Labour in India
Encyclopedia
India
's labour force exhibits extremes ranging from large numbers of illiterate workers unaccustomed to machinery or routine, to a sizable pool of highly educated scientist
s, technician
s, and engineer
s, capable of working anywhere in the world. A substantial number of skilled people have left India to work abroad; the country has suffered a brain drain
since independence. Nonetheless, many remain in India working alongside a trained industrial and commercial work force. Administrative skills, particularly necessary in large projects or programs, are in short supply, however. In the mid-1990s, salaries for top administrators and technical staff rose sharply, partly in response to the arrival of foreign companies in India.
s grew considerably after independence, but most unions are small and usually active in only one firm. Union membership is concentrated in the organized sector, and in the early 1990s total membership was about 9 million. Many unions are affiliated with regional or national federations, the most important of which are the Indian National Trade Union Congress
, the All India Trade Union Congress
, the Centre of Indian Trade Unions
, the Hind Mazdoor Sabha, and the Bharatiya Mazdoor Sangh
. Politicians have often been union leaders, and some analysts believe that strikes and other labour protests are called primarily to further the interests of political parties rather than to promote the interests of the work force.
The government recorded 1,825 strikes and lockouts in 1990. As a result, 24.1 million workdays were lost, 10.6 million to strikes and 13.5 million to lockouts. More than 1.3 million workers were involved in these labour disputes. The number and seriousness of strikes and lockouts have varied from year to year. However, the figures for 1990 and preliminary data from 1991 indicate declines from levels reached in the 1980s, when in some years as many as 35 million workday
s were lost because of labour disputes.
The isolated, insecure, and exploited labourers in rural areas and in the urban unorganized sectors present a stark contrast to the position of unionized workers in many modern enterprises. In the early 1990s, there were estimates that between 10 per cent and 20 per cent of agricultural workers were bonded labour
ers. The International Commission of Jurists
, studying India's bonded labour, defines such a person as one who works for a creditor or someone in the creditor
's family against nominal wages in cash or kind until the creditor, who keeps the books and sets the prices, declares the loan
repaid, often with usurious rates of interest
. The system sometimes extends to a debtor
's wife and children, who are employed in appalling working conditions and exposed to sexual abuse
. The constitution, as interpreted by India's Supreme Court
, and a 1976 law prohibit bonded labour. Implementation of the prohibition, however, has been inconsistent in many rural areas.
Many in the urban unorganized sector are self-employed labourers, street vendors, petty traders, and other services providers who receive little income. Along with the unemployed, they have no unemployment
insurance or other benefits.
Minimum wage
On the recommendation of the 8th Standing Labour Committee, the Minimum Wages Bill was introduced in the Central Legislative Assembly on 11 April 1946 to provide for fixation of minimum wages in certain employments. The Bill was enacted on 15 March 1948. Since then, minimum rural and urban wages have been set around 20 per cent and 50 per cent, respectively, of the GDP per capita of the each State.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
's labour force exhibits extremes ranging from large numbers of illiterate workers unaccustomed to machinery or routine, to a sizable pool of highly educated scientist
Scientist
A scientist in a broad sense is one engaging in a systematic activity to acquire knowledge. In a more restricted sense, a scientist is an individual who uses the scientific method. The person may be an expert in one or more areas of science. This article focuses on the more restricted use of the word...
s, technician
Technician
A technician is a worker in a field of technology who is proficient in the relevant skills and techniques, with a relatively practical understanding of the theoretical principles. Experienced technicians in a specific tool domain typically have intermediate understanding of theory and expert...
s, and engineer
Engineer
An engineer is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics and ingenuity to develop solutions for technical problems. Engineers design materials, structures, machines and systems while considering the limitations imposed by practicality,...
s, capable of working anywhere in the world. A substantial number of skilled people have left India to work abroad; the country has suffered a brain drain
Brain drain
Human capital flight, more commonly referred to as "brain drain", is the large-scale emigration of a large group of individuals with technical skills or knowledge. The reasons usually include two aspects which respectively come from countries and individuals...
since independence. Nonetheless, many remain in India working alongside a trained industrial and commercial work force. Administrative skills, particularly necessary in large projects or programs, are in short supply, however. In the mid-1990s, salaries for top administrators and technical staff rose sharply, partly in response to the arrival of foreign companies in India.
