Knowledge Economy and Labour

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Knowledge Economy and Labour


Some observers have suggested that what is being alleged today is a transition to a new type of society that is no longer primarily based on industrialism. We are entering a phase of development completely beyond the Industrial Age. Various terms have been coined to describe this social order, such as the postindustrial society, the information age, and the new economy. The term that has come into most common use, however, is the knowledge economy.


A precise definition of the knowledge economy is difficult to formulate, but in general terms it refers to an economy that underpins innovation and economic growth in the forms of ideas, information and knowledge. A knowledge economy is one in which the workforce produces physical or

distribution or physical goods, but rather their design, development,


Technology, Marketing Vendor and Servicing. These employees can be called knowledge workers. The knowledge economy is dominated by the continuous flow of information and opinion fueled by the powerful potential of science and technology.


A recent study by the Organization for Economic Co-operation and Development per attempted to measure the extent of the knowledge economy by measuring the percentage of each country between developed to nothing. Composite commercial production may be attempted which is a knowledge based industry. Knowledge-based industries are broadly understood to include high technology education, training research and development and the financial and investment sector. As a whole, knowledge-based industries accounted for more than half of all commercial output in OECD countries in the mid-1990s.


Investments in public education, software development, and spending on research and development are now a significant part of many countries’ budgets. For example, Sweden invested 10.6 percent of its gross domestic product in the knowledge economy in 1995. Finance was in second place due to the extensive spending on public education. The knowledge economy remains a difficult phenomenon to investigate – both quantitatively and qualitatively. It is easier to measure the value of material goods than weightless ideas. Yet it is unsurprising that the production and use of knowledge is becoming increasingly central to the economies of Western societies.


Multi-skilling allows employees to broaden the breadth of their skillset by engaging in new types of work

  1. in a variety of tasks rather than doing a specific task over and over again. Group production and teamwork Viewed as a multi-skilled workforce capable of undertaking a broad set of responsibilities. This return leads to higher productivity and better quality goods and services; Employees who are able to contribute to their jobs in multiple ways will be more successful at solving problems and coming up with creative approaches. Moving more towards multi-skilling has an impact on the hiring process. If once made largely on the basis of education and merit, many employers now look for individuals who are adaptable and can quickly learn new skills. Thus expert knowledge of a particular software application may not be invaluable because an apparent ability to pick up ideas easily. Expertise is often an asset, but if employees have difficulty applying narrow skills creatively to new contexts, They cannot be seen as an advantage in a flexible innovative workplace.




A Joseph Rowntree Foundation Study:


On the Future of Work examines the types of skills that are now sought after by employees. The study concluded that in both skilled and unskilled occupational sectors, personal skills are being increasingly valued. The ability to collaborate and work independently, take initiative and adopt a creative approach to challenges is one of the best skills a person can have for a job. In a market where the needs of consumers are rapidly evolving, it is imperative that employees in a range of settings, from the service sector to financial consulting, are able to hone personal skills in the workplace. According to the study authors, upgrading technical skills may be most difficult for workers who have worked long hours, routine repetitive work that had little to do with individual skills.


Training on job multi skilling is closely linked with the idea of employee training and retraining. Rather than employing narrow specialists, many companies would prefer to employ competent non-specialists who would be able to develop new skills on the job. A technology and market demand changes. Companies retrain their own employees as necessary, instead of bringing in experience consulting or replacing exciting employees with new hires, investing in employees who can become valuable lifelong employees. Seen as a strategic way to keep up with rapidly changing. Times.


Some companies organize job training through job sharing teams. This technique allows for skills training and mentoring to take place in a short period of time as it takes over one IT specialist’s work to be paired with a company for several weeks to manage a team for each of the other skills. . This form of training is cost-effective because it does not significantly reduce working hours and allows all employees involved to increase their skill base.


On-the-job training can be an important way for workers to develop their skills and career prospects. But it is important to note that training opportunities are not equally available to all workers. Economic and Social Research Council (ESRC) studies of young people born in 1958 and 1970 found that employees who already had a qualification were more likely to receive on-the-job training than their counterparts who are without a qualification.


of such students

As there continues to be over-investment in those who are already most qualified while the unqualified suffer from fewer opportunities, training also has an impact on wage levels; mid 1970’s. what is the work




On board training increased employee earnings by an average of 12 percent.


