TRIPARTISM

INTRODUCTION:

The word "tripartism" originates from the word "tripartite," which means
"made between or involving three parties."1 It can be understood as the policy
of decision-making relating to industrial relations involving the three key parties,
namely employers, workers, and the government, each playing their own equal
and fair role.2

It refers to institutions, mechanisms, and processes for consultation, negotiation,

and joint decision-making, depending on the arrangements between the parties
involved and the issue that affects the workplace or the interests of employers and
workers.

DEFINITION:

Tripartism is defined in the ILO as "the interaction of government, employees, and

workers (through their representatives) as equal and independent partners to
seek solutions to issues of common concern."3

THE EVOLUTION OF THE TRIPARTISM CONCEPT:

i) Historical aspect of evolution of tripartism:

Dating back to the 18th century the Historical school (1779 to 1861) jurists and
philosophers emphasised on the concept on how law was not made but was found
in the society and evolved from the happenings in social conditions and changes
that prevailed in the society and that it was independent on political authority and
rested more on social pressure. They also focused on law evolving from
comparative jurisprudence and impact of neighbour states laws on the laws of a
state.
It was during this period that Sir Henry Maine4 spoke about the concept of status
to contract which implies that rights and obligations of a person depends on an
individuals’ capacity to contract and that it was free from negotiation between
persons. It thus led to disintegration of family system and emergence of mere
contractual relations which further led to the devastating concept of Laissez Faire
1
https://www.merriam-webster.com/dictionary/tripartite
2
https://ssrn.com/abstract=2204403
3
Social dialogue and tripartism, International Labour Conference, Report VI, 107th Session, 2018, page 3
4
Dr.N.V. Paranjapee, Studies in Jurisprudence and Legal Theory, Central law publications.
which means least intervention of government and that things shall flow in the
course of happenings. This gave an upper hand to the Capitalistic society and made
the working class poorer.
Moreover, it was then that industrialization began giving rise to newer problems
like poverty, unemployment, hunger, ignorance of uneducated workers class
thereby leading to a huge gap between the Capitalist and working class. Immense
pressure and agitation began to grow in the labour class who understood that they
cannot stand as an individual against the employers and this propelled them to
form labour unions or in other words Trade Unions to stand united against the
Dominant Employers and collectively demand the rights that were being denied to
them and to safeguard themselves from being exploited.
Hence, the system again reverted back to the concept of contract to status
wherein negotiation between people or classes of persons was given more
importance than an individuals’ decision or contracting capacity. This brought the
concept of Collective bargaining to the forefront. It was however a bipartite
negotiation and the workers although now a union, were still facing issues in
settling disputes against the employers. Meanwhile the Sociological School which
had already began to evolve during the second half of 18th century brought in the
concept of law and society being related to each other. The concept of striking a
balance between the individual and state arose here.
Thus, the intervention of a third party was called to settle the disputes arising
between the employers and the workers’ unions, which happened to be the state.
Though not referred to as “Tripartism” per se, the birth of the concept happened
there.
ii) Societal impacts
It is well known that the growth of the society happens when there is a growth in
all spheres. With regard to industries this is possible only when there is a balance
between the employers and workers wherein any dispute arising between them is
settled amicably, or rather resulting in a win-win situation wherein the employers
are neither completely devoid of their managerial powers nor the employees are
restrained from enjoying their rights. This requirement led to the rise of concepts
like collective bargaining and further it called for the intervention of the state to
decide on matters so collective bargained, by which means alone peace and
harmony can be maintained in the society, thus introducing the society to the
concept of Tripartism.
iii) History repeating itself:
This Tripartism that has been long existent since the period of Historical school
came up to the forefront once again during the Industrial Revolution when man
was being replaced by machines. This led to agitation among the workers as skilled
labour was lost. They started to form unions so as to collectively bargain their
demands with the employer.
However, this again led to disputes between them, owing to which, a third-party
intervention was required and thus state came in to the picture, acted as a
middleman in settling the disputes between the two groups amicably with the aim
of maintaining peace and harmony. Meanwhile during the World War 1 it was the
labour groups that was supporting the nation at the war ground and thus their
strength was realised.
Their unions grew stronger and their voices began to be heard. However as stated
earlier they need a 3rd party so as to reach a win-win situation which resulted in
tripartism becoming a part of industrial operations. This concept continues to exist
till present date by way of tripartite bodies, state settling disputes between
employer and workers through legislations and in other spheres as well.
iv) Analytical school of thought and its impact in present day – Concept of
Positivism
The Analytical school, concept of which is followed in present day talks about how
law evolves from the sovereign i.e., state and that it has to be dealt with as it exists
in the present form. The state came as a third party in intervening in the disputes
between the employers and workmen Moreover it advocates that only law which
promotes subsistence, abundance, equality and security has to be upheld.
Although it emphasised on laissez faire concept it was only with regard to
economy of the state and not with regard to law making.
Also known as ethical jurisprudence it implies that law that is best suited for the
nation is applied. Legislations like Industrial Disputes Act, 1947, Trade Union Act,
1926, Workmen Compensation Act, 1923, Industrial employment (standing
Orders) Act, 1946 etc., were enacted by the state to afford security against pain, in
other words to make a legislation that strikes a balance between the employers
and workmen by facilitating amicable settlement of disputes.
COMPARATIVE ANALYSIS OF TRIPARTISM IN OTHER COUNTRIES:

i)Tripartism in the USA:

