India:Manpower, Employment Policy and

Labour Welfare

1947 to 2007

Incorporating

A Comprehensive Introduction on Manpower Trends, EmploymentProgrammes and Labour Welfare Schemes in

India since Independence

India's Five Year Plans at a Glance

Edited Extracts from India's Five Year Plans on Employment andLabour Related Matters (I Plan to X Plan including Mid-Term

Appraisal of the X Plan)

Appendices Containing Material on Indian Labour

Edited by

K. NarindarJetli

New Century PublicationsNew Delhi, India

ContentsEditor's Note on the Book . vii

Part I: Manpower, Employment Policy and Labour Welfare in India: Post-Independence Developments - By the editor

1. Manpower: Trends and Magnitude 11.1 Pre-Independence Demographic Trends1.2 Post-Independence Demographic Trends

1.2.1 Age Composition1.2.2 Sex Ratio1.2.3 Life Expectancy1.2.4 Literacy1.2.5 Degree of Urbanisation1.2.6 Density of Population

1.3 Population as a Retarding Factor in Development1.3.1 Population and Per Capita Income1.3.2 Population and Food Supply1.3.3 Population and Land-Man Ratio1.3.4 Population and Unemployment1.3.5 Population and Basic Amenities

1.4 Measures to Control Population1.4.1 Economic Measures1.4.2 Social Measures1.4.3 Family Planning

1.5 Population Policy1.6 Work Force Participation Rates1.7 Women in the Work Force1.8 Child Labour1.9 Occupational Structure

2. Employment Policies and Programmes 182.1 Nature and Extent of Unemployment

2.1.1 Urban Unemployment2.1.2 Rural Unemployment2.1.3 Estimates of Unemployment

2.2 Causes of Unemployment2.2.1 Labour Force Pressure

xiv India: Manpower, Employment Policy and Labour Welfare

2.2.2 Slow Growth of the Economy2.2.3 Capital-intensive Technology2.2.4 Defective Education System

2.3 Government Policy to Tackle Unemployment2.4 Second National Commission on Labour, 20022.5 Results of 55th Round of NSSO Survey on

Employment and Unemployment, 1999-20002.6 Results of 60th Round of NSSO Survey on

Employment and Unemployment, January-June 20042.7 Special Group on Targeting Ten Million Employment

Opportunities Per Year during the Tenth Plan2.7.1 Employment in the Organised Sector2.7.2 Labour Laws2.7.3 Cluster Development

2.8 Swarna Jayanti Shahari Rozgar Yojana (SJSRY)2.9 Swarnjayanti Gram Swarozgar Yojana (SGSY)2.10 Sampoorna Grameen Rozgar Yojana (SGRY)2.11 National Food for Work Programme (NFFWP)2.12 National Rural Employment Guarantee Act, 2005: Main Provisions2.13 Employment Policy in Tenth Five Year Plan (2002-2007)2.14 Sectoral Policies for Employment Generation

2.14.1 Agriculture2.14.2 Agro-processing Industries2.14.3 Small-scale Industries2.14.4 Construction2.14.5 Travel and Tourism2.14.6 Employment Generation in Social Sectors

2.15 Future Employment Scenario

3. Labour Welfare: Legal Framework and Initiatives 403.1 Need for Social Security3.2 Constitution and the Directive Principles of State Policy3.3 Legislations Pertaining to Labour3.4 Labour Related Organisations/Activities/Schemes3.5 Employees State Insurance (ESI) Scheme3.6 Employees Provident Fund (EPF)3.7 Payment of Gratuity3.8 Employees Pension Scheme3.9 Retrenchment Compensation

Contents xv

3.9.1 National Renewal Fund3.10 Unemployment Allowance3.11 Labour Welfare Funds3.12 Insurance Scheme for Cultivators3.13 Insurance Scheme for Agricultural Workers3.14 Child Care3.15 Kishori Shakti Yojna3.16 Balika Samriddhi Yojana3.17 Tax Concessions for Labour Welfare

3.17.1 Income Tax ConcessionsA. Leave Travel ConcessionB. Death-cum-Retirement GratuityC. Commutation of PensionD. Leave SalaryE. Retrenchment CompensationF. Voluntary Retirement CompensationG. Income of Fund Established for Welfare of EmployeesH. Income of Trade UnionsI. Health Insurance of EmployeesJ. Bonus to EmployeesK. Employer's Contribution to Gratuity FundL. Family Planning ExpenditureM. Provident Fund