Work at Home – Having a computer connected to the Internet, working at home allows employees to perform some or all of their responsibilities from home. In jobs that do not require regular contact with customers or coworkers, such as computer-based graphic design work or copywriting for advertisements, employees may find that working from home allows them to balance non-work responsibilities. and to perform more productively. The phenomenon of intelligent workers is surely going to increase in the coming years as technology fundamentally affects the way we work. Although working from home has become more acceptable in recent years, it is not necessarily constituted by all employees, it is more difficult to work when the employee is out of the office, for this reason, after the new type of control Are kept in n homework to ensure that they are not above their independence. The worker may be expected to check into the office regularly, for example or to submit updates on their work more frequently than other employees who are very enthusiastic about their after-home potential. Some scholars caution that a significant polarization is likely to emerge between professional domestic workers pursuing challenging creative projects from home and largely unskilled domestic workers.

Broadly job form work from home like typing or data entry.


The end of a career for life and the rise of the portfolio worker

In light of the impact of the global economy and the demand for a flexible labor force. Some sociologists and economists have argued that more and more people will become portfolio workers in the future. They will have a skills portfolio consisting of many different job skills and credentials that they will use to move between multiple jobs and jobs during their working lives. A relatively small proportion of the workforce will have a continuous ‘career’ in the current sense. Indeed, proponents argue, the idea of a job for life is becoming a thing of the past.


Some see this move to portfolio employees as a positive light that workers will not be doing the same job for years and will be able to plan their work life in a creative way. Others recognized that the flexibility in practice meant that organizations could overreact and fire or lay off their workers. Employers will have only one shout term commitment to their workforce and will be able to reduce the payment of additional benefits or pension entitlements.


A recent study of Silicon Valley, California, claims that the region’s economic success is already founded on the portfolio skills of its workforce. The failure rate of firms in Silicon Valley is very high. About three hundred new companies are founded very quickly.




years but an equal number also perish. The work force, which has a high proportion of professional and technical workers, has learned to adjust. The result is that talent and skills are rapidly transferred from one to the other, with technical experts becoming more adoptable on the way to becoming consultants. consultants become managers; Employees become venture capitalists and back again.


There seems to be a growing trend towards portfolio work among young people, especially among consultants and information technology specialists. It is estimated that young graduates in the UK can be employed in eleven different jobs, with different skills being exposed to them over the course of their working lives, yet this situation remains the exception rather than the rule. Employment data did not show the large increase in employee turnover that might be expected from a large-scale portfolio job shift. Several surveys conducted in the 1990s found that full-time workers in Britain and the United States, which have the most regulated labor markets among industrialized nations, spent the same amount of time in each job as they had ten years earlier. It appears that managers recognize that a high level of turnover among workers is an expensive and poor formula and prefer to retrain their won employees rather than fire them, even if it means paying above market rates. have to pay


Organizational downsizing is reality, throwing many thousands of workers who may have thought they had the job of a lifetime into the labor market. In order to find work again, they may be faced with developing and diversifying their skills, many especially older people may never be able to find jobs comparable to the ones they had before or may Sometimes there were paid jobs.




Job Insecurity, Unemployment and the Social Importance of Work



In recent decades the phenomenon of job insecurity has become an important topic of debate within the sociology of work. Many lay and media sources have suggested that job insecurity results in a steady income.

which has now reached an unprecedented height in industrialized countries. Young people can count on me a secure career with one employer for a long time, because of rapid globalization mergers and corporate downsizing where employees are laid off. The drive for efficiency and profit means that people with low skills or abilities are pushed into insecure, marginal jobs that are vulnerable to changes in the global market. Despite the benefits of workplace flexibility, the argument continues that we don’t live by ‘hire and fire’




Culture where the idea of a life away from the job no longer applies, leading to an increase in job insecurity.


