Contents Introduction 2 History of industrial relations China and India 2 Role of state in passing IR legislation in China and India 3 Trade unions in China and India 4 Employers association in China and India 5 Dispute resolution system in China and India Current and future trends in China and India Conclusion 7 Bibliography 8 Introduction 5 6 Industrial relation is seen as appendages by which employees and their companies relate in the working place to create rules and regulations of employment (Vendetta, 1987)..
In other words, it is the multidisciplinary field that works with the employment allegations. For example, a good working relationship is required for both parties to work and achieve their goal in the production they made in the work place. Furthermore, for the leader to have a good connection with the workers, the employer has to avoid discrepancies with the employees, if they occur the two parties should settle them quickly and amicably to bring industrial harmony and high production of the industry.
For this essay, its main focus was to compare and contrast the main features of Industrial relation in China and India. Firstly it will briefly explain the root story of industrial relation in both the two countries. Furthermore, it will compare and contrast the main features of industrial relation, in relation to the role of state in passing the IR system, Trade Unions, Employers association and lastly the dispute resolution. It will also provide specific examples of the specific countries involved.
History of industrial relations China and India According to china, Industrial relation has its roots in the industrial revolution which created the modern employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers. As society struggled with these massive economic and social changes, labor problems arose. Low wages, long working hours, monotonous and dangerous work, and abusive supervisory practices led to high employee turnover, violent strikes, and the threat of social instability.
On the 1st of October 1949 the people republic of China was founded and during the certain period of time it is governed by the Chinese Communist party. China is currently the most populated county in the world. The labor market involvement is high, as the social security measures is fundamental ND give hand only to the overtone reporting for the small portion of the population mainly those with urban residents state. In china most employment rate was woman in particularly and only those who live in the urban area compared to India.
For example, the rural residents were not allowed to enter urban areas for employment. While in the nineteenth century, the India system of industrial relation has evolved from its origin in British India. The system was established prior to Independence and remains mostly unchanged. The system is highly centralized and the state is the main mediator between capital and labor. Unions have historically enjoyed a close relationship with the state through party-based federations, but this has undermined their success developing a robust grassroots constituency and experience in collective bargaining.
Hence, the industry brings together the employer or management and the worker, while the interest of the management is ensure that the gap between product price of the labor cost is wide the employees’ interest to get more for the services rendered. As seen before the relationship among the employer and the employee is referred as industrial relations. More importantly, the main aim of the industrial relation in India is to, minimize industrial disagreement.
In India, “statistics show that most of the disputes occur due to wages and allowances disagreements, workers’ indiscipline, that lead to violence; and retrenchment of workers”, (Eventuating). In India, the employment rate was higher in the rural areas. For example, the majority of Indian’s workforce is rural and employed so-called the informal sector. Furthermore, in India, all citizens including the rural and urban have the right to be employed in the industry. In one way or the other, both countries China and India developed in the industrial revolution.
The main objective of both parties in industrial relation is to protect the interest of workers and the management by providing common understanding between the workers and the industry management. Also to faithfully create and develop the growth of democracy in the industries that is founded on labor partnership that promotes sharing of profits and also management decisions to foster individual growth of workers and at the same time benefit the industry and the country as a whole. Role of state in passing IR legislation in China and India
Firstly, like many other countries the Chinese government plays a role of employer, as well as looks after the Chinese policies and economic. The Chinese government produces labor law and regulations like working hour, set the minimum wage, establish the working conditions, labor safety, social insurance and welfare structure. While in India, the legal foundation for unions, collective bargaining and workers rights was usually formed by the British common laws. After their independence from Britain in 1947, the Indian laws were from the most favorable to workers anywhere in the world (Beamer et AY 2011) .
In India the government is not torching workers to Join union, with their constitution workers are free to choose if they want to Join unions or not. Since sass many labor laws and regulations were created including the newly formed Labor Law of China in 1995. In 2007 the state set up the Labor Contract Law, the Employment Promotion Law and the Labor Disputes Mediation and Arbitration Law. These laws are mainly created by the government as a tool to protect its workers from any difficulties occurring in the labor market.
