Evolution of Labour

Policy during 5 Year

Plan.



Submitted By:
Pooja Arora(139)
Monika Dev(003)
Sakshi Saini(035)
Manisha Gautam(089)
Shalini Singh(093)
Khushvijay Singh(004)
Priya Talwar(122)

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First Five Year Plan

Recognize the importance of labour.
The conditions of work should be such as to
safeguard the worker's health and protect him
against occupational hazards
Greater attention has to be paid to the spread of
literacy and the healthy development of trade
unions
Workers' enthusiasm for the success of public
undertakings should be enhanced
Minimum Wages Act
State Governments are required to fix minimum
rates of wages for agricultural labour by the end
of 1953*
The implementation of the minimum wage
legislation should be reviewed from time to time
*
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In the Plan, right to strike and lock out was recognized. Just
settlement of claims was also given emphasis.
The Commission also accepted the importance of conciliation and
arbitration in dispute resolution and duty of state to provide
machinery for settlement of disputes.

The plan envisaged for establishing a tripartite body for
determining norms and standards, standardization of wages with
principles of social policy, profit sharing, permanent wage boards
etc.
Above all, a full and effective implementation of minimum wage
legislations was the main recommendations in First Five Year Plan.
4
Second Five Year Plan
A wage policy (by ILO) aiming at increasing real
wages was difficult to quantify
To bring wages into conformity with the expectations
of the working class
The settlement of wage disputes - Tripartite Wage
Board for cotton, jute textiles, cement and sugar
A welfare fund for Coal, Mica and Manganese
industry should be instituted
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Security Measures
The Employees' Provident Funds Scheme should
be extended to cover industries and commercial
establishments having 10,000 workers or more in
the country as a whole*
A proposal regarding the provision of medical
benefits to worker's families (under the
Employees' State Insurance Scheme) is under
consideration
*
6
Third Five Year Plan
Wage Board was extended to Iron and Steel
industries
Apart from the minimum wage, care should be
taken in fixing fair wages for different classes of
workers, and adequate incentives are provided for
the acquisition and development of skills and for
improvements in quality*
*
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Security Measures
Implemented Schemes* like -
Employee State Insurance Scheme - the scheme will be
extended to all centers where there is concentration of
five hundred or more industrial workers
Accepted provision of medical benefits to worker's
families
The Employees' Provident Fund Scheme, which now
covers 58 industries
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Sixth Five Year Plan
WAGES IN AGRICULTURE
The provisions of the Minimum Wages Act, 1948 which provides for the fixation and
periodical revision of minimum rates of wages in agriculture and other employments in
the unorganised sectors
The protection mainly benefits the landless agricultural labourers and workers in other
'sweated' employments. Except in the employments under ths Central Government
which do not account for much under these categories, the implementation of this
Central legislation is the responsibility of the State Governments.
Slow-coverage of new employments, delay in periodical revisions of the minimum
rates fixed under the Act and ineffective enforcement of the existing provisions have
been the main issues relating to this measure.
The need for strengthening the enforcement machinery, simplification of the procedure
relating to coverage and revisions, the linkage of the rates with the
Consumer PriceIndex Numbers, involvement of the rural workers' organisations in the
implementation of the provisions are among the steps advocated to improve the results.
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Contd..
The necessary amendments in the statutory provisions are
likely to be initiated soon. Sufficient strengthening of the
enforcement machinery would provide an effective
arrangement for better implementation of the. Minimum
Wages Act.
In this context it may be pointed out that this measure
coupled with programmes like National Rural
Employment Programme and Integrated Rural
Development etc. would represent a coordinated and
mutually supporting effort for raising large number of
rural poor above the poverty line. Proposals for Central
legislation for agricultural workers
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Seventh Five Year Plan (1/2)
Higher labour productivity ensures higher
wages
The creation of employment opportunities in the
large, medium and small-scale industry, both in
the public and private sectors of the economy to
increase the wage output