In 1999 the Joseph Rowntree Foundation published the results of the Job Insecurity and Job Intensity Survey (JIWIS), which examined the types of workers who experienced greater or lesser levels of insecurity over time. The authors found that the 1990s saw the largest increase in job insecurity among non-manual workers. From 1986 to 1999, professionals who moved from the most secure occupational group to the least secure white manual workers experienced somewhat lower levels of job insecurity. A major source of this insecurity appears to be a lack of trust in management. When asked whether management looked out for the best interests of employees, 44 percent of respondents claimed they did so little or not at all.


Most scholars agree that job insecurity is not a new phenomenon. the disagreement surrounds to such an extent that it has become more pronominal

In recent years, and more importantly, which sections of the working population experience job insecurity the most. Some critics argue that the JIWIS project study is nothing more than an unwanted response to perceived job insecurity among the middle class. Britain experienced an economic recovery in the late 1970s and 1980s which proved particularly damaging to traditional manufacturing industries. Willow jobs such as steel, shipbuilding and coal mining have largely been lost during this time. It adds up to the 1980s and 1990s that professional and managerial workers largely made up for job insecurity and spent their first years. Corporate takeovers and layoffs have affected banking and finance schools, the spread of the information age has caused many civil servants to lose their jobs as systems are considered one of computer technology.


If construction workers had become accustomed to living with the threat of redundancy then white-collar workers were prepared for changes affecting their occupations. This concern among professionals has led some to speak of the unsafe middle. The term was used to describe a white-collar worker whose belief in the stability of his job meant he experienced hobbles or significant financial commitments such as large mortgages, private education for children. Because redundancy had never crossed his mind before, the sudden scenario of unemployment caused him to feel immense anxiety and insecurity. Job insecurity soon became a topic of discussion in the media and professional cricket, although some believed it was a series compared to the chronic insecurity experienced by the working class.




Surveys of job insecurity and work intensity have shown that job insecurity for many workers far outweighs the fear of redundancy. It also includes concerns about the change of work itself and the effects of that change on the employee’s health and personal life. Studies have shown that workers are asked to take on greater responsibility at work as organizational structures become increasingly bureaucratic and decision-making is spread throughout the workplace. Yet sometimes when the demands of more than one employee increase on them, their chances of promotion decrease. This combination causes workers to feel that they are losing control over important features of their work, such as the pace of work and confidence in their overall career progress. Another detrimental dimension to job security can be seen in the personal lives of employees. The study found a strong link between frequent job losses and poor overall health. This link is confirmed by data from the British Household Panel. The survey showed that people’s mental and physical health is determined by long-term episodes of job insecurity. Instead of adjusting to unsafe conditions, workers tend to worry and underestimate stressors. It appears that as work chasers have shifted to the home environment, workers reporting high levels of job insecurity also tend to experience stress at home.




unemployment experience



For people used to having a secure job, the experience of unemployment can be very distressing. Obviously the immediate result is loss of income. Its effects vary between material constant changes in the level of unemployment benefits. In countries where healthcare and other welfare benefits are guaranteed, unemployed individuals may experience acute financial difficulties but remain protected by the state. In some western countries, such as

In the United States, unemployment benefits are short-lived and healthcare is not universal, increasing economic pressure on those without work.


Studies of the emotional effects of unemployment have found that people who are unemployed often pan through a series of phases as they adjust to their new situation. While experience is certainly an individual, the unemployed often experience opportunity after opportunity shock about new opportunities. When that opportunity is not rewarded, as is the case with after care, individuals may succumb to pessimism, depression about themselves and their employment prospects. If the period of unemployment increases, the power of adjustment is eventually exhausted with individuals resigning their relations to relatives.




High levels of unemployment can undermine the strength of communities and societies. In a classic sociological study in 1930, Marie Jahoda and her colleagues investigated Marian’s care that a small farm in Austria was experiencing unemployment following the closure of a local factory. Insecurity Hotel How the long-term experience of the unemployment phenomenon neti enhanced many types of community structures and networks. People were ten less active in civic affairs, nine less socially

e second and even less frequently visited city literacy.

It is important to note that unemployment is experienced by social class as well. For those on the lower end of the income scale, the consequences of unemployment can be felt mostly financially. It has been suggested that middle-class individuals find unemployment primarily damaging to their social rather than their financial situation.


