India needs to rethink proposed changes to labour laws: Here’s why
Former Prime Minister Manmohan Singh, addressing the 31st Plenary Session of INTUC on Saturday spoke out against the “anti-labour and unimaginative economic policies of the NDA Government.” The statement is significant as this INTUC conference came in the context of NDA contemplating replacing the existing labour laws with Labour Code on Wages and amending several major Acts for labour protection.
The conference also came in the wake of a country-wide 24 hour general strike of 10 trade unions (apart from BJP’s Bhartiya Mazdoor Sangh) observed in September this year. The strike was a demonstration against the labour reforms planned by the NDA government which put jobs of workers at risk and made layoffs easier.
Labour reforms have long been pending in India. Almost 90 per cent of the labour community is casual and not protected by laws and regulations. On the other hand, some sections of industry and neo-liberal thought have argued for greater flexibility in labour markets and easier hire and fire policies for increased competitiveness, push in manufacturing, and greater output. Modi government’s thrust on Make in India and ease of doing business directly feeds into this narrative. Yet, NDA’s new Labour Code Wage bill may not be the best answer to boost economic productivity. In fact, in a country where labour health, safety, and welfare remain low priorities, industrial accidents are high, medical insurance and social security is weak, and minimum wage guidelines are routinely violated, the Labour code and proposed changes will do more harm than good.
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