DISCIPLINE 20. The socialist pattern of society proposed requires that a worker's claims to improve his economic and social status be recognised. In their turn workers too have to realise their responsibilities. Hard and efficient work on the one hand, and avoidance of indiscipline on the other, will be needed for achieving the goal which the community desires to reach. It is possible that there may sometimes be valid reasons behind cases of indiscipline among workers. To a large extent steps suggested earlier will reduce the area of such friction between labour and management. While the observance of stricter discipline, both on the part of labour and management, is a matter which cannot be imposed by legislation-it has to be achieved by organisations of employers and workers by evolving suitable sanctions of their own-some steps, legislative or otherwise. in case of rank in discipline require to be thought of It is true that in recent years loss in production due to industrial strikes has been reduced to some extent. But it is equally true that the existing provisions for penalising illegal strikes or lockouts have not proved adequate in practice. There, have been instance of go-slow,'per-down' and' stay-in-strikes', which in the larger interests of the economy, should, not go unnoticed. Such situations are serious both from the employers' and workers' point of view. The employer loses production, but what is more significant, since capacity to work is workers' only asset, any tendency to reduce that capacity must be guarded against by the working class. Complaints of violence and indiscipline have also grown recently in some industries. It is necessary that the whole issue of industrial discipline in its various aspects should be examined and in the meantime, in their mutual interest the parties should see that tendencies to indiscipline are sternly discounternanced.
WAGES 21. A wage policy which aims at a structure with rising real wages requires to be evolved. Workers' right to a fair wage has been recognised but in practice it has been found difficult to quantify it. In spite of their
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best efforts, industrial tribunals have been unable to evolve a consistent formula. A major difficulty experienced in the fuller implementation of the principle of fair wage is the 'drag' exercised by marginal units in determining the wage structure. While the financial position of average units in a centre requires to be made the basis of wage fixation, if progress towards fair wages is to be accelerated, the conflicting considerations of closure of marginal units and its effect on unemployment also become pertinent in the context of 'planning. This means that steps require to be taken to improve the working of marginal units. One way of making such units more viable is their amalgamation into larger units, voluntarily if possible, compulsorily if need be, consistent with the requirements of a decentralised-economy. Data on the functioning of marginal units are lacking. Extensive surveys require to be undertaken before it can be determined whether a unit fall in the marginal category or not Even after the marginal character of a unit is established, there will be difficulties in the process of amalgamation, but these will have to be tackled as they arise.
22. Improvement in wages can result mainly from increased productivity. Increase in productivity does not necessarily involve installation of new machinery or greater exertion on the part of labour. Steps like better lay-out of plants, improvement in working conditions and training of workers could ensure increase in output without correspondingly increasing the strain on workers, and in some cases lead to increased output with reduced strain. Another step in this direction would be the introduction. of payment by results in areas where at present this principle does not apply. This approach should be followed, subject to adequate safeguards for workers, the main guarantees being a minimum (fall back) wage and protection against fatigue and undue speed up. Earnings beyond the minimum wage should be necessarily related to results. Workers should be consulted before a system of payment by results is introduced in an establishment. Studies should be undertaken to see whether there is any scope for wage increases even at the present level of productivity especially when it is claimed that industrial production has gone lip almost without any increase in the level of industrial employment.
23. There are two more aspects of wage policy which require to be examined further. The first concerns the laying down of principles to bring wages into conformity with the expectations of the working class in the future pattern of society; the second, the settlement of wage disputes, in the interim period. In regard to the former, a view has been expressed that a wage commission should be appointed in order to examine the relevant material and to lay down principles for defining the respective roles of wages, profits and prices, taking into account the declared social objective of the community. It has to be recognised, however, that a commission of the type suggested, if appointed forthwith, will be considerably handicapped for want of data and any conclusions that it might reach on insufficient facts will not provide a suitable basis for a long-term policy. Urgent steps are therefore, needed to undertake a wage census.
24. The existing wage structure in the country comprises, in the main, a basic wage and a dearness allowance. 'The latter component in a majority of cases has relation to cost of living indices at different industrial centres. These indices have not been built up on a uniforms basis; some of them are worked out on primary data collected about 20 to 25 years ago and are therefore not a true reflection of the present spending habits of workers. Since one of the questions which the wage commission will have to take into account is the demand made by workers' organisations for merging a part of the dearness allowance with the basic wage, evolving recommendations for such a merger I will not be sufficiently scientific if cost of living indices at different centres do not have a uniform basis. Steps will therefore, have to be taken simultaneously with the undertaking of a wage census, to institute enquiries for the revision of the present series of cost of living indices at different centres.