Globalization has brought many changes in India. New economic policy towards disinvestment of multinational companies, foreign direct investment privatization and entry into a more liberalized economy has clouded the decision. Computerization, information technology, all sectors have affected the growth of individuals and labor and there is massive unemployment of white-collar and blue-collar workers around the world.


Status and Privatization of Public Sector, Voluntary Retirement Scheme


After the attempt of liberalization policy in the 70’s and 80’s, India’s industrial policy once again turned to liberalisation, i.e. globalization. This meant the entry of multinationals, re-entry for many of them into the Indian economy. This policy has been adopted to attract foreign capital for investment. Globalization means that a country opens up its economic activities outside its borders.



A globalizing country does not limit its economic activities to the limits of its geographical boundaries. In other words, globalization means trade and industrial relations with other countries without tariffs and disincentives such as quotas and taxation.











need for globalization



Globalization is the need of the hour. If a country chooses to live in isolation, it will not get the best knowledge, best technology, best management expertise and adequate capital. The country has to bring in all the best things available abroad like capital and entrepreneurship. If there is segregation then there will be no competition among the producers, both individuals and companies in the country and hence there will be no improvement in the quality of the products. When the domestic market is limited, there will be monopolies, restrictive practices and consumer exploitation. This will lead to inefficiency in production. No competition means complacency and incompetence and things will be taken for granted. When outside firms enter, firms will be alert, hands-on, and have a fighting spirit rather than lethargy. From the point of view of the consumer, he will benefit both in quantity and quality of goods. For example fans of Usha have to complete RDK of Japan. Therefore, Usha will try its best to retain the market by improving its product, which will benefit the consumers.


Globalization also means for business that we can move to other countries, there is free import and export without any restriction, when globalization giant multinational companies enter our country and they can kill our own enterprises. And for this reason we should allow only those companies which are helpful and beneficial and which are ready to work on our terms and conditions. Should be able to balance the interest of MNCs with the interest of counting on economic policy. The year 1964 is a historic year of death of Nehru which proved to be a milestone in our economic policy. Nehru’s original socialist policy was failing. With the advent of liberalisation, his policy got distorted.


The real changes came after 1984 when the process of liberalization started. Licensing and regulatory controls were liberalised. The policy of liberalization gained momentum from 1991. When Narasimha Rao’s government came to power. events





Today there is no complete liberalization. The public sector is still in progress. There is neither complete privatization nor complete public sector. State Bank a public sector organization issues shares to private individuals. Similarly, there is private investment in the public sector in petrol and oil companies. This is done because the outstanding




course of time. Commercial norms will be introduced in the public sector and there will be a need to make more profit out of it.

Will have the ability. For example with the entry of private individuals in Air Lines, one can expect India to do better. Not only this, when individual inverters are involved in the management of Air India, its performance will be even better. As a result, we will provide better service and earn more profit.


Privatization and liberalization differ in their meaning but their outcome is more or less the same. Liberalization is a negative concept in the sense that it results in the withdrawal of state control and regulations, while privatization means that private individuals and entrepreneurs are allowed to intervene in public sector organizations. Liberalization is an ideology while privatization is an operational thing. Liberalization and privatization help our economy to raise its level and improve our industries both quantitatively and qualitatively. Globalization is a broad concept. In the process of globalization, our country invites foreigners to enter our country by liberalizing its licensing and tariff policy. Since foreign entrepreneurs can come to India and start industries, even Indians can go overseas and reverse their capital! Tata and Birla have started industries in Malaysia, Indonesia, Philippines and Mauritius. Mafatlal has been to Indonesia and Nepal. State Bank has branches abroad.












Impact of Globalization (Realities):


1) Low participation in world trade by developing countries:- One of the indicators of integration of nations with the world economy is participation in world trade. There has been a significant increase in world trade. World trade has increased significantly in recent years. During the period 1989 and 1999, the percentage of merchandise trade in PPP, GDP (i.e. GDP measured in purchase price parity) increased from 22.5% to 27.4%. The expansion was much faster in high-income countries, from 28.5% to 37.47. But in low-income countries the increase was less than 1%. India has very small merits from GDP to trade. The share of trade in PPP GDP increased from 3.2% to 2.6%. This was lower than growth in low- and middle-income countries and lower than the growth rate in high-income countries.