Tripartism is another word for economic corporatism the collaboration of labour,

business, and government in the national interest. The tripartite approach to what
used to be called "industrial relations" has old and deep roots in American
politics and policy. In the late 19th century, labour conflicts between workers and
industrial, railroad, and mining companies often led to violence on both sides, with
local police, state national guards, or the U.S. Army sometimes sent to impose
order. Disruptive labour violence, combined with the appeal of radical ideologies,
including Marxist socialism and anarchism, has led business leaders and anti-
revolutionary labour leaders to collaborate in seeking alternative ways to settle
industrial disputes.

In 1900, Ralph Easley, a Republican journalist and activist, founded the National
Civic Federation (NCF). The organisation embodied the tripartite ideal by drawing
its members from business, labour, and the larger public. The NCF used its
influence to urge negotiations in labour disputes and promote laws providing for
arbitration in railroad strikes and for workmen’s compensation.

Dominated by large firms and skilled craft unions, the NCF was opposed by the
National Association of Manufacturers (NAM), which represented the owners of
small, labour-intensive businesses who tended to be hostile to organised labour in
any form.

During World War I, tripartism was incorporated into its economic mobilisation
strategy in order to prevent clashes between business and labour from impairing
war production. As a programme for creating a form of sector-specific, flexible
tripartism that would incorporate collective bargaining and employer benefits and
serve as an alternative both to the arbitrary despotism of employers and to more
rigid, direct, centralized, and uniform government regulation, tripartite
corporatism made sense.

Similarly, in World War II, the United States and its allies adopted versions of
tripartite corporatism to ensure that conflict among employers and workers
would not disrupt wartime mobilization.
ii) Tripartism in the UK:

Owing to the UK's voluntarist tradition, policy concertation has been uncommon,
and there are currently few formal mechanisms or forums for tripartite
concertation in the country. The reason for this is that the labour forces prefer
being a part of the legislation-making process and having their democratic rights
exercised, unlike in the U.S., where labour federations play a better role in
collectively bargaining their requirements.

Thus, the UK social partners are regularly consulted by the public authorities on
the direction of public policy in the country on an ad hoc basis; they are also
represented in a series of tripartite committees.

AIM:

The primary aim of Tripartism is to focus on bringing the employers, workers, and
governments, through their representatives, i.e., the business organizations, trade
unions, and regulatory bodies and labour ministry, respectively, to a common
platform and ensuring their involvement in the redressal of industrial disputes.

Apart from this, there are certain other diversified objectives, which include:

1. Collaboration is preferred over confrontation when it comes to taking a

consultative approach to resolving disputes through dialogue while taking
the needs of the parties into account.
2. Leadership and Mandate to ensure that the representatives have the
necessary mandate to negotiate and commit to agreements reached.
3. To conduct dealings with integrity, honesty, and good faith
4. Mutuality of purpose so as to identify a common objective and reach a win-
win situation.5

ILO AND TRIPARTISM:

India is a founding member of the International Labour Organization, which came

into existence in 1919. At present, the ILO has 187 members. The membership of
the ILO ensures the growth of the tripartite system in the member countries.

The International Labour Organization (ILO) is the only tripartite U.N. agency with
Government, Employer, and Worker Representatives. Tripartism means contract,

5
https://www.mom.gov.sg/-/media/mom/documents/employment-practices/guidelines/tripartite-advisory-
on-industrial-relations-practice.pdf
cooperation, and collaboration. This tripartite structure makes the ILO a unique
forum in which the governments and the social partners of the Economy of its
member states can freely and openly debate and elaborate labour standards and
policies. All three groups are represented on almost all the deliberative organs of
the ILO and share responsibility for conducting its work.

In 1944, the International Labor Conference met in Philadelphia and adopted a

declaration that redefined the aims and purposes of the ILO and gave it an
extended mandate. This declaration contained some objectives, including the right
to bargain collectively, the cooperation of labour and management in the
continuous improvement of productive efficiency, and the collaboration of
workers, employers, and the government in the preparation and application of
social and economic measures. This declaration firmly established tripartism as
the framework within which the various components of social policy were to be
negotiated and settled among the parties involved.6

Under article 2 of the ILO constitution, it’s been stated that there are 3 consultative
organs, namely

1. General Conference
2. Governing body
3. International Labour Office

Under Art. 7 of the ILO constitution, tripartism came to be clearly viewed as equal
representation of the three parties. The article states as follows: 7

Art. 7(1) The governing body shall consist of 56 persons: 28 representing

governments, 14 representing employers, and 14 representing workers.

