Evolution of Industrial Relations

Introduction
• The evolution of industrial relations in India began a long
time ago. The caste system greatly influenced the ancient
industries and their development.
• Due to successive foreign invasions in India, the living
conditions of slave and artesian couldn't be differentiated.
• Furthermore, under the autocratic regime of Muslim rulers,
the conditions of employees worsened. Wages were not
guaranteed, the living conditions of workers were harsh, and
there was no proper management.
• The coming of the British didn't improve the working
conditions. After some time, however, most Indian
industries were modeled after the British system of
business, and this led to growth in various sectors
 Industrial Relations in First World
War:
• The First World War was an opportunity in disguise for local factories in
India. Prices of virtually all products went up and profits soared, however,
wages of lower employees were still the same.

• There were various strikes and disputes between management and

employees. During this time, the Workmen's Compensation Act (1923), the
Trade Union Act (1926), and the Trade Disputes Act (1917) were
established.

• While the wages of employees remained the same, they were given a
certain share of profits made by their hiring industry. Strikes, however,
were sometimes prohibited under the Emergency Rules. The years
following World War II involved the most workers' upheaval, and saw the
establishment of Industrial Employment Act (1946) and Industrial Disputes
Act (1947).
 Post-Independence Industrial
Relations:
• The post-independence era saw a developing relation
between industry and labor. A conference called the
Industrial Truce Resolution took place in 1947, and
foresaw the establishment of the Minimum Wages
Act, Factories Act, and Employees State Insurance
Act in 1948. This ensured peace between labor and
industry.
• While industrial relations in India have evolved a
long way, some features of the early system still exist
today. Modern industrial relations are dynamic, and
may integrate industrial policies of American and
British businesses.
 Stages in Evolution of Industry
• To understand the emergence of industrial relations,
it is necessary to study the process of evolution of
industry.
Primitive
• 1.
Stage

Agrarian
Economy • 2.
Stage

Handicrafts
Stage • 3.
 Guild • 4.
System

Domestic • 5.
System

Industrial
• 6.
Revolution
Detailed description of the system
 Changes bought about by Industrial
Evolution

Use of power
Development Revolution in
driven
of Engineering iron making
machinery

Rise of
Development
chemical
of coal mining
Industry
 Beginning of Industrialization
• As a result of industrial revolution, capital became a critical
factor of production. With the technological advancements, the
use of out-workers( people working at their homes with their
own tools and machines) declined and employment in factories
rose up tremendously.
• In the early stages of industrialization, the tends which
dominated the scene were:
• i) Loss of Freedom
• Ii) Unhygienic working conditions
• iii) Employment of children
 Growth of Trade Unionism
• During the early period of industrialization, workers faced
several problems in the factories. They got lower wages and
worked under poor working in the factories. So. they
organized themselves into trade unions to secure better wages
and better conditions of works.
• The basic philosophy underlying trade unionism was that
through strength and collective support, the employers could
be forced to listen to the workers and redress their grievances.
 Role of Unions
• In the organizations, most workers act as individuals to select
jobs that are acceptable to them and to negotiate pay, benefits,
flexible hours, and other work conditions.

• At times, workers have believed their needs and interests do

not receive enough consideration from management.

• One response by workers is to act collectively by forming and

joining labor unions.
Approaches to Industrial relations