It was easier for the workers to seek support from their government when going through problems on their work place. Also these laws and regulation are regarded as legal structure in which the employment relation is managed as well as the labor market. Similarly, an Indian government has created many other Labor Laws after its independence. For example the Industrial Disputes Act, 1947, the Child Labor (Prohibition and Regulation) Act, 1986 and a current one the Unrecognized Workers Social Security Act, 2008.
Also in India Labor law arose due to the demands of workers for better work conditions, the right to organize, and the immediate demands of employers to restrict the powers of workers in many organizations and to pep labor costs low. Trade unions in China and India Firstly in China, the goals and objectives of unions are supported by laws like the Trade Union Law which was amended in 2001, the Labor Law in 1995 and the Labor Contract Law in 2008. In both China and India, the main roles of trade unions were to look after the legal rights and interests of all workers in a particular organization.
For instance in India, trade unions have negotiated for higher wages for their members during the sass and sass and frequently secured higher wages for permanent workers at the expense of temporary workers. During the late sass and sass, when the number of permanent employed workers began to decline rapidly and other forms of employment were growing, trade unions began to push for non- discrimination in remuneration between temporary and permanent workers and to take off existing wage disparities (Beamer et AY 2011 ). Furthermore Employees and employers have different interests and wants.
For example most of the workers needs Job security and a proper salary yet employers usually want more productivity and more profit. However, if a party does not meet the other party interests or needs inflict may occur in organization. As a result trade unions appear as a right body to make sure there is always equality and Justice on any decision making occurring within an organization. The two countries trade unions are trying to ignore any action such as strike because this may lead to Job losses and/or the closure of any industry.
In India, workers are increasingly aware of the consequences of strike and hence reluctant to go on strike particularly because of the fear of Job insecurity, concern about the ineffectiveness of strikes and growing awareness that company survival is requirement for employment and income security. In China the government simply supports one trade union which is the All-China Federation of Trade Unions (ACCEPT), affiliated under the Chinese Communist Party (ICP). This trade union was classified as one of the ‘mass organization’ that covers some group of people like women, youth and workers (Beamer et al. 2011, p. 14). A part of its role is to represent its members, to protect their rights and interests and provides its members with intimation, management support, training… To improve operational management and operates at the national, state and local levels. Similarly to India the All-India Trade Union Congress, affiliated to the Communist Party of India that was fully supported by the Indian government (Beamer et al. 2011, p. 334). The government also gives to any union with the minimum of 500 000 members spread over at least four industries and four states the recognition to be as a national trade union centre.
Most workers in China from huge industries with the exception of new businesses and small enterprises, have Worker congresses’; their role is to approve collective labor agreements and select trade union staff. In China workers in huge companies re encouraged to Join unions. While, according to the article 19 (c) of the constitution of India guarantees the right of association which is the right to belong or not belong too union. In India, it is not compulsory for a worker to Join a union even though the workers are from large companies like in China.
In addition remaining countries form one group, in which both the trade union density and collective bargaining coverage rates are relatively low; within this country group, the Baltic countries – that is, Estonia, Latvia and Lithuania – together with India and Japan form a subgroup, in which the respective industrial relations indicators are at an extremely low level. While trade unions developed in response to the needs of workers, employers have also recognized the value of Joining together for support and protection.
Employers association in China and India The notion of ’employer association’ is related to business industries that have a specific interest within an industrial relation. It is this specific industrial relations interest which distinguishes these ‘associations’ from other industries that represent employers across a range of other interests. Employer associations in China are much well established, with exception of the China Enterprise Confederation (CE), which plays a limited role in employment relation (Beamer et AY 2011. . 310). The government also recognizes only one employer association and yet the Chinese employers formed pressure groups that allow them to negotiate with their government concerning their business environment. While in India, there were two major umbrella organizations for employers which are the All India Organization of Indian Employers (OHIO) and the Council of Indian Employers (ICE). The two associations bring employers from industries like Jute, textiles and engineering.
