In 2020, the union government of India finalised rules under four labor codes, with the aim of rebooting the economy and building a future of work that is safer, greener, and more resilient.
In line with this idea, the Center for Work and Welfare of the IMPRI (Impact and Policy Research Institute), and the Indian Social Institute (ISI), and Counterview, organised a talk titled, “The Future of Labour Codes: Impact and Way Forward from Trade Union Perspectives under the State of Employment“.
Workers And Unions’ Response
The chair of the session, Fr Dr Denzil Fernandes, executive director of the Indian Social Institute (ISI), began the session with an understanding of what these labour codes will entail for the Indian economy. He focused his remarks mainly on how they were received by the workers and the trade unions.
Many trade unions have compared the labor codes with “modern-day slavery”, given the amount of unhinged power that the employers will now possess.
Implementation Of New Rules
The moderator of the event, professor KR Shyam Sundar, professor of human resource management, at the XLRI (Xavier School of Management), defined the premises and circumstances when the labour codes were passed and the slow pace with which they are being implemented.
Many big states like Tamil Nadu, West Bengal and Kerala, have not notified the center about the adoption of these four new labour codes yet. He also explained the effect that the codes are going to have on the occupational safety, social security, and overall health of the common workers.
There still exists a huge void in implementing them among the Indian states. He expressed grievances in the lack of consultation with the ILO (International Labour Organization), during the drafting by the Indian government.
Implications For Workers
Amitava Guha, national secretary of the Centre of Indian Trade Unions (CITU), focused his remarks on the future of Indian trade unions vis-à-vis the new labor codes.
He reiterated how the CITU, time and again, submitted their own amendments to the government when these codes were still in the process of being drafted. Further, he expressed his objection to the way they were passed in the parliament without any proper discussions and debates.
Guha explained how the codes can prove discriminatory to the agricultural workers who have failed to be taken into the purview of the codes. This meant that 49% of the entire Indian working force has been kept away. A vast amount of workers have not been covered under the threshold of these new laws.
The increase in the working hours postulated under the codes are also violative of ILO laws. The imposition of defense sector ordinances under these codes is also violative of many ILO regulations.
The fixed-term employment clause will equally prove detrimental to the interest of the Indian labour force. The employers now have the choice to throw the workers at any time they want; and the five years time period given in the labour codes will not be accessible to the workers, in practical life.
The codes thus have legalized the process of throwing out permanent workers and substituting them with contractual workers, at the sweet whims of the employers. The 10% eligibility criteria given for registration will be immensely disruptive for large firms.
Laws And Workers’ Rights
Chandra Prakash Singh, national vice-president of the Indian National Trade Union Congress (INTUC), began his session by describing how the employment scenario in India has changed. Employers today are keener to take in contractual workers and the new labor codes have just eased up the process more.
He remarked that there is a big conspiracy to take away the constitutional, legal, and fundamental rights of the working force. The central government has shut the Indian Labour Conference down, since 2015, impinging upon the rights of the labor force.
The union government is not ready to accept the ILO’s proposal as well into the codification of the labour laws. Singh is of the opinion that the government should immediately call the Indian Labour Conference, given the economic condition of the country, and the labour issues that have been augmented by the Covid-19 pandemic.
The government has also completely put on hold complaints regarding issues and their grievances. Complementary to this, he reiterated Guha’s remarks as to how the government has taken away the right to agitate of the common working force.
According to Singh, the labor laws have been drafted mostly to ease up the process toward privatisation and for the benefit of the employers.
The government in the new codes has not mentioned a single thing about the universal minimum wage, or the social security, job security of the labor force. A big question now arises about the future of these working classes.
Historical Background Of Labour Laws
Virjesh Upadhyay, responsible for research and intellectual work at the Bharatiya Mazdoor Sangh (BMS), and the director-general of Dattopant Thengadi Foundation, mentioned how India has lagged after so many years since independence in bringing coherent, worker-friendly labour codes.
Despite having 93 % of the working force in the unorganised work sector, the new labour laws barely cover 3-4 % of the entire Indian workforce. According to Upadhyay, the new laws only focus on the expansion of business.
He brought in the example of the infamous migrant exodus of 2020, to portray how these laws have yet again failed to safeguard the rights of the unorganised sector. He is of the opinion that the labour laws should be drafted afresh.
Upadhyay also mentioned how the enforcement and implementation are lagging, and the trade unions have failed to safeguard the rights of the workforce in India. Trade unions also need internal introspection. The lack of unity and coherence among the myriad trade unions is hampering their proper functioning.
