Wage Determination

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Methods of Wage Determination in India

1. Fixation of wages is a recent phenomenon in India
2. There was no effective machinery until 2nd world war for settlement of disputes for fixation of wages. 3. After independence of India, industrial relations become a major issue and there was phenomena increase in industrial dispute mostly over wages leading to substantial loss of production. 4. Realizing that industrial peace is essential for progress on industrial as well as economic front, the central govt. convened in 1947, and a tripartite conference consisting of representatives of employers, labour and government. Govt. of India formulated industrial policy resolution in 1948 where the govt. has mentioned to items which has bearing on wages • statutory fixation of minimum wages

• Promotion of fair wages.

5. To achieve 1st objective, the minimum wages act, 1948 was passed to lay down certain norms and procedures for determination and fixation of wages by central and state govt. 6. To achieve 2nd objective govt. of India appointed in 1949, a tripartite committee on fair wages to determine the principles on which fair wages should be fixed

Wages and salary incomes in India are fixed through several institutions. These are

• Collective bargaining
• Industrial wage bound
• Govt. appointed pay commissions
• Adjudication by courts & tribunals

• Collective bargaining relates to those arrangements under which wages and conditions of employments are generally decided by agreements negotiated between the parties. • Broadly speaking 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...
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