Wage Determination

Methods of affiance Determination in India 1. Fixation of earnings is a recent phenomenon in India 2. There was no effective machinery until second world war for resolving power of disputes for holdfast of recompense. 3. After independence of India, industrial relations become a major issue and there was phenomena amplify in industrial dispute mostly over commitment lead to substantial loss of production. 4. Realizing that industrial peace is essential for progress on industrial as well as economic front, the primordial govt. convened in 1947, and a tripartite conference consisting of representatives of employers, labour and government.Govt. of India formulated industrial form _or_ arranging of government resolution in 1948 where the govt. has mentioned to items which has bearing on proceeds statutory fixation of minimal takes Promotion of fair charters. 5. To achieve 1st objective, the minimum net incomes act, 1948 was passed to lay down certain norms and procedur es for determination and fixation of hires by central and state govt. 6. To achieve 2nd objective govt. of India castt in 1949, a tripartite committee on fair wages to determine the principles on which fair wages should be fixed wage and salary incomes in India are fixed through several institutions. These are Collective negociate Industrial wage bound Govt. name hire focussings Adjudication by courts & tribunals 1. COLLECTIVE BARGAINING- Collective bargain relates to those arrangements under which wages and conditions of practice sessions are generally decided by agreements negotiated between the parties. Broadly talk the following factors affect the wage determination by collective bargaining process ? Alternate choices & demands ? Institutional necessities ? The right and capacity to strike In a modern democratic society wages are impelled by collective bargaining in contrast to individual bargaining by working. In the matter of wage bargaining, unions are prim arily refer with ? General level of wage rate ? Structure of wages rates (differential among occupations) ? Bonus, incentives and fringe benefits, Administration of wages. 2. INDUSTRIAL WAGE BOARDS- Concept of wage gore was number 1 enunciated by committee on fair wages. It was commended by first five year plan and second five year plan also considered wage come on as an acceptable machinery for setting wage disputes. Wage boards in India are of two types ? Statutory wage board ? Tripartite wage boardStatutory wage board agent a body set up by law or with legal authority to establish minimum wages and different standards of employment which are then legally enforceable in particular duty or industry to which boards decision relate. Tripartite wage board means a voluntary negotiating body set up by discussions between organized employers, workers and govt. to regulate wages, working hours and related conditions of employment. Wage board decisions are not final and are subj ected to either decision maker or judicious review or reconsideration by other authority or tribunals. The powers and procedure of wage boards are same as those industrial tribunals unsaturated under ID Act 1947. 3. PAY COMMISSIONS- First cave in mission was appointed by govt. of India in 1946 under chairmanship of justice vardachariar to demand in to conditions of service of central govt. employees. The vardachariar commission in its track express that in no case should a mans gestate less than bread and butter wage The 2nd pay commission was appointed in aug. 1957. and commission submits its report in 1959, examined the norms for fixing a need based minimum wage set up 15th session of ILC. Govt. f India appointed third pay commissions in 1970s which submit its report in April 1973. In this report commission express its support for a system in which pay adjustments will occurs automatically upon an upward movement in consumer price index. After thirteen years, govt, ap pointed fourth central pay cimmissions under chairmanship of justice P. N. Singhal on July 26, 1983 to examine structure of all central govt. employees, including those of union territories. Officers belong to all India service and armed forces. Commission submits its report on July 30, 1986 and recommended drastic changes in pay scale. The 5th pay commission (1952-1996) made certain recommendation regarding restricting of pay scales. The 6th pay commissions was established on 2006 and committee submit its report on jar against 2008. 3. Adjudication Since independence adjudication has been one of the main instruments for settlement of disputes, improvement in wage scales and standardization of wages and allowances. Though courts and tribunals were primarily intended to deal with settlement of industrial disputes, in practiae, wage fixation has become an important division in their work and functioning. This is because of large of disputes concerning of wages and allowances.Numero us wage disputes in many industries have been referred for adjudication to labour courts and tribunals during past ten decades. The high courts and sovereign Court have also adjudicated upon such disputes. The awards given by these government activity not only helped in formulation of a body of principles disposal wage fixation but laid foundation for present wage structure in many of major industries. Some major code which governs the principles of wage fixation -Minimum wages Act 1948, Payments of wages Act 1936, equal Remuneration Act 1976, Industrial Disputes Act 1947, and Companies Act 1956.