Labour policy and industrial relations in India

Study of industrial relations has assumed great importance in the post-independence period. Economic progress depends on industrial peace. Worker is the principal instrument in the fulfilment of the Plan targets and satisfactory industrial relations are necessary for securing his full cooperation. State is also committed to redress the balance in favour of labour, the weaker party, and secure for it social justice.
The British Government did not favour state regulation of industrial relations in private industries. During their rule, Government intervention in the settlement of disputes through compulsory arbitration was confined mostly to the Second World War period under the Defence of India Rules, 1942. The policy of the state today on the other hand is to take active interest in labour problems and prompt settlement of labour management differences, as industrial disputes are not only a matter between employers and employees, but also a vital concern of the community. The changing concept of state responsibility towards working class has led to the formulation and evolution of labour policy in consultation with trade unions and employers' organisations. The industrial relations policy of the Government envisages settlement of grievances and disputes through negotiation, voluntary conciliation and arbitration, failing which industrial peace is to be preserved through compulsory conciliation and adjudication.