Conceptual Model for understanding Industrial Relations

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Conceptual Model of Industrial Relations

Conceptual Model for understanding Industrial Relations

Role of State Intervention:

State intervention in business is necessary in a developing country because of the following reasons:

1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and even ignore their demands. This is why governments have to step in and play a role in delineating certain parameters of industrial relations.

2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silent bystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or an intermediary, and establish peace.

3. The federal nature of the constitution has made it imperative for the state to intervene in matters of labor to ensure a smooth and continuous operation. The state and the central governments have established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952, the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, the Contract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and the Remuneration Act of 1978.

4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to look after the interests of the weaker sections of the society, for example, the physically disabled.

Additional Readings:

1. Definition and Evolution of Industrial Relations
2. Concept, Scope and Objectives of Industrial Relations
3. Conceptual Model for understanding Industrial Relations
4. Labor National Commission and Industrial Relations Policy - 1969
5. Industrial Dispute
6. Indian Industrial Dispute Act of 1947
7. Parameters and Classification of Industrial Disputes
8. Types of Industrial Strikes
9. Tripartite and Bipartite Bodies, and Industrial Settlement
10. Definition of "Mediation" and "Conciliation"

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