Ever since Bharatiya Janata Party came to rule India a decade back in 2014, attacks on unions and the rights of workers increased consistently. Legitimate rights working class won earlier through their collective struggles are being attacked ruthlessly. The attack on the working class is often carried out under the guise of reform of labour laws. To please foreign and domestic monopoly corporations several employment regulations are introduced and new labor codes have been broughtin. The draconian anti worker regulations have resulted in contractual short term insecure low paid jobs replacing regular employment, social protection and decent working conditions. The reforms carried out in the name of New labour codes by present BJP regime are nothing but continuation of the same neoliberal economic reformsinitiated by earlier governments, but with more vigour and urgency.
In the first term in office Modi government initiated dismantling of labor laws. Before the new labour codes were condensed to 4 from earlier 40 central laws and more than 100 state laws on labour and related matters. Labour laws are in concurrent list ie. In purview of both central and state governments, that hitherto provided though some protection of democratic rights that were hard won after a series of militant struggles waged by trade unions. Earlier 40labor codes pertained to -Industrial relations, Wage fixation, Social security, Work Safety, working conditions, Welfare and other aspects. The reduced 4 labor codes now include- Code on Wages, Industrial Relations Code, Social Security Code and Occupational Safety, Health and Working Conditions Code. Though from surface major codes have been retained, in content most of the labor rights have been robed of their content and left to the discretion of state governments and bureaucrats. Importantly the regulatory powers of labor department and inspectors have been pruned and taken away by factory owners. Subsequently the employers aregiven self certification powers on employment and laborrightsvarious issues replacing the labordeprtment.
Keeping in view of the enoromisity of the subject I will discuss below only issues- Wage code and Industrial Dispute Act. There are other serious codes of omission and violation work safety, social security and other legitimate worker rights.
Wage code concerns
- Firstly, there is no clarity on the formula for fixing the minimum wage and also on the particular authority designated for fixing the minimum wages. This means a minimum wage for a given work can be fixed by state government administration taking advise from employer bodies like industrial, Chamber of commerce and others. Fixation of wages is so arbitrary that there is no recommendation to link with Whole Sale Price Index to provide relief from ever rising prices to workers. Neither no mention on inclusion of representatives of Trade Unions while fixing the wages.
- The case of deduction of wages has been over simplified. Employers can fine and deduct wages in case of absence or delay to work place even for a few minutes. Workers will have no right to appeal against in case of injustice.
- The revised Code omits the employer’s liability to pay wages if the labour contractor fails to do so. Presently, 90 percent of employees are hired temporarily on contractual basis, it is difficult to pinpoint the responsibility of non payment of he principal employer is defined broadly in the Code making it difficult to pinpoint responsibility of factory owner for payment of wages by a contractor.
- The Code also takes away the jurisdiction of courts in providing justice to workers wh faced injustice and violations with respect to their wages. This means that workers can no longer access courts to contest the wages paid to them by their employers, but can only approach the quasi-judicial body and appellate authority set up under the provisions of the Wage Code. This is a draconian clause that robs the workers of their democratic right to appeal in court of justice.
Industrial Relations Code
As per the Industrial Employment Act, 1946 it is mandatory for an industrial or service establishment empoying 100 workers, to define conditions of employment and abide by all the stipulated labor laws in favour of workers. However, in the new code the threshold has been raised to 300 and employer is only mandatory to observe stipulated newlabor rules. Employing below the strength of 300, the employer now does not need prior permission of government.
Prior permission of the government is no more necessary before closure, lay-offs or retrenchment of employees in establishments having more than 300 workers.
- With the increased threshold, it becomes more flexible and easier to hire and fire thus increasing job insecurity and unemployment.
- Importantly, new provisions are introduced in the revised labor codes that takesaway workers right to strike.
The Code also introduces new conditions for conducting a legal strike.
- Employees are prohibited from going on strike without giving a 60-day notice.
- Employees are also prohibited from going on strike during the pendency of proceedings before a Tribunal or a National Industrial Tribunal.
- They should also not go on strike before 60 days are completed after the tribunal’s proceedings.
- Most importantly it makes very difficult to unionize in factories and other establishments.
Industrial Relations Code Concerns
- It robs the rights of workers in industrial establishments with under 300 workers.
- In smaller establishments, employers hiring below 300 workers are given complete flexibility to hire and fire workers. Previously, companies with more than 100 employees needed government approval to lay off workers, but with the changed threshold of 300 employees, employers can easily layoff workers without permission from government.
- The condition to go for legal strikes has been made more stringent terms of prior notice of 60 days by workers in place of 14 days earlier, thus making it impossible for them to go on strike legally. The new Industrial Relations Code completely undermines the right to freedom of association and collective bargaining. Strike action, which is an inherent part of freedom of association will be deemed illegal as the conditions for a ‘legal strike’ will be extremely difficult.
- Central Trade Unions barring BJP affiliated BMS, fought militant battles, held nationwide all India Bandhs and mobilized wide resistance from both organized and unorganized workers against the new labor codes. As a result could pass only Wage code in Parliament in 2019. After facing serious resistancefom left paty MPS the government had Remaining three codes such as Industrial Relations Act and others to Parliamentary Standing Committee for purview and recommendations. However, as Labour laws are in concurrent list Central government has transferred implementation of new labor codes to State governments.
Immediately, various state governments, especially Gujarat, UP, Maharastra, Madhya Pradesh ruled by BJP rushed to implement the new labor codes. For example, Maharastra started implementing new Industrial Relations Code 2020, the same month, thus making it illegal and impossible for workers to go on strike. The BJP led Uttar Pradesh government has promulgated an ordinance nullifying almost all labour laws in the state for a period of three years. All establishments in the state are now exempted from all the 38 labour laws. And the Madhya Pradesh government following the example of U.P nullified the labor laws for 1000 days and new establishments in the state will be exempt from their obligation under the Factories Act, Madhya Pradesh Industrial Relations Act, Industrial Disputes Act, Contract Labour Act and others by ordinances. Making the factory owners easier to ‘Hire and Fire’ workers as per their choice. Above all, all these state governments have given a free hand to industrial and service establishments to shift from 8 hour work day to 12 hours.
This is nothing but a blatant move of returning to slavery, extraction of more surplus value by extension of working hours. This is a clear case of Primitive accumulation as was thecase with 19th century European capitalism. Eight hour workday had been won by working class inspired by Mayday and militant struggles waged by our working class during the last century. Also the above states permit women to work in night shifts contrary to womens rights. Ommission of Tripartideaggrement ( consisting of employers, workers, extension of work day to 12 hours by state governments is a clear violation of International Labour Organization clauses, where India is a signatory.
The recent nullification of workers rights is nothing but implementation of neoliberal economic reforms primarily to facilitate easy and huge profits by exploitation of workers. Similar anti worker reforms are being implemented in South Asia, Latin America and Europe and world wide by governments world over under pressure from IMF and other imperialist financial bodies to mute the power of Trade unions. Resistance to neoliberal anti-labor laws there is wide spread opposition and resistance by workers all over the world similar to India. Working class from both organized and unorganized in our country under the leadership of Central Trade Unions are waging militant battles against the draconian, undemocratic anti worker reforms brought by present BJP government. It is high time workers and farmers fight unitedly against their common class enemies domestic corporate bourgiese, imperialism vote out the present BJP government.
Dr. Soma Marla, Principal Scientist, Genomics (retd), ICAR, New Delhi. India
