1. Evolution of Work & Labour Relations Arun Kumar

2. Issues to cover A word about history of work Evolution of labour rights - UK – where it all started - Other countries From Master-Servant to Employer-Workmen – from rules of status to law of contract Post 2 nd WW to early 1970s Post 1970s to Now – why reforms of labour laws? ---------------------------------------------------------------------- Labour law & Employment relationships

3. Early thoughts on Work Work - " curse devised by God to punish the disobedience of Adam & Eve “ (Hebrew belief) Greeks word for work was ponos, taken from the Latin poena, which meant sorrow. The Romans held manual labor in low esteem & used slaves for work, who had no rights & were treated like cattle ---------------------------------------------------------------------------------------- Source: Historical Context of the Work Ethic - Roger B. Hill, Ph.D. © 1992, 1996 – http://www.coe.uga.edu/~rhill/workethic/index.html Picture Source: http://download-free-pictures.com/religious/adam-eve.html

4. Work in the medieval culture c400 AD until c1400 AD Work became ‘acceptable’ to meet the physical needs of family & community, & to avoid idleness which could lead to sin. Social status related to person’s work (Church >agric >handicrafts >commerce) Duty of a worker to remain in his class (family work passed from father to son). Picture Source: http://www.leavesofgold.org/learn/children/slideshow/widener1_1.html

5. 16 th –18 th Century –rise of capitalism  16 th Century – Protestant Reformation encouraged work, occupations as well as the right of choosing one's work, approved idea of profits – formed the basis of an emerging capitalist economic system  Growth of trade & rise of economically powerful towns provided new choices for subsistence, decline of power of feudal land based system, Centralization of government Notions about ‘work’ have changed over time but not the lack of respect for workers & their rights! ------------------------------------------------------------------------------------ Picture Source:http://download-free-pictures.com/transportation/sloop.html

6. the first labour law? 1349 – England – Statute of Labourers Placed restrictions on wage increases Criminalized actions taken by workers for demanding wage increases (organizing, agitations, refusing to work, etc) (this was a period of labour shortage in England in the aftermath of the plague) ------------------------------------------------------------------ Picture Source: http://www.hayinart.com/images/1345.jpg

7. Evolution of Labour Rights 18-19 Century – UK’s Master and Servants Law of 1823 - (workers called servants, labourers & work people) Disciplined workers, repressed "combination" of workers in TUs - only workers were subject to its provisions - required obedience & loyalty from servants to their contracted employer - violations punishable, often with a jail sentence of hard labour Influenced employment law in the US, Australia (1845 Act), Canada (1847), New Zealand (1856), South Africa (1856) & in Colonies.

8. From rules of status to law of contract Chartist movement in UK - NCA (1840)- led to voting rights for part of the working class in 1867 – TUC formed in 1868 - Unions legalized by 1871 TU Act - in 1874 Factory Act The Employer & Workmen Act of 1875 brought employment into the framework of general law of contract (as against regulation of labour as per ‘rules of status’). Employer however had the right to control the labour of his employee (hiring, firing with notice, no or little compensation, no state protection to workers) till the 2 nd WW.

9. Picture source: http://www.ibrp.org/en Devts in other parts of the world  In continental Europe- Socialist movement gave rise to unions from 1880s onwards. Germany was the first European country to pass labor laws –social security initiatives from 1883 onwards Health Insurance Act  South Asia: British influence - TUs illegal till late 19 th C; Factory Act in 1884, 1 st formal TU in 1905 (textiles in India) – TU Act 1926 - TUs linked to national struggle for independence – led to many rights after 1947  Japan: labour unions started in late 19 th C by social reformers; conditions bad – workers mobility, till 1945, no legal protection; US influence; enterprise family concept after 2 nd WW (welfare, steady (life time) employment, loyalty, company level CB);

10. In Africa – emergence of wage labour  1900s – needs of colonial powers led to development of mines, railroads, commercial farming & processing plants – role of high cash taxes obligations on village heads or households –forced/indentured labour–  1920s - emergence of TUs in Tunisia, Zambia (Northern Rhodesia) & South Africa – to demand for end to slave-like conditions & better wages – TUs considered illegal & viciously crushed  WW II - a turning point – Greater demand for raw materials, mining & production in Africa – impetus to urbanization & working class – many Africans fought in the war - stimulated also the struggles against racism & colonialism – ban on TUs lifted in 1940s by Britain Picture source: http://z.about.com/d/geography/1/0/4/L/africa.jpg

