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