LESSON – 11
INDUSTRIAL LABOUR AND INDUSTRIAL RELATIONS
OBJECTIVES
After going through this chapter, you should be able to
- Know the meaning and features of industrial labour
- Understand the meaning and importance of industrial relations and also the machinery for industrial relations.
STRUCTURE
11.1. Meaning of industrial labour
11.1.1 Features of Industrial Labour
11.2. Meaning and importance of Industrial Relations
11.2.1 Machinery for Industrial Relations
11.1. MEANING OF INDUSTRIAL LABOUR
Industrial labour refers to those workers who are employed in organised industries that is, in those industrial establishments, which are covered by the Factories Act.
11.1.1 Features of Industrial Labour
In a country like India
Most of the labourers in Industries are drawn from the villages and they are eager to go back to their homes especially during the busy agricultural seasons. Most of the factory workers in India are ‘driven’ to the industrial belts due to lack of employment in village and, even now, the majority of the labourers would prefer to move to the land if they could get a reasonable income from land or from occupations in villages. The migratory character of labour causes a constant change in labour turnover and leads to an aggregate loss of efficiency due to frequent changes of jobs and inflow of new persons not adequately acquainted with the work in the factory. In recent times, however, a change has been noticeable and the labour is slowly emerging into one that would live permanently in urban areas.
Secondly, industrial labour in India
Thirdly, industrial labour is largely uneducated and they do not understand stand the problems confronting the economy in general and industries in particular. This is one of the reasons for the labourers being misled by political organizations which have a stronghold on the labour organisations.
Because of these factors, Industrial labour has not been organised on a solid and positive foundation. Absenteeism, frequent change, moving between the farm and the factory, indiscipline, unhealthy practices are quite common in Industrial labour in India
11.2. Meaning of Industrial Relations
Industrial relations refer to the contacts between the employer and the employee, in and around the work. In a small-scale or cottage industries, the contacts between the master and workers would be frequent, almost daily and throughout the day, and as such, both can understand the problems of others and mutual interaction of personalities would minimise friction and misunderstanding. But, in large industries, it is very difficult to identify the master as such and the workers will have very little scope for exercising relationships with the masters or employers, except occasions like demanding more wages, bonus, etc. Consequently, the workers who are asked to work in a rigid jacket of ‘rules and regulations’ would very often come to have misunderstanding, leading to industrial unrest. Many flimsy and worthless causes would be championed by the trade unions due to lack of rapport between the employers and employees. Hence, industrial relations are very essential in maintaining industrial peace.
Importance of Industrial Relations
Industrial relations are essential for maintaining peace which will be the key for industrial progress. To be very precise, healthy industrial relations are essential for the following:-
(a) Uninterrupted Production: Durable industrial peace ensures uninterrupted production in the economy, leading to continuous flow of goods and services to the nation for consumption and export. It also ensures continuous flow of income to the working classes who may not have any thing to fall back during the period of unemployment
(b) Creates Work-Ethos: Excellent industrial relations and the consequent healthy industrial atmosphere would promote work-ethos. Workers and management would recognise their responsibility in the productive process of the nation; and they would also feel that they are answerable to the society. All objectives will be subordinated to the national objective through work-ethos. This will result in self-cultivated discipline and the rewards would be automatically linked to productivity. The employers would also find it profitable to provide good working conditions. This would foster good understanding between employers and employees.
(c) Ensures Social Stability: Good industrial relationship would foster social stability and also help in the healthy growth of the society. As a matter of fact, the corporate sector with healthy relationship towards workers can influence the entire fabric of the society and make them culturally advanced.
11.2.1 Machinery for Industrial Relations
The machinery for industrial relations aims at resolving disputes taking a serious turn; and this is partly compulsory and partly voluntary. The Indus trial Disputes Act of 1947 and its amendment in 1976; the Code of Discipline of 1958; and the Industrial Truce Resolution of 1962 are the principal legislative enactments to ensure industrial peace. In addition to these, there are Forums for workers’ involvement in negotiations and management of industries, such as Works Committees, Joint Management Councils, etc.
Negotiation, Conciliation and Adjudication
The National Arbitration Promotion Board comprising of representatives of employers, workers, public undertakings and Central and State Governments set up by the Government of India in 1967 promotes voluntary arbitration as a means of settling industrial disputes, when mutual negotiations and conciliation fail.
Code of Discipline
The Code of Discipline was evolved at the Indian Labour Conference in 1958, by which it was decided that the employers and workers should not enter into direct action of strike or lock-out without utilising the existing machinery for the settlement of disputes. The main features of Code of Discipline areas follows: (a) It prohibits strikes and lock-outs without prior notice. Intimidation, victimisation and adoption of ‘go-slow’ tactics etc.., should be avoided. (b) Unilateral actions should not be taken by either party in any matter. (c) All disputes must be settled through the existing machinery set up by the Government for this purpose. (d) The employers will not increase workload without prior agreement with the workers. (e) The workers will not indulge in any trade union activities during the working hours, nor will they engage in any demonstration that is not peaceful. (I) The unions will discourage negligence of duty, careless operation, damage to property, disturbance of normal work and insubordination.
Industrial Truce Resolution
During national emergency proclaimed in 1962, in the wake of Chinese aggression, a joint meeting of the Central Organisations of employers and workers adopted an Industrial Truce Resolution. Accordingly, it was decided that there would be no interruption or slowing down of production; on the other hand, production would be maximised and defence efforts promoted in all possible ways. Now, this has been merged with the Central Implementation and Evaluation Committee.
Workers’ participation and Joint Management Councils
In addition to the ‘Code of Discipline’ and other methods, participation of workers in the management of industries is encouraged, in order to have better employer-employee relationship. By sharing the management responsibilities, better understanding could be built up, leading to more productivity and industrial peace. Workers are put in responsible position in decision making at some levels through schemes like Joint Management Councils introduced in 1958 on a voluntary basis in public and private sector establishment, where workers could be made to serve as Directors on the Boards of Management in nationalised banks and also participation in industry at the shop-floor and plant levels since October 1975.
Though the features and objectives of Joint Management Councils are very fair and reasonable, it has not made good strides in India. The initial enthusiasm slowly declined and in many industries the JMCs ceased to function The National Commission on Labour observed, while reviewing the progress of JMC scheme, that the scheme does not enjoy much support. Even where the councils exists, they are very ineffective and their functioning unsatisfactory in many cases. The principal reasons for the tardy growth of JMCs are: (1) Poor living standard of workers; (ii) Lack of education to cope with the work of sharing responsibility; (iii) Inter-Union rivalries prevent participation in JMCs, (iv) The employers, as a class, are conservative and they do not relish the idea of sharing responsibilities by the workers, (v) Government’s enthusiasm is also declining Hence, this scheme of JMCs cannot be said a successful one in India.
UNIT QUESTIONS
1. Analyse the features of Industrial Labour
2. Discuss the importance of Industrial Relations and also the machinery available for creating industrial peace.
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