EXPLOITATION OF WORKERS AND ITS DIFFERENT PATTERNS

UNIVERSITY INSTITUTE OF LEGAL STUDIES,

PANJAB UNIVERSITY, CHANDIGARH.

A project report submitted as a part of curriculum of B.Com. LLB (Hons.) in

the subject of Labour Law.

EXPLOITATION OF WORKERS AND ITS DIFFERENT PATTERNS

SUBMITTED TO: SUBMITTED BY:

Dr. Shallu. VAISHNAVI
BCom. LLB (Hons.)
SEMESTER – 9th
Section – F
224/19

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ACKNOWLEDGEMENT

The success and final outcome of my project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all
along the completion of my project. All that I have done is due to their
supervision and assistance and I would not forget to thank them. It would not
have been possible without the kind support and help of many individuals and
organisations. I would like to extend my sincere thanks to all of them.

I am highly indebted to “Dr. Shallu” for their guidance and constant supervision
as well as providing necessary information regarding the project and also for
their support in completing the project.

I would like to express my gratitude towards my parents and friends for the kind
cooperation and encouragement which helped me in completion of this project.

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TABLE OF CONTENTS

S.NO. PARTICULARS PAGE NO.

1. Introduction 4

2. Exploitation of Workers 5

3. Industrial Revolution of India 6

- Evils of Industrialization
a. Economic Evils
b. Social Evils

4. Patterns of Exploitation of Workers in India 9

5. Industrial Jurisprudence 11
- Basic Principles
- Rights of Workers

6. References 15

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INTRODUCTION

Labour rights or workers' rights are a group of legal rights and claimed human rights having
to do with labour relations between workers and their employers, usually obtained under
labour and employment law. In general, these rights' debates have to do with negotiating
workers' pay, benefits, and safe working conditions. One of the most central of these rights is
the right to unionize.

Labour rights can also take in the form of worker's control and worker's self-management in
which workers have a democratic voice in decision and policy making. The labour movement
in itially focused on this "right to unionize", but attention has shifted elsewhere. Labour rights
are a relatively new addition to the modern corpus of human rights.

The modern concept of labour rights dates to the 19th century after the creation of labour
unions following the industrialization processes. Karl Marx stands out as one of the earliest
and most prominent advocates for workers' rights.
His philosophy and economic theory focused on labour issues and advocates his economic
system of socialism, a society which would be ruled by the workers Many of the social
movements for the rights of the workers were associated with groups influenced by Marx
such as the socialists and communists.
More moderate democratic socialists and social democrats supported worker's interests as
well. More recent workers' rights advocacy has focused on the particular role, exploitation,
and needs of women workers, and of increasingly mobile global flows of casual, service, or
guest workers.

The International Labour Organization was formed in 1919 as part of the League of Nations
to protect worker's rights. The ILO later became incorporated into the United Nations. The
UN itself backed workers' rights by incorporating several into two articles of the United
Nations Declaration of Human Rights, which is the basis of the International Covenant on
Economic, Social and Cultural Rights.

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EXPLOITATION OF WORKERS

Exploitation of the workers in the beginning of the industrialization under the following
heads:

1.Loss of freedom to work independently : - Newly invented machines that caused

industrial revolution where caused mass production of goods in short period of time
and provided mankind with materials comforts, brought within its wake a number of
problems for the workers also.Independence of labourer was lost as soon as the tool in
his hand was replaced by the machine. Thus, with the industrialization the worker lost
his freedom to work alone with his tool and found himself tied to the machine and to
the owner of the machine.

2.Indifferent attitude of the employer: - Modern industrialization owners of the

industries emerged as a new class of employers who were industrialists and whose
main interest was to maximize their profits than about labour welfare. With
industrialization the workers worked for their employees under the control of
management appointed by their employers. In fact, between the employer who is the
owner of the industries and the workers who worked in those industries there stood
the wall of management.