11
Seventh Five Year Plan (2/2)
TRYSEM was introduced to provide technical
skills and to upgrade the traditional skills of rural
youth belonging to families below the poverty
line
Wage employment is also introduced in it
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Eighth Five Year Plan (1/3)
A statutory provision of minimum wages for
employments has been included in the schedule
to the Minimum Wages Act, 1948
For implementation of minimum wages workers'
organisations, non-governmental voluntary
organisations and organised trade unions also
ensures minimum wages, instead of solely
relying on the official enforcement machinery
13
Eighth Five Year Plan (2/3)
Khadi and village industries were created to provide
additional employment opportunities in the non-farm
sector and to ensure increased wages/earnings to rural
workers
Handloom industry seek to encourage employment
generation, ensure reasonable wages for weavers,
supply of hank yarn at reasonable prices, establish silk
yarn bank, set up marketing infrastructure, help export
development, etc
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Eighth Five Year Plan (3/3)
New marketing approaches for artisans was
introduced so that their wage increases
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Ninth Five Year plan
The improvement of labour welfare with increasing
productivity and provision of a reasonable level of social
security
The Minimum Wages Act, 1948 is primarily applicable to
unorganized sector and empowers both central and State
Governments to fix the minimum rates of wages
Under Minimum Wages Act, 1948 no wage is fixed below
Rs. 35 per day
Minimum wages can offer greater potential for income
transfers then special employment generation schemes

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Tenth Five Year Plan
It covers extensive policies for women workers
Wage bill is expected to grow
The increase in productivity of labour should be
reflected in higher growth of real wages
The rise in the real wages of casual labour only cannot
be a conclusive evidence either of an increase in the
real income or of tightening of labour market when the
incidence of unemployment has not reduced, and has
rather gone up
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Government Initiatives
Sampoorna Grameen Rozgar Yojana (SGRY)
Jai Prakash Rozgar Guarantee Yojana (JPRGY)
Vocational training for women
equal pay for equal work concept

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Eleventh Five Year Plan
Shift the surplus labour from agriculture to high wage non
agricultural sector
Increase in male casual labour wages
Real wages stagnated or declined for workers in the
organized industry although managerial and technical
staff did secure large increase
Wage share in the organized industrial sector has halved
after the 1980s
19
Contd
Continued manufacturing and service industry helped for regular salary
wage
Employment opportunity for casual wage worker has slowed down
The incidence of poverty among the regular wage/salaried workers is
much lower (around 11%) as compared to the casual labour (32%) and
the self employed workers (17%)
Efforts should be made to increase the regular wage/salaried jobs

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Women and Wage
Women have vulnerable position when they seek regular wage jobs in the
unorganized or even in the private organized sector, in urban areas due to
inequality
Women have low wage rate than male for comparable occupations
Equality can be seen in various sectors like
IT and enabled services sectors
Legal
Financial
Commercial
Education and health
21
Migrant Workers and Wages
Supply of Migrant labour come from the states as
source have low wages
To protect their interest government passed the
bill The Unorganized Workers Social Security
Bill, 2007 in the Rajya Sabha
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Casual wage Employee or Self
Employed
They account for 83% of work force
Their strength lies in occupational skills and to
negotiate for labour price
Shift in pattern from agriculture to non-
agriculture sector due high wage


23
Service Sector and Wage
Unique opportunity to grow due to its labour cost
advantage, reflecting one of the lowest salary and
wage levels in the world coupled with a rising share
of working age population
Two initiatives required
Fostering the establishment of a viable size for delivery of
services based on labour intensive occupations
A massive skill development effort


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Success of Labour Policy
It can be seen in terms of the number of regular wage
employment opportunities based on some form of a written
contract between the employer and the employee, that is, an
increase in the number of formal jobs
Change in policy need to accessed by-
Linking incentive benefits in terms of employment and wage
Formal employment
25
Contd
Regular wage employment mode, is a critical
factor in improving the quality of employment of
the workers hired by the unorganized enterprises
Protective measures for employees in
unorganized sector
A statutory national minimum wage for all workers

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Scheduled Caste and Wage
60%still depend on wage labour
Employment rate and labour earnings are also low
Discrimination by caste in cities also for low
wage
Large number of SC and STs depend on
agriculture wage thus government needs to revise
wages every five year
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Intiatives
Initiatives taken by government for poor are
Sampurna Grameen Rozgar Yojana
Creation of infrastructure
NREGP
Increasing labour productivity through technology change and
innovation is the main route for the creation of additional wealth
to enterprises and better wages to employees
NREGAsoft is used to collect workers database and wages


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Social Security
Social security will be treated as an inclusive concept that also
covers housing, safe drinking water, sanitation, health , educational,
and cultural facilities for the society at large
It is necessary to ensure living wages, distinct from the concept of
minimum wages, which can guarantee the workers a decent life
ESI has existing wage limit of Rs.10,000 per month
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Social Security
A national policy for fixing minimum wages would be crystallized and
made effective
Discrimination in wages based on gender and age would be
abolished/penalized
An information network will also be built to promote awareness, to
educate employers (some of whom do alternate as wage labour too),
and to prevent malpractices (perpetrated by design or by ignorance)
with the help of the media, NGOs, and PRIs
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Thank You

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