Art. 7(2) Of the twenty-eight persons representing governments, ten shall be

appointed by the Members of Chief Industrial Importance and eighteen shall be
appointed by the Members selected for that purpose by the Government delegates
to the Conference, excluding the delegates of the ten Members mentioned above.

Art. 7(4) The persons representing the employers and the persons representing
the workers shall be elected respectively by the employers’ delegates and the
workers’ delegates to the conferences.

6
William R. Simpson, The ILO and Tripartism: some reflections
7
www.ilo.org
With regard to the Tripartite cooperation the tripartite structure provided
management and labour a status equal to that of representatives of governments
in the ILO. This principle aimed at inspiring trust and confidence among workers'
and employers' representatives and associating them to government action in
order to achieve and maintain social peace and harmony.8

PRINCIPLES OF TRIPARTISM:

The principles of tripartism are followed not only in the composition of the various
bodies of the ILO but also reflect on the characteristics and instruments adopted
by the organization. Tripartism operates on 3 basic principles, namely:

1. Representation: Tripartism requires the presence of representatives of the

workers, employers, and government to deliberate on the issues or any
conflicts arising between the workers and employers so as to settle them
amicably.
2. Participation: Tripartism ensures equal participation with equal weight of
opinion from the representation of workers and employers in the
deliberation and decision-making process.
3. Deliberation: The entire concept of tripartism is primarily for the purpose
of deliberation and arriving at a compromise in any difference of opinion or
conflict arising between the workers and employers.

Thus, tripartism on the basis of these three principles ensures that a democratic
method of decision-making is adapted in order to safeguard the interests of both
parties without giving an undue advantage to either of them.

It is also because of this importance of tripartism that the ILO has included it in its
constitution with the 144th Convention relating to Tripartite Consultation.

Art. 2 of the Tripartite Consultation Convention states that employers and

workers shall be represented on an equal footing in any body through which
consultations are undertaken.9

Art. 3 of the convention provides that the representatives of the employers and
workers for the purpose of the procedures provided for in this convention shall be

8
India and ILO –(www.labour.gov.in)
9
Tripartite Consultation (International Labour Standards) Convention, 1976. (www.ilo.org)
freely chosen by their representative organizations, where such organizations
exist.10

ROLE OF TRIPARTISM IN SETTING UP LABOUR STANDARDS:

An important activity of the ILO is the creation of international standards of labour

on various labour and social matters. This is done primarily by the adoption of
Conventions and Recommendations, covering a wide variety of areas such as basic
human rights, employment, conditions of work, industrial relations, social
security, employment of children and women, labour administration, social policy,
and matters affecting special categories of workers. These Conventions and
Recommendations have contributed much towards the establishment of
uniformity in labour standards on a global basis and have influenced labour
legislation and collective bargaining in member countries.

International labour standards are created and supervised through a tripartite

structure that makes the ILO unique in the United Nations system. The tripartite
approach to adopting standards ensures that they have broad support from all ILO
constituents. Through regular tripartite consultations, governments can ensure
that ILO standards are formulated, applied, and supervised with the participation
of employers and workers.

Each convention is the fruit of a number of years of research by the ILO's

International Labour Office and generally two successive years of intense
tripartite debate at the International Labour Conference. The elaboration of these
instruments is a vivid example of tripartite deliberations, resulting in the adoption
of compromise instruments that contain solid obligations but that are, at the same
time, sufficiently flexible as to be acceptable to the majority of countries.
Altogether, the Conventions and Recommendations form a vast body of social
policy rules and guidelines that have been used by many countries to develop
legislation on such subjects as social security, industrial relations, labour
administration, and labour issues affecting equality of rights, child labour, and so
forth. When conventions are ratified by member states of the ILO (a voluntary act
by the states), such ratification involves a formal commitment by the governments
concerned to apply the conventions in law and practice.

The freedom of workers and employers to form organisations of their own

choosing to represent their interests is the fundamental premise for any industrial
relations system and fundamental to genuine tripartism. Workers and employers

10
Idib.
need strong and representative organisations to serve as vehicles for their
involvement in production and distribution processes or their participation in the
social and economic development of their countries. They are also essential as the
foundation of a stable industrial relations system. It is in this context that freedom
of association and protection of the right to organise and bargain collectively, as
elements of basic human rights, assume significance. The two basic ILO
Conventions, namely, the Freedom of Association and Protection of the Right to
Organize Convention, 1948 (No. 87), and the Right to Organize and Collective
Bargaining Convention, 1949 (No. 98), provide the basic premise for a valid and
effective industrial relations system.

Tripartism plays an important role in promoting harmonious labour relations.

Through tripartism, representatives of employers, employees, and the
government can work in collaboration and, through consultation and discussion,
resolve employment-related issues of common concern.

