Labour Reforms In India

Presented By

Kavitha Surendran Sanjay Tripathi Abhijit Kashid.

Table of Contents
Introduction. Need For Labour Reforms. Industrial Relations & Labour Unrest. Possible Reasons For Labour Unrest. Way Forward For Reforms. Conclusion.

Introduction Labour Reforms in India

Who does labour mean?

Introduction

Labor Reforms It essentially means steps taken to increase production, productivity and employment opportunities in the economy while protecting overall interest of labor.

Introduction
What is Labour Policy in India? Indias Labour Policy is mainly based on Labour Laws.

What are Indian Labour Laws? National Laws: 51 1) Labour laws enacted by the Central Govt, where the Central Govt has the sole responsibility for enforcement. 2) Labour laws enacted by Central Govt and enforced both by Central and State Govt. 3) Labour laws enacted by Central Govt and enforced by the State Govt. State Level Laws: about 50 4) Labour laws enacted and enforced by the various State Governments which apply to respective States.

Introduction
Relative Regulations and Rigidity in Labour Laws
Practice required by law Minimum wage (US$/month) Standard work day Minimum rest while at work Maximum overtime limit Premium pay for overtime Dismissal due to redundancy allowed? Government approval required for 1 person dismissal Government approval required for 9 person dismissal Government approval for redundancy dismissal granted Dismissal priority rules regulated Severance pay for redundancy dismissal of employee with 1 year tenure Severance pay for redundancy dismissal of employee with 5 year tenure India 29.9 9 hours 30 minutes per 5 hour 200 hours per year 100% Yes, if approved by government Yes Yes Rarely Yes 2.1 week salary 10.7 week salary China 182.5 8 hours None 1 hour per day 50% Yes, without approval of government No No Not applicable Yes 4.3 week salary 21.7 week salary United States 1242.6 8 hours None None 50% Yes, without approval of government No No Not applicable No None None

Need For Labour Reforms

Multiple & Parallel Labour Legislation Issues Relating to Appropriate Govt. & Jurisdiction Minimum Wages Inspector Raj Industrial Dispute Act 1947 Contract Labour (Regulation & Abolition) Act 1970 Labour Standard & Size Of Establishment Labour Laws & The Unorganized Sector

Industrial Relations & Labour Unrest

Industrial Relations are inherent in an industrial life:

Objectives of Industrial Relations:

Industrial Relations & Labour Unrest:

Honda Motorcycle and Scooter India , Gugaon. Maruti Suzuki India Ltd, Manesar.

Possible Reasons For Labour Unrest

Monitory Wages / Bonus / incentives / Rewards Political Multiple Union Structure / Internal Leadership issues / Inter- Union Rivalry. Legal Labour Law / Recruitment & Promotion Policies Job Specific Job Security / Working Hours / Job Satisfaction Working Conditions. Others Communication Gap / Indiscipline / lack of Trust.

Fishbone Diagram For Root cause Analysis

Way Forward For Reforms

Stake Holders In Reforms. Trade Union Employer Political parties Government . Improvement In Current Legislations. Industrial Dispute Act 1947. Contract Labour Act 1970. Social Security Net. Other Recommendations. Change In Mind Set. Educating the work Force. Float the Idea. Invest in the future.

Conclusion

Labour Market Flexibility To be Accompanied by Insurance & Social Security to the Vast Unorganized Labour Force Govt. Should make all the possible efforts to dispel the fears of Trade Unions. Target For Win-Win Outcome.( Employee & Employer Are Two Faces Of same Coin ) Political Leaders should look beyond their narrow interest.

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