Keeping industrial peace

The CEO of a company of a company in Greater Noida was recently lynched to death while some senior officers were seriously injured. The unfortunate incident followed a dispute between the management and some workers who were reportedly laid off a couple of months ago. Industrial unrest is not new to our country and employees’ unions, particularly in the organized sector, have often resorted to militant action to get their demands conceded. However, incidents of such a gory nature resulting in the violent death of the CEO have not been heard of in recent past. The reaction of the Union Minister of Labour advocating a more sensitive approach to labour relations was not entirely misplaced. Indian work force, especially at the lower levels, is often exploited by contractors who keep hefty margins but pay the casual workers less than the mandatory minimum wages. If there is presence of regular and casual workers in the same unit, the disparity in wages and other service conditions becomes a cause of serious disaffection. The private managements invariably refuse to accept any responsibility for the casual workers by passing the buck to contractors. While the hire and fire policy has been accepted at senior levels in the corporate world, it causes a lot of heartburn among the workers. This is understandable since it is relatively more difficult for them to find other employment or make ends meet immediately after the lay-off. The absence of any social security in our country makes the situation more explosive.
This is not to justify the senseless violence, which the mob of workers indulged in Greater Noida but to appreciate the reasons why corporate world cannot treat the highly skilled executives and ordinary workers by the same yardstick. The Minister has rightly apologised if he hurt anyone while espousing the cause of contract workers. The incident highlighted the failure of grievance redressal machinery, which should be in place to solve disputes in all industrial units in a reasonable time-frame. The failure of the police force to promptly respond to the distress call from the company is also a serious matter, which should not be closed with the routine suspension of a few policemen. If industrial peace has to be ensured, we need a multi-pronged strategy. The workers need to be recognized as partners in progress. Therefore they must not be exploited in order to maximise profits and mechanisms evolved to involve them in decision making processes. At the same time, gangs of recalcitrant employees cannot be allowed to hold managements to ransom. Those who obstruct work at the instance of political parties or spread disaffection against the management must be restrained. Summary exclusion of contract labour from the purview of Labour Act should be re-examined and in the event of lay-offs, suitable compensation and rehabilitation packages implemented. The rights of workers and managements need to be balanced.
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