He focused on the need to distinguish between politics and labor welfare, so as to ensure the relevance of these trade unions. Labour welfare should be the core concern, instead of petty politics among these trade unions.
In discussing these drawbacks of the trade unions, he also mentioned the success that BMS has had so far in protecting worker rights in India.
Federalism And The Labour Codes
Amarjeet Kaur, general secretary of the AITUC (All India Trade Union Congress), reiterated that she does not support these new labour codes and the laws need to be revisited. The laws should pass the test of the parliament as the opposition was completely absent
She thinks that whatever good existed in the labour world, was taken away by these new laws. Land and labour, both being state subjects, means that the new codes as well as the three new farm laws have interfered with the functioning of federalism in the country.
Without consulting the state governments during the formulating stage, the federal ethos of India has been hampered. No other actors were taken on board, except the employers, and only their unilateral view was taken into account.
The trade unions could not build up resistance as well as they should have been. Bigger, substantive agitations are needed because the attack on the rights of the workers is too hefty.
Kaur is of the opinion that a much more strenuous campaign is needed to raise awareness about the dangerous character of these new codes. If these laws are implemented, it would simply take away the dignity of the common workers.
She reasserted that these new codes are a stain on constitutional morality. Deviating from Singh’s argument, Kaur remarked that labor politics and welfare have existed side by side right since the time of independence. Politics is needed today to fight the arbitrary attacks on labour rights by the government.
She asserted that trade unions need to be free from the influence of political parties if they actually want to work for the betterment of the workforce in India. Many fundamental rights of the common citizen are under attack by these new codes.
The labour codes will entirely destroy peaceful conciliation, adjudication, and ways of agitation of the workers. These laws are simply biased towards the management and the employers.
Many previous safety nets like the Payment of Minimum Wages Act will now become redundant, following the implementation of these new codes. The labour history of India is being challenged by the new codes.
Labour Codes And Economic Justice
Dr Rashmi Venkatesan, assistant professor of law, National Law School of India University, Bengaluru, asserted that the very first need should be to look at the term “labour” in a broader context. There is a disconnect that exists between the intellectual understanding of issues and the larger public discourse.
Unlike the agitation that followed among the public at large following the passing of the farm laws in 2020, the codes failed to garner that same level of resistance from the common people.
The transition from labor to the public did not happen which became a big hindrance in generating awareness about the broader impact of these codes.
They negate the ethos of economic justice, and are now just moving towards concentrating economic prowess in the hands of a very minute section of people. The critical narrative centering on labour laws has largely been restricted to legal criticism, and failed to highlight the issues of intersectionality.
Public Narrative Around Labour Laws
Prashant K Nanda, national writer for the LiveMint, focused his discussion on the worker and the public narrative. Nanda thinks that it is imperative for the labour market to be part of the entire thought process centering around these laws.
The trade unions should improve how they function and should act as a catalyst. He reiterated that the Indian trade unions lack an intellectual backbone. The trade unions are entirely missing from the public view and are not seen. Thus, they are not in a position still remains pretty minor in the entire political discourse.
The disjuncture between labor politics and welfare is the main hurdle towards reviewing the codes. The lack of job security among the general population is another cause of the feeble nature of the composition of many of the existing trade unions.
The trade unions today largely talk about the formal salaried section of the workforce, which Mr. Nanda considers to be another big drawback. The growth of the trade unions will depend largely on how they represent these informal sectors.
He also highlighted the difference in agitation between the labour movement and the ongoing farmers’ movement.
Mobilising People Against Unjust Laws
The event culminated following the concluding remarks of the chair, Fr Fernandes. He discussed what the role of the trade unions should be in organizing and mobilising the resistance movement against the codes.
He also focused on the ways like digital media through which the broader public base and the youth can be mobilised in the agitation process.
Singh, while answering follow-up questions, reiterated the need to view the labour movements and the farmers’ agitation separately.
Upadhyay, in giving his concluding remarks, asserted the need to keep up with the dynamic character of the society and economy at large. The trade union’s form of working based on the ’60s economy will not work in the modern-day. And for that, they need to be changing their mindset, perception, and approach keeping pace with modern times.
Kaur, in her concluding remarks, mentioned the drawbacks associated with the agitation process. She also laid emphasis that how the new working force also needs to be taken into the trade union’s discourse.
She reiterated the need to bring the informal sector into the purview of the functioning of the trade unions.
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Acknowledgment: Anondeeta Chakraborty is a research intern at IMPRI.
Written by Mahima Kapoor