2) Tariffs in the composition of trade:- India’s share in trade of agricultural products with developed countries has declined. These countries are reducing subsidies by the World Trade Organization while India and other developing countries are rejected on the grounds of sanitary and phyto-sanitary considerations.


3) Rich country became rich and poor man became poorer:- Rich countries have benefited the most from the increasing trade system in the world. low and middle income




Developing countries have to be satisfied with negligible gains. India is only marginally integrated with the world economy.


The vast majority of the world’s wealth is concentrated in industrialized as ‘developed’ countries of the world. Whereas the nations of the ‘developing world’ suffer from widespread poverty, overpopulation, inadequate education and health care systems, and crippling foreign debt. The disparity between the developed and developing world has grown steadily during the 20th century, and is now the largest it has ever been.


4) Greater reliance on foreign capital from private sources:- Foreign direct investment has become more attractive Several measures have been taken to attack foreign capital, the latest being the removal of the cap on foreign ownership in several industries, if DL 162 million US dollars in 1990 to about US$22 billion in 1999. But China has got about 40 billion US dollars. More importantly, it accounts for barely 2% of gross domestic savings. Like business, in capital formation also we have to depend basically on our domestic resources.


5) Unequal distribution of world income: According to Robert Wade of the London School of Economics, the share of world income going to the poorest 10% of the world’s population fell by more than a quarter even as the share of the richest 10% grew By 8 percent, 10% fell away from the average white, the poor 10% fell away from the median. In other words, poor countries and the poor in these countries were left behind in the process of development. The world has become much more unequal in recent years. The number of households at the extremely wealthy end has grown disproportionately rapidly, without reducing the distribution at the poorer end, to cite technological charges and financial liberalisation.


6) Indian View:- Government of India could not

Do not make adequate investments in the development of power, health or education infrastructure ahead of time. Today we are lagging behind. We have less technologically efficient industrial infrastructure. We have also lost huge opportunities for expansion of industry, trade, production and employment in the last few years. Even in cotton textiles, clothing, leather goods, gems and jewellery, light engineering for products, India occupies a small share of the total global exports. India has lost its position as the 10th largest industrial power in the world at least during the decade, India’s total share in the global market is 07%.


7) Role of WTO:- It is necessary to have a historical background of WTO in order to understand the benefit or cost we have paid by joining WTO in the name of globalization. it was only after 1980




US agricultural exports faced a sharp decline and an idea

It emerged that the decline in agricultural exports was due to the protectionist policies of the EEC and Japan that the US began to support an agreement that would enable free trade in agricultural goods. The WTO was eventually established by an agreement between the IIUS and the EEC known as the Blaine Homme Agreement as the GATT provisions were found to be insufficient and unsatisfactory.


‘The AOA is one of the important agreements under the aegis of WTO, whose important features are market access without domestic support and proliferation of export subsidies and disincentives. But contrary to expectations, neither the volume of agricultural trade nor the share of developing countries in trade has increased since 1995. Nevertheless, most of the developed countries have benefited from the negotiations and developing countries like India have gained nothing by singing the accord. , It could not expand trade in agricultural goods with the developed countries.


8) Income inequalities despite globalization and free markets leave a good 1/5 of humanity living below the poverty line and another fifth floating near or above it. According to a report, the world’s richest man Bill Gates Warner Buffet and Paul Elon have wealth equal to the wealth of 600 million people in 48 tilted developed countries of the world.


9) Closure of company:- Globalization has made many companies and then operations redundant. Hence neither they are closed (fully or partially) or they have been separated or their subsidiary units have been declared sick. For example, Hindustan Organic Chemicals’ decision to shut down its benzene operations involved the closure of several related units. This in turn adversely affects the lives of their employees.


10) Unemployment:- One negative effect of globalization is widespread unemployment due to technological innovations or diversification or relocation or closure of companies, also retrenchment of employees due to cost-cutting measures adopted by employers due to worldwide recession Was.


11) Violation of human rights:- a Decreases the supremacy of many states and increases the ability of corporations to violate rights? of people or to create conditions in which it becomes difficult to exercise or protect the right has increased tremendously. Against this it is not surprising when we get news that MNCs are making huge profits at the cost of people.