3.17.2 Wealth Tax Concessions3.17.3 Excise Duty Concessions

3.18 Conclusion

4. Women Workers: Legislations and Empowerment 644.1 Provisions Regarding Working Conditions for Women4.2 Women Welfare: Constitutional Rights4.3 Categorisation of Laws Pertaining to Women4.4 Equal Remuneration Act, 19764.5 Maternity Benefit Act, 1961

4.5.1 Working of the Act4.5.2 Marriage: A Bar to Employment

4.6 Factories Act, 19484.6.1 Background4.6.2 Night Work4.6.3 Maximum Permissible Weight of Load

xvi India: Manpower, Employment Policy and Labour Welfare

4.6.4 Creche Facilities4.6.5 Unhealthy Employment4.6.6 Welfare Facilities

4.7 Mines Act, 19524.7.1 Enforcement Aspects

4.8 Plantation Labour Act, 19514.9 Beedi and Cigar Workers (Conditions of Employment) Act, 19664.10 Employees State Insurance Act, 19484.11 Enforceability of the Acts4.12 Recommendations of National Commission on Self-employed

Women Regarding Enforcement of Labour Laws4.13 Empowerment of Women

- 4.13.1 Ninth and Tenth Plans on Women Empowerment4.13.2 Task Force on Women and Children4.13.3 Women Welfare Programmes4.13.4 Rashtriya Mahila Kosh (RMK)4.13.5 Family Counselling Centres4.13.6 Short Stay Homes4.13.7 Swa-shakti Project4.13.8 Protection from Domestic Violence Bill, 2002

5. Industrial Relations and Labour Laws 865.1 Industrial Relations: Post-Independence Trends

5.1.1 From Laissez Faire to State Intervention5.1.2 First National Commission on Labour, 19695.1.3 Declaration of Emergency, 19755.1.4 Post-Emergency to 19905.1.5 Post-liberalisation Period (1991 onwards)

5.2 Industrial Sickness5.2.1 Causes of Industrial Sickness5.2.2 Measures to Help Sick Industrial Units5.2.3 Government Policy Regarding Nationalisation of

Sick Industrial Units5.3 Conclusion

6. Restructuring of Labour Laws: The Great Debate 996.1 Economic Reforms and Labour6.2 Labour Reforms: A Touchy Issue6.3 Contract Labour (Regulation and Abolition) Act, 1970

Contents xvii

6.3.1 Meaning and Forms of Contract Labour6.3.2 Present Indian Contract Labour Law6.3.3 Employers' Viewpoint6.3.4 Workers' Viewpoint6.3.5 Issues in Regulating Contract Labour

6.4 Industrial Disputes Act, 19476.5 Conclusion

7. Labour Laws and Welfare: India and ILO 1077.1 Aims and Objectives of ILO7.2 ILO Conventions and Recommendations7.3 ILO in the Present Context7.4 Active Partnership Policy (APP) and Multi-disciplinary Team

8. Labour Reforms: India and WTO 1128.1 WTO: An Introduction8.2 Linkage between Trade and Labour Standards8.3 Can India Afford Labour Market Rigidities?

Part II: India's Five Year Plans at a Glance

First Five Year Plan: 1951-56 123

Second Five Year Plan: 1956-61 125

Third Five Year Plan: 1961-66 126

Annual Plans: 1966-67,1967-68 and 1968-69 128

Fourth Five Year Plan: 1969-74 128

Fifth Five Year Plan: 1974-79 129

Sixth Five Year Plan: 1980-85 129

Seventh Five Year Plan: 1985-90 131

Eighth Five Year Plan: 1992-97 132

Ninth Five Year Plan: 1997-2002 133

Tenth Five Year Plan: 2002-07 134

xviii India: Manpower, Employment Policy and Labour Welfare

Part III: Edited Extracts from India's Five Year Plans on Employment andLabour Related Matters (I Plan to X Plan including

Mid-Term Appraisal of the X Plan)

First Five Year Plan: 1951-56 139Nature of UnemploymentEmployment Objectives of the Plan

IndustryMajor Irrigation and Power ProjectsAgricultureMineralsBuilding and ConstructionRoadsCottage IndustriesTertiary Sector and Local Works

Employment among the EducatedLabour ProblemsIndustrial Relations

Private SectorThe ApproachAvoidance of DisputesInternal SettlementJoint CommitteesCollective BargainingConciliation and EnquiryArbitrationStoppagesPublic Sector

Role of Trade Unions and Employers' Associations in a Planned EconomyWages and Social Security

WagesSocial SecurityWorking ConditionsFactoriesPlantationsEmployment and Training