TRIPARTITE LABOUR CONFERENCES AND THEIR IMPACT ON MOULDING

THE LABOUR LAWS:

i) Tripartite Labour Conferences:

The first tripartite Labour Conference was held in August 1942, composed of
representatives of the Central, Provincial, and Indian States as well as of employers
and governments as workers, with a constitution modelled on that of the
International Labour Organization and with the following three objectives:

1. The promotion of uniformity in labour legislation

2. The determination of a procedure for the settlement of industrial disputes
and the
3. Consultations on all matters of industrial interest affecting the country as a
whole

In September 1943, the tripartite Labour Conference passed a resolution

recommending the setting up of machinery to investigate questions of wages and
earnings, employment, housing, and social conditions.

The committee made exhaustive recommendations on the whole question,

including wages, employment, welfare, and housing.

To implement the recommendations of the committee, the Government of India

drew up a five-year plan of legislative and administrative action. Besides the
successful functioning of tripartite machinery in promoting regular and periodical
discussions between the Government and Employers and Workers, this naturally
helped to focus attention on the main problems of labour, and the years between
extension 1942 and 1947 witnessed a remarkable change in the scope and content
of protective labour legislation.

ii) Outcomes of tripartite discussions:

A historical study of the tripartite deliberations and recommendations of the

Indian Labour Conference reveals that their effectiveness and influence on
industry have been co-terminous with the government's policy of intervention and
participation in labour matters.

Since its beginning twenty years ago, the field of tripartite consultation has
continuously grown, and tripartite conclusions have greatly influenced
developments in labour policy and administration.

Tripartite consultation is not limited to bodies like the Indian Labour Conference,
the Standing Labor Committee, and the Industrial Committee on Conventions but
proves to be the crutch in maintain peace and harmony.

As said earlier, with the progressive interest of the Government in labour matters
and the objectives of establishing a socialist society in the country, the weight and
influence of the conclusions of such a conference are bound to be so far-reaching
and wide.11

STATUTORY PROVISIONS – AN INDIAN PERSPECTIVE:

The Indian Consitution:
Article 43A: Participation of workers in management of industries.-The State shall
take steps, by suitable legislation or in any other way, to secure the participation
of workers in the management of undertakings, establishments or other
organisations engaged in any industry."
This Article was inserted by the 42 nd Constitutional Amendment to provide for
participation of the workers in the management.
This Article's ultimate goal is to unite employers and employees with the help of
the State. As a result, this Article refers to the Tripartism Principle in an implied
manner.

11
G.M.Kothari,A Study of Industrial Law,5thEdn,2000,Wadhwa &Company Publishers
The Industrial Disputes Act, 1947:

The main statute dealing with industrial relations in India, the Industrial Dispute
Act 1947, also recognises and implements the concept of tripartism. Under its
various provisions, it seeks to provide such dispute resolution mechanisms that
are tripartite in nature. The Industrial Dispute Act of 1947 establishes a three-
stage dispute resolution mechanism, which includes

1. Conciliation
2. Arbitration
3. Adjudication

Conciliation includes third-party intervention in promoting the voluntary

settlement of disputes. It is a process of rational and orderly discussion of
differences between the parties to a dispute under the guidance of a conciliator.

The conciliation machinery is provided for in the Industrial Disputes Act of 1947
as follows:

1. Conciliation Officers
2. Board of Conciliation
3. Court of Inquiry

In this process, the third-party intervening is known as a "Conciliation Officer”,

who is appointed by the appropriated government. As per Section 5 of the Act,
conciliation boards are constituted by the appropriate government and consist of
a chairman and four or more members for the purpose of conciliation. As a result,
the concept of tripartism is implicitly at the heart of this dispute resolution
process, in which the two parties (employer and employee) work together to
resolve the dispute through the conciliation officer or conciliation board
appointed by the state.

Arbitration, or "Voluntary arbitration”, refers to getting a dispute settled

through an independent person chosen by the parties involved. Meanwhile,
voluntary arbitration has been provided, keeping in mind the lengthy legal
proceedings and formalities involved in adjudication.

However, adjudication is a last resort in an industrial dispute because it involves

the intervention of a third party appointed by the government in the dispute. This
adjudication is mandatory when the government makes reference to the dispute
without the consent of either or both parties to the dispute.
The ID Act, 1947, provides a three-tiered adjudication system, which includes:

1. Labour Courts
2. Industrial Tribunals
3. National Tribunals

Industrial Dispute Act 1947 also includes the elements of tripartism in it various
provisions. It makes sure that in dispute resolution process all the parties to the
dispute get equal representation.12

