INDUSTRIAL RELATIONS Industrial relations has become one of the most delicate and complex problems of modern industrial

society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Evolution of Industrial Relations in India In India the industrial relations have been seen through the following three stages: 1. a. b. 2. a. b. c. Occupations in India Labour in medieval India Guilds and union. Industrial Relations in India Early British Rule 1st World War to Pre-Independence Period 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 Kautilyas 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. 2. 3. 4. Kshatriya Vaishya Shudra 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 workers 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 (Workmens 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. IMPORTANCE OF INDUSTRIAL RELATIONS The healthy industrial relations are key to the progress and success. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and

generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.