HISTORY OF MANUFACTURING
Manufacturing has traditionally played a key role in the economic growth and development of countries. In developing countries, the importance of manufacturing has diminished over the last 20-25 years, resulting in de-industrialization. However, industrialization increases in the share of manufacturing in Gross Domestic Product (GDP) is a key feature of modern economic growth.
Historically, manufacturing has been the backbone of all developed and developing nations. It is where R&D starts, where new technologies are born, where scientists and engineers and others are challenged to develop new and better processes, products and technologies.
IMPORTANT MANUFACTURING LAWS IN INDIA
Manufacturing provides many jobs, at all levels. It is important as an employment generator. Among all sectors (service, agriculture, social, manufacturing), manufacturing distributes wealth most equitably among the work-force; hence is a key factor to pull people above the poverty line. Indian manufacturing sector’s contribution to GDP has moved from 16% to 18.32 % in last 10 years. Therefore, the Government of India has set out certain reforms in order to organize the manufacturing sector which significantly contributes in the efforts of putting the house in order. Following are the acts which every manufacturer/employer ought to be aware of before stepping foot into the manufacturing industry:
Act for peaceful resolution of conflict between employers and employees
The Industrial Disputes Act, 1947 was established to foster industrial peace by establishing proper mechanisms for the peaceful resolution of conflicts between employers and employees. It establishes a mechanism for resolving disputes through arbitration, adjudication, collective bargaining, mediation, or conciliation. This provision aims to promote industrial harmony in order to achieve social fairness and economic prosperity. Furthermore, it allows employees to realize their goals through the use of a lawful strike weapon, facilitating collective bargaining. It also forbids unlawful strikes and lockouts and offers workers compensation in the case of layoff or retrenchment.
Conciliation officials are appointed by the competent government by gazette notification and are responsible for mediating the resolution of industrial disputes and to encourage the resolution of disputes.
The conciliation officer is obliged to arbitrate a specific case within 14 days and deliver a report to the government outlining the actions taken to address the disagreements and detailing the reasons for success or failure in reaching an agreement.
Settlements reached during conciliation processes are binding on all parties involved in the dispute. During the conciliation process, strikes and lockouts are completely forbidden. Following that, the competent government may take action based on the conciliation officer’s findings.
Act For enhancing the working conditions
The Factories Act, 1948 was established with the main goal of enhancing the workers’ working conditions by enacting industrial safety measures. A factory is a location where ten or more workers work and a manufacturing process is carried out with the assistance of power, or a site where twenty or more workers work and a manufacturing process is carried out without the aid of power.
This Act addresses women’s and children’s health, welfare, and safety, as well as working hours, yearly leave with pay, and employment of women and children. The Chief Inspector of Factories and his team must approve safety measures in the plant on a regular basis, including sufficient ventilation for fumes and gases and protective equipment for eyes and hearing as needed.
This Act also specifies the actions to be taken to protect workers’ health and ensure that working circumstances do not negatively impact them. It also addresses cleanliness, waste disposal, pollution control, lighting, drinking water facilities, latrines, spittoons, and other general welfare measures such as washing and drying facilities, rest rooms, first aid equipment, canteens, lunch rooms, and creches, among others.
Certain facilities must be provided dependent on the number of employees or the size of the business. The following are:
Therefore, it simply addresses the bare necessities of life. Progressive companies, appreciating the value of welfare activities, go above the required duties to provide the facilities which contributes to strong labor relations.
Act for compensation to employees under specific situations
As the title states, the Workmen’s Compensation Act, 1923 which is also known as the Employee’s Compensation Act provides for compensation for accidental injuries to the employees all across India except for Jammu and Kashmir. It offers relief in the form of compensation to all employees who are injured on the job and are unable to work as a consequence of the injury or die as a result of it.
Workers are defined under the Act as those engaged in factories, mines, plantations, construction work, and other hazardous activities, except those protected by the Staff State Insurance Act of 1948 and clerical employees. Workmen’s Compensation Act claims are classified into three types:
(i) Accidents resulting in temporary disablement.
(ii) Accidents resulting in permanent, partial or total disablement.
(iii) Fatal accidents.
Workers are supposed to report any accidents that occur, but failing to do so does not preclude them from claiming compensation from their employer if the claim is filed within two years after the event.
Compensation for permanent whole and permanent partial disability should be paid according to the approved scales. In the case that an injured person dies as a result of the accident, compensation can only be paid through the commissioner.
The Act’s infringement or breach is penalized under Section 4A under the same. Returns, statements, and notices to the commissioner must be properly sent. The National Commission on Labor (1969) suggested that all workers covered by the Act, including supervisors, be compensated without regard to pay restrictions. It also proposed the establishment of a central fund for workers’ compensation, which would be managed by the Employees States Insurance (ESI) Corporation.
Act for necessity of a standard mark on manufactured products
Section 17 of the Bureau of Indian Standards Act of 2016 makes it illegal to produce, import, sell, rent, lease, store, or show items that do not bear the Standard Mark. Contravention of the provision is punishable by imprisonment for a term of up to two years or a fine which does not amount less than ten times the value of goods or articles produced, sold, offered for sale, or affixed or applied with a Standard Mark[1].
Act for penalizing the use of Pre-packages commodity for personal benefit
According to the Legal Metrology Act, 2009, anyone who manufactures, packs, imports, sells, distributes, delivers or otherwise transfers, offers, exposes or possesses for sale, sells, distributes, delivers, transfers, offers or exposes for sale any pre-packaged commodity that does not conform to the declarations on the package as provided in this Act is subject to a fine up to one lakh rupees, or imprisonment for up to one year, or both, depending upon the offence committed. Any violation of any provision of the Packaged Commodity Rules[2] is punished by a fine of Rs. 5000.
CONCLUSION
Since the launch of “Make in India” program, India has become one of the highest growing manufacturing sectors in the world. By virtue of the global recognition of India’s manufacturing sector, the Government of India aims to create 100 million new jobs in the sector by the end of 2022. India being one of the largest markets with billions of consumers, requires the above-mentioned acts which focuses on the basic necessities of the employees/workers and rules of manufactured goods which are necessary to be implied with, in-order for smooth running of the manufacturing industry along with the preventing the abuse of products manufactured or workers affiliated with this industry.
REFERENCES
5. Section 40 of the Bureau of Indian Standards Act, 2016 describes a standard mark. Bureau of Indian Standards Act, 2016 (bareactslive.com)
7. The Legal Metrology (Packaged Commodities) Rules, 2011 | Department of Consumer Affairs | Ministry of Consumer Affairs Food and Public Distribution | Government of India [1] Section 40 of the Bureau of Indian Standards Act, 2016 describes a standard mark. Bureau of Indian Standards Act, 2016 (bareactslive.com) [2] The Legal Metrology (Packaged Commodities) Rules, 2011 | Department of Consumer Affairs | Ministry of Consumer Affairs Food and Public Distribution | Government of India
Witten By,
Kalpana Nailwal
Intern, Chanchlani Law World
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