ABSTRACT
Industrial Relations (IR) in China and India have undergone significant changes as their economic reforms deepen. In this chapter we examine how the changing institutional contexts and conditions are impinging upon the IR systems and the evolving role of the state and the trade unions as key institutional actors in both countries at the national level. We also consider the impact of globalization and employers’ strategy on IR at the firm level. The chapter begins with an overview of the characteristics of the labour markets of both countries to highlight the changing demographics of the labour force and their relative bargaining power. This is followed by an examination of the evolution of the regulatory frameworks, both legislative and administrative, for labour protection. The understanding of the labour market characteristics and labour regulations is important because they are, at least partially, outcomes of the state economic and social policies that reflect its political ideology. It is also within these broader contexts that the trade unions’ role is assessed, although the functioning (or not) of the trade unions also shapes the employment environment.
