Eco Final Labour Reforms

7/31/2019 Eco Final Labour Reforms

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60%

8%

32%

Workforce(2005)

Rural workers Organised sector Unorganised sector

Labour Market In India


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Labour unrest

Maruti Suzuki- labor strike at Manesar and Gurgaon in 2011

Air India- 2011

Hyundai-2010

Honda & Scooter India Limited Gurgaon in 2005


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Need for labor law reforms Multiple and parallel legislation

Issues relating to appropriate government and jurisdiction

Multiplicity of authorities

Lack of uniformity in definitions

Minimum wages

Sectoral Demands

Labour standard and size of establishment

Better enforcement of workers rights

Labour laws and the unorganised sector


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LABOUR LAWS:


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It legalizes the formation of trade unions by allowing employees the right to form

and organize unions and also strengthen bargaining power of workers

Act aims to provide law for the registration of trade unions and get it registered

under the act.

A trade union formed with at least 7 members may apply for registration with

documents.

OBJECTIVES

Lay down conditions governing the registration of trade unions Defines obligations of trade unions

Prescribe rights and liabilities of a registered trade union.

It also stipulates the purpose for which funds can be utilized

TRADE UNION ACT (1926)


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Definition: An organization of

workers or employees formed

mainly to-Negotiate with the employers on various

employment related issues

Improve the terms and conditions attheir workplace

Enhance their status in society.

WHAT IS A TRADE UNION?


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Collective bargaining

Safeguard jobs

Cooperate with employers

Political activities

Social activities

Objectives of a Trade Union


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Ever expanding complex multi product/project companies with diverse andconflicting interests of workmen and employers, growing labor

consciousness, resulting in strikes and lockouts, lead to the outcome of

Industrial dispute Act, 1947

Main provisions of the Act are:

Settlement machinery

Aims at promoting security, amity and good relations .

Prevent illegal strikes and lockouts and explains the contingencies when

these can be lawfully resorted . Provide conditions and relief to workmen in the matters of lay-offs,

retrenchment, dismissals etc.

The provision for payment of compensation to the Workman.

Unfair labour practices on part of an employer.

INDUSTRIAL DISPUTE ACT (1947)


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Labor Force in India (Millions)

0

100

200

300

400

500

600

1983-84 1993-94 2004-05 2009-10

263.8334.2

419.6503.4

Labour Force (Million)

Source:Statistical outline of India, http://labour.nic.in/report _to_people


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520

525

530

535

540

545

550

555

560

565

570

575

2011-12 2012-13 2013-14 2014-15

541

552

563

574 Projected Labour Force

(Million)

Projected Labour Force in India (Millions)

Source:http://labour.nic.in/report _to_people


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2.06

0.98

2.95

1.73

0.51

2.7

3.3

2.58

3.71

0

0.5

1

1.5

2

2.5

3

3.5

4

1983-1994 1994-2000 2000-2005

All India

Rural

Urban

Growth Rate of Labour force(% per annum)



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Labour Force Participation RatesPer Thousands of Population.

548 561 540

332 331 302

0

200

400

600

1983 1993-94 1999-2000

Rural Male

Rural Female

536 542 542

155 164 147

0

200

400

600

1983 1993-94 1999-2000

Urban Male

Urban Female



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Growth of employment in OrganizedSector(% per annum)

1.53

-0.65

0.44

1.72

-1

-0.5

0

0.5

1

1.5

2

1983-1994 1994-2008

Public Sector

Private Sector

Total Organised



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Root Cause Analysis


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Voluminous and Ambiguous

Concepts like liberalization, globalization or privatization Cost of compliance higher than Cost of violation

Less expenditure on social services and social security

Differences in socio economic conditions that prevail in India

ILO recognizes the right of employees to organize themselves

Pitfalls of Labour Laws


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Labour Market Rigidity


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Position taken by different stakeholders

Documents

Eco Final Labour Reforms