Collective bargaining at National Level in Indian Steel Industry Udaya Bhaskara Naidu Kakilate India, Master’s Programme in Industrial and Employment Relations, 2016-17

Republic of India India is the largest democracy in the world. India is the seventh largest (by area) and the second most populous country . India is one of the oldest civilizations in the world, spanning a period of more than 4000 years, and witnessing the fusion of several customs and traditions, which are reflective of the rich culture and heritage of the Country.

Republic of India 3 Bihar 104 15 Assam 31 27 Arunachal Pradesh 1.3 4 S l No Name of the State In Milions Sl No State 1 Uttar Pradesh 200 13 Kerala 34 25 Nagaland 2 Maharashtra 112 14 Jharkhand 33 26 Goa 1.5 3 Bihar 104 15 Assam 31 27 Arunachal Pradesh 1.3 4 West Bengal 91 16 Punjab 28 Mizoram 5 Andhra Pradesh 50 17 Haryana 29 Sikkim 0.5 6 Madhya Pradesh 73 18 Chhattisgarh NCT Delhi 7 Tamil Nadu 72 19 Jammu and Kashmir UT1 Puducherry 1.2 8 Rajasthan 69 20 Uttarakhand 10 UT2 Chandigarh 9 Karnataka 61 21 Himachal Pradesh 6.8 UT3 Andaman and Nicobar Islands 0.37 Gujarat 60 22 Tripura 3.6 UT4 Dadra and Nagar Haveli 0.34 11 Telangana 35 23 Meghalaya UT5 Daman and Diu 0.24 12 Odisha 42 24 Manipur 2.7 UT6 Lakshadweep 0.064

INDIAN WORKERS AT A GLANCE The Total number of workers in INDIA at the end of 2016 is around 490 millions. Around 461 million (94%) are in UNORGANISED Sector. (Unincorporated) (Small and marginal farmers, landless agricultural labourers, sharecroppers, fishermen, those engaged in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, workers in oil mills. attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders, midwives, domestic workers, barbers, laundry people, vegetable and fruit vendors, newspaper vendors, pavement vendors, hand cart operators)

250 million workers are in Agriculture Around 250 million workers are in Agriculture and its allied sectors. The average salary of an agriculture worker in INDIA is $ 4 per day. Around 18000 farmers committed suicides in 2004 and 5,560 suicides in 2014. Unemployment rate in India is 5% in 2015-16 and the unemployed persons are around 45 millions. (1/4 of the world unemployment) Debt bondage,( Child labour (8.2 million out of 217 million ), Migrant labours (Domestic 4.2 million and International 4 million

29 million workers are in organized sector. Around 29 million (6%) workers are in organized sector. The organized sector includes workers employed by the government, state-owned enterprises and private sector enterprises. The organized sector employed 17.5 million workers for government or government owned entities and remaining 11.5 million are private sector employees.

Collective bargaining “Collective bargaining” means all negotiations between employers and or employers’ organizations on the one hand and workers’ organizations on the other, for determining working conditions and terms of employment and/or regulating relations between employers and workers and/or regulating relations between employers or their organizations and a workers’ organization or workers’ organizations.

Collective bargaining The right to bargain collectively with an employer enhances the human dignity, liberty and autonomy of workers by giving them the opportunity to influence the establishment of workplace rules and thereby gain some control over a major aspect of their lives, namely their work.

Legal framework of Collective bargaining in India Trade Union act was introduced in 1926. Subsequently Industrial dispute act 1947. Indian Constitution also supported freedom of association (Article 19) Supreme Court observed that, "Collective bargaining is a technique by which dispute as to conditions of employment is resolved amicably by agreement rather than coercion."

Indian Steel Industry. Indian Steel Industry has a history of more than a century. SAIL and Tata Steel have been the major steel industries of India. The liberalization of the India economy directed to the opening up of many steel industries, consequently, increased production capacity The total employment in the industry is more than two million (including direct and indirect employment)

“Central wage board for Iron and Steel industry” was appointed in 1962 workers representatives, employer’s representatives and nominees from Government. as per the recommendations of the wage board, the managements of the different steel plants had entered into settlements with the recognized unions operating in those plants

Joint Wage Negotiating Committee for the Steel Industry -1970 New era of Collective bargaining in Indian Steel Industry started wage revision through ‘bipartite negotiations’ pre-established objective of wage settlement including minimum wage, dearness allowance, fitment of pay scales, housing , gratuity, incentives, bonus, transportation, education and overtime.

The parties to Collective bargaining Employers’ representatives: 4 Workers’ representatives: Fifteen representatives from workers, three each from the three central trade union organizations viz INTUC,AITUC and HMS and one each from recognized Unions at Jamshedpur, Burnpur, Durgapur, Rourkela, Bhilai and Bhadravati to represent around two hundred fifty thousand (250,000)workmen

The process of Collective bargaining and outcome. Collective bargaining agreement on 28th October 1970. The scope of the committee has enlarged and it continued functioning under the name of Joint Negotiating Committee (JNC) second Collective bargaining agreement on 31st July 1975 The name of the Committee has further changed to National Joint Consultative Committee for the Steel Industry(NJCC)

NJCCS Collective bargaining agreement on 1st June 1979 In June 1979, the name of the committee was changed to National Joint Committee for steel Industry (NJCS) Memorandum of Agreement on 25th May 1983 Memorandum of Agreement on 5th July 1989 Memorandum of Agreement on 18th May 1995

National joint committee for the steel industry (NJCS) Memorandum of Agreement on 23rd July 2001 Memorandum of Agreement 29th April 2010 Memorandum of Agreement 1st July 2014 The unique feature of its working has been an atmosphere of cordiality, consensus and understanding amongst its members leading to satisfactory conclusions.

Successful Experiment NJCS is the first bipartite forum of its kind at the national level set up in 1969 With the success of this experiment, this idea was emulated and followed by other public undertakings Despite varying ideologies of different Trade Union organizations represented in the committee and conflicting situations, the committee functions in harmony and symbolizes unity in diversity

Challenges. Unjustified delays in the process of social dialogue, Indirect intervention of the Government, Excluding or diluting main issues like Bonus, Pension, Medical facilities etc. Improper and partial implementation of the Collective bargaining agreements Adverse Government policies and Influence of market crises

Remedies Thorough training and guidance to the actors concern by ILO. Ratification of fundamental conventions as a member State Thank you