3.Unfair contract of employment: - To ensure maximum profits to the owners of the

industries management made the workers to work for unduly long hours without any
interval for rest, for extremely low wages, in unhygienic working conditions. In short,
industrial worker in the beginning of industrialization was himself reduced to lifeless
machine has no fixed working hours, no intervals for the rest and makes no demand
for wages or hygienic working condition.

4.Inhuman condition at the work place: - Accidents at the work place without any
insurance cover or compensation to the worker from the employer added to the misery
of the workers and the industrialization. Children in particular was the worst affected
part of labour force in the early phase of industrialization. As children provided not

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only cheap labour but were also too young and defenceless that they could raise no
voice against their exploitation.

INDUSTRIAL REVOLUTION OF INDIA

Industrialization in India as in any other country implies the growth of a factory system with
employers and wage earners in varying circumstances and with varying characteristics, yet
having some common features and it is the common features that are of interest.1

As a consequence of the introduction of factory system production became concentrated in a

few selected places, resulting in the increase of labour population at all such places. The
village workers migrated to the industrial town because of the difficulty of finding adequate
livelihood in their native place. This resulted in disappearance of the popular village
handicraft system because they could not compete with machine made goods.

The goods produced on a mass scale with the help of machines in the industries were cheaper
than the goods produced by handicraft method. But the development of industry in India
brought with it a great evil inasmuch as it changed the status of a craftsman into wage-earner.
Therefore, the craftsmen had to migrate from village to industrial cities in search of
employment in factories.

1
Indian Law Institute: Labour Law and Labour Relations

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EVILS OF INDUSTRIALIZATION:

The factory system had some inherent evils to which the factory workers were exposed in the
beginning. These may be divided into two heads namely, economic and social.

1. ECONOMIC EVILS –

a. The artisan who in the handicraft system had the psychological satisfaction of
producing the goods himself became in the factory system only a tender of the
machine. He had to produce the goods with the help of tools and raw materials
supplied by his employer and in the workshop of the employer. In the factory system
of production only a part of goods was produced by a certain category of workers.
Different categories of workers produced different parts of the same goods. Thus, the
goods came in the final shape by the composite labour of many categories of workers.
The workman in this system did not get full psychological satisfaction of
manufacturing a product by himself and this indirectly arrested his mental
development and creative talents.2

b.The wages paid to factory workers were quite inadequate to meet their barest needs in
the new environment which was different from their rural life.

c. The employment of factory workers was not secure in the beginning; they had to suffer
occasionally from periodic unemployment and under-emplovment as a consequence
of over-production or trade cycles. A worker could be discharged by his employer at
any time without assigning any reasons therefore.

2. SOCIAL EVILS –

a. The factories were sick not only of economic evils but also of social evils.
Overcrowded cities with insanitary slums, and acute housing shortage because of

2
'V.V. giri, Labour Problems in Indian Industry

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large scale migration of village population to industrial towns had its natural effect on
health, morality and social life of workers.

b.Work in factories was very hazardous and strenuous with long hours duty, no rest, and
no facility for recreation. Machines were taken care of by the factory owner who had
little regard for the safety and welfare of the workers.

c. Workers were exposed to serious accidents because machines were not properly
screened. Accidents were considered as normal risk incidental to employment in a
factory and the worker who was unfortunate victim of an accident lost his
employment and had no right to compensation.

d.The wages paid to the workers were very low. The workers found it extremely difficult
to live with the wages so earned by them. Therefore, they had to find out ways and
means to supplement their earnings. Consequently, the wives and children of
workmen started seeking employment. The factory owners exploited this situation and
employed them in large numbers at extremely low wages without any regard to their
physical conditions.

The workers found it difficult to adiust with these conditions. These evils of industrialization
and the lack of adjustment and harmonious relationship between the employer and the
labours created problem in the industry, which is called labour problems.

