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The State in Industrial Relations: Neoliberal Intervention or Intervening in Neoliberalism?

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Abstract

The literature on industrial relations highlights the gradual subordination of nation-specific IR system under conditions of globalisation. The literature, however, pays scant attention to the role of the state in IR framework, an important omission in the context of transitional economies with a legacy of state intervention. This paper examines the changing role of the state and through this seeks to theoretically conceptualise state behaviour in IR. Based on the five planks of wage determination, work and employment condition, collective bargaining, dispute resolution and welfare provision, we critically examine the role of the state and locate it in the spectrum from statist to neoliberal. The case study is based on the study of post-liberalisation West Bengal, a left governed sub-national state of India. The role of the state has multiple dimensions and cannot be subject to a singular categorisation.

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Fig. 1

Source: Labour in West Bengal (various issues)

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Source: Statistical abstract of India (various issues)

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Source: Labour in West Bengal (various issues)

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Source: Labour in West Bengal (various issues)

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Source: Labour in West Bengal (various issues)

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Source: Labour in West Bengal (various issues)

Fig. 7

Source: Labour in West Bengal (various issues)

Fig. 8

Source: Labour in West Bengal (various issues)

Fig. 9

Source: Labour in West Bengal (various issues)

Fig. 10

Source: Labour in West Bengal (various issues)

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Acknowledgements

We would like to acknowledge the contributions of Dr. Achin Chakraborty and Dr. Subhanil Chaudhuri for their insight and expertise that greatly assisted the research. Comments by two anonymous reviewers greatly helped to improve an earlier version of this manuscript. Indian Council for Social Science Research (Grant No. RESPRO/75/ICSSR/2013-14/RPS), New Delhi, supported the research through their sponsored research programme on Trade Unions and Urban Labour Markets.

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Correspondence to Zaad Mahmood.

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This paper examines and conceptualises state behaviour in IR. Based on a case study of post-liberalisation West Bengal, we show that state behaviour cannot be subject to any singular categorisation. While statist trends can be noted in institutional dimensions, the state exhibits neoliberalism in wage determination and bargaining. Political-ideological dynamics ensure the expansion of passive labour market activities.

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Mahmood, Z., Banerjee, S. The State in Industrial Relations: Neoliberal Intervention or Intervening in Neoliberalism?. Ind. J. Labour Econ. 63, 575–596 (2020). https://doi.org/10.1007/s41027-020-00233-6

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