Industrial Relations

and
Technological Change

Industrial Relations

The relation between an employee and an employer in the course of running of an industry and may project itself to spheres which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others. Industrial Relations or Labour relations, is an expression used not only for relationships between employers and Trade Unions, but also for those involving Government with the aim of defining policies, facing labour problems.

Concept of Technological Change

Technology is an instrument of development. Affects various aspects of economic and social life. Technological changes is a continuous process which covers a series of developments,mechanization,increase in mass o production. The relation b/w technological changes and Industrial Relation is very important subject Those interested in industrial relation have been concerned with the effects of the technology on labour management issues such as manpower,job security,redundancy,training.

Technology implies not only better and more sophisticated machines,but also related o improvement in working conditions,managerial knowledge and skills

Hader Ferman and Hudson have identified certain changes which affect jobs and influence skills in American industrial system. These Technological Changes are1) Scientific Management Or time and Motion studies 2) shift in location of plants 3) shift in product demand 4) change in machinery 5) Automation

Rationalisation & Automation

Rationalisation implies a basic change in the structure and control of industrial activities. Its techniques can be applied to methods, material and men.
In Automation, technology itself controls the operations. The machine provides data from its operations and feeds it back to its own controls which governs the production process.

Implementation of Rationalisation and Automation in India

Influenced by American Model To Increase productive efficiency Vast surplus of Labour after II World War Safeguards by Labour Ministry and Planning Commission-Fixing the work load -Stopping fresh Recruitment -Offering higher wages -Voluntary Retirement -Sharing of gains Second Five year plan- Rationalization was to be attempted only when it did not lead to unemployment.

Progress of Rationalisation and Automation in India

3 industries- Cotton-textile, Jute and Coal Cotton-textile- Workers accepted it.

- Introduced in the form of efficiency measures. -Additional strain & Inadequate increase in earnings.

Jute- International Competition

- Progress slow, Dependence on foreign country for Raw Material

Coal- Rationalization in larger mines, old methods in small

mines

Automation at LIC (1963)

Central trade union organization opposed it. Loss of employment and addition to cost. Management arguedaccelerated industrialization, increased productivity, raised standard of living.

In order to bring reconciliation- meeting of Standing Labour Committee to consider the impact of automation and remedial measures. There was underutilization of computers because they were introduced without adequate preparation, planning and thought.

Cont.

The question of installation of computers in these established industries were to be governed by two criteria, namely: 1)The effect on employment in relation to the whole economy 2)The effect on employment in the relevant departments of these establishments.

Impact of Technological Change

NEGATIVE IMPACT

POSITIVE IMPACT

Impact on employment Redundancy Occupational Adjustment Allocation of gains Transfer & Retraining Problems Resistance to change- Strikes, Absenteeism, resignations etc. Job Satisfaction Worker & Union Reations Changes in job content thereby creating new jobs to replace old ones Fitting new jobs into the existing incentive scheme

Labour saving Improves level of earnings Higher productivity Reduction in cost and increase in benefits Product standardization

Appropriate Technology: Its relevance to the Indian Context

The kind of technology which would be found appropriate to the conditions found in the country where it was being introduced.

Less developed countries do not possess requisite labour skills to replace the machine skills, technical know how and infrastructure.
Example- The solar pump developed by a French firm which is being used in Mexico.

CONCLUSION

Thus, one must not only examine very carefully the cost benefit analysis from the economic point of view but also take into account the repercussions on industrial relations.