25. Statistics of industrial disputes show that wages and allied matters are the major source of friction between employers and workers. The existing machinery or the settlement of disputes, namely the Industrial Tribunals, has not given full satisfaction to the parties concerned. A more acceptable machinery for the settling wage disputes will be one which gives the parties themselves a more responsible role in reaching decisions. An authority like a tripartite wage board, consisting of equal representatives of employers and workers and an independent chairman will probably ensure more acceptable decisions. Such wage boards should be instituted for individual industries in different areas.
26. Principles relating to the settlement of bonus and profit sharing require further study before an arrangement acceptable to all the parties could be evolved. In. the meanwhile the present arrangement for the settlement of such disputes through the existing industrial relations machinery should continue.
SOCIAL SECURITY 27. The Employees' Provident Funds Scheme which was instituted on a statutory basis during the first five year plan, should be extended to cover industries and commercial establishments having 10,000 workers or more in the country as a whole. Enhancement of the rate of contribution from 6 1/4 per cent to 8 1/3 per cent. should be further studied. It needs to be
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examined whether the present provident fund contributions could be converted so as to form a basis for a suitable pension scheme. A proposal regarding the provision of medical benefits to worker's families under the Employees' State Insurance Scheme is under consideration. Extension of the coverage of the scheme is also contemplated. The possibility oil' combining the different social security provisions at present in force into an overall social security scheme is being explored. A unified scheme will have the advantage of reducing overhead costs and from the savings so effected it may provide a more diversified set of benefits. Decentralisation of the administration of such a unified scheme would prove advantageous to its beneficiaries. Wherever feasible, workers disabled by industrial accidents should be provided with alternative employment.
RATIONALISATION 28. The first five year plan mentioned a number of principles evolved as a result of agreement between the representatives of employer and workers for facilitating the progress of rationalisation. In all cases of rationalisation these principles should be strictly adhered to and should be applied in the spirit in which they were arrived at. It is necessary to emphasise this point since it has been found that in discussions on rationalisation both employers and workers sometimes overlook the principles mentioned above. The attention of industrial tribunals may be drawn to, the need for giving due weight to these agreed arrangements in framing their awards. In case principles agreed upon between the parties are not taken due notice of, the question of embodying them in a statute could be considered. In the context of growing unemployment, rationalisation has an adverse psychologycal effect on workers. Even so, to freeze the existing techniques of production is not in the larger interests of a developing economy. Rationalisation should, therefore, be attempted When it does not lead to unemployment, is introduced in consultation with and is effected after improving working conditions and guaranteeing a substantial share of gains to workers.
29. Apart from the formulation of a broad policy on rationali- sation, which must no doubt be based on mutually agreed arrangement between the parties concerned, difficulties in the settlement of disputes on rationalisation have arisen mainly or, account of disagreement over details. The loss of production which came about -in the recent Kanpur Textile dispute on this issue is an example in point. While the principle of rationalisation is accepted, difficulties in reaching agreements over details arise at the unit level regarding, inter alia, (a) apportionment of work load, (b) extent to which wages are to be increased in the event of increased work load, (c) extent of machinery which is obsolete and requires to be replaced, (d) enforcement of stricter standards of control over the installation of new machines, and (e) retraining of retrenched workers and finding alternative jobs for them. These difficulties can be best settled by the parties after technical examination by independent experts. There will however, remain some special problems attendant on schemes of rationalisation which may have repercussions over more than one State. For dealing with them it is necessary to have a high power authority appointed by the Central Government.
30. Legislation should be undertaken to regulate working condi- tions in construction industry and transport services. As to shops and commercial establishments, most States have their own legislation. Working conditions of such employees in other States should be regulated.
31. A welfare fund similar to the Coal and Mica Mines Welfare Funds should be instituted for the manganese industry. Where a fund is to be instituted on the basis of a welfare cess, such a cess should be levied by the Central Government unless the industry is located altogether within the borders of one State, in which case the State Government can take such action as may be needed. Wherever feasible unified administration of such funds is necessary in the interest of economy and for providing better welfare amenities. The provision of welfare facilities is the responsibility of an individual employer and as far as possible these activities should be run with the assistance of local committees on which workers are reptacilities may be provided jointly. The establishment resented. In the case of small establishments of an adequate number of welfare centres is necessary, so is the provision of adequate arrangements for the training of welfare personnel of different levels. Arrangements for this purpose have been made in the plans of State Governments.
