Economics

Rationalisation without Tears

Rationalisation without Tears

Rationalisation without Tears

Opposition by Workers

Rationalisation measures have never been welcomed by the workers. They protest openly and loudly by restorting to protests and strikes. They oppose rationalisation due to the following reasons:

(i) Retrenchment and Unemployment : Rationalisation leads to retrenchment in those undertakings in which it is introduced because rationalisation inevitably leads to improved technology. On the level of industry, productive units are closed down altogether. So, a number of employees lose their jobs. Besides, rationalisation adversely affects employment potential. This argument is more valid in the context of our country, which faces a chronic unemployment problem. However, it must be stated in all fairness that this impact relates to short-run. In the long-run, as various adjustments in the economy take place, national income and employment potential also improves.

(ii) Down-grading: Rationalisation necessarily implies employment of improved technology. This means that labour is relegated to lower position in terms of organisational structure.

(iii) Increased Work-load: Rationalisation also increases the work load of labour. Workers regard rationalisation as a clever and vicious method of increasing their work-load. The increased work-load strains their bodies, as well as minds, unduly.

(iv) Exploitation: Rationalisation spells prosperity, which is not adequately shared by labour. It is labour that bears the main burden of rationalisation. Workers get retrenched and they also share the burden of increased wok-load yet their share in the surplus arising out of rationalisation in small. Hence labour is thoroughly exploited.

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