Evolution of Industrial Relations in India

In India the industrial relations have been seen through the following three stages:
1. Occupations in India
a. Labour in medieval India
b. Guilds and union.
2. Industrial Relations in India
a. Early British Rule
b. 1st World War to Pre-Independence Period
c. Post independence period.

1. Occupations in ancient India:

In those days, the prime occupation in India was “Agriculture”. Trading was of second
importance. Manual service formed the third area of preference. Majority of the states
were ruled by kings. India was greatly advanced in the industrial field, this is evident
from the “Kautilya’s Arthashastra”. This gives a comprehensive picture of the
organisations and functions of the social and political institutions in ancient India.

The caste system had great influence on the development and progress of these industries
and occupation. The concept of caste systems was originally based on the transfer of
skills and specializations which ultimately led to standardization of professions. The

“Atarvana” Veda divides the community into four categories:

1. Kshatriya
2. Vaishya
3. Shudra
4. Arya

The following professions become hereditary:

Goldsmiths, weavers, potters, blacksmiths, carpenters, hunters, charioteers, architects,
sculptors, armourers. Persons engaged in these occupations become separate
communities.

(a) Labour Medieval India: The caste system unified a number of persons
belonging in particular occupations and formed the basis of occupational guilds.
Indian works of art and crafts were badly ruined with the foreign invasions, which
lasted 700 years. These artisans gradually lost the traditional skills. This led to the
state that there was no difference between a slave and these artisans.

The situation improved only after restoration of law and order under the Mughals.
Under Akbar, government factories operated in Agra, Lahore, Fatehpur and
Ahmedabad, where employees could develop respective art. A large number of
occupations were also carried on by small manufacturers and traders in their
cottages mostly on a hereditary basis. A majority of artisans lived in the fringe of
starvation.
 (b) Guilds and Unions: From early days, craftsmen and workers felt the need of
being united. Different terms such as Gana and Vrat as in “Rigveda” Sheshthi in
Aitareya Brahmana; Gana and Ganapati in Vajasaneyi Samhita; Sreni in
Arthashastra and Puga, Gana, Vrat, Shremi and Sangha have been used to indicate
what Katyanyana calls group.

These unions gradually gained strength and were helpful not only in the evolution
of arts but were powerful centers of arts in themselves. Only responsible persons
could become their members. The union followed democratic principles. In event
of a dispute between the president and the members, the king intervened and
brought about conciliations.

Kautilya has given a good description of the unions of employees, craftsmen or

artisans. According to him the work of unions should be controlled by the board
of 3 directors, members should pay the entrance fee to the president and the
profits earned by the unions should be equally distributed among their members.

Almost every craft, profession or occupation had its own union which was called
“Shreni”. Every “Shreni” included about 1000 members. The Shreni elected its
chief who was called the “Pramukha” or “Jyeshta”. These guilds and corporations
wielded considerable political power and influence.

2. Industrial Relation in India

However due to the autocratic regime of the Muslim rulers, the economic conditions of
the employees was deplorable. Laborers could be forced to leave home to work on wages,
as per the “Forman” of the emperor or the Governor, as the case may be. There were no
organisations of the workers during the Mughal rule which could deal with the
difficulties and problems of the members.

The wages, if paid were very meager and insufficient for a day meal too. They were also
paid in the form of old, used and tattered clothes and such other articles, when the
emperor and his officials dealt harshly with the workers cordial relations between layout
and capitol could not be expected to exist.

Commercial character of the East India Company did not change the conditions of the
workers. The underdevelopment of the economy continued even under the British rule.
But collective relations in industry were modeled on the British pattern. In fact the
growth of industries in different parts of the country was based on the need for good
industrial relations.

(a) Early British Rule: There was not much if scope for industrial
development in India during the early British rule. India was expected to be
colonial market for British goods till the second half of the 19th Century. A cotton
mill was established in Bombay and Calcutta. The workers were to work in
subversive and deplorable conditions, while they were exploited by their
contractors. Their relations had been strained and the workers abstained
themselves from work. As a result, many disputes rose. Mining industry also
started slowly. Tata Iron and Steel industry had been established in Jamshedpur,
which produced on a moderate scale. Engineering and railway workshops, iron
and brass foundries etc had also been developed in a moderate way prior to World
War-I. The modern industry in India owes a great deal to the initiative of the
Europeans. However the workers were not satisfied with the working conditions
and the worker-management relations were not cordial. Hence the Factories Act
of 1881 was passed which gave an impetus to the worker’s approach for redressal.

(b) World War-I: This was period of Boom for all employers. With
the rising prices, the profit also went up enormously. The wages of the workers,
however did not keep pace with this tendency. The economic distress brought
workers together and an organised working class movement began in the country.
The unrest among the workers found an outlet in increased strike actions among
which the one at Ahmedabad and other at Chennai are famous. During this period,
as a result of ILO influence, various laws were enacted (Workmen’s
compensation act -1923, the trade unions act-1926 and the Trade disputes act –
1917)

During the second war, employers made enormous profits. The workers
demanded a share in them. Bonus and dearness allowance were granted to them
but as money wages did not increase in proportion to the rise in prices, the
government tried to check dissatisfaction of workers and consequential strike
activity by prohibiting strikes under the emergency rules.

(c) Post Independence Era: Immediately after independence, in

the interests of the national economy, it was considered necessary to put a stop to
strikes and lockouts that interrupted production. A tripartite conference was
adopted, giving paramount importance to the maintenance of industrial peace. The
minimum wages act, the factories act and Employees State insurance Act were all
enacted 1948.

Post independence industrial relations were very much influenced by the pre-
independence industrial environments and labour management relations.
Industrial unrest and shattered worker management relations prevailed
everywhere when India became independent in 1947. Government has emerged as
an arbitrator between management and workers. During the second five year plan,
certain norms, mechanisms and practices were evolved which formulate the need
of minimum wage, wage boards, guidelines on rationalization, code of discipline,
code of conduct, scheme for workers participation in management.