Labour market relation in aquaculture developmental planning

AQC 608 – Aquaculture development planning and management
Labour Market relation
DEPARTMENT OF AQUACULTURE
Dr. M.G.R FISHERIES COLLEGE AND RESEARCH INSTITUTE
TAMIL NADU Dr. J. JAYALALITHAA FISHERIES UNIVERSITY
PONNERI- 601 204
P.YUVARAJAN
Ph. D Scholar
yuvarajandono@gmail.com

Labour market
• A market exists whenever there is a good or service available for
buyers (demanders) and sellers (suppliers).
• In the labour market, labour services are exchanged and those
negotiations occurring between buyers and sellers which
determine the placement of workers in jobs.

Concept of labour market
• Labour market incorporates the complex of economic and social
forces influencing the process through which employers recruit
workers and workers seek employment.

Components of labour market
 Demand of labour
 Supply of labour
 Wage determination
Interaction of demand and supplies of various categories of
labour through which prices of these categories of labour.
i.e., wage rates are determined

Function of labour market
• The main function of labour market is to match workers and jobs
and to fix remuneration in a manner that ensures required
quantity as well as quality of labour supply
• The functioning of labour market thus depends upon the efficiency
with which allocation of labour among industries, regions and
occupations takes place.

Approaches to labour market
These involve more or less simplified outlines of the principal
variables and relationships that characterize the marketing process
and correspond with three important theoretical approaches which
have evolved through time
1. Classical
2. Neoclassical
3. Institutional

Classical approach
• The classical model was considered analogous to the markets for
capital and commodities
• The classical thesis with respect to the distribution of workers
among employments
• Thus, the model merely applied price determination analysis of
demand and supply as a special case to the wage determination

Neoclassical approach
• Severe criticism of the unrealistic assumptions of the competitive
approach gave rise to neo-classical approach
• The action of individual employers and firms and individual
workers and their unions
• Marginal Productivity has propounded by the neo-classists to
explain the price determination of production inputs.
• The demand for labour in a firm would be upto the point where
the value of marginal product of labour equals its price

Institutional approach
• It was observed that some social, political and psychological
factors are effectively influencing decisions of workers regarding
labour supply.
• Firms do not lay more stress on wages as a factor in determining
the volume of employment; instead, they consider market
(demand) for their product as a more important factor in
determining the volume of employment.

• The institutionalists highlighted the fact of the existence of
multiple labour markets as against the single labour market of
Classical and Neo-classical setting under the influence of
competitive forces

Labour market towards social
protection
• FAO and partners have been contributing to enhancing this
evidence base, showing the potential of social protection to
address some of the underlying economic causes of malnutrition,
as well as to increase labour productivity, long-term employability
and labour market participation.
• Livelihoods predominantly depend on agriculture and rural labour
markets, social protection has the potential to influence the
productive dimension - FAO, 2014a
• Labour market protection, that promotes human capital, access to
jobs and productive assets - FAO, 2017c

Labour market towards social
protection
Social protection, which includes social assistance, social security
and labour market policies, has the potential to reduce
vulnerabilities, prevent negative coping strategies and reduce
market failures affecting fishers and fish workers (FAO, 2017x).

Labour market development process
The labour markets in developing countries differ from the
corresponding markets in developed countries because of the
different cultural setting and different level of economic
development and industrialization.

Characteristics of labour markets of developed
countries
(1) The extent of un-organized sector labour market is limited, but
the quantum of casual type of labour is increasing as students are
always ready to be in the labour market to meet with their learning
expenditure.
(2) Sex composition of labour market is rapidly changing as women
come forward to join the labour market.

(3) There is increasing use of formal information sources for
employment search.
(4) The widening productivity spread and the constant (relative)
wage spread (the social-minimum wage) have caused the creeping
unemployment and labour force replacement.

Labour Market Analysis in India
• Labour market in India were initiated in sociological and
industrial relations.
• These came to incorporate problems of manpower planning in the
later stage and gradually turned to analytical issues relating to
such aspects of labour market behavior as wage structure,
mobility, job search behaviour and investment in human capital

Labor Market relation to aquaculture
• Labour codes may be jeopardized as countries compete to remain
attractive to companies. This is particularly pertinent where the
industry has become oligopolistic owing to industry
concentration.
• Large transnational companies farming species such as shrimp,
salmon, tilapia and others that are global commodities are
generally located in rural coastal communities.

• These large-scale commercial fish farming companies often enjoy
monopsony power over the labour force as the sole or dominant
employer. To remain attractive, communities may be prepared to
sacrifice good working conditions, reduce wages and salaries,
work longer hours without compensation, benefits or accept
employment of minors.
• The problem may become even more acute in the event of a
negative shock to the market. How responsible the company feels
to its employees depends on its commitment to social
responsibility and corporate governance, but the danger of
regulatory abandonment exists.

• The surveyed farms is that labourers in hatchery and grow-out
operations are paid at least the stipulated minimum wage, and
often more than workers in equivalent sectors.
• However, processing workers, who are typically female and low-
skilled often suffer from poor working conditions, including
remuneration.
• Economic viability, environmental neutrality and social well-being
are assured, will aquaculture be sustainable. One aspect of social
well-being is the treatment of aquaculture labour

• In many jurisdictions, there is legislation that protects workers,
guarantees a minimum wage and allows labour to organize. labour
force in general has benefited from aquaculture. Wages in
production and processing in all jurisdictions were at least equal
to the legislated minimum wage, and often higher.

Thank you

Labour market relation in aquaculture developmental planning

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