11. In Africa  Post war: rise of communist/socialist movements, return of African soldiers & support of TUs in Europe helped labour movement – 1946 strike of 75,000 mine workers in SA – inspired TU struggles all over – forced labour abolished in French West Africa after 1946 strike by Railway workers  Workers movement soon linked to wider economic & political struggles (for freedom) - 1950 General Strike in Ghana ended with autonomy & promise of full independence by the British (which came in 1957) – same thing happened in other parts, Of course the struggle of African workers continues… Picture source: http://links.org.au/node/449

12. Women Workers & TUs  Women’s work historically discounted, not recognised & no rights – change started only under industrial life  Women contributed to industrial revolution in many countries – textiles, coal mines, laundry,  But women not well represented; Crafts Unions excluded them mostly; Attempts to organise women came from outside the labour movement - philanthropists;  1874 : Women's Protective & Provident League formed in UK (later called the Women's Trade Union League)  No voting rights till early 20 century in most countries

13. Post 2 nd WW to early 1970s Emergence of modern Employment Contract Fear of Socialism, rise of social democracy & welfare state, end of colonialism, Strong labour movement & unions Needs of post war reconstruction Needs of the corporate large firms for stable labour [need to retain skilled workforce for fordist industrial structure] Social Pact/compromise between labour & capital in the West - rise of European Social model Picture Source: http://www.amazon.co.uk/Employment-Contract-Principles-Drafting-Interpretationhttp://www.amazon.co.uk/Employment-Contract-Principles-Drafting-Interpretation/dp/0199269661

14. Nature of changes brought about in Employment Contract Made unfair dismissal legally difficult Restricted the power of the employer to misuse his stronger position Laws enacted regarding minimum wages, regulation of working hours, OT, inflation compensation, leave, OSH, TU rights & C.B. Recognized the inequality of employer-employee relationship & made State responsible for upholding basic workers rights – growth of tripartism

15. Technological needs of the capitalism/industry required stable workforce (1950s -1970s) & led to accommodating some interests of labour. (large factories, economies of mass production, nationalized production & relatively protected markets, productivity gains came often from innovations at the shop floor) Too time consuming and costly to keep on training new labour under the fordist system So, what changed after 1970s that the capital lost the need for stable labour?

16. Post 1970s The post-war Keynesian model ran into problems in 1970s– stagflation & profit crises - started the decline of the politics of the social pact & beginning of neo-liberalism. Growing competition - need for low cost production Technology reduced the need for large skilled labour force? Or was there enough skilled work force? Costs & time involved in skill formation not high enough to deter flexibility? – costs externalized to State and other employers? Innovations from labs rather than from shop floor [Chemicals, pharmaceuticals, Software, bio-technology, aviation, etc] – reduced the importance of in house mass production

17. Post 1970s – ongoing trends Emergence of developing countries competing for export markets and FDI, with a policy to keep labour cheap – Technology & economic liberalization facilitate international division of labour, decentralisation of production - ‘outsourcing’, ancilarisation, cross border production (advances in transport, communications & IT) Rise of service economies Costs of restructuring labour increasingly shifted to the State – for unemployment benefits, retraining & redeployment

18. Needs of the Capital in the age of Globalization Flexible production - global supply chains - – decentralization of production with smaller units but with continued concentration of capital ownership, freedom to close down, shift production to serve changing market needs Flexible labour – outsourced, contract, casual, fixed term, part time workers – freedom to hire & fire – freedom from collective bargaining & long term contracts Access to raw material & newer markets - dismantling of barriers to investment & trade

19. Policies to meet the needs of the Capital under neo-liberalism Economic liberalization, deregulation of trade & investment, opening of the economies (first set of reform took place in areas of foreign trade, financial system & international capital flows) Second set of reforms aimed at structural rigidities in other markets, including labour markets

20. & so… labour reforms come on the agenda Main objectives of labour reforms Increase management powers of bringing about changes at work place Allow hiring & firing as prerogative of the firm Allow flexibility in the nature of employment that firm can offer Rationale offered: Labour market regulations introduce rigidities, add to production costs, restrict flexibility & efficiency and discourages employment generation by industry Employer must have the right to determine the size & composition of the workforce

21. & …what about the workers? In return for flexibility, higher compensation can be offered Social security, training & redeployment for workers can also be considered which should be done mainly by the State!  While the costs of downsizing, insecurity of workers & investment in human capital are sought to be passed on to the State, its role in regulating & legislating workers rights is being eroded

22. Employment Relationship & Labour Law - next session