Failure of Wage policy & Suggestion of NCL on Wage Policy
#1

Presented By :-
Manisha Chaudhary

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Failure of the National wage Policy :-
The national wage policy has failed on many counts like-:
1) To rationalize inter-occupational, inter-industrial and inter regional wage differentials in such a way that disparities are reduced in phased manner.
2)To ensure reduction of disparities of wages and salary between the private & public sector in a phased manner.
3) To provide for the promotion and growth of trade unions and collective bargaining.
4) To avoid following a policy of high wages to such an extent that it results in substitution of capital for labor thereby reducing employment To prevent high profitability units with better
capacity to pay a level of wages far in excess of the prevailing level of wages in other sectors.
6) To permit bilateral collective bargaining within national framework so that high wage islands are not created.
7) To encourage the development of incentive systems of payments with a view to raising productivity and the real wage of workers.
8) To bring out a more efficient allocation and utilization of manpower through wage
differentials and appropriate systems of payments.
National Commission On Labor (NCL), Suggestion on wage policy :-
The national commission on labor suggested five indicators to assess wage policy.
They were :-
Industrial Harmony.
Level of living.
Changes in productivity.
Impact on prices.
Share of wages.
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