UGC NET/JRF EXAM, September-2024 Labour and Social Welfare

Total Questions: 100

91. Read the passage carefully and answer the questions.

In the Indian context, the social evils suffered by labours such as, exploitation, illiteracy, lack of skill training, substance abuse, among many others, are reduced to a greater or lesser extent by the country's welfare policies. During the pre-independence period the industrial relations policy of the British government was generally based on laissez faire and selective intervention.

There were hardly any labour welfare schemes. After Independence, labour legislation has been introduced which has shaped industrial relations and social security in contemporary India. The legislations have also provided for the machinery for bipartite and tripartite consultations for the settlement of labour-management disputes.

Soon after independence, the government at a tripartite conference in December 1947 adopted an industrial truce resolution. The following laws were enacted to maintain industrial peace and harmonious labour-management relations: the Factories Act of 1948. the Employees State Insurance Act of 1948 and the Minimum Wages Act of 1948. Later, the Bonus Act was passed in 1965.

The Constitution of India also spells out of the underlying principles of state policy which place an emphasis on labour welfare, especially Articles 38 to 43 of the Constitution. Labour welfare in India is aimed at getting the best out of the worker in the production process by creating the worker conditions required for this outcome.

In the early 1990s, the neo-liberal economic reforms that were introduced by the government set in motion a series of measures to reduce state regulation of industries, particularly the larger industries.

In general, the country's worker have opposed these economic liberalization policies out of fear of unemployment while the country's entrepreneurs have welcomed it in in hope of obtaining new opportunities to improve India's industries. These new economic policies have directly affected industrial relations in the country.

How did labour generally react to the neoliberal economic reform in early 1990's?

Correct Answer: A. With concern over potential job loss.
Solution:

Labour generally reacted to the neoliberal economic reforms in the early 1990s with concern over potential job loss. These reforms, aimed at reducing state regulation of industries and encouraging private investment and market dynamics, led to fears among workers about the implications for employment.

Workers were apprehensive that the push towards efficiency, competitiveness, and privatization could lead to job cuts, reduced job security, and changes in working conditions that might not favour the labour force.

92. What was the predominant industrial relations policy of the British government in pre-independence India?

Correct Answer: C. Laissez faire and selective intervention
Solution:

The predominant industrial relations policy of the British government in preindependence India was characterized by laissez-faire and selective intervention.

This approach meant that while the government generally allowed industries to operate without much interference, it occasionally intervened in certain areas.

93. What was the primary goal of Labour Welfare Policies in India as stated in the passage?

Correct Answer: C. To enhance worker productivity through improved conditions.
Solution:

The primary goal of Labour Welfare Policies in India, as stated in the passage, is to enhance worker productivity through improved conditions.

This goal is aligned with the broader objectives of labour welfare which focus on optimizing the work environment, ensuring safety, health, and well-being, and providing social security measures.

94. Which legislation aimed to provide social security benefits to workers in India.

Correct Answer: D. Employees State Insurance Act, 1948
Solution:

The Employees State Insurance Act of 1948 is legislation aimed to provide social security benefits to workers in India.

This act was one of the key laws enacted soon after independence to establish a system where employees in industrial sectors are assured of health care and other essential insurance coverages.

95. The tripartite conference of 1947 adopted which resolution?

Correct Answer: B. Industrial truce resolution
Solution:

The tripartite conference of 1947 adopted the industrial truce resolution. This resolution was significant in setting the tone for industrial relations in post-independence India. It aimed at maintaining industrial peace and fostering harmonious labourmanagement relations.

96. Read the passage carefully and answer the questions.

The labour force participation rate (LFPR) and unemployment rate (UR) reflect a combination of whether an individual is looking for job and actually able to get one.

The UR is defined as the percentage of unemployed individuals in the labour force as a share of the employed and the unemployed -the term unemployed itself referring to those who are willing and/or able to work but have not been able to find work. The LFPR, in turn, is the percentage of the employed and the unemployed as a share of the working age population in the labour force.

A major misconception about the labour market is that a low UR is unambiguously a positive indicator of the health of the labour market. The reason is that a fall in unemployment does not necessarily imply a rise in employment. Both can move in the same direction because of the presence of third category, the out of labour force (OLF). In other words, the total working age population of the economy is divided into three, not two, categories.

The OLF consist of individuals who are either not willing to or not looking for work. If there is a rise in the share of the OLF because individuals get discouraged by job prospects and stop looking for jobs, it can still lead to a fail in UR without the creation of any jobs. The unemployment measure in itself thus is not a fair indicator of the health of the labour market.

More importantly, even if the fall in unemployment is due to an actual rise in unemployment and not the PLF, the rise in the broad category of employment itself need not be a sufficient cause for cheer. It would indeed be a positive development if it being driven by an increase in high-wage jobs, including salaried ones, or people setting up flourishing businesses and generating employment.

On the contrary, it may be driven by rise in forms of employment that are not particularly remunerative, such as some form of low-return informal sector selfemployment activity just to eke out a living or as a helper in household enterprises, a subcategory of the self-employed because they cannot find anything better to do.

What does the term "Out of labour Force" (OLF) refer to? 

Correct Answer: D. Individuals neither looking nor willing to work.
Solution:

The term "Out of Labour Force" (OLF) refers to individuals who are neither looking for work nor willing to work. This category includes people who have disengaged from the labour market due to various reasons, such as discouragement over job prospects or personal choices that prioritize other activities over formal employment.

They are distinct from the unemployed, who are actively seeking employment but have not secured a job. The presence of a large OLF can affect the overall labour market dynamics and the interpretation of unemployment rates because their non-participation can artificially lower the unemployment rate without indicating a
healthier job market.

97. What type of increase in employment does the passage suggests as positive for the labour market.

Correct Answer: C. Growth in high-wage jobs and salaried positions.
Solution:

The passage suggests that the type of increase in employment that is positive for the labour market is the growth in high-wage jobs and salaried positions.

This form of employment expansion is beneficial because it implies that more individuals are obtaining jobs that offer better compensation, security, and benefits, which contribute to higher living standards and economic stability.

Such jobs often require higher skills and provide more substantial contributions to the economy compared to low-wage or informal sector jobs, which may not offer the same levels of remuneration or job security.

98. What does the Unemployment rate (UR) measure?

Correct Answer: B. Percentage of unemployed individual in the labour force
Solution:

The Unemployment Rate (UR) measures the percentage of unemployed individuals in the labour force, where the labour force comprises both the employed and those unemployed who are actively seeking work.

99. How has the Labour Force participation Rate (LFPR) been interpreted in the passage?

Correct Answer: C. Percentage of employed and unemployed individuals in the working age population.
Solution:

The Labour Force Participation Rate (LFPR) is interpreted in the passage as the percentage of the working-age population that is either employed or unemployed but actively seeking work.

This rate gives an overview of the proportion of the population that is participating in the labour market, either by holding a job or by being available and looking for a job.

100. Why might a decrease in the unemployment rate (UR) not necessarily indicate a healthier labour market?

Correct Answer: A. Because it may coincide with an increase in the out of labour force
Solution:

A decrease in the Unemployment Rate (UR) may not necessarily indicate a healthier labour market because it can occur alongside an increase in the number of individuals categorized as Out of Labour Force (OLF).

When individuals stop looking for work due to discouragement or other factors and thus exit the labour force, they are no longer counted as unemployed. This can lead to a decline in the UR without any actual job creation or improvement in employment conditions.