**Learnings from Mr.
Sahay at Havells**
Mr. Sahay discussed the distinction between employer relationships and industrial relationships.
Employer relationships involve direct, one-on-one interactions between employers and
employees, whereas industrial relationships refer to negotiations between management and a
broader group of workers, often facilitated by trade unions. These negotiations typically focus on
improving wages, working conditions, and social security benefits, especially in manufacturing
settings. In contrast, IT companies primarily deal with employer relationships.
He also covered two types of agreements used for conflict resolution: Bipartite and Tripartite.
The choice between these agreements depends on the nature of the dispute. For example, a
tripartite agreement is more suitable when multiple trade unions are involved.
Additionally, Mr. Sahay outlined the importance of maintaining a balanced ratio between
employees and trade union members, which is typically either 18:1 or 12:3. He highlighted key
reasons behind workers' strikes, including mistreatment by managers, wage disparities, and
favoritism in rewarding benefits.
Mr. Sahay then shared insights into the New Labour Codes, which aim to simplify and
consolidate the 29 existing labor laws in India. The key goals of these codes are to ease
business operations, improve employer compliance, and extend benefits to workers in the
unorganized sector. Although approved by Parliament in 2020, these codes have not yet been
enacted due to resistance from some states.
The new labor framework comprises four key codes:
1. **The Code on Wages (2019)**: This code consolidates four existing laws and standardizes
the definition of wages across various labor laws, thereby reducing litigation.
2. **The Industrial Relations Code (2020)**: This code subsumes three labor laws and
introduces provisions such as the adjudication of important cases by two members of the
Industrial Tribunal for faster resolution.
3. **The Occupational Safety, Health, and Working Conditions Code (2020)**: This code
consolidates 13 existing laws and replaces various committees with a single National
Occupational Safety and Health Advisory Board, which includes representation from trade
unions, employer associations, and state governments.
4. **The Social Security Code (2020)**: This code combines nine existing laws and extends
benefits like gratuity to fixed-term employees, with no minimum service period requirement. It
also mandates establishments in hazardous sectors to link with the Employees' State Insurance
Corporation (ESIC), even if only one worker is employed.
These reforms aim to streamline labor laws, enhance worker welfare, and foster a more
business-friendly environment in India.