ELEMENTS OF LABOUR ECONOMICS

Group Members: Ankita Singh Andrew Hicken Satyajeet kumar Jeeta

WHAT ARE LABOUR ECONOMICS?

To

understand the functioning and dynamics of the markets for labour Function through the interaction of workers and employers Looks at

Suppliers of labour services (workers), Demands of labour services (employers), Attempts to understand the resulting pattern of wages, employment, and income.

COMPENSATION & MEASUREMENT

Wage = Payment per unit of time (Typically an hour)

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Earnings = Payment accrued over a period (Typically a week, a month, or a year) Total Compensation = Earnings + Other benefits for labour Income = Total Compensation + Unearned income

DEMAND & SUPPLY OF LABOUR

Demand Supply

Labour demand depends on

Marginal Revenue Product (MRP) Marginal Cost (MC)

Firm employs up to the point where MRP = MC

ELEMENTS OF LABOUR ECONOMICS

The basic subject matter of labour Economics can be considered under nine broad heads: employment individual employment relationships wages and remuneration conditions of work health, safety, and welfare social security trade unions and industrial relations the administration of labor Economics and special provisions for particular occupational or other groups
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LABOUR ECONOMICS IN INDIA

AND ITS NEED
Labour

Legislation refers to all laws of the Government which have been enacted to provide social and economic security to the labour or workers. The evils of industrialization have led to the labour legislation. Now the state has a direct interest in the industrial peace and prosperity. These acts are aimed at reduction of production losses due to industrial disputes and to ensure timely payment of wages and other minimum amenties of the workers.

CONTINUE

The basic principle of industrial legislation is to ensure social justice to the workers . The object of legislation is the equitable distribution of profits and benefits accruing from industry between industrialists and workers and affording protection to the workers against harmful affects to their health safety and morality

CONTINUE
In a developing country like India, Labour legislation becomes especially important because of the following reasons : Labour organizations are relatively weak and in most of the cases, they depend merely on the mercy of the employers.

Individual worker is economically very weak and is unable to bargain his terms with the employers. Now the prior payment of wages lay off, dismissal, retrenchments etc , are all governed by legislation. The economic insecurity of the workers is removed to a great extent
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CONTINUE
In many organizations, workers may feel occupational insecurity. The workers may not be given money in case of accidents, death, occupational Act, Employees State Insurance Act, certain benefits have been statutorily given to workers which the employees otherwise may not get from their employers. In any factories, there important working conditions on account of which the employees health and safety is always in danger. The factories Act contains a number of provisions relating to health safety and welfare of workers. Special provisions have been made for the women

OBJECTIVES OF LABOUR ECONOMICS

1.
2.

3.
4.

To protect the workers from profit seeking exploiters. To promote cordial industrial relations between employers and employees. To preserve the health safety and welfare of workers. To protect the interests of women working in the factories.

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PRINCIPLES OF LABOUR ECONOMICS:

Social Justice Economic Justice National economy International conventions

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SOCIAL JUSTICE
The concept of social justice refers to providing justice to everyone in the society so that the poor are not exploited by the rich. It is an in the interest of both employers and employees that they should consider themselves as two wheels of a cart and firmly believe that one cannot exist without the other.

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ECONOMIC JUSTICE
Touches individual person,social order. Encompasses the moral principleswhich guide us in designing our economic institution.

NATIONAL ECONOMY
Labour legislation ensures industrial peace and helps in the industrialization of the country. The Directive principles of the constitution contain the idea of welfare state. It is a fundamental of a welfare state to look after the interest of workers who are the weakest section of the society and satisfy their physical needs with the increase in productivity the benefits are shared with the workers, resulting in their prosperity. Thus for the growth of economy and development of the country, labour legislation acts as guiding principle

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INTERNATIONAL CONVENTION
International labour organizations aims at securing the minimum standard of living for the workers throughout the world. If any convention is passed by govt, it becomes binding if it is ratified by any country. Thus, labour legislation is guided by these conventions.

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GRAPH OF THE EMPLOYEES OF INDIAN RAILWAYS

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Source:- Indian Railway

CONCLUSION

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Thank You

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