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• The First Plan stated that all wage adjustments should conform to
the broad principles of social policy and the disparities of income
should be reduced to the utmost extent. The immediate aim was to
restore the pre-war real wage level, as the first step towards the
living wage.
• The First Plan insisted on avoiding any wage rise which would raise
the cost of production and set in motion wage-price spiral; for in
such a case, gains to the workers would prove illusory since they
would, in all probability, get cancelled by a rise in the price level.
• But soon after Independence, the Government assumed
responsibility for securing a minimum wage for certain sections of
workers—both in industry and in agriculture—who were
economically weak and who stood in need of protection. Towards
this end, the Minimum Wages Act was passed in 1948 to provide
for the fixation and revision of wage rates in certain occupations.
But the Government was aware that the Act was not effective in
many cases.
• During Second Five Year Plan, a code of discipline in industry was
accepted voluntarily by all the organisation of employers and workers
which has been in operation since the middle of 1958.
• The code has laid down specific obligations for the management and
workers with the object of promoting constructive cooperation
between their representatives all levels. As a result of this new concept
of such far-reaching aims, there has been considerable improvement in
the sphere of industrial relations.
• The number of man-days lost declined significantly from 47 lacks during
Jan-June 1958 to 19 lacks during July-December 1960. Besides, the
inter-union rivalry has been mitigated to some extent by the code of
conduct which was drawn up and accepted by the representatives of
worker’s organisation. The code provides that every employee shall
have the freedom and right awards to join a union of his own choice.
• During Second Five Year Plan, two significant steps were
undertaken. Firstly a form of workers’ participation in
management was evolved. Joint management councils
were established on experimental basic. The Council has to
bring about mutual consultation between employers and
workers over many important issues which affect industrial
relations.
• Secondly a scheme of workers’ education has been
implemented. The scheme comprises training of teacher-
administration and worker teachers. This scheme has
helped to raise the self-confidence of workers and has
increased their ability to take advantage of protective
labour laws.
The Second Plan:
• The Second Plan proposed to give labours a fair wage. Fair wage
was distinguished from minimum and living wage. For instance,
minimum wage must provide to the worker and his family not only
sustenance but also something more to preserve his efficiency.
Living wage should enable the worker to provide for himself and for
his family not only the bare essentials of food, clothing and housing
but also a measure of comfort, etc.
• On the other hand, fair wage was somewhere midway between the
minimum and the living wage and it would be determined with
reference to the capacity of the industry to pay the wage and the
prevailing rate of wages in the same or similar industry.
• Government’s policy was to link the wage-rise with the rise in
productivity. The Second Plan specifically stated: “Earnings beyond
the minimum wage should be necessarily related to results.”
Third Five Year Plan:
• Under the Third Five Year Plan, labour policy was designed
according to immediate and long term need of a planned economy.
India’s present labour policy is directed towards that attainment of
full employment and assisting standard of living of the people. The
concept of socialist society was kept in mind. Hence, as pointed out
in the Third Five Year Plan, the fruits of progress should be shared in
an equitable manner.
• The surplus that are generated a social product to which neither the
employer not the working class can lay an exclusive claim, their
distribution has to be according to the worth of the contribution of
each, subject to the requirements of further development and his
interest of all the sections of society, in particular, the satisfaction of
the basic needs of all its members.
Third Five Year Plan: