Emergence of Industrial Relations in India Essay Example

a new social order.

Workers' insufficient wages in comparison to increasing prices led to intense labor disputes, causing deteriorating working conditions and strained relations between management and labor. The establishment of the International Labour Organization (ILO) in 1919 had a significant influence on labor legislation and industrial relations policies in India. The creation of trade unions, including the All India Trade Union Congress (AITUC) in 1920 and the Employers' Organisation Federation of Indian Chambers of Commerce and Industry in 1927, marked a major milestone in India's industrial relations history.

These organizations nominated their representatives to the ILO conferences and their persistent demands led to the Indian Government adopting the practice of consulting with representatives from Provincial and State Governments, employers, and workers on important labor issues. This practice has continued since the Fourth session of ILO Conference on 7th August 1942, chaired by Dr. B. R. Ambedkar, playing a significant role in reviewing and formulating labor policies as well as making labor legislation in India.

The government's initial exercise of power in industrial relations (IR) began in the 1920s with the introduction of the Indian Trade Unions Act, 1926. The purpose of this act was to establish formal IR. Additionally, the Trade Disputes Act, 1929 was passed to help resolve industrial disputes through conciliation channels. Subsequent legislations were enacted to promote industrial peace, such as the Bombay Trade Disputes Conciliation Act, 1934, the Trade Disputes Act, 1938, the Bombay Industrial Relations Act, 1946, and the Industrial Disputes Act, 1947. Since gaining Independence, significant changes have occurred in the IR landscape including shifts in environment and dynamics between parties as well as emergence of new forces within this domain.

Although

there have been no significant changes in our laws, the concept of "free and voluntary collective bargaining" continues to be upheld, even without legislation like the Taft-Hartley Act. Sri V. V. Giri played a key role in Indian Industrial Relations policy by introducing the Trade Unions (Amendment) Act of 1947. This act aimed to promote harmonious industrial relations and collective bargaining, also known as the "Giri approach." However, these efforts were ultimately undermined by the implementation of the voluntary Code of Discipline in Industry, which did not achieve its intended purpose.

The Collective Bargaining machinery is a reflection of the prevailing social and political conditions. The historical association between unions and political parties highlights that many trade unions are influenced by external forces, leading to their lack of success. The Trade Unions Act 1926 permits individuals from outside the industry to lead a union, which means that a former employee who has been terminated could potentially disrupt the relationship between the union and the employer as a union leader.

Formation of industrial federations, the rise of big corporations and multiplant units, renewed faith in voluntarism, and government emergence as the largest employer have become influential factors in the IR system. These structural changes in industrial organization, along with the growth of the public sector and large-scale employment by industrial organizations, will dominate the future of industrial relations. As HR managers in the future, we must address these trends, issues, and challenges in the IR scenario.

The introduction of Wage Boards and Pay Commission has resulted in the emergence of Industrial federations. As a result, the major issues are now being discussed and negotiated at the industry or

national level. This shift in bargaining power and strike potential at these levels can have detrimental effects on the economy. Strikes, lockouts, and violence can cripple the economy and have long-lasting consequences on society's well-being. The increasing number of industrial disputes indicates that conflicts between employers and workers are intensifying throughout India. Managers, facing the global economic downturn, aim to reduce labor expenses and eliminate rebellious employees.

Unions are using slowdowns and strikes, sometimes resulting in violence, in an effort to prevent them. However, the primary cause of the increasing number of industrial conflicts is the outdated labor laws in the country. Despite numerous attempts to reform the industrial relations policy, decision-makers are currently faced with a difficult decision and are once again hindered by the excessive regulations, corruption, and bureaucratic practices that permeate every aspect of the country's administration. For instance, under the Industrial Disputes Act of 1947, companies are still required to obtain government approval before terminating employees.

The Contract Labor Law of 1970 and the Manesar case both address the issue of using temporary workers for long-term jobs. These laws aim to encourage companies to hire permanent workers in order to protect employee rights. The Contract Law has been criticized as a brutal law that only serves the government's purpose of hiring contract workers. However, it is important to consider the aspirations of working people and conduct negotiations for a healthy industrial environment.

HR Managers are responsible for creating a collaborative and conducive environment in every company. They should encourage equitable participation and flexibility in collective bargaining, and involve employees in a bigger purpose. As future HR Managers, the onus is on us to bring

new ideas and implement them effectively. Although we may not be currently involved, we are aware of the existing issues and the ideal solutions.

With the knowledge and information we possess, we have the ability to bring about desired change. When examining the evolution of Industrial Relations in the 21st century, we can envision our role as the future Human Resource Management fraternity in revolutionizing the industrial sector. As India emerges as a prominent global manufacturing hub, it is important to assist the marginalized population, as emphasized by C. K. Prahlad, in finding meaningful employment opportunities. Ultimately, they comprise a significant portion of India's workforce.