Productivity of Labour

Contents xix

Second Five Year Plan: 1956-61 176Employment Aspects of the Plan •Size and Nature of the ProblemChoice of TechniquesProgrammes for Special AreasEducated UnemployedLabour Policy and ProgrammesTrade UnionsEmployers' OrganisationsIndustrial Relations

Avoidance of IndisciplineWage Policy and Social SecurityRationalisation PolicyContract LabourAgricultural LabourWomen WorkersDevelopment Programmes

Training of CraftsmenApprenticeship Scheme for the Training of Skilled CraftsmenTraining of InstructorsExpansion of the Employment Service OrganisationExpansion of Central Labour InstituteSetting up of a Film UnitHousing:Other Schemes

Third Five Year Plan: 1961-66 203Unemployment ProblemEmployment and Plan ImplementationUtilisation of Rural ManpowerEducated UnemployedLabour Policy

Recent DevelopmentsApproach and Outlook

Industrial RelationJoint Management CouncilsWorkers' EducationTrade Unions

Wages and Social Security

xx India: Manpower, Employment Policy and Labour Welfare

Working Conditions, Safety and WelfareWorkers' CooperativesIndustrial HousingOther Problems

Employment and Training SchemesProductivityLabour Research

Fourth Five Year Plan: 1969-74 230Manpower

Medical PersonnelAgricultural PersonnelEngineering Personnel

Labour Policy and WelfareTrainingEmployment ExchangesOutlay

Fifth Tive Year Plan: 1974-79 244Employment Perspective and Standards of LivingCraftsman Training and Labour Welfare: Central PlanPlans of States/Union Territories

Sixth Five Year Plan: 1980-85 249Labour Force, Unemployment and Employment

Concepts and DefinitionsUnemployment EstimatesUnemployment in 1972-73 and 1977-78Employment Profile

Perspectives for the Sixth PlanEducated Manpower

Employment PolicyPolicy for Educated Manpower

A New Deal for the Self-employedPolicy MeasuresTraining ProgrammesCredit FacilitiesMarketing FacilitiesGuidanceOther Measures

Contents xxi

Decentralised Strategy for Manpower Planning and Employment GenerationLabour and Labour Welfare

ReviewObjectives and StrategyWorkers' Participation in ManagementTrade UnionsSocial SecuritySafety and Working Conditions

Labour ResearchSpecial Problem Areas

Physically HandicappedApprenticeship TrainingOrganisation of Rural WorkersRevision of Wages in AgricultureBonded LabourChild LabourWomen LabourContract LabourConstruction LabourInter-State Migrant LabourFarm LabourMigrant Shepherds and Dairy Cattle Owners

Outlays for 1980-85

Seventh Five Year Plan: 1985-90 (Volume I) 284Labour Force

Seventh Five Year Plan: 1985-90 (Volume II) 286Employment StrategyLabour Force and EmploymentEstimates of Employment GenerationEmployment Potential of Sectoral ProgrammesManpower Planning: Problems of Surpluses and ShortagesStock of Educated Manpower and UnemploymentSome Thrust AreasLabour Policy

Upgradation of Quality of TrainingIndustrial SafetyEmployment Exchanges

xxii India: Manpower, Employment Policy and Labour Welfare

Wage PolicyUnorganised LabourBonded Labour, Child Labour and Women Labour

Outlays

Eighth Five Year Plan: 1992-97 (Volume I) 302Approach to EmploymentEmployment: Growth and StructureUnemployment: Trends and StructureTowards the Goal of Full EmploymentElements of Employment Strategy

Agriculture and Allied SectorsRural Non-Agricultural EmploymentIndustrial SectorOther Sectors

Skills, Training and EmploymentSpecial Employment Programmes (SEPs)Labour Policy and Employment

Eighth Five Year Plan: 1992-97 (Volume II) 321Training of Rural Youth for Self Employment (TRYSEM)Development of Women and Children in Rural Areas (DWCRA)Wage Employment Programmes

National Rural Employment Programme (NREP)Rural Landless Employment Guarantee Programme (RLEGP)Jawahar Rozgar Yojana (JRY)

Selected State level Employment ProgrammesMaharashtra Employment Guarantee Scheme (EGS)Special Employment Programme of Gujarat

Labour and Labour WelfareVocational TrainingEmployment Service

Manpower Planning and ResearchLabour Welfare

Unorganised WorkersRehabilitation of Bonded LabourIndustrial and Mines SafetyLabour Participation in Management

