Role of Collective Bargaining and Union Participation in Determining Demand and Supply of Agricultural Labour in Tamil Nadu
2011
Shanmugam, T.R. | Govindarajan, K.
Economists have traditionally identified three factors of production: land, labour and capital. In the pre-industrial society, agriculture was the major source of wealth. Production was based on rudimentary skills passed from father to son, crude farming tools, and incremental improvements made by each generation on the original and indestructible power of the soil. Capital and labour were wedded to the land, and economic power belonged to those who could control its use. With the industrial revolution, the fourth factor management became the critical economic factor. In the modern society, the role of labour as a factor of production is becoming increasingly important. The present paper has analyzed the issues in collective bargaining and union participation of agricultural labour market in Tamil Nadu. Human resources in an economy constitute a significant input in the production of goods and services. In India and Tamil Nadu, the share of cultivators has declined over the years, the share of agricultural labourers has fluctuated, but agricultural workers have declined both as a proportion and as absolute number. The wage rates have increased dramatically over 40-times between 1971 and 2009. More years of education, income from non-agricultural activities have been found to positively influence participation of labourers in labour union activities in agriculture. Collective bargaining and Union participation play a major role in wage determination of agricultural labour markets.
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