Bearing the brunt of slack laws (Labour law reforms - the downside)

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 Bearing the brunt of slack laws (Labour law reforms - the downside)

Read more on - Polity | Economy | Schemes | S&T | Environment


    • The Delhi fire: On December 8, 2019, a huge fire killed 40 people in a production unit in Delhi. The systematic labour rights violation was again laid bare.
    • Industrial clusters: Many congested areas across India have seen industrial clusters mushrooming, due to two reasons. First, civic agencies overlook regulations. Second, practically zero regulation of labour laws in MSME sector.
    • The reality: In these clusters, workers are largely immigrants and work long hours for poor wages, and live in crowded quarters. Informality is pervasive, state regulation missing.
    • Laws never reach them: Major labour laws are beyond the reach of many workers who sign up "less regular" work contracts. They miss out on most benefits that formal sector workers get.
    • Ease of Business coming: In the garb of it, a new attack is commencing. Labour laws are projected as the obstruction to free market functioning. Employers claim that labour laws are disabling new employment generation as they are cumbersome. Governments seem to agree.
    • Reality: Such claims of labour market inflexibility are wrong. Why? Because contract labour as a per cent of total labour is quite high in all types of industries today. Labour turnover is high. Informal sector is growing continuously. Deskilling is happening (skilled labour doing low skill work). Trade union movement is very weak.
    • Self certification: As labour inspections have waned, employers are doing their own self-certification for labour laws. Many standards have been diluted already - on working hours, minimum wages, industrial disputes, etc.
    • State is out of the game: The multiple exemptions given to smaller establishments and legal amendments have enhanced the power of employers. Across India, state is withdrawing, and labour is paying the price.
    • Competitiveness: Employers seek to become more competitive by extracting the most from labour, with no regard to labour rights. If workers are putting their blood and sweat in making the economy, they must get their due returns.
    • Summary : Three factors have diluted workers' rights in India steadily - self-certification by employers, weak labour inspections, and dilution of labour laws.
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                                                                                                                                                PT's IAS Academy: Bearing the brunt of slack laws (Labour law reforms - the downside)
                                                                                                                                                Bearing the brunt of slack laws (Labour law reforms - the downside)
                                                                                                                                                Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
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