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Industrial Relations in India

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Industrial Relations in India
Introduction
The relationship between the employers, employees, trade unions and the government is called Industrial Relations. India is an emerging economy and the large informal sector poses a big challenge. 94% of our work force is in the informal sector where implementation of labour laws is difficult. Harmonious relationship is necessary for both the employers and employees to safeguard the interests of both the parties of production and all the other stakeholders.
Evolution of IR in India
The first phase (1947 to 1966): It was a time of import-substitution industrialization and national capitalism. Large employment-intensive public enterprises were forming and largely centralized bargaining with static real wages. The public sector unionism was growing and industrial relation was majorly Government controlled and regulated. The second phase (1967 to 1980): The employment growth was slowing down and real wages were declining. The IR system faced a major crisis during this phase. There were massive strikes, industrial conflicts, multiple unionism and decline in strength. The government was losing control over the IR system. The third phase (1981 to 1991): This was a period of ‘jobless growth’. The ‘independent’ enterprise unionism was rising and several city/ regional IR systems were operating. The government was slowly withdrawing from IR system. The post-reform decade (1992-2007): About 15% of the workforce (approximately 1.1 million) lost their jobs during 1995-2000 because of natural attrition, hiring freezes and weakly enforced labour laws. In 2004-05, employment growth outstripped population growth.
Trade Unions in India Union | Party | Membership | Percentage | | | 1989 | 2002 | 1989 | 2002 | BMS | BJP | 3.11 m | 6.22 m | 25.4% | 25.2% | INTUC | Congress | 2.7 m | 3.89 m | 22.0% | 15.8% | CITU | CPI(M) |

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