of faith and the social partners have to ensure as to how best and how
soon we are going to translate this into action in the changed dispensation.
The author is
Labour Secretary
Govt. of India
PIB Features
|