Industrial unrest in_india_ppt
- 1. INDUSTRIAL UNREST IN INDIA PRESENTED BY: HELEN GRACE GEORGE
- 2. LABOR UNREST : INTRODUCTION • Labor is one of the major production factor without labor there is no production. • Industrial unrest or labor unrest is organization of strike actions undertaken by labor unions, where the workforce become violent and obstructs the normal process of business and generate unrest. • Labor unrest occurs when employees believe that they are treated unfairly by the management. • As a result employees organize and strike upon the company, this is to show their dissatisfaction and raise their demands towards the company.
- 3. CAUSES OF LABOR UNREST • Wage Related Issues: The wage levels in different industries vary tremendously. The disparity in wages between skilled and unskilled labour is large even within an enterprise. This is true in both the organised and the unorganised sectors. The demand for higher bonus has been a major cause for industrial disputes. • Lack of Welfare and Social Security: Social security measures can be divided into two categories (i) social insurance and (ii) social assistance. Social insurance schemes are generally financed by the employees, employers and the State. However, such welfare measures face the following problems: (a) insufficient coverage, (b) lack of employment insurance, (c) inherent bottlenecks of an exit policy, (d) overlapping schemes, and (e) lack of facilities vis-a-vis requirement of beneficiaries.
- 4. • Improved Working Conditions: Demand for lesser working hours, better-safety measures, holidays, leave etc., provoke trade unions to fight against employers. • Wave of Globalisation: The new policy of liberalisation has opened up the avenue of foreign investment in India resulting in an intense competition in the economy. The entrepreneurs are often forced to squeeze wages and push productivity for survival in today’s market-driven economy. • New Lifestyles: The workers are increasingly adopting new urban lifestyles and this is expensive and requires a larger income for the family. The workers are often drawn into industrial battle by such compulsions.
- 5. • Low-cost Production Alternatives: The employers often defeat the purpose of trade unions by searching out low-cost production alternatives in the form of small-scale subsidiary units in smaller towns where low wages will do. • Rising Wages and Low Productivity: The big companies often close down their units because labour productivity often fails to keep pace with inflated wages. Such moves taken often invite industrial tension.
- 6. POLICY OF THE GOVERNMENT • Policy of the Government: The Industrial Relations Policy has two basic objectives: (i) prevention and peaceful settlement of disputes, and (ii) promotion of good industrial relations via labour management and cooperation. It included the following:- 1) Industrial Disputes Act 1947 2) Industrial tribunals 3) Code of Discipline in industry in 1958
- 7. 4) National Arbitration Promotion Board 1967 ABOVE MEASURES EXPLAINED: 1) Industrial Disputes Act 1947 The first major step was taken in 1947 with the passing of the Industrial Disputes Act. It provided for (a) a joint working committee of employers and employees for promotion of good relations between the parties; (b) the recruitment of conciliation officers by the government for bringing both the parties together; (c) appointment by the government of a Board of Conciliation to go into any industrial dispute and to suggest remedial measures etc.
- 8. 2) Industrial tribunals These tribunals exist at state and national levels. The state government has the authority to adjudicate disputes regarding wages, bonus, sharing of profit, etc., by appointing one or more industrial tribunal. A person holding the rank of a High Court Judge is to be on the tribunal. The Central government appoints the national tribunal for adjudicating disputes which involve issues of national importance. 3) Code of Discipline in industry in 1958 According to the code, employers as well as labourers voluntarily agree to maintain mutual trust and cooperation. The code listed the following activities in factories: • For declaring strikes and lock-outs prior notice is required. • The parties can take any action only after consulting each other. • There should not be any deliberate attempt to damage plant or property. • Disputes should be settled speedily. Several employers and trade unions, which are not members of any central employees and labour organisation, have accepted the code.
- 9. Examples of labor unrest in India • Honda Motorcycle and Scooter India – 2005 In June 2005, employees at Honda Motorcycle and Scooter India (HMSI) factory in Gurgaon, started protesting against differentiation in wage rates. This led to sacking of four workers for intermittent strikes, slowdown, protests and finally an instance when the company president was gheraoed. At this point, the strike went wrong when the protesting employees clashed with the police near the company's MG Road showroom. Nearly 100 people were injured. The production at the company’s plant went down from 2,000 to 400 units per day. The company even suffered a loss of Rs 130 crore in revenue.
- 10. • Mahindra and Mahindra – 2009 In May 2009, workers at Mahindra’s Satpur, Nashik plant protested over the suspension of union leader Madhavrao Dhatrak on disciplinary grounds. The strike was called off after 48 hours; however, it led to production loss of around 6,000 units amounting to Rs 325 crore. • Hyundai Motor India – 2010 The Indian unit of Hyundai Motor Company incurred a loss of Rs 65 crore due to a production halt at its Chennai plant following a protest by 150 workers demanding the reinstatement of employees sacked in December 2009. It led to a production loss of 2,200 cars.
- 11. CONCLUSION The organisations have to think about the welfare of the labor and should try to avoid the labor unrest because it generates loss for both the company and the employees. So it is best to learn how to exist together in peace.