Saturday, June 20, 2020

Labour and the Law




As you all know, four factors of production contribute to an economy’s progress. These four factors are land, labour, capital and enterprise. All the four need detailed attention from thinktanks, analysts and policymakers. Today, we shall focus on labour, also known as the human capital.

Even before one could understand the consequences of denotification, the media became busy with fighting newsroom battles with Pakistan and terrorists. They had no time for such unglamorous and tedious issues like the Indian economy’s sudden downswing or the rising unemployment. None of the superpatriotic news anchors seemed interested in asking why the economic policies which were touted to send us zooming to the status of third most powerful economy in the world flopped so miserably. What happened to Make in India, Skill India, Swachch Bharat Abhiyaan and countless other campaigns launched with sparkling fanfare? And, finally, why the promise of 2 crore jobs has ended up in a terrible unemployment mess?

The media did have time to play and replay videos of film stars who had died during this period. I have nothing against celebrities. They play an important role in lending vibrancy to the society. But why ignore those who form the bedrock of this very society – the ordinary worker? It is he who keeps the wheels of our economy moving forward and still remains the most ignored and vulnerable member of the family called Bharat, that is India.

The pandemic, interspersed with Shaheen Bagh violence, cyclones and confrontation with China dumped the Indian economy – already a stepchild of the God called Indian Media – into the oblivion. But the soul-incinerating scenes of workers and their families trudging hundreds of miles from their places of employment to their respective homes, many succumbing to death on the way, brought the state of economy back into focus. Only for a while, though. The flashpoints on our northern borders resulting in martyrdom of our soldiers, have once again pushed a meaningful debate on the state of economy. The last one heard anything related to the state of Indian economy was the loss of about 24 crore jobs. What happened after that? Only the Gods of Indian Media know, or do they?

In pre-COVID 19 times around 25 crores or 45 percent of the labour force found employment in the agricultural sector. But their productivity is less than one-third or about 14 percent of the GDP. This reflects poorly on the way our labour force has been managed and skilled. Worse, these people are not only poorly paid and badly exploited by their employers but also suffer from lack of job security or any kind of safety net to protect them during the times of adversity.

What about the rest of the labour force? They have not fared any better. The 2020 Economic Survey claims that 20 percent of the workforce is employed in the formal sector. But many experts claim that the actual figure is no more than 10 percent. This is because many companies, even large ones, prefer to outsource hiring of workers to private contractors – thus depriving them of any benefits of the formal sector like guaranteed employment, pension, healthcare and other benefits.

Since labour is on the concurrent list, the central and state governments legislate separately on this issue.

The central government has been busy with getting rid of outdated labour laws and replace them with the ones more relevant to today’s realities. In November 2019, the Centre introduced the Industrial Relations Code (IRC) in the Lok Sabha, on which the Lok Sabha Standing Committee on Labour published its report in April. The Industrial Relations Code seeks to replace the Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act with a unified code. It remains to be seen whether this code will do any good to the ordinary worker or will cater to the convenience of the big business.

One can get a slight indication from certain straws in the wind. Uttar Pradesh has suspended current labour laws for four years to attract capital investment. Madhya Pradesh will exempt for 1000 days all new factories from the provisions of the Factories Act, 1948. These exemptions relate to working conditions, health and safety of workers. But there has hardly been a debate on these far-reaching changes.

There are more than 250 Central and state laws that grant protection to labourers by regulating fair wages, conditions of work, overtime, leave, and social securities through employment security. Legal experts point out that one cannot arbitrarily suspend these laws as this would breach the constitutional requirements under articles 21 and 24, etc. So, are the workers’ rights being adversely affected? What is being done to improve their living and working conditions? Has any thought been given to incentivise workers by providing them with avenues for upgrading their skills and rise in their careers?

Here it would be relevant to mention that a 2010 Oxfam report on ‘Social Discrimination in India’, states that Dalits and Adivasis constitute the “highest proportion of the population” in the informal sector workforce, with 89% of them living in extreme poverty. Also, 85% of Muslims in the informal sector “find themselves in lowest four income groups”. The hardest hit will be the 95% women working in the informal sector. Their lot needs to be improved without resorting to political considerations. This can be done by making various benefit schemes more accessible, efficient and inclusive. There is an urgent need for setting up suitable structures and systems that will provide opportunities for learning new and improved skills while on job. They all are priceless assets to the Indian economy as well as the nation as a whole.

Finally, the state governments should restrain themselves from resorting to ordinances to bypass existing laws for the benefit of a few corporate houses. It’s time for the government to consider all these things while legislating a new labour law.

 

YOUTUBE



No comments:

Featured Post

RENDEZVOUS IN CYBERIA.PAPERBACK

The paperback authored, edited and designed by Randeep Wadehra, now available on Amazon ALSO AVAILABLE IN INDIA for Rs. 235/...