While presenting the budget for the year 1978-79 in the Lok 'Sabha on 28th Feb., 1978, the Finance Minister of the Central 'Government stated, "Industrial unrest has been causing a great deai .of anxiety this year. A certain reaction to the earlier constraint under the obnoxious emergency regime is understandable. But output is likely to be affected seriously, if this unrest is allowed to continue unabated. While the legitimate demands for additional emoluments should be met, these have to be appraised against the 'socio-economic realities of the country'. It is, therefore, important to have guidelines to determine a wages, incomes and prices policy. We have appointed a study group to suggest guidelines for such policy. Its report is due to be submitted shortly. A loss of production is not in the interest of the country. It is, therefore, of the utmost importance that labour management and government cooperate in bringing about harmonious industrial relations."
2. It appears that the Central Government has failed to recognise that the very same act of appointment of Study Group on National Wage, Price, and Income Policy has aggravated the already existing situation of industrial unrest, arising out of growing unemployment, soaring prices, subsistence level of the vast masses of employed workers and overgrowing disparity of income. There is genuine apprehension amongst the workmen that this is a veiled attempt to freeze wage and abrogate the workers' right to collective bargaining. This has compelled all the Centra! Trade Unions like LN.T.U.C., B.M.S., C.I.T.U., A.LT.U.C. etc. to join hands, for the first time since the formation of Janata Government, to fight for workers' right, and to launch a nationwide struggle in response to a call given at a convention of employees of public sector undertakings held at Hyderabad on 23rd and 24th December, 1977.
3. The imperative need for the frame-work of Income, Price and Wage Policy in the context of planned economic development cannot be denied. Such policies should be evolved in the perspective of objectives of economic growth. In view of the enormous inequalities of income, ever-rising prices and mounting unemployment, such policy is essential to fight against poverty, for guaranteeing employment, need-based consumption level to all the citizens and reduce the disparity of income to avoid concentration of economic power in few hands.