UPSC Prelims 2022 Q71: Industrial Disputes and Lay-off Data — Explained
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers?
- Central Statistics Office
- Department for Promotion of Industry and Internal Trade
- Labour Bureau
- National Technical Manpower Information System
Answer: (c) Labour Bureau
Statement-wise explanation
- a: incorrect — The Central Statistics Office was MoSPI's national accounts and industry statistics wing. It compiled GDP estimates, the Index of Industrial Production and the Annual Survey of Industries. It did not compile statistics on labour disputes. In 2019 it was merged with the NSSO to form the National Statistical Office (NSO).
- b: incorrect — The Department for Promotion of Industry and Internal Trade works under the Ministry of Commerce and Industry. It handles industrial policy, FDI policy, intellectual property and start-up promotion. Its Office of the Economic Adviser compiles the Wholesale Price Index and the Index of Eight Core Industries. Strikes, lockouts, closures and lay-offs are labour matters, so DPIIT does not track them.
- c: correct — The Labour Bureau is an attached office of the Ministry of Labour and Employment. It was set up on 1 October 1946 and works from Shimla and Chandigarh. It publishes an annual report, 'Statistics on Industrial Disputes, Closures, Retrenchments and Lay-offs in India'. The data come from monthly returns that State Labour Commissioners and the Regional Labour Commissioners (Central) send in voluntarily.
- d: incorrect — The National Technical Manpower Information System was set up in 1983. Its lead centre was at the Institute of Applied Manpower Research (IAMR) in Delhi, with nodal centres in the states. It collected data on intake into and outturn from technical education, for planning the supply of engineers and technicians. It covers the supply of skills, not disputes or job losses in factories.
How to eliminate
Read the subject of the question. Industrial disputes, closures, retrenchments and lay-offs are all labour-relations matters, and they come under the Industrial Disputes Act, 1947, which the Labour Ministry runs. Only one option sits inside the Labour Ministry, and the word 'Labour' in its name points to it. DPIIT promotes industry and investment and does not record conflicts between workers and employers, so you can drop it. NTMIS deals with technical manpower in education (engineers and diploma holders), not jobs being lost, so drop it too. The Central Statistics Office is the only real distractor because it handles industrial data such as the IIP and ASI. Its work is about output, not labour relations. The fact to remember: the Labour Bureau (Shimla/Chandigarh) compiles labour statistics, including CPI-IW, CPI-AL/RL, wage data and the annual report on industrial disputes, closures, retrenchments and lay-offs.
Know more
Who compiles which economic statistic in India
| Body | Parent | Key outputs |
|---|---|---|
| Labour Bureau (1946) | Ministry of Labour & Employment | CPI-IW, CPI-AL, CPI-RL; industrial disputes, closures, retrenchments, lay-offs; Quarterly Employment Survey |
| National Statistical Office (CSO + NSSO, 2019) | MoSPI | GDP, IIP, ASI, CPI (Rural/Urban/Combined), PLFS |
| Office of the Economic Adviser | DPIIT, Commerce & Industry | WPI, Index of Eight Core Industries |
| NTMIS (1983) | Education (IAMR lead centre) | Data on technical-education intake and outturn |
Key terms in the Industrial Disputes Act, 1947
- Lay-off: the employer cannot give work to a worker who stays on the rolls (for example, because of a power or raw-material shortage). It is temporary.
- Retrenchment: the employer ends a worker's service for any reason other than punishment. Voluntary retirement, superannuation and non-renewal of a contract are excluded.
- Closure: the place of employment shuts down permanently.
- Strike and lockout: temporary work stoppages, started by workers and by the employer respectively.
Under Chapter V-B of the 1947 Act, a factory, mine or plantation with 100 or more workers needs the government's prior permission to lay off, retrench or close. The Industrial Relations Code, 2020 raised this limit to 300 workers. That is why these statistics feed the 'hire and fire' debate.
The Labour Bureau's report splits cases into State and Central spheres and into public and private sectors. It also records the causes, such as financial stringency, lack of demand and power shortages. The report is a secondary compilation: it depends on returns from State Labour Commissioners and Regional Labour Commissioners (Central).
NCERT Concepts to Revise
- Hire and fire: Lay-off, retrenchment and closure, the three events this question names, are the tools of 'hire and fire'.
- CPI for Industrial Workers: CPI-IW is a flagship labour statistic. Knowing who compiles it helps you place the institutions listed in the options.
- CPI for Rural Labourers: CPI-RL is another labour-focused index. It shows which kinds of data belong to labour-statistics bodies rather than industrial ones.