Need for labour reforms in india

Politicians have often been union leaders, and some analysts believe that strikes and other labour protests are called primarily to further the interests of political parties rather than to promote the interests of the work force. The government recorded 1, strikes and lockouts in As a result, The number and seriousness of strikes and lockouts have varied from year to year.

Need for labour reforms in india

Universal adult Franchise which is landmark of democracy gives voice to labor which is strong in numbers.

The labour reforms debate: Broadening horizons

Developed countries on the other hand extended voting power to workmen only after long period of industrial development. During this period capitalists of the country amassed wealth and in latter period, mainly after numerous labor movements, workers getting voting rights, activism of International Labor Organization and New Deal of Rooseveltwestern governments took up responsibility of wealth redistribution.

India at time of independence took up dual of wealth creation and redistribution simultaneously. For this they need investment which has to compete with developed countries. Investment whether domestic or foreign will come, given there is low cost advantage.

In the starting phase this low cost advantage is derived through relative lower wages of workers as there is surplus labor. As a result industries start mushrooming and results in shortage adequate skilled labor and at same time there is rise of trade unionism.

After this government tries to maintain low cost advantages by easing Infrastructure bottlenecks, Tax concessions etc. This is quite evident form developments in Chinese economy over last two decades.

They bargain constantly for higher wages, safety at work, social security, job security etc. For this they organize demonstration, strikes and petitions to higher authorities. They also constitute a separate class and vote bank and political parties tries woo them before elections. But in last decade frequency of strikes, lockouts and Man days lost have reduced significantly, so is their behavior as separate vote bank.

This indicates toward growing cordial relations.

The "Make in India" won't hit off until the day labor reforms are done in India. Hire and Fire, Pension benefits, Unions and many others issues have to be addressed. . The economic liberalisation in India refers to the economic liberalisation, initiated in , of the country's economic policies, with the goal of making the economy more market and service-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets. Sep 21,  · Rituparna Chakraborty, Co-Founder & EVP - TeamLease Services Limited, welcoming all the delegates to the event 'Labour Reforms in India.

To deal with trade unions and to present their consolidated viewpoint employers too got organized and 1st such organization was All India Organization of Employers, formed in There are three parties in this cooperation 1 Government 2 Employer 3 Trade Union. This is generally called Tripartite Cooperation System.

Here government acts as mediator between other two who generally have conflicting interests. But in reality all three parties have a common interest that is industrial growth and are dependent upon each other. Legal Status Our constitution has many articles directed toward their interests for eg.

Article 23 forbids forced labor, 24 forbids child labor in factories, mines and other hazardous occupations below age of 14 years.

Gandhi ji said that employers are trustees of interests of workers and they must ensure their welfare. Labor laws are under concurrent list.

Important laws related to Industrial relations are — Employee state insurance Act — ESI card is issued, insuring worker against any accident at work. This is mandatory for establishment employing more than 20 people Factories ActChild Labor prohibition and regulation Act — prohibits children below age of 14 to work in hazardous jobs.

There are demands for complete ban on child employment Industrial Disputes Act — One important provision — Industries employing more than people can not terminate employment before approval of government.

There is strong demand from industry to revise this limit, to facilitate easy entry and exit.Thus, labour reforms are of great important as the laws enacted in the labour market aim at regulating the market, protecting employment and ensuring social security of workers. Labour reforms essentially mean taking steps in increasing production, productivity, and employment opportunities in the economy in such a manner that the interests of the .

roadblocks for labour reforms in India and imperatives for enhancing labour productivity and lowering labour cost without compromising international labour standards.

Need for labour reforms in india

proponents of labour reforms have emphasized the need for upholding managerial prerogative by rev oking the Z }v]v [ (from the perspective of employers) labour. A critical aspect of revitalizing manufacturing is to reform India’s labor laws.

While many consider the Modi administration’s latest moves in . Labour in India refers to employment in the economy of India. In , there were around million workers in India, the second largest after China. [1] Of these over 94 percent work in unincorporated, unorganised enterprises ranging from pushcart vendors to .

It is ironical that a country with so many unemployed youths mostly exports capital-intensive goods

This post explains the need for labour law reforms in India The biggest challenge facing Indian economy is to provide employment to the youth.

But, the rigid labour regulations in India act as a deterrent to employment generation. NEED OF LABOUR REFORMS It is the most opportune time for labour reforms in India for two reasons: 1) China is fast losing its advantage as manufacturing hub as labour cost has trebled there in last one decade.

The labour reforms debate: Broadening horizons