Contents xxiii

Ninth Five Year Plan: 1997-2002 (Volume I) 333Employment ObjectivePopulation Growth and Demographic ProfileGrowth Target for Full Employment: PerspectiveLabour Force Growth and Employment RequirementsEmployment Opportunities during the Ninth Plan and BeyondQuality of EmploymentUnder-employmentInvisible Under-employmentVisible Under-employmentThe Regional DimensionRegional Variations in Labour Force and EmploymentEducated UnemployedEmployment and PovertySectoral Employment Prospects and Policies

Agriculture and Allied SectorsRural Non-farm EmploymentIndustrial SectorOther Sectors

Skills, Training and Employment

Ninth Five Year Plan: 1997-2002 (Volume II) 364Changes in Labour Force

Sex RatioIncreasing Longevity

Labour and Labour WelfareLabour LawsSocial SecurityEmployment ServiceVocational TrainingChildren at workResearch in Employment and Manpower

Tenth Five Year Plan: 2002-07 (Volume I) 382Recent Trends in Employment and Unemployment SituationPopulation and Labour Force ProjectionsMeasurement of Employment and UnemploymentProjections of Employment OpportunitiesStrategies and Policies for Employment Generation

xxiv India: Manpower, Employment Policy and Labour Welfare

Sectoral Policy Initiatives for Opening up New Employment OpportunitiesAgricultureAgricultural Land Use and Liberalization of Land LawsResearch and ExtensionWomen in AgricultureAgricultural Reforms and EmploymentFood ProcessingRural Non-farm ActivitiesSmall and Medium EnterprisesCredit for Informal SectorHealth and Nutrition ServicesEducation ServicesVocational Training ServicesInformation TechnologyTourism: Domestic and InternationalHousing, Real Estate Development and ConstructionRoad Transport and Road ConstructionDistributive and Retail Trade

Creation of Additional Employment Opportunities

Tenth Five Year Plan: 2002-07 (Volume II) 403Swarnajayanti Gram Swarozgar YojanaWage Employment Programmes

Jawahar Rozgar Yojana/Jawahar Gram Samridhi YojanaEmployment Assurance SchemeFood for Work ProgrammeSampoorna Gramin Rozgar Yojana (SGRY)

Labour Welfare and Social SecurityTenth Plan Objectives

Labour Policy and the Smaller EstablishmentsDevelopment of Vocational Skills

Reform of the Vocational Training SystemDemand for Vocational TrainingImproving Linkage of Training with Prospective EmploymentCapacity for TrainingSkill Building and the Informal SectorAttracting Investment into Skill Building ActivitiesTraining Services Provided by Governments at Centre and StatesDistrict-specific Policies and Programmes for Vocational Training

Contents xxv

Training of Youth in Rural AreasTraining of WomenRegions Requiring Particular Attention

Occupational Safety and Health of WorkersAgricultural OperationsSmall Establishments

Review of Labour LawsSmall Establishments and Labour LawsNeed for Making Changes in Certain Laws

Framework of Procedures and Administration Concerning Labour RegulationsSocial Security of Workers

Minimum WagesA Role for EPFO and ESICConvergence among Multiple Worker Welfare SchemesCentral Funds for Welfare of WorkersState Level Worker Welfare FundsPension System for Unorganised Sector

Vulnerable Groups in Labour ForceChild LabourBonded LabourMigrant LabourBuilding and Construction WorkersLandless Agricultural Workers

The Path Ahead

Mid-Term Appraisal of the Tenth Five Year Plan 431Labour and EmploymentSkill Development and Vocational Education and TrainingCreation of Employment OpportunitiesProgress during Tenth PlanLabour Force Skills and TrainingStrengthening the Existing ITIsStrengthening the Apprenticeship SystemTraining for Informal SectorNational Qualification PathwayOccupational Safety and Health of WorkersSocial Security and Labour WelfareLabour LawsKey Recommendations of the National Commission on Labour

xxvi India: Manpower, Employment Policy and Labour Welfare

Labour LawsSocial SecuritySkill Development

Employment Information Services Through the Employment ExchangesThe Way Forward

Creation of Employment OpportunitiesVocational TrainingEmployment Information ServicesLabour LawsSocial SecurityCentral GovernmentState GovernmentsChange in Labour LawsSocial Security for Unorganised Workers

Appendix 1: Second National Commission on Labour: Approach toReview of Labour Laws 449

Appendix 2: Second National Commission on Labour:

Social Security - A Vision 465

Appendix 3: Dimensions of Economic Reforms in India 487

Bibliography 499