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Evolution of IR

This document discusses the evolution of industrial relations in India from pre-British rule through the present day. It covers industrial relations during the colonial period when exploitation of workers first led to the development of industrial relations. After independence, India inherited a colonial mindset but also focused on workers' rights influenced by socialist philosophies. Globalization in the 1990s led to further changes as trade unions lost power and new issues like technology and foreign investment emerged. The dimensions of industrial relations continue to change in India.

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5K views

Evolution of IR

This document discusses the evolution of industrial relations in India from pre-British rule through the present day. It covers industrial relations during the colonial period when exploitation of workers first led to the development of industrial relations. After independence, India inherited a colonial mindset but also focused on workers' rights influenced by socialist philosophies. Globalization in the 1990s led to further changes as trade unions lost power and new issues like technology and foreign investment emerged. The dimensions of industrial relations continue to change in India.

Uploaded by

Aditya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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EVOLUTION OF INDUSTRIAL

RELATIONS IN INDIA
OBJECTIVES

 To understand the journey of industrial


relations from its very inception and its
different stages till date.

 To present the shape of thing to come.


CONTENTS
 Industrial relations in India prior to British raj
 Industrial relations during colonial period
 Industrial relations in post independence era
 Industrial relations in post globalisation period till date
 Emerging business scenario
 Changing dimensions of IR in India
Industrial relations in India prior to
British raj
 India was predominately a pastral and agrarian economy
during ancient medieval times.
 Trade and business were few and far
 A large no. of occupations were carried on by small mfrs. in
their cottages, mostly on hereditary basis.
 Slavery & seldom were common.
 The employer – employee relation were those of master &
slave.
 Ancient scriptures and laws of our country laid emphasis on
the promotion and maintenance of peaceful relations between
capital and labour
 The Indian work of arts and crafts were badly
damaged during the invasions of foreign invaders,
which lasted for last 700 years.
 The conditions deteriorated to such an extent that
there was hardly any difference between an artisan
and a slave.
 The situation improved only after the restoration of
law and order under the Mughals.
 The commercial character of East India Co. did not
change the conditions of workers.
Industrial relations during colonial
period
 Industrial relation is a by product of industrial revolution and it
owes its origin from excessive exploitation of workers by
owners of industries.

 The first world war is the first milestone enroute to industrial


relations in India.

 Many other events happened which accelerated the pace of


industrial relations during the period:-
 The success of Russian Revolution in 1917
 Establishment of ILO 1919
 Constitutional development in India 1919
 Establishment of AITUC In 1920.
 Formation of the labour party govt. in the U.K. in1924.
 The indian trade union act of 1926.
 The trade dispute act 1929.
 Formation of royal commission on labour, 1929-31.
 The second world war gave a new spurt in the industrial
relations field.
 The govt. of India embarked upon a two-fold action for
maintaining industrial relations:-

 Statutory regulation of industrial relations through the defence


of India rules
 Bringing all the interests together at a common forum for
shaping labour policy
 The objectives, set before the two tripartite
bodies at the time of their inception in1942,
were:-
 Promotion of uniformity in labour legislation;
 Laying down of a procedurefor the settlement of
industrial disputes;
 Discussion of all matters of all india importance
as between employers and employees
Industrial Relations In Post-
Independent Er a

 We inherited industrial relations legacies


from our colonial masters with colonial
mindset, habits & culture

 Coincidentally our freedom struggle


coincided with the struggle by the working
class for better industrial relations.
 Most of our leaders were influenced by Fabin
socialist and Marxist
 These philosophies got reflected in our
constitution-
 The preamble of the constitution
 The fundamental rights
 The directive principle of state policies.
 The aftermath of independence saw the
mushroom growth of trade unions and a
plethora of labour legislation and this led to
bitter industrial relations.
 This was the period when industrial policy
resolution, 1956 facilitated the growth of the
PSU both at the centre and state level
 In the year 1975 the voluntary schemes for workers’
participation in the Mgt. and workers education
schemes
 In the year 1969 the first national commission on
labour was formed.
 This is also the period when nationalisation of
industry was at peak
 In the post independence period, especially the later
portion of 70s and 80s, the Indian judicial has
displayed unprecedented judicial activism by giving
pro-labour judgements, which had tremendous
inpact on industrial relations.
 The result was that we has a pampered labour class
and a stagnant, protected, regulated and controlled
industrial relations scenario in the late 80s.
In post Globalisation Period from 1991
till Date

 The traditional IR was reactive, negative,


passive, ad-hoc and legalistic. It was selfish
by virtue of being confined to its own
members, without having any concern for
business organisations or society at large.
 Trade unions are marginalised and kept
outside the main stream of business.

 Introduction of state of art technology,


innovation , creativity and strategic alignment
of divergent resources.
Emerging Business Scenario

 In the post industrial society, technological


revolution has created a situation where
space, distance and time have lost their
relevance.
 The business skyline is completely changing
by continuous mergers and acquisitions
across the globe.
 Hence, India embarked on a new Economic
Policy. Some of the features of this policy
were as under:-
 Core sector have been opened for private
sectors
 Disinvestment of PSU’s have become reality
 Multinationals are allowed to invest in India in
non strategic sectors- inflow of FDIs
 Banking and insurance sectors are opened to
investment buy foreign FIIs.
 Restrictions and regulations on industrial
licensing and inspections were relaxed.
 India, being member of WTO, IMF and WB,-
declared as its policy to follow guidelines.
 Core conventions(forced labour, child labour,
etc.) of ILO started influencing our trade and
business.
 New players like consumer forums, NGOs,
environmental compaigners and electronic
media are replacing trade unions in many
grey areas.
Changing Dimensions of Industrial
Relations In India

 Traditional IR is giving way to emerging


employee relations.

 Features
 The institution of trade union is getting weak
 The institution of collective bargaining is being
decentralized.
 Disinvestment/privatisation and VRS are almost
accepted facts of industrial relations.

 Changing pattern of compensation

 Well paying secure, low-productive jobs in organised


sector are replaced by low paying more insecure
productive jobs in unorganised sector.

 Pro labour stance of Govt. is getting reduced.

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