SCRUTINIZING THE LABOUR UMBRELLA LEGISLATIONS- A CRITIQUE AND SUGGESTIVE REFORMS
It has been over a couple of year since the Indian government proposed four labour codes—a labour code on wages, a social security code, an industrial relations code, and an occupational safety, health and working conditions code. However, the implementation of the proposed codes has been delayed due to several reasons, including the ongoing COVID-19 pandemic. Additionally, experts argue that the drafts of the codes are ineffective in addressing the issues faced by India’s labour force. Further, it is believed that the proposed codes favour the Haves over the Have nots.
First, let us examine the labour code on wages. This code proposes to consolidate four existing laws and aims to introduce a minimum wage along with several measures for the protection of workers, including timely payment of salaries, and equal pay for equal work. However, experts argue that the proposed minimum wage is not enough, and it is not applicable to all sectors. For example, the minimum wage proposed for the agricultural sector is significantly lower than that proposed for other sectors. Further, the code only covers workers earning less than Rs. 18,000 per month, which leaves a vast majority of India’s workforce unprotected. As a result, this code fails to address the issues faced by the most vulnerable sections of the workforce and instead primarily benefits the employers who can pay lower wages.
Next, we have the social security code, which aims to provide social security measures such as health insurance, old-age pensions, and gratuity to all workers, including gig workers and casual labourers. The code also proposes to create a social security fund to ensure the availability of funds for these measures. However, several experts have raised concerns about the proposed fund’s sustainability as there is no clarity on its funding sources. Furthermore, it is argued that the social security measures provided under the proposed code are minimal and do not provide enough support to the workers. For example, the proposed old-age pension is only Rs. 1,000 per month, which is not adequate for a dignified existence. Additionally, the code also excludes several sectors, including the unorganised sector, which forms a significant part of India’s labour force.
Moving on to the industrial relations code, which aims to streamline trade union registrations and dispute resolution procedures. However, it is argued that the proposed code aims to restrict the rights of workers and trade unions rather than providing them with better protection. The code proposes to reduce the threshold for the formation of trade unions, which could lead to several small, fragmented unions rather than a unified voice for the workers. The code also provides additional powers to the government to intervene in the functioning of trade unions, which could lead to the suppression of workers’ rights. Additionally, the proposed code only considers workers in the industrial sector, which again leaves out the majority of the workforce.
Lastly, we have the occupational safety, health and working conditions code, which aims to provide for better working conditions and safety measures for workers. The code proposes several measures such as setting up occupational safety and health committees, providing annual health check-ups, and providing access to clean drinking water and adequate sanitation facilities. However, it is argued that the proposed measures are not comprehensive enough and do not provide adequate protection to the workers. For example, the code does not cover the issue of sexual harassment at the workplace, which is a significant concern for several female workers. The proposed code also does not provide for adequate compensation in case of accidents or injuries, which leaves the workers vulnerable. Again, the proposed code only covers workers in the organised sector, which leaves out several vulnerable sections of India’s labour force.
A Case Study
The recent case of labour unrest in Maruti Suzuki—a leading automobile company in India—is a prime example of the issues faced by workers in the country. In 2013, there was a violent altercation between workers and management at Maruti Suzuki’s plant in Manesar, Haryana, leading to the death of a senior executive. The incident highlighted the level of discontent and frustration within the workers. This incident was largely due to workers’ grievances regarding wages, working hours, and the lack of job security. The company’s management was mostly interested in cutting costs and maximising profits, often at the expense of workers’ welfare. While the government introduced several codes aimed at protecting and promoting the welfare of the workers, the situation in the Maruti Suzuki plant showed the inadequacies of the codes. The company’s management used the provisions within the legislation to prevent workers from striking or engaging in collective bargaining, which left the workers with very few options.
Here are some of the reforms or additions that could be made to the existing labour codes in India:
1. Minimum wage: The proposed labour code on wages aims to introduce a minimum wage; however, the current proposal is not comprehensive enough. The minimum wage proposed does not cover all sectors, and the threshold for coverage is also limited. Therefore, the government should consider revising the current proposal and introduce a minimum wage that is applicable to all sectors and is higher than the current proposal.
2. Social security measures: The proposed social security code aims to provide social security measures such as health insurance, old-age pensions, and gratuity to all workers. However, the measures provided are not comprehensive enough. The old-age pension proposed is only Rs. 1,000 per month, which is not enough for a dignified existence. Therefore, the government should consider revising the proposed social security measures and introduce comprehensive measures that include a higher old-age pension, disability pension, and unemployment benefits.
3. Trade unions: The proposed industrial relations code aims to streamline trade union registrations and dispute resolution procedures. However, the proposed code aims to restrict the rights of workers and trade unions rather than providing them with better protection. Therefore, the government should revise the proposed code and introduce measures that provide better protection to workers and trade unions. For example, the government should consider introducing a provision that guarantees workers’ right to strike and the right to collective bargaining.
4. Occupational safety: The proposed occupational safety, health and working conditions code aims to provide better working conditions and safety measures for workers. However, the proposed measures do not provide adequate protection to the workers. For example, the proposed code does not cover the issue of sexual harassment at the workplace, which is a significant concern for several female workers. Therefore, the government should revise the proposed code and introduce measures that address all the issues faced by the workers, including sexual harassment, mental health, and well-being.
5. Inclusion of vulnerable sectors: The proposed labour codes only cover workers in the organised sector, which leaves out several vulnerable sections of India’s labour force. Therefore, the government should revise the proposed codes and include provisions that provide protection to workers in the unorganised and informal sectors.
6. Labour disputes: Labour disputes are a significant concern in India, with several cases pending in courts for several years. Therefore, the government should consider introducing a separate mechanism to address labour disputes, including setting up labour courts that work efficiently and provide speedy resolution of disputes.
7. Employment contracts: The existing labour laws do not provide clear guidelines for employment contracts. Therefore, the government should introduce rules that ensure that employers provide clear and legally-binding employment contracts to their workers.
CONCLUSION
In conclusion, while India’s proposed labour codes aim to provide better protection and support to the labour force, they fail to provide comprehensive measures that protect the most vulnerable sections of the workforce. Additionally, the proposed codes seem to favour the Haves over the Have nots, as they primarily benefit employers rather than the workers. The drafts also exclude crucial sectors such as the unorganised and agricultural sectors, which form a considerable part of India’s labour force. Therefore, it is essential for the Indian government to review the proposed codes and ensure that they address the real issues faced by the workers and provide adequate protection to all sections of the workforce. The government should consult with various stakeholders, including trade unions and workers, while revising the codes to ensure that they address the real issues faced by the workers and provide adequate protection to all sections of the workforce.
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Author – Parth Bhadoria, Semester VI, Institute of Law Nirma University
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