NATIONAL COMMISSION ON LABOUR

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The First and The Second National Commission On Labours

COMPILED BY

RAHUL PANDEY ROLL NO. 311025

COMMISSIONS ON LABOUR (1931-2002)
 On the Fourth of July 1929 the Imperial Government of

Britain constituted the first Royal Commission of Labour in India with the express mandate to – Enquire into and report on the existing conditions of Labour in 1. Industrial undertakings and 2. Plantations in British India

 The Royal Commission of 1929 was the first of a series of

such commission of labour with similar mandates held afterwards. The Labour Investigation Committee- 1946, 2. The National Commission of Labour ( 1967-69), 3. Shramshakti: The National Commission on Women in Informal Sector 1987- 88 4. The National Commission on Rural Labour (19861991).
1.

FIRST NATIONAL COMMISSION ON LABOUR
• Set up on 24th December 1966


Chairman- Justice P.B. Gajendragadkar. • Submitted report in August , 1969 • Issues like recruitment agencies and practices, employment service administration, training and workers education, working conditions, labour welfare, housing, social security, wages and earnings, wage policy, bonus, workers/employers organisations, industrial relations machinery etc.

National Labor Commission & Industrial Relations Policy of 1969

Recognition of Unions and role of IRC:
• • • • 1. 2. •

100 or more workers in establishment - compulsory At least 30% of the workers within the organization 25% if recognition is sought for industry in a local area. The IRC must certify the union as a representative union by Examination of membership records or Holding an election by secret ballot open to all employees. The other aspects : the level of recognition to be offered, certifying the majority union, and dealing with other related matters.



The rights- Right to sole representation, Right to enter into collective agreements The right to collect membership subscriptions The right of check-off, etc. Minority unions must only be allotted the right to represent cases of dismissal and discharge of their members before the Labor Court. Unions must be made strong, organizationally, and financially. Nevertheless, intra-union disputes must be discouraged.





Strikes/Lock-outs and Gheraos:
If cessation of work may cause social harm, strikes should be banned; instead, the case must be forwarded to an arbitration committee. 2. Every strike must be preceded by a warning. 3. A maximum of one month must be allotted for holding a legal strike. 4. Gherao is not really a form of labor unrest because it involves physical compulsion instead of economic pressure.
1.

5. Penalties should be charged for unjustified strikes
6. Compensation and wages should be distributed to prevent unnecessary strikes.

Conciliation:
Conciliation is most effective if it is uninfluenced by external factors, and the conciliation department is adequately staffed.

Arbitration:
Voluntary arbitration will be accepted

Unfair Labor Practices:
Penalties should be levied upon those who participate in unfair labor practices

THE SECOND INDIAN NATIONAL LABOUR COMMISSION - 2002
 June 29,2002
 Chairperson - Ravindra Varma,  Reconstituted in 1999 by the NDA government, the NCL

had a clear mandate to 1. Review the existing labour laws in the organised sector in the changing economic context and 2. Suggest comprehensive legislation to ensure a minimum level of protection to workers in the unorganised sector.

National Commission on Labour chairperson Ravindra Varma presenting the Commission's report to Prime Minister Atal Behari Vajpayee on June 29,2002 in the presence of Defence Minister George Fernandes and Labour Minister Sharad Yadav.

Workers from unorganized sector can form Trade Unions
The Commission recommends a specific provision in the Trade Union Act to enable workers in the unorganised sector to form trade unions and register them. It has recommended a waiver of the condition of employer-employee relationship and also of the 10 per cent membership in the establishment.

The recognition and check-off system
For 300 or more workers
 66 per cent membership for entitlement as negotiating

agent.
 If the condition is not satisfied, a composite

negotiating agent from among representatives of unions with support of more than 25 per cent has been recommended.
 A period of 4 year

For less than 300 employees
 Though the check-off system will be preferred in the case

of establishments employing less than 300 persons too, the mode of identifying the negotiating agent in these establishments may be determined by the LRCs.
 Moreover, even with 100 to 300 workers, many

establishments function as joint-stock companies. If that is so, workers' participation at various levels should be promoted.

Standing Orders
 Establishments having 20 or more employees  Govt. may provide Model Standing Orders

Grievance Redressal Committee
 Equal number of workers and employers

representative

Three tier system The Commission has recommended a three-tier

system of 1. Lok Adalats, 2. Labour Courts and 3. The Labour Relation Commission. Lok Adalats and Labour Courts deal with individual grievances and complaints, ii. The Labour Relations Commission deal with both • Individual problems and • in collective bargaining where a settlement cannot be reached through bilateral negotiations.
i.

 Labour Courts should have final authority in

issues pertaining to labour and
 Jurisdiction of civil courts in this area be

banned.

No exemption to EPZ/SEZ
No exemption from labour laws should be allowed to export promotion zones or special economic zones

Strikes and lockouts
 Called by recognized agent

 Strike ballot – 51% support
 A worker who goes on an illegal strike should lose

three days wages for every day of the strike, and
 The management must pay the worker wages

equivalent to three days wages per day for the duration of an illegal lockout.
 The union which leads an illegal strike must be

debarred from applying for registration for two or three years."

Other recommendations
 No need of wage board  Casual or temporary worker – maximum 2

years against a permanent job  Minimum wage1. Must be revised by govt. from time to time 2. Component of DA included


General law relating to Working hours,leave, working conditions, law on child labor  Skill development fund

Lay-offs and retrenchments
 Prior permission is not necessary

 Workers, are entitled to two months notice, or notice-pay in lieu of notice, in case of retrenchment.  The rate of retrenchment compensation should be higher in a running organisation than in a sick one.

Closure
 In case of closure of establishment employing 300 or more

workers, the employer will make an application for permission to the appropriate Government 90 days before the intended closure and also serve a copy of the same on the recognised negotiating agent.
 Compensation could be 50% of wages as in case of

retrenchement.

References
1. Article ―Report of National Commission on Labour — Inconsistencies weaken the safety

net", Business Line, Tuesday Dec 3,2002. 2. www.indialabourarchives.org 3. www.cpiml.org/liberation/year_2002/november/ article.htm 4. http://www.erlaws.com/library/nlcrshivaji.htm

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