Section 3 of the ID Act provides that “in the case of any industrial establishment
in which one hundred or more workmen are employed or have been employed on
any days in the proceeding twelve months, the appropriate Government may by
general or special order require the employer to constitute in the prescribed
manner a Works Committee consisting of representatives of employers and
workmen engaged in the establishment, so however that the number of
representatives of workmen on the Committee shall not be less than the number
of representatives of the employer.”13Thus in the Works Committee both the
employer and the employee get represented and such representation should be
equal.
Similarly, section 5(3) talks about Boards of Conciliation, stating that “The
Chairman shall be an independent person and the other members shall bepersons
appointed in equal numbers to represent the parties to the dispute and any person
appointed to represent a party shall be appointed on the recommendation of that
party.”14 Here the section provides for a tripartite structure of the Boards of
Conciliation where all the parties as well the government are represented equally.
Section 9-C of the ID Act provides for the setting up of Grievance Redressal
Machinery making sure that the employer and the employees are represented
equally. As per sub section 2 of section 9-C “the Grievance Redressal Committee
shall consist of equal number of members from the employer and the workmen.”15

Section 12 and 13 of the act provides for Conciliation as an outsider attempt to

settle disputes arising between the parties by giving suggestions and advice. It is
categorized as two bodies, the Conciliation Officer and the Board of Conciliation,
the difference between their powers and duties being marginal. Thus it serves as

12
https://ssrn.com/abstract=2204403
13
Section 3 Industrial Disputes Act, 1947
14
Section 5(3) Industrial Disputes Act, 1947
15
Section 9 Industrial Disputes Act, 1947
a tripartite mechanism in settling industrial disputes and thereby maintaining
peace and harmony.16

The Employees Compensation Act, 1923:

Section 19 of the Act17 provides for a referral to the Commissioner if any questions
regarding a person's liability for compensation arise. Section 20 of the Act18 states
that the appointment of the commissioner is made by the state government,
wherein the participation of the employer, employee, and state has resolved the
question. Such participation is the basic principle of tripartism.

Contract Labour (Regulation and Abolition) Act, 1970:

The Central Advisory Contract Labour Board (CACLB) was constituted under
Section 3 of the Contract Labour (Regulation and Abolition) Act 1970 by the
Government of India. The main function of the CACLB is to advise the central
government on such matters arising out of the administration of the act. A
tripartite body that represents the interests of the government, employers, and
employees is called the CACLB.

Sections 4 and 5 deal with the State Advisory Board and the Central Advisory
Board for providing advice to the concerned government regarding matters that
arise in the administration of the act. Both the boards are constituted by the
concerned governments, and the boards consist of persons representing the
employer, employee, and state.

Industrial Employment (Standing Orders) Act, 1946:

The Industrial Employment (Standing Orders) Act, 1946 defines the conditions of
employment in industrial establishments and it applies to every industrial
establishment in the state, based on a threshold fixed by the State Government.
The industries draft their own set of standing orders based on the model issued by
the government following which it is submitted to the jurisdictional Labour
Commissioner who scrutinizes the draft to ascertain any shortfall of matters
specified in the schedule, objections provided by the trade unions or workmen and
for further modifications.19

16
https://www.irccl.in/post/dispute-resolution-under-industrial-relations-code-a-mixed-bag-of-hits-and-
misses
17
Section 19 Employees Compensation Act, 1923
18
Section 20 Employees Compensation Act, 1923
19
https://blog.ipleaders.in/industrial-employment-standing-orders-act-1946/
Then a Tripartite consultation of employer, employee/ workmen or their
representatives and any trade union or their representatives discuss the draft for
further modifications. Once the entire process is concluded the draft is certified
and employer is intimated regarding the same and it is then put up on some
conspicuous place in either English or any vernacular language in the premises of
the industrial establishment. If the employer fails to perform any of the above said
procedure, the employer can be held liable by the state and on the other hand if
the workmen fail to comply with any of the rules in the standing order shall be
punishable. Thus Tripartism plays a vital role in engaging the employer, workmen
and state in maintaining peace and harmony in industries.

Industrial Relations Code, 2020 and its relation with Tripartism:

The Industrial Relations Code, 2020 is one of the largest reform schemes of the
Central government. It is by itself a tripartite structure as it includes three main
core laws namely –

i) Industrial Disputes Act, 1947

ii) The Trade Unions Act, 1926
iii) Industrial Employment (Standing Orders) Act, 1946

Although each of the acts mentioned above were passed for different purposes
they belong to the same broad area of concern and the Industrial Relations Code
aimed at amending some laws relating to workers, trade unions and conditions of
employment, in a way more beneficial to the employees. Moreover, it attempts to
do away with the complexities of the existing acts by streamlining the dispute
resolution procedure.

The Tripartite mechanism is brought in here through the Grievance Redressal

Committee (GRC) and the Works Committee (already existing under the ID Act).
The GRC is the first forum to redress individual disputes. Any Industrial
establishment with more than 20 employees must have one or more GRC. The
deciding body comprises of employers’ and employees’ representatives. The ID
Act requires the GRC to have 6 members as against the IRC which suggested a cap
of 10 members. The ultimate motive was to provide the employee with the option
of appeal to the Board of Conciliation within 30 days, settle disputes faster and
arrive at an amicable decision and maintain peace and harmony among the
employers and employees.

