approach. It is a sterile process. It can only be useful for establishing rights, or deciding victory or defeat, who is right or wrong is decided, but it is not at all helpful in increasing value-addition which is the basic purpose of any industrial activity. Increase in productivity or production is not possible by means of any Court decision or third party intervention. These socialist laws are based on the fight for distribution of the cake and class conflict and the notion of class conflict and division between Haves and Have-not is suitable for distribution struggle. It has no capacity to increase the size of the cake or increase production. By the collective effort of all it is possible to increase the size of a cake is something which is not rooted in that basic belief. Our laws however are based on the assumption that production or productivity will increase by operation of law.
The United States of America came out of this sterile approach only after 1933. America has all the natural resources at its disposal but there was no readymade cake to distribute. Cake had to be created first before distribution. USA had the same British idea of sharing the cake made or derived from imperial loot. After the great depression of 1929 USA threw away this yoke and Indian leaders took it on their shoulders with the dreams of Soviet Socialism in 1950s.
In United States of America the labour management agreements are based on law of Contract. Government does not interfere in those matters. Unions work on the principle of collective bargaining. Both sides have to honour the contract like any commercial contract. Workers accept reduction in the wages in difficult days. The guarantee of job is based on guarantee of work or production. It does not depend on an appointment letter. The supply of labour as a factor of production is flexible. The worker who does not give agreed production can be punished with fine. If Union or the workers do not abide by the clauses of the agreement then they can be punished and fined. Till 1980 and arrival of Margaret Thatcher as a Prime Minister Britain had the same yoke was on the shoulders of British workers. It continued till the industrially advanced Britain where Industrial revolution started first, became almost a backward state. The Class conflict was the theme song.
The idea of class conflict in the British tradition, and the Russian idea of Central Planning were accepted in India by our leaders at the time of political independence of our country. People who could think only in English foisted these ideas on our people. I visited Germany in 1996. East Germany was out of the shackles of Soviet Empire (1992). So many relics of the old government in East Germany were still visible. An ordinary Person like me travelling by railway could see the stark difference between the parts of the same country under two different systems of economy. The people belonged to the same race, shared the same language;
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