Labour Relations
About 7 per cent of the 400 million-strong workforce were employed in the formal sector (comprising government and corporates) in 2000 contributing a whopping 60 per cent of the nominal GDP of the nation. The Trade Unions Act of 1926 provided recognition and protection for a nascent Indian labour union movement. The number of unionTrade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
s grew considerably after independence, but most unions are small and usually active in only one firm. Union membership is concentrated in the organized sector, and in the early 1990s total membership was about 9 million. Many unions are affiliated with regional or national federations, the most important of which are the Indian National Trade Union Congress
Indian National Trade Union Congress
Indian National Trade Union Congress is the trade union wing of the Indian National Congress. It was founded May 3, 1947, and is affiliated with the International Trade Union Confederation. According to provisional statistics from the Ministry of Labour, INTUC had a membership of 3892011 in...
, the All India Trade Union Congress
All India Trade Union Congress
-External links:**...
, the Centre of Indian Trade Unions
Centre of Indian Trade Unions
Centre of Indian Trade Unions , CITU is a National level Trade Union in India politically attached to the Communist Party of India . The Centre of Indian Trade Unions is today one of biggest assembly of workers and classes of India...
, the Hind Mazdoor Sabha, and the Bharatiya Mazdoor Sangh
Bharatiya Mazdoor Sangh
The Bharatiya Mazdoor Sangh is the largest central trade union organization in India. It was founded by Dattopantji Thengdi on July 23, 1955, which also happens to the birthday of Bal Gangadhar Tilak....
. Politicians have often been union leaders, and some analysts believe that strikes and other labour protests are called primarily to further the interests of political parties rather than to promote the interests of the work force.
The government recorded 1,825 strikes and lockouts in 1990. As a result, 24.1 million workdays were lost, 10.6 million to strikes and 13.5 million to lockouts. More than 1.3 million workers were involved in these labour disputes. The number and seriousness of strikes and lockouts have varied from year to year. However, the figures for 1990 and preliminary data from 1991 indicate declines from levels reached in the 1980s, when in some years as many as 35 million workday
Workday
Workday may refer to:* A day in the workweek.* Working time, the period of time an individual spends at paid occupational labor* Workday, Inc., a business software company...
s were lost because of labour disputes.
The isolated, insecure, and exploited labourers in rural areas and in the urban unorganized sectors present a stark contrast to the position of unionized workers in many modern enterprises. In the early 1990s, there were estimates that between 10 per cent and 20 per cent of agricultural workers were bonded labour
Debt bondage
Debt bondage is when a person pledges him or herself against a loan. In debt bondage, the services required to repay the debt may be undefined, and the services' duration may be undefined...
ers. The International Commission of Jurists
International Commission of Jurists
The International Commission of Jurists is an international human rights non-governmental organization. The Commission itself is a standing group of 60 eminent jurists , including members of the senior judiciary in Australia, Canada, and South Africa and the former UN High Commissioner for Human...
, studying India's bonded labour, defines such a person as one who works for a creditor or someone in the creditor
Creditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
's family against nominal wages in cash or kind until the creditor, who keeps the books and sets the prices, declares the loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
repaid, often with usurious rates of interest
Interest
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....
. The system sometimes extends to a debtor
Debtor
A debtor is an entity that owes a debt to someone else. The entity may be an individual, a firm, a government, a company or other legal person. The counterparty is called a creditor...
's wife and children, who are employed in appalling working conditions and exposed to sexual abuse
Sexual abuse
Sexual abuse, also referred to as molestation, is the forcing of undesired sexual behavior by one person upon another. When that force is immediate, of short duration, or infrequent, it is called sexual assault. The offender is referred to as a sexual abuser or molester...
. The constitution, as interpreted by India's Supreme Court
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
, and a 1976 law prohibit bonded labour. Implementation of the prohibition, however, has been inconsistent in many rural areas.
Many in the urban unorganized sector are self-employed labourers, street vendors, petty traders, and other services providers who receive little income. Along with the unemployed, they have no unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
insurance or other benefits.
Recent trends
The total number of persons in the labour force is unknown. According to official figures, from 1981 to 2001 the total number of workers grew more than 50 per cent from approximately 245 million to 402 million persons. These figures count only those who are considered to have “engaged in economically productive activity for 183 days or more.” The actual number of persons in the labour force is likely to be much higher. From 1983 to 1994, the nation’s unemployment rate declined from 8.3 per cent to 6 per cent and then increased to 7.3 per cent by 2000. Unemployment rates have historically been higher in urban areas, but rural and urban unemployment rates became nearly equal by 2000 (7.2 and 7.7 per cent, respectively).Minimum wageMinimum wageA minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
On the recommendation of the 8th Standing Labour Committee, the Minimum Wages Bill was introduced in the Central Legislative Assembly on 11 April 1946 to provide for fixation of minimum wages in certain employments. The Bill was enacted on 15 March 1948. Since then, minimum rural and urban wages have been set around 20 per cent and 50 per cent, respectively, of the GDP per capita of the each State.See also
- Economy of IndiaEconomy of IndiaThe Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...
- Privatization in India
- Labour relations