Meanwhile the Works Committee set up under the Industrial Disputes Act with a
similar objective was considered to failed to realize the present requirements as
the body was formed solely by the government orders which defeats the need to
have a body to maintain harmony between the employers and workmen, the
reason being, such a committee can have states participation as a middleman but
when in relation to formation of the committee itself, it may end up being more
favorable to the employers.

However the IRC concentrates too much powers in the hands of the government
like section 55(4) of IRC allows government to reject or modify awards given by
tribunals, wherein the concept of separation of powers and independence of
judiciary is blatantly disregarded.20

All the above-mentioned statutory provisions implicitly apply the principle of

tripartism.

INTERNATIONAL INSTRUMENTS INVOLVING TRIPARTISM:

The Tripartite Consultation (International Labour Standards) Convention,

1976, also known as Convention No. 144. This Convention is to promote
tripartism and social dialogue at the national level by ensuring the involvement of
employers’ and workers’ organisations at each stage of the ILO’s standards-related
activities. Accordingly, the Social Justice Declaration identified Convention No. 144
as one of the most significant labour standards from the viewpoint of governance.

Convention No. 144 has been ratified by 128 member states in all regions
(February 2011). In many countries, it has triggered successful social dialogue on
a range of matters beyond those set out in the Convention and demonstrated its
potential to strengthen social dialogue at the national level.21

The Tripartite Declaration of Principles concerning Multinational Enterprises

and Social Policy (MNE Declaration) is the only ILO instrument that provides
direct guidance to enterprises (multinational and national) on social policy and
inclusive, responsible, and sustainable workplace practices.

Moreover, it is the only global instrument in this area and the only one that was
elaborated and adopted by governments, employers, and workers from around the
world. It was adopted 40 years ago and amended several times, most recently in
March 2017.

20
https://www.irccl.in/post/dispute-resolution-under-industrial-relations-code-a-mixed-bag-of-hits-and-
misses
21
http://www.oit.org
Its principles are addressed to multinational and national enterprises,
governments of home and host countries, and employers’ and workers’
organizations, which provide guidance in such areas as employment, training,
working and living conditions, industrial relations, and general policies.

The principles underlying the guidance are largely based on international labour
standards, to stimulate the uptake of its principles by all parties, the ILO Governing
Body has adopted operational tools.22

TRIPARTISM AT THE INDUSTRY LEVEL – WHERE ALL TRIPARTITE

COMMITTEES CAN/ MAY EXIST:

To strengthen industry-based tripartism, the Labour Department has set up nine

tripartite committees covering the catering, construction, property management,
retail, hotel and tourism, logistics, printing, and theatre industries, as well as the
cement and concrete industries.

These committees meet regularly and conduct discussions on industry-specific

issues in an informal manner, thereby encouraging free exchanges between
representatives of employers and employees. Experts from related bodies and
government departments will also be invited to meetings of tripartite committees
to brief members or seek their views on issues of concern to the industries.

TRIPARTISM AT DOMESTIC LEVEL IN CONSONANCE WITH INTERNATIONAL

SCENARIO:
Indian Labour Conference:

The Indian Labour Conference (ILC) is the Ministry of Labour and Employment's
apex-level tripartite consultative committee that advises the government on
issues affecting the country's working class. The ILC is comprised of all 12 central
trade union organizations, all central employers organizations, all state
governments and union territories, and all central ministries and departments
concerned with the agenda items.

The Indian Labour Conference discusses and deliberates on significant issues

aimed at improving the welfare of the workers. Notable contributions have
emanated from this forum, including the minimum wage fixing methodology and
standing orders for employment.

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The first meeting of the Indian Labour Conference (then called the Tripartite
National Labour Conference) was held in 1942, and so far a total of 45 sessions
have been held. The 45th session of the Indian Labour Conference was held on May
17–18, 2013 at Vigyan Bhavan, New Delhi. After extensive deliberation, the ILC's
agenda is finalised by the Standing Labour Committee, which is again a tripartite
body. The Bharatiya Mazdoor Sangh (labour union) appealed to the Prime
Minister, requesting that the Indian Labour Conference (ILC) be convened.

The latter stated that on every issue related to labour, the government would sit
with labour representatives and employer representatives regularly to calk out
solutions. India also has a legal obligation to do so since the Indian Parliament has
ratified Convention No. 144 of the ILO related to strengthening the tripartite
mechanism.