32. There are certain groups of workers who need separate treatment because of problems peculiar to them. Three such major groups are contract labour, agricultural labour, and women workers. None of to provide for these groups, the relief they deserve, it is them has received adequate attention so far. In order necessary to adopt measures mentioned below.
CONTRACT LABOUR 33. In the case of contract labour the major problems relate to the regulation of their working conditions and ensuring them continuous employment. For this purpose it is necessary to:-
(a) undertake studies to ascertain the extent and the nature of the problem involved in different industries;
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(b) examine where contract labour could be progressively eliminated. This should be undertaken straightway;
(c) determine cases where responsibility for payment of wages, ensuring proper conditions of work, etc, could be placed on the principal employer in addition to the contractor;
(d) secure gradual abolition of the contract system where the studies show this to be feasible, care being taken to ensure that the displaced labour is provided with alternative employment;
(e) secure for contract labour the conditions and protection enjoyed by other workers engaged by the principal employer; and
(f) set up a scheme of decasualisation, wherever feasible.
AGRICULTURAL LABOUR 34. The problems of agricultural ',about have been treated in the chapter on Agricultural Workers. As explained there, this group will demand special and urgent attention in any scheme designed to improve the living standards of the people. During the first five year plan attempts were made to ensure a minimum standard of living to agricultural labour by fixing minimum wages under the Minimum Wages Act Though some progress has been achieved in this respect, the implementation of the Act has brought to light some important limitations . Merely prescribing a flat rate for agricultural labour is impracticable and ineffective. Agricultural conditions differ from region to region; a level of minimum wage suitable for one region may be entirely inapplicable in another. The mere task of determining the required minima is thus immense.
35. So far wage fixation for agricultural tabour has been attempted on an ad hoc basis for want of adequate data which require to be collected at regular' intervals. There is a risk of wasting the valuable work done by the Agricultural Labour Enquiry, if steps are not taken to develop suitable consumer price indices for rural areas. The scheme included in the first five year plan for this purpose has not made sufficient progress and requires to be vigorously pursued. The task of minimum wage fixation is admittedly immense, more so is the task of revising these wages periodically as contemplated by the Act.
36. There is also the problem of effective enforcement of minimum wages once they are fixed. Because of lack of organisation and the prevailing economic conditions agricultural labour itself can exercise comparatively little pressure in enforcing the wages fixed. Reliance therefore, has to be placed on inspection machinery and the cost of such machinery becomes almost prohibitive.
37. Assuring a minimum wage to the agricultural tabour thus is no easy task. While there should be no relaxation of the efforts now being made by various States in the fixation of minimum wages and intensified measures in this respect require to be vigorously pursued, it has to be admitted, that all these steps can show only limited results. The Agricultural Labour Enquiry has revealed the large problem of unemployment and poverty among this section of the population. The low level of living is due not so much to a low wage, as to lack of sufficient employment opportunities. Considering the small size of holdings and the level of agricultural production wages cannot be raised substantially. The main effort has, therefore, to be in the direction of providing greater employment opportunities.
WOMEN WORKERS 38. Special attention has to be paid to women workers because of problems peculiar to them. Comparatively speaking they are much less organised. They also suffer from certain social prejudices and physical disabilities. That women are comparatively less suited for heavy work and are more vulnerable to situations in industry which produce fatigue are used as arguments to justify views which are often held in support of lower wages for them. They are either given lower jobs or the jobs they handle traditionally become women's jobs and carry lower salaries. The fact that simply because women's abilities are different does not necessarily mean that they constitute a lower class of workers, is overlooked.
39. The special cares and duties which fall to women necessarily place them under some handicap as industrial workers, Special provisions for protecting them are, therefore, made in various statutes, but their effective implementation is essential. In particular, women should be protected against injurious work, should receive maternity benefits. and work places should provide creche facilities for children. Nursing mothers should be entitled to paid rest intervals for feeding infants. The principle of equal pay for equal work needs to be more vigorously implemented and the tendency to scale down the jobs traditionally handled by women has to be guarded against. Training facilities should be provided for them so that they can compete for higher jobs. In addition, the possibility of increasing opportunities for their part-time employment should be explored,
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DEVELOPMENT PROGRAMMES 40. The provision for development programmes under 'Labour crores-Rs. 18 crores at the Centre and Rs. 11 crores in the plans & Labour Welfare' in the second five year plan amounts to Rs. 29 of States. The main programmes are explained below: