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Industrial Revolution of India and Labour Policy
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Industrial Revolution of India and Labour Policy
Labour rights or workers' rights are a group of legal rights and claimed human rights having to do with
labour relations between workers and their employers, usually obtained under labour and employment
law. In general, these rights' debates have to do with negotiating workers' pay, bene ts, and safe
working conditions. One of the most central of these rights is the right to unionize. Unions take
advantage of collective bargaining and industrial action to increase their members' wages and otherwise
change their working situation.
Labour rights can also take in the form of worker's control and worker's self management in which
workers have a democratic voice in decision and policy making. The labour movement initially focused
on this "right to unionize", but attention has shifted elsewhere.
Labour rights are a relatively new addition to the modern corpus of human rights. The modern concept
of labour rights dates to the 19th century after the creation of labor unions following the
industrialization processes. Karl Marx stands out as one of the earliest and most prominent advocates
for workers rights.
His philosophy and economic theory focused on labor issues and advocates his economic system of
socialism, a society which would be ruled by the workers. Many of the social movements for the rights of
the workers were associated with groups in uenced by Marx such as the socialists and communists.
More moderate democratic socialists and social democrats supported worker's interests as well. More
recent workers rights advocacy has focused on the particular role, exploitation, and needs of women
workers, and of increasingly mobile global ows of casual, service, or guest workers.
The International Labour Organization was formed in 1919 as part of the League of Nations to protect
worker's rights. The ILO later became incorporated into the United Nations. The UN itself backed
workers rights by incorporating several into two articles of the United Nations Declaration of Human
Rights, which is the basis of the International Covenant on Economic, Social and Cultural Rights.
Industrial Jurisprudence
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During the twentieth century a new branch of jurisprudence known as Industrial Jurisprudence has
developed in our country. Industrial Jurisprudence is a development of mainly post-independence
period although its birth may be traced back to the industrial revolution.
Before independence it existed in a rudimentary form in our country. The growth of industrial
jurisprudence can signi cantly be noticed not only from increase in labour and industrial legislations but
also from a large number of industrial law matters decided by the Supreme Court and High Courts. It
a ects directly a considerable population of our country consisting of industrialists, workmen and their
families. Those who are a ected indirectly constitute a still larger bulk of the countrys population.
This branch of law modi ed the traditional law relating to master and servant and had cut down the old
theory if laissez faire based upon the freedom of contract in the larger interest of the society because
that theory was found wanting for the development of harmonious and amicable relations between the
employers and employees. Individual contracts have been in many respects substituted by a standard
form of statutory contract through legislation and judicial interpretation. The traditional right of an
employer to hire and re his workmen at his well has been subjected to many restraints.
Industrial Tribunals can be their award makes a contract which is binding on both the parties creating
new right and imposing new obligations arising out of the award. There is no question of the employer
agreeing to the new contract, it is binding even though it is unacceptable to him. The creation of new
obligations is not by the parties themselves. Either or both of them may be opposed to it, nevertheless it
binds them. Thus, the idea of some authority making a contract for the workmen and employer is a
strange and novel idea and is foreign to the basic principle of the law of contract[1].
Similarly there is change in the concept of master and servant. One who invests capital is no more a
master and one who puts in labour is no more a servant. They are employer and employees, the former
may hire the latter but he can no more re them at his will.
The interest of the employees is in many respects protected by legislation. Both are now parties in an
enterprise, without one yielding to the higher status of another but as co-sharer in the partnership. Even
the right of labour participation in the management has been given legislative recognition to the utter
despair of the capitalist. Most of the bene ts claimed by a workman are not part of his bargain with the
employer when the latter employed him or are not due to them on account of any contract but of
status. The industrial society all over the world has been moving during the present century from
contract to status[2]and this status is a politico-socio-economic juristic status[3].
What were the factors that lead to this departure from the old theories of the law of contract, and the
law of Master and Servant? Industrialization in India, as in order countries, brought with it some new
socio-economic problems. Those who control the industry have a natural tendency of multiplying their
wealth and if this tendency is not checked the rich grown on richer and the poor becomes poorer day by
day. The gap between the rich and the poor ultimately grows on to this extent that it develops into two
distinct classes in any industrial society, a few of whom are Haves and others are Have-nots. This
economic disparity leads to a struggle between Haves and Have-nots, the latter exploited.
Although this situation continues for some time and it had continued to be so in our country too, but
gradually the workmen realized that they could put a better ght if they get united. This realization was
closely followed by a period of industrial unrest leading to strikes and lock-outs. In conditions of
disturbed the world has witnessed the horrors of the two world wars resulting in spiral rise in the cost of
living. With the rise in the cost of living there has been consistent demand from labour for increase in
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wages. Democratic ideas have also grown simultaneously with the growth of industrialization in our
country. These democratic ideas have pleaded for and have also helped in mass awakening and
consciousness for greater power amongst the working class.
Out of the struggle between workers, demanding for better share in the production and pro t of the
industry and the employers hesitation to part with it beyond a certain limit. have grown the recognition
of certain principles which are considered to be fundamental in almost all developed countries of the
world.
The basic principles are:
1. The right of workmen to combine and form associations or unions.
2. The right of workmen to bargain collectively for the betterment of their conditions of service.
3. The realization that economic struggle is inevitable because it is but natural that labour world
agitate for better conditions.
4. A shift from the doctrine of laissez faire to a welfare state.
5. Tripartite consultations i.e., solution of the industrial or labour disputes through the participation
of workers, employers and the Government.
6. The State can no more be a neutral onlooker but must interfere as the protector of the social
good.
7. Minimum standards must be guaranteed through State legislation.
The concept of industrial jurisprudence in our country developed only after independence. Until
independence the change in attitude of the government and the benevolent labour legislation only
aimed at amelioration of the conditions of labour and it could hardly be said to be a deal in social justice
to the working class[4].
The birth of industrial jurisprudence in our country may be ascribed to the Constitution of India[5]which
made more articulate and clear the industrial relations philosophy of the Republic of India. This
philosophy has a orded the broad and clear guidelines for the development of our industrial
jurisprudence and has thus taken India one step forward in her quest for industrial harmony[6]. The
Parliament and the Supreme Court have helped in shaping industrial jurisprudence, the former through
legislation and the latter as interpreter of the labour laws.
Rights of Workers
The laws cover the right to work of one's choice,
1. Right against discrimination,
2. Prohibition of child labour,
3. Fair and humane conditions of work
4. Social security,
5. Protection of wages,
6. Redress of grievances,
7. Right to organize and form trade unions,
8. Collective bargaining and participation in management
India has numerous labour laws such as those prohibiting discrimination and Child labour, those that
aim to guarantee fair and humane conditions of work, those that provide social security, minimum
wage, right to organize, form trade unions and enforce collective bargaining. India also has numerous
rigid regulations such as maximum number of employees per company in certain sectors of economy,
and limitations on employers on retrenchment and layo s, requirement of paperwork, bureaucratic
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process and government approval for change in labour in companies even if these are because of
economic conditions.
Labour Policy in India
After independence it was largely felt that the labour policy must emphasize upon self-reliance on the
part of the workers. Since independence till 1954, the period when V.V. Giri was the Labour Minister, all
o cial pronouncements emphasized that labour should become self-reliant. An equally forceful view
had been to prefer reliance upon the Government. This cross-current of approach to the labour policy
gave place to a new approach known as Tripartism.
Thus Tripartism became the central theme in the so-called Nanda=period that began in 1957. During
this period the Government paid reliance on three party approach, namely the trade union representing
the workers, the employers, and the Government. In this kind of approach the representatives do not
decide anything but their role is mainly advisory.
They meet together, discuss the points in dispute and strive to reach a consensus and if they agree they
make recommendations. Out of the three, the role of the Government is more important. Annual
Labour Conferences and the permanent standing Labour Committees served as the chief instrument of
Tripartism.
These conferences advocated, amongst many things; workers participation in management, workers
education, works committees, and minimum wage legislation. At the sixteenth conference held in 1958
a momentous advancement was made by adopting a Code of Discipline in industry. The Code pledged
the parties to avoid strikes and lock-outs without notice, and to eschew unilateral actions, and to rely on
settlement of disputes by discussion by voluntary arbitration or by adopting to such measures as the
law may provide. It also pledged them to avoid coercion and victimization, to avoid partial strikes and
lock-outs, and to follow grievance procedure.
Industrial Revolution of India
Industrialization in India as in any other country implies the growth of a factory system with employers
and wage earners in varying circumstances and with varying characteristics, yet having some common
features and it is the common features that are of interest[7].
As a consequence of the introduction of factory system production became concentrated in a few
selected places, resulting in the increase of labour population at all such places. The village workers
migrated to the industrial town because of the di culty of nding adequate livelihood in their native
place. This resulted in disappearance of the popular village handicraft system because they could not
compete with machine made goods.
The goods produced on a mass scale with the help of machines in the industries were cheaper than the
goods produced by handicraft method. But the development of industry in India brought with it a great
evil inasmuch as it changed the status of a craftsman into wage-earner. Therefore, the craftsmen had to
migrate from village to industrial cities in search of employment in factories.
Evils of Industrialization:
The factory system had some inherent evils to which the factory workers were exposed in the beginning.
These may be divided into two heads namely, economic and social.
1. Economic Evils
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1. The artisan who in the handicraft system had the psychological satisfaction of producing the
goods himself became in the factory system only a tender of the machine. He had to produce the
goods with the help of tools and raw materials supplied by his employer and in the workshop of
the employer. In the factory system of production only a part of goods were produced by a certain
category of workers. Di erent categories of workers produced di erent parts of the same gods.
Thus, the goods came in the nal shape by the composite labour of many categories of workers.
The workman in this system did not get full psychological satisfaction of manufacturing a product
by himself and this indirectly arrested his mental development and creative talents[8].
2. The wages paid to factory workers were quite inadequate to meet their barest needs in the new
environment which was di erent from their rural life.
3. The employment of factory workers was not secure in the beginning; they had to su er
occasionally from periodic unemployment and under-employment as a consequence of over-
production or trade cycles. A worker could be discharged by his employer at any time without
assigning any reasons therefore.
2. Social Evils
1. The factories were sick not only of economic evils but also of social evils. Overcrowded cities with
insanitary slums, and acute housing shortage because of large scale migration of village
population to industrial towns had its natural e ect on health, morality and social life of workers.
2. Work in factories was very hazardous and strenuous with long hours duty, no rest, and no facility
for recreation. Machines were taken care of by the factory owner who had little regard for the
safety and welfare of the workers.
3. Workers were exposed to serious accidents because machines were not properly screened.
Accidents were considered as normal risk incidental to employment in a factory and the worker
who was unfortunate victim of an accident lost his employment and had no right to
compensation.
4. The wages paid to the workers were very low. Wages were the only source of their income. The
workers found it extremely di cult to live with the wages so earned by them. Therefore, they had
to nd out ways and means to supplement their earnings. Consequently the wives and children of
workmen started seeking employment. The factory owners exploited this situation and employed
them in large numbers at extremely low wages without any regard to their physical conditions.
The workers found it di cult to adjust with these conditions. These evils of industrialization and the lack
of adjustment and harmonious relationship between the employer and the labours created problem in
the industry, which we call labour problems.
End-Notes:
1. ........Industrial arbitration may involve the extension of any existing agreement or the making of a
new one, or in general the creation of new obligations, or modi cation of old ones...
2. According to Sir Henry Maine the human society has hitherto moved from status to contract
3. Mahesh Chandra, Industrial Jurisprudence (1976), p. 40
4. Mahesh Chandra, Industrial Jurisprudence (1976) p, 31.
5. In this connection the Preamble to the Constitution and Part III and Part IV of the Constitution
dealing with Fundamental Rights and the Directive Principles of State Policy respectively need
special mention.
6. Report of the National Commission on Labour, (1969) p. 56.
7. Indian Law Institute : Labour Law and Labour Relations
8. V.V. Giri, Labour Problems in Indian Industry
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Written By: Sudha Dwivedi (Crminology)
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