Some Government Initiatives for the Working Class in a way to protect them
from the clutches of underpaying employers or from the state of being
unemployed:

1. 2020 New Labor Codes- The government has formulated four labour
codes, namely, the Code on Wages (2019, the Industrial Relations Code
(2020, the Code on Social Security (2020), and the Occupational Safety,
Health, and Working Conditions Code (2020), and published these codes in
the Official Gazette for general information. The four Labour Codes envisage
strengthening the protection available to workers, including unorganised
workers, in terms of a statutory minimum wage, social security, and
healthcare.
2. Yogi Maandhan Pradhan Mantri Shram- To ensure old-age protection for
unorganised workers, the Government of India has implemented the
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) pension scheme.
3. National Pension Scheme for Traders, Shopkeepers, and Self-
Employed Persons - The scheme is meant for the old-age protection and
social security of retail traders, shopkeepers, and self-employed persons
whose annual turnover does not exceed Rs 1.5 crore. It is a voluntary and
contributory pension scheme under which the subscriber would receive a
minimum assured pension of Rs 3000 per month after reaching the age of
60, and if the subscriber died, the beneficiary's spouse would be entitled to
50% of the pension as a family pension.
4. Pradhan Mantri Rojgar Protsahan Yojana - The Government of India
created the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) Scheme to
incentivize employers to create new jobs. Under the scheme, the employers
 would be paid the EPS contribution of 8.33% for every new job created by
the government.

Industrial Tripartite Committees:

The decision to constitute Industrial Tripartite Committees (ITCs) was the outcome
of tripartite deliberation at the Indian Labour Conference in 1944 over the
demarcation of general subjects discussed at the ILC and their relevance to
different industries. Following the ILO procedure, the government of India
established industrial tripartite committees for various industries. The functions
of the Industrial Tripartite Committees in general are to study and discuss labour-
related issues specific to the industry in question in order to improve
understanding between the parties and to advise the government on how to solve
these issues and reach a workable solution that is acceptable to all parties. The
meetings of the Industrial Tripartite Committees are called as needed. At the
moment, the following ITCs have been established:

1. Industrial Tripartite Committee on Plantation Industry

2. Industrial Tripartite Committee on the Road Transport Industry
3. Industrial Tripartite Committee on the Cotton Textile Industry
4. Industrial Tripartite Committee Jute Industry
5. Electricity Generation Industrial Tripartite Committee and distribution
industry
6. Industrial Tripartite Committee Engineering Industry
7. Industrial Tripartite Committee for Sales Promotion Employees

Standing Committee on Labor:

The Indian Labour Conference is preceded by the Standing Labour Committee

(SLC), a tripartite body (ILC). Meetings of these apex bodies are convened once a
year to discuss labor-related issues as a matter of practise and to maintain
continuous dialogue with social partners. The ILC and SLC are comprised of all 12
central trade union organisations, all central employer organizations, all state
governments and union territories, and central ministries and departments
concerned with the agenda items.

Along with the Central Advisory Contract Labour Board, India's Central and State
Labor Advisory Committees, Indian Labour Conference, and Standing Labour
Committee all implement and promote tripartite consultation. The Central and
State Advisory Committees provide guidance on the management of a number of
welfare boards, including the Central Board of Trustees (Employees Provident
Fund Organization) under the Employees Provident Fund Act (1952), the Central
Apprenticeship Council under the Apprenticeship Act (1961), and the Central
Advisory Committee under the Limestone and Dolomite Mines Labour Welfare
Fund Act (1972).

BENEFITS OF TRIPARTISM AT THE INDUSTRY LEVEL:

1. Tripartism can detect potential labour relations and tension persisting

between employer and workmen at an early stage and, through the
concerted efforts of tripartite committees comprising of employers,
employees, and the government, nip such problems in the bud;
2. It can facilitate the mutual understanding of employers and employees on
issues of common concern and reach consensus through tripartite efforts;
3. Tripartism can set commonly accepted standards on employment-related
issues to cater to the specific needs of individual industries;
4. Tripartism can propel a partnership between employers and employees
toward workplace cooperation with concerted efforts of state; and
5. It can foster the long-term development of the industry, which in the end
will benefit both the enterprises and their employees.

ADVANTAGES AND ACHIEVEMENTS OF TRIPARTISM:

Through the joint efforts and active collaboration of employers, workmen and
state, tripartite committees have succeeded in resolving some industry-specific
problems and setting commonly-agreed standards viz.,

1. Setting up special committees with members from representatives of

employers, employees and state to look into skill upgrading issues for
different industries;
2. Drawing up codes of labour relations practises and sample employment
contracts for various industries; and
3. Producing reference guides on employment issues relevant to the
industries so as to promote peace and harmony in the industries.

Tripartism tries to focus on bringing employers, workmen, and governments to a

common platform for resolving industrial disputes amicably ensuring the
involvement of all three parties in the dispute resolution process.23 Tripartism has
also promoted harmonious labour-management relations, helped overcome

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manpower challenges, boosted economic competitiveness, and contributed to the
nation's overall progress.

THE KEY TRIPARTITE PRIORITIES INCLUDE:

1. Upgrading the capabilities of employers and workers

2. Uplifting and strengthening support for vulnerable and mature workers
3. Fostering inclusive and progressive employment practices and upholding
workplace fairness
4. Maintaining peaceful work environment in the industry by settling disputes
and help reaching a win-win situation.

