History Of Industrial Relations

1. History Of Industrial Relations • Introduction • Pre Independence • Post Independence

2. Industrial relations is a set of functional interdependence involving historical, economical, social, psychological, psychological, demographic, technological, occupational, political and legal variables. • But majorly industrial relations revolves around these three significant factors which can pose problems to industrial relations viz trade unions, labor legislations and industrial democracy

3. Background- IR PRE INDEPENDENCE ERA- • Hired and Fired • Employer was in commanding position • Wages were very poor • Till the end of first world war trade unions movement had not emerged • Hardly any laws to protect the rights of workers except Employers and Workmen Dispute Act 1860 which was used to settlewage disputes.

4. PRE INDEPENDENCE ERA After first world war: • Workers started resorting to violence and employers resorted to lockouts. • Numerous strikes and disturbances during 1928 and 1929

5. PRE INDEPENDENCE ERA-After first world war: • As a result Government enacted Trade Disputes Act 1929 to enhance early settlement of industrial dispute based on BRITISH INDUSTRIAL COURTS(ACT) 1919 • But it did not provide for any standing machinery to settle industrial disputes and also state and central government made no adequate use of this law.

6. PRE INDEPENDENCE ERA-After first world war: • 1938 – To meet acute industrial unrest prevailing then, BOMBAY INDUSTRIAL RELATIONS (BIR) ACT was enacted by Bombay Government . • For the first time PERMANENT MACHINERY called INDUSTRIAL COURT was established for settling disputes. • This was replaced by BIR ACT 1946, which was amended in 1948, 1949, 1953 and 1956 and so on. Soon after the second world war, India faced many problems like rise in cost of living, high population, scarcity of essential commodities, unemployment and turbulent Industrial relations situation.

7. POST INDEPENDENCE ERA • After independence significant step was enactment of Industrial dispute act 1947 • A permanent machinery to settle Industrial disputes but also to make these awards binding and legally enforceable. • Besides this Industrial Conference in December 1947 was held in India where an appeal was made to labor and management India in form of Industrial Truce Resolution to maintain industrial peace and harmony.

8. POST INDEPENDENCE ERA • Setting up of Indian Labour Conference, a tripartite body. • Objective:- Co-operation between employers, trade Unions and Government. • First meeting was held in August 1942. • It met once a year to discuss problems relating to labour-management relations. • Various points are discussed and were formulated into legislations. • However since the early 1970 the ILC met only sporadically depending upon the concerns and issues of Labour Ministry.

9. POST INDEPENDENCE ERA • Main characteristic feature of IR during this period was change in Government’s attitude towards labor and their problems. • Many labour laws were enacted to protect the interest of industrial workers during 1947 to 1956. • These labour laws cover many issues concerning labour, such as seniority, wage rates, paid holidays, disciplinary matters, social security.

10. POST INDEPENDENCE ERA Shift from Legislation (1957-1965) Voluntarism • As a result Code of Discipline was introduced 1958. But it turned out to be more of moral guideline than as a Legal enactment. • Tried to structure Plant Level IR machinery in form of : Work Committees, JMC(Joint Management Councils, Recognition of TU, Grievance procedure for workers, workers participation Schemes etc.

11. POST INDEPENDENCE ERA EVENTS: Political and National events that affected the course of Industrial Relations. 1962: Chinese Aggression 1964: Nehru Passing away, Congress structure started eroding. 1962-1971: Three wars that India fought one with China and two with Pakistan. 1966: Appointment of National Commission of Labour (NCL) by government to look into matters and make recommendations . It submitted its report in 1969

12. POST INDEPENDENCE ERA • Significant recommendations of NCL were processed by ILC and Standing Labour Committee in 1970 and 1971 and major policy decisions were taken for implementation: • Statutory recognition of representative Union as sole bargaining agent.

13. POST INDEPENDENCE ERA • ILC did not meet from 1972to 1976. When emergency was declared in June 1975, the NATIONAL APEX BODY was set up in place of tripartite ILC in consonance with Government 20 point Programme. • The NAB’s and SAB’s were bipartite in composition. • 23 members( 12 W, 11 E) –NAB • Met six times during 1976 for reviewing IR and Govt acted as an Arbitrator.

14. POST INDEPENDENCE ERA • NAB and SAB’s were abolished • Did not survive for long and was replaced by ILC and it got revived again in May 1977 • There was a period of emergency declared due to which there was tightening of discipline in Industry. • And after emergency and change in political leadership, there followed a period of reconciliation and trade Union activity.

15. POST INDEPENDENCE ERA • Many committees were set up eg: Tripartite committees , worker’s participation and draft on IR bill to streamline persistent IR problems. • 1970’s and 1980’s – IR characterized by violence • June 29 1981: President of HMS workers union were beaten and murdered. • July 24 1981: Managing Director of Bombay Tyres Company was assaulted.

16. POST INDEPENDENCE ERA • Due to these events they were loosing confidence and getting impatient due to weaker prevailing Collective bargaining situations. • Other reasons: Govt inability to maintain price levels. Inability to provide effective settlement machinery. Plethora of controls on production and its licensing procedures , high rate of taxation , restriction on imports that affected the profits

17. POST INDEPENDENCE ERA • To meet industrial strife on 26th July 1981: Government issued ordinance to ban strikes. • A new law called ESMA(Essential Services Maintenance Act) was promulgated. • This law incensed TU and result was BHARAT BANDH on 19th Jan 1982. Workers in industrial establishments, banks, life insurance and general insurance companies abstained from work on that day.

18. POST INDEPENDENCE ERA • ESMA act empowers the Government to ban strikes, lay offs and lock outs in what it is deemed to be essential services. It empowers the government to punish any person who participates or instigates a strike which is deemed illegal under ESMA. • There was huge production loss due to these strikes and lockouts in 1980 was 12.53 crores in 1980, 125.63 crores, 108.16 crores in 1979, 1978 respectively.