Industrial Relations in India

5429 Words22 Pages
Human Resource Management Assignment – I Section: A PGP02.054 Faculty: Dr. Malay Biswas Indian Institute of Management Rohtak Table of content Topic Page number 1. Introduction 3 2. History of Industrial Relations System in India 4 3. Few cases of industrial disputes in MNCs a. Honda, Haryana 8 b. Mitsubishi Chemicals 9 4. Analysis of the current situation and trends in India 12 5. Conclusion 16 6. Bibliography 16 Introduction: Here we start the discussion with the history of the evolution if trade unions and industrial relation laws in India. Then we focus towards the shift of balance from labour to capital. Then we examine two…show more content…
In 1984, Indira Gandhi’s assassination and appointment of her son Rajiv Gandhi as the prime minister began a new approach the economic development that focussed on export oriented industrialization. This exposed the protected domestic enterprises to the forces of international competition. As the economy began to open up, greater labour market flexibility was achieved through an increase in sub-contracting, fixed-term contracts and temporary labour contracts. Large firms were often broken up into smaller enterprises that were not covered by the Industrial Disputes Act and which did not require government permission before laying off workers. Employment security for workers in old-style industrial units was further weakened with the introduction of the Sick Industries and Companies Act 1985 under which the closure and restructure of poorly performing enterprises were made legal. These strategies undermined employment security and reduced employment growth. In 1991, on the face of a macro-economic crisis, India was forced to accept an International Monetary Fund bailout package subject to a variety of neo-liberal reforms. Managerial prerogative was expanded to meet the imperatives of competition, but often at the cost of employment security of workers. As the economy continued to open up to competitive pressures, many aspects of the prevailing system of industrial relations were revealed to be out of date and unable to effectively respond to the dual needs
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