DEMERITS OF TRIPARTISM:

There may arise a question as to how a concept like tripartism, which propels the
peaceful and harmonious relations between employers and employees moderated
by the state, leading to a mutual acceptance and a win-win situation can have any
demerits?

Two most prominent demerits to the concept of Tripartism is:

1. Over intervention of the government can also hinder the explicit purpose of
tripartism as separation of powers may de devoid at such instance. For
example: with respect to the Works Committee under the Industrial
Disputes Act, 1947, The Industrial Relations Code, 2020 considered it to
have failed due to this sole reason.
2. The concept of tripartism had helped the government in implanting its
policy of labour welfare in Indian industrial relations but at the same time
it has adversely affected the concept of collective bargaining in Indian
industrial relations. By providing compulsory tripartite mechanism of
dispute resolution it has ruled out the space for the dialogue between the
employee and the employers24.
3. The machinery which is setup by the government in order to seek solution
to industrial dispute following the principles of tripartism are not very
competent in resolving disputes and had failed to provide timely solution to
the issues of Indian industrial relations.

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DARK SIDE OF INSUFFICIENT LEGISLATIONS - CURRENT TRIPARTISM
SITUATION IN INDIA25:

It took a pandemic like COVID-19 to expose such deeply embedded flaws in the
country's current economic system. The reverse migration of informal workers
prompted by the COVID-19-induced national lockdown highlighted the flaws even
more. Factors such as an insufficient wage structure, insufficient social security
systems, and nearly non-existent social dialogue among employees, employers,
and the government compelled workers to relocate from workplaces to their
respective hometowns.

The current situation, which is marked by inequity and inequality, necessitates

inclusive economic progress as a development anchor. This must be done on an
ongoing basis. This goal can be achieved, among other things, by revamping how
tripartism has been implemented in India since 1991. Tripartism, i.e., social
dialogue between the government, employers, and workers, became ineffective in
the absence of a long-term vision of mutual welfare.

The long-term impact of insufficient tripartism is evident in the way present work
is characterized in India, namely by low wages, a lack of opportunities for skill
enhancement, a lack of social security systems, and a lack of safety.

Another example is the recent unilateral amendments to labour laws, particularly

the Factory Act, to increase working hours to 12 hours.

There have been efforts to engage with the tripartite agenda through legislative
consultations, such as the consultation process on the one enacted and three
proposed labour codes. The labour ministry decided to combine 44 labour laws
into four codes as part of labour reform initiatives: wages, industrial relations,
social security and working conditions, and occupational safety and health.

However, the engagement is limited to legislative consultations, and the gap in

conceptual understanding regarding the sustainability of employee, employer, and
government welfare remains. It is critical that these three actors recognise the
value they bring to each other and the economy as a whole.

In a developing economy such as India, the government serves as both an

interventionist and a non-interventionist agency. There are two potential
motivations for the government to intervene or exercise restraint in the market

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economy. The government's adherence to principles such as laissez-faire (an
economic doctrine in which transactions between private parties are regulated
and subsidized) or dirigisme (an economic doctrine in which the state plays a
strong directive role over a capitalist market economy) is one example.

India strives to strike a balance between these two principles, and when it
intervenes, it does so to improve business conditions or workers' socioeconomic
conditions.

Kerala has taken the lead in the latter by instituting the lowest minimum wage of
Rs 600 for workers and extending the benefits available to local workers to
migrant workers.

These initiatives, undertaken by the Kerala government, are the result of a

tripartite dialogue and an expression of appreciation for workers' contributions
by viewing them as integral to commercial activity.

Apart from being consistent with SDG Goal 1.3 of providing decent work for all, it
also aims to eliminate structural exploitation of migrant workers.

The agreement on wage revision every two years is a unique initiative led by the
Cashew Workers Union and the Cashew Processing Unit Owners in Palasa
(Srikakulam district, Andhra Pradesh). Though there have been strikes to express
dissatisfaction with the percentage of the raise, the agreement between the
worker and the employer remains intact. This participatory mechanism
strengthens the link between worker and employer welfare, with the state acting
as an implicit facilitator.

CONCLUSION:

The word Tripartism with regard to industries may have a very simple meaning,
i.e., the joint efforts of employer, employee and state in settling disputes arising
between the two former parties. However, the concept of Tripartism is much
deeper than it may seem and the evolution of the term or rather practice dates
back to the 17th – 18th century. Like every other concept, Tripartism has its own
merits and demerits. Yet having a third party, not necessarily state, but even an
arbitrator/ mediator can help settle disputes in a more amicable way where a win-
win situation can be reached rather than choosing adjudication, where the loss of
one of the parties is assured and there can be no finality of decision. But how it is
implemented and used for the balanced benefit of employers and employees is
essential.