The notion of Working class’ in China allows the distinction between urban workers from those who worked in the rural areas. This sort of differentiation can be viewed as a form of discrimination, the labor right should be implemented at all level and not only for some areas within a country. Similarly in India, the Labor Minister, the late K. V Uruguayan Reedy, insisted upon separate representation for public sector employers, at both national and international level (Beamer, 2011, 335). There is gap teens the public sector and the private sector in terms of the employers association.
Dispute resolution system in China and India At the beginning of 1950 the Socialist China formed a labor dispute reconciliation in which was lately amended and legalized (1995) under the Labor Law of China. It then becomes one major formal structure to solve dispute within orientations. Furthermore, there are three steps to consider when solving a labor dispute in China: mediation, arbitration and litigation. While in India agreement can be reached by the way of conciliation measures when dealing with industrial disputes.
The way of resolving labor dispute in India is based mainly on the Industrial Disputes Act of 1947 (Beamer et AY 2011. P. 338). To add on, the Industrial Disputes Act also came with the agreement on which a dispute settlement can be attained with or without alternative to the conciliation process formed by the legislation. In China there were also some other canals such as letters and petitions that workers are using in order to raise their concerns. Workers have used other ways that can be regarded as illegal but it was immediately considered by the government of China in order to censor hose kinds of practices.
Similarly, India also has some other ways of resolving problems such as the Online Dispute Resolution. Section 16 of the Act provides that the orbital tribunal may rule on its own Jurisdiction, including ruling on any objections with respect to the existence or authority of the arbitration agreement. Thus, the base provided by the Act is sufficient to accommodate the mandates of DORM. It is time effective and cost efficient. It can also conquer the geographical obstacles. Current and future trends in China and India
In China also have informal employment and it represents a large number in the labor market. However this form of employment is as no importance to the Chinese government and they are also excluded from labor laws and regulations. For instance most of the workers in this mode of employment do not have legal contract with employers (Beamer et AY 2011, 322). Most of the time employees with no legal contract with employers are less protected. Employers may have more control over them. As the number of private and informal sector arise it result on direct consequence on the Chinese economy.
Similarly in India labor reforms mainly focused on the needs of enterprises, such as high quality, efficient production and cost benchmark to competition (Beamer et AY 2011, 343). Workers in the private and informal modes of employment tend to work for a longer period of time (all above 50 hours) per day and that sometimes leads to workers leaving the Job or becoming unhealthy. Work-life balance can be a major problem for workers in private and informal sector. These are some issues that all person responsible in private, informal or public, formal sector should consider in order to always maintain a lance between work and life.
Whereas in India responsible authorities are all aimed at the same need to increase flexibility while maintaining the standards of worker protection that have been developed in the years since independence. It allows worker to have a balance between their work and life. Conclusion In conclusion the main features of industrial relation in both China and India are changing over time, due to various factors such as economic reform. By comparing the two countries according to the different features that occurs within a industrial elation, the government of both countries have different Labor Laws resulted on similar interests.
One of their commune interests was to protect both employees and employers so that each party could make ethical decision. In terms to the two countries trade unions as seen the government has less influence on trade unions. In India event on their constitution a worker has the right to make its own decision concerning their affiliation in unions. In contrast to China with only one employer association, India has two major association that Joined workers from different organizations with similar interests.
In China and India dispute resolution are mainly directed by Labor Laws such as in India the Industrial Disputes Act of 1947. However, it is important to know that all Labor Laws implemented by the governments in order to maintain a humanistic employment environment are not always achievable due to various changes that are occurring in organizations nowadays. Therefore, the most important is that workers and employers needs to cope with different changes that may occur and make sure both parties meet their own interest in order to have a peaceful work environment.