Both Nike and Reebok subcontracted the production of athletic shoes and soccer balls to Asia.




For others, firms that operate sweat shops employ child labor and make them work in extremely unsafe working conditions. The Bhopal gas tragedy of December 1984 that killed over 8000 people was the worst corporate human rights violation and the multinational company involved was none other than the chemical giant Union Carbide.


11) Environmental Hazards:- Chemical pesticides and herbicides pose a health hazard. The animals were pumped with hormones and antibiotics, which resulted in disease. This type of commercial agriculture and increasing influx has proved to be extremely dangerous for human life. To attract foreign investment, the government has allowed foreign investors, including multinational companies, to invest in India on a large scale. Chlorine, petro-chemical, caustic soda and other such chemical industries have come up in India in large numbers since 1991-92. This has encouraged the effect of chemicals polluting the environment. Even a drastic cut in our duties on chemicals has created this situation.


12) Loss of traditional jobs:- Many joint ventures related to fishing activities in 1994 have created a threat of jobs for many fishermen of India when their companies decide to go for sea fishing.




privatization of public sector



Privatization means that many government sectors are sold or given to private hands to run. Although the public sector enterprises played an important role in the development of the industrial sector of the economy during the plan period

Time is running out, investment in the development of the foundation of health or education



There the level of profit in enterprises have recorded considerable losses in some years. Given the fact that the level of investment in enterprises has been faltering, the returns have been meagre. Bimal Jalan has argued that it is the ‘low return on investment in public sector enterprises’ that is largely responsible for the financial condition of the central government. (a) Inadequate increase in productivity, (b) Poor project management (c) Over manning, (d) Lack of continuous technological up gradation (e) Inadequate focus on R&D and human resource development has been observed as a serious problem. Besides, public enterprises have shown very low rate of return on capital investment. This has hindered their ability to make new investments as well as intern themselves in technology development. The result has been that many public enterprises have become a burden rather than an asset to the government. Proponents of privatization have argued that all public sector problems can be effectively dealt with if the private sector is handed over. they cause the following





  1. a) Improvement in efficiency and performance:- Private sector introduces profit oriented decision making process in the functioning of the enterprise which leads to improvement in efficiency and performance. Furthermore private ownership establishes a market for managers which improves quality managers which improves the quality of management.


  1. b) It is easy to fix accountability:- While in public enterprises the personnel cannot be held responsible (or accountable) for any lapse, in the private sector the areas of reasonableness are clearly defined. This makes it possible for people working in private sector units to be held accountable for any mistakes made by them.


  1. c) Private entities are subject to capital market discipline:- Performance or curse funds in the capital market given the highest importance in the private sector. With the government as the owners, it is easier for the public sector to get credit or budgetary support in relation to its performance over time. Thus there is no compulsion on them to perform well.


  1. d) Political interference in public enterprise is inevitable:- Operating efficiency cannot be affected due to political interference in important decisions. Political decisions influence the choice of technology resulting in overworked workforce or location, inputs for some suppliers and procurement or price preferences become inefficient. Most governments also impose non-economic objectives on public enterprises.


  1. e) Succession planning:- For many years many PSUs functioned without any ‘head’ so no one had to take responsibility


  1. f) Response time is less in case of private sector:- Private units take decisions on the spot while public sector consults many people. This delays taking the right decisions at the right time in the public and private sectors.


  1. g) Privatization gives better service to customers:- The survival of private sector enterprises depends on the satisfaction of the customers, only then they can grow, while public enterprises do not give priority to customer satisfaction, their markets always decline comes


Critique- Impact of Globalization on Labor



Trade unions in India generally oppose all moves towards liberalization and globalization of the economy, irrespective of their party line. They have organized bharat bandh, dao etc for us




of movements to stop the processes. They oppose the measures for the following reasons

  1. a) Liberalization will lead to excessive retrenchment and retrenchment.
  2. b) The introduction of new technology will hinder future employment.
  3. c) The policy of ruckus will create an atmosphere of fear at the workplace.
  4. d) Development of public sectors will be checked. Employers in these fields have more job security.
  5. e) Labor laws protecting labor will be diluted in the name of flexible labor force.
  6. f) The existing public sector undertaking will be transferred to the private sector in the name of privatization.
  7. g) Excessive liberalization will lead to fall in wages and insecurity.
  8. h) In the absence of government protection, the workers would suffer tremendous losses as the demand for labor is less than the supply of labour.
  9. i) The working of free market forces will lead to an increase in the wages of the management and a decrease in the wages of the workers
  10. j) Inequalities of income and wealth will further increase.
  11. k) There will be loss of social justice
  12. I) The ‘human face’ in the organization will be replaced by human brutality.
  13. m) A reduction in public expenditure will put labor at a disadvantage.


