Sustaining Economic Growth & Development – Creating an Equitable & Strife Free Workplace

strikeIndustrial progress plays an important role in the growth of the Indian economy. Some of the key factors necessary for sustaining economic growth and development through industries are – Adequate Infrastructure, Access to Capital, Trade Liberalization, Competent Personnel and Amicable Industrial Relations.

Given with workplace disputes over the past few years, on the rise, the need for amicable industrial relations has achieved critical importance.

Industrial relations deals with the relationship between workers of an organization and its management. As workers form the largest section of the employed workforce, and represent a significant part of the social strata, industrial relations has a far reaching impact on the well being of workers, societies and nations. In the context of the manufacturing industry, the key stakeholders typically involved in industrial relations are – Primary: Government, Employers, Workers and Trade Unions, Secondary: Industry Bodies and Society. The role of trade unions has evolved since their inception centuries ago. Today, trade unions work towards the Economic, Social and Intellectual progress of workers.

The CII’s 5th IR & HR Summit, brought together thought leaders from the public and private sector, civil society, trade unions and the government to share their opinion sand debate on three crucial perspectives which underpin the theme of ‘Sustaining Economic Growth & Development: Creating an Equitable & Strife free Workplace’.

The debate themes were:

  • Do equitable and just practices at the workplace make Unions redundant?
  • Archaic and inflexible labour laws create strife at work place
  • Bad practices of management or opportunistic practices of union leaders – Who is more responsible for criminalization of trade unions?

The discussions led to the conclusion that amicable industrial relations is a collective responsibility of all the stakeholders, and that it is in their best interests too.

The desired role to be played by the primary stakeholders and the gap existing today can be understood by evaluating the Intent, Framework and Execution of these stakeholders.

This analysis leads to the following immediate steps to be taken by the stakeholders:

  • Organizations to mete out respectable treatment to their workers, and ensure meeting of all the hygiene factors, through a positive organization culture
  • Workers not to misuse the labour laws meant to protect them, and trade union leaders to act as moderators between the employer and workers
  • Government to create strong deterrents for mala fide acts by either stakeholder, and review labour and other related laws to promote fair treatment

Additionally, a round-table can be convened comprising industry bodies, trade unions and the government to discuss and deliberate on the key emergent issues. While these steps will address the concern and control further disputes, the need in the long run is to identify a cure. One of the approaches to achieve the same is to equate the factors of engagement for white and blue collared employees with the management. Today, the basis of engagement of blue collared employees with the management is Protection. It is important to transition this to Performance, which is the basis of engagement of white collared employees with the management. In other words, the purpose and function of industrial relations and human relations should be aligned, not distinct. This equity is the desired objective of all organizations employing workers, as workers will continue to be better connected, mobile and more aspirational and soon be no distinct from white collared employees.

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