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PATTERNS OF EXPLOITATION OF WORKERS

The factors that weaved the pattern of exploitation of the industrial workers under the
following heads as follows: -

- DOCTRINE OF LAISSEZ-FAIRE:
The doctrine of laissez-faire grew up and flourished in the nineteenth century with the
advent of modern industrialization, first, as a reaction against old system of state and
guide regulation that had become obstructive and oppressive as a result of the changing
methods of production; and secondly, as the outcome of a feeling that technical powers of
production available for man's use would be most rapidly and thoroughly developed if
individuals were left as free as possible to make use of them. State did not make any
interference in such relationship in the beginning of the industrialization. The doctrine
gives rise to unrestrained economic activity in the state. Doctrine of laissez-faire caused
exploitation of industrial workers in the beginning of modern industrialization as
unrestricted market economy helped the rich industrialist to become richer and made the
industrial workers to suffer in utter poverty. For laissez-faire is essentially a doctrine of
individualism and free competition.

- FREEDOM OF CONTRACT AND DOCTRINE OF HIRE AND FIRE:

The greatest loss that the industrial worker suffered in the name of freedom of contract in
the beginning of modern industrialization was the "security of his job. In the name of
freedom of contract, the industrialist as employers employed the workers in their
industries on such terms and conditions of employment which suited them best, i.e., they
always reserved the right to dismiss or discharge the workmen they employed and they
exercised it as freely as they could. Thus, freedom of contract was in fact the freedom of
the workman, either to work for the employer in manner and on wages, the employer
desired, or to starve. Insecurities to the job of workman was unprecedented in the
beginning of industrialization.

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- DOCTRINE OF CONSPIRACY:
A conspiracy of any kind is illegal although the matter about which they conspired might
have been lawful or any of them to do, if they had not conspired to do it.
According to the doctrine of conspiracy under common law, two or more persons could
not combine to do what they could legally do as individuals. Despite of all this,
discrimination against workmen continues, as the statutes and the common law were not
impartially applied to the employers and his workmen. For instance, employees could be
punished for breach of contract by civil suit only; employees who violated a contract were
punished as criminals and could be imprisoned for three months even the statues passed
in the early stages of industrialization oppressed the workmen and benefited the
employers.

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INDUSTRIAL JURISPRUDENCE

During the twentieth century a new branch of jurisprudence known as Industrial

Jurisprudence has developed in our country. Industrial Jurisprudence is a development of
mainly post-independence period although its birth may be traced back to the industrial
revolution.

Before independence it existed in a rudimentary form in our country. The growth of industrial
jurisprudence can significantly be noticed not only from increase in labour and industrial
legislations but also from a large number of industrial law matters decided by the Supreme
Court and High Courts. It affects directly a considerable population of our country consisting
of industrialists, workmen and their families. Those who are affected indirectly constitute a
still larger bulk of the country's population.

This branch of law modified the traditional law relating to master and servant and had cut
down the old theory if laissez faire based upon the freedom of contract in the larger interest
of the society because that theory was found wanting for the development of harmonious and
amicable relations between the employers and employees. Individual contracts have been in
many respects substituted by a standard form of statutory contract through legislation and
judicial interpretation. The traditional right of an employer to hire and fire his workmen at his
well has been subjected to many restraints.

Industrial Tribunals can be their award makes a contract which is binding on both the parties
creating new right and imposing new obligations arising out of the award. There is no
question of the employer agreeing to the new contract, it is binding even though it is
unacceptable to him. The creation of new obligations is not by the parties themselves. Either
or both of them may be opposed to it, nevertheless it binds them. Thus, the idea of some

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authority making a contract for the workmen and employer is a strange and novel idea and is
foreign to the basic principle of the law of contract.

Similarly, there is change in the concept of master and servant. One who invests capital is no
more a master and one who puts in labour is no more a servant. They are employer and
employees; the former may hire the latter but he can no more fire them at his will.