Liberalization has resulted in stagnant employment growth, large mergers of large, medium and small scale Indian industries with foreign companies, widening fiscal deficit, rapid rise in prices, slowing growth of industry, increasing inequality of income and wealth, The country is focusing on the consumption of luxuries, neglecting the poor

Grant of UG and reduction of expenditure on indigenous production and social welfare programs and education. A large number of employees are affected by closures, layoffs and retrenchments. Nearly one lakh employees in the public sector alone have sought voluntary retirement. Contract laborers are being brought in place of permanent laborers. Controlled by the forces of demand and supply of labour, they are paid low wages, and no benefits or facilities are provided. Surveys have revealed that the salaries of Air India, Indian Airlines and Airport Authority employees are low. There contract workers do not get the benefit of provident fund, gratuity, bonus, leave facility, canteen, transport, medical and uniform facilities.




With the policy of line and fine becoming popular, the protective ring provided through various labor laws is loosening its grip. The earlier government did not allow lay-off, retrenchment or retrenchment under the Industrial Disputes Act, 1947 so easily. But now the state governments are allowing this under the tremendous publicity of the new economic policy. It was told that every month 300 laborers are retrenched in Punjab on account of overage. Trade unions have refuted the allegation that the public sector is inefficient that is why workers are against liberalisation. The Reserve Bank of India reports that only 2% of Indian industries are sick due to labor problems. And there are also a large number of PSUs which are operating at 85% to 110% efficiency. Trade unions also refused to accept this.

It is believed that such liberalization measures will bring more jobs in the near future. More and more capital intensive technologies will result in labor surplus.


They feel that there has been a foreign exchange crisis created under pressure from the IMF and the World Bank; The government has to continue its policy of reforms. The collapse of the communist regime and dependence on limited status have further strengthened this. The Central Trade Union has opposed all direct and indirect attempts to implement the exit policy. The unions have not allowed the government to formally announce an exit policy. Through the recent state elections, they have been successful in asking the government to drop its affluent image and spend more for the welfare of the poor, to slow down in its reform process. Though the management is always for reforms and they are introduced in public sectors and relief from many government controls, private managements are also critical of new economic politics. Reasons are:-

  1. a) Increase in the number of sick units of large, medium and small scale industries
  2. b) Acquisition by foreign affiliates and winding them up subject to the existing Indian managers being allowed 50% equity ownership.
  3. c) Eliminate competition from foreign companies that are more efficient in their technology and resources.
  4. d) Continuity of many contracts for Indian industry with white foreign companies.
  5. e) Withdrawal of the protective subsidy structure by the government.
  6. f) The high internet rate structure reflects their cost and puts them at a loss.


Free entry of MNCs, especially in the non-private sector into the hands of public sector management, workers on the other hand, joining hands with unions to fight against the new economic order.




policy. Though the government has also launched Rational Renewal Fund to help the retrenched workers and provide resources for the approved employment generation schemes, the benefit is not much. There is more emphasis on spending on VRS and less emphasis on retraining and redeployment. It is reported that the money collected through VRS was blown away by the workers and their jobless life with more responsibilities at home was miserable. The government has been very slow in changing the existing labor laws. It is suggested that the time is right to reconsider the whole issue of globalization, liberalization and privatization.


We should not forget that India as the largest country along with other developing countries is the ‘engine’ of growth for the developed countries as the market and our raw material developed countries cannot maintain their high level of progress or even the present standard of living. Can keep , It is also true that globalization has resulted in jobless development, cultural development (uneven development with rich galaxy becoming rich and poor poorer), rootless development (material prosperity without social and cultural generation) and development without future (development of future). development at the cost of) environmental degradation)


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