The interest of the employees is in many respects protected by legislation. Both are now
parties in an enterprise, without one yielding to the higher status of another but as co-sharer
in the partnership. Even the right of labour participation in the management has been given
legislative recognition to the utter despair of the capitalist. Most of the benefits claimed by a
workman are not part of his bargain with the employer when the latter employed him or are
not due to them on account of any contract but of status. The industrial society all over the
world has been moving during the present century from contract to status and this status is a
politico-socio-economic juristic status.

What were the factors that lead to this departure from the old theories of the law of contract,
and the law of Master and Servant? Industrialization in India, as in order countries, brought
with it some new socio-economic problems. Those who control the industry have a natural
tendency of multiplying their wealth and if this tendency is not checked the rich grown on
richer and the poor becomes poorer day by day. The gap between the rich and the poor
ultimately grows on to this extent that it develops into two distinct classes in any industrial
society, a few of whom are Haves and others are Have-nots. This economic disparity leads to
a struggle between Haves and Have-nots, the latter exploited.

Although this situation continues for some time and it had continued to be so in our country
too, but gradually the workmen realized that they could put a better fight if they get united.
This realization was closely followed by a period of industrial unrest leading to strikes and
lock-outs. In conditions of disturbed the world has witnessed the horrors of the two world
wars resulting in spiral rise in the cost of living. With the rise in the cost of living there has
been consistent demand from labour for increase in wages. Democratic ideas have also grown
simultaneously with the growth of industrialization in our country. These democratic ideas
have pleaded for and have also helped in mass awakening and consciousness for greater
power amongst the working class.
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Out of the struggle between workers, demanding for better share in the production and profit
of the industry and the employer's hesitation to part with it beyond a certain limit. have grown
the recognition of certain principles which are considered to be fundamental in almost all
developed countries of the world.

THE BASIC PRINCIPLES ARE:

1. The right of workmen to combine and form associations or unions.

2. The right of workmen to bargain collectively for the betterment of their conditions of
service.
3. The realization that economic struggle is inevitable because it is but natural that labour
world agitates for better conditions.
4. A shift from the doctrine of laissez faire to a welfare state.
5. Tripartite consultations i.e., solution of the industrial or labour disputes through the
participation of workers, employers and the Government.
6. The State can no more be a neutral onlooker but must interfere as the protector of the
social good.
7. Minimum standards must be guaranteed through State legislation.

The concept of industrial jurisprudence in our country developed only after independence.
Until independence the change in attitude of the government and the benevolent labour
legislation only aimed at amelioration of the conditions of labour and it could hardly be said
to be a deal in social justice to the working class.

The birth of industrial jurisprudence in our country may be ascribed to the Constitution of
India which made more articulate and clear the industrial relations philosophy of the
Republic of India. This philosophy has afforded the broad and clear guidelines for the
development of our industrial jurisprudence and has thus taken India one step forward in her
quest for industrial harmony.
The Parliament and the Supreme Court have helped in shaping industrial jurisprudence, the
former through legislation and the latter as interpreter of the labour laws.

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RIGHTS OF WORKERS:

The laws cover the right to work of one's choice:

1.Right against discrimination,

2.Prohibition of child labour,
3.Fair and humane conditions of work
4.Social security,
5.Protection of wages,
6.Redress of grievances,
7.Right to organize and form trade unions,
8.Collective bargaining and participation in management

India has numerous labour laws such as those prohibiting discrimination and Child labour,
those that aim to guarantee fair and humane conditions of work, those that provide social
security, minimum wage, right to organize, form trade unions and enforce collective
bargaining. India also has numerous rigid regulations such as maximum number of
employees per company in certain sectors of economy, and limitations on employers on
retrenchment and layoffs, requirement of paperwork, bureaucratic process and government
approval for change in labour in companies even if these are because of economic conditions.

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REFERENCES

BOOKS REFERRED:

1.Meenu Paul's, Labour & Industrial Laws, Allahabad Law Agency, Faridabad (Haryana)

WEBSITES:

1.www. unicef.org
2.www.legalservicesindia.com

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