Skip to main content

Govt of India's new labour codes 'exclude' millions in unorganized, risky, vulnerable jobs

Counterview Desk
In a strongly-worded commentary, the Working Peoples' Charter (WPC), an initiative to bring together all organizations working with, and organizing people dependent on the informal sector, has said that the new labour codes tabled in Parliament are “primarily driven by the interests of the industry” in order to “alter the labour protection landscape in India beyond repair and reclaim”.
Pointing out that the codes show “there is a clear drive to ‘informalise the formal’ or ‘levelling down’, which has been "central" to the overall architecture of the emerging labour regime, the WPC apprehends, through these codes, wages are proposed to be determined by state level advisory boards, “something that Indian industry has long wanted.”
“Such an arrangement would lead to a race to the bottom, as different states would compete to attract investments by lowering wages – an observation that is borne out by facts on the ground”, WPC says, adding, this is “revealed” from how between 2010 and 2015, industrialists relocated from Okhla Industrial Area in Delhi to Uttar Pradesh and Haryana, “as the latter offered 25-35% lower minimum wages than Delhi.”
“Flight of capital would become extremely convenient in such a regime, pushing state governments to compromise on worker’s wages and welfare”, it underlines.

Text:

On July 4, the Economic Survey argued that a higher national minimum wage is central to addressing inequality and widespread poverty in the country. A couple of weeks later, the Government of India (GoI) trashed its own analysis by proposing a “starvation wage” of Rs 178 a day. The Central government hit the nadir with a minimum wage hike of Rs 2!
Experts allege that it is a precursor of what is in store for millions of workers as the Cabinet passed two of the four proposed labour codes – the Code on Wages and the Code on Occupational Safety, Health and Working Conditions.
Working peoples is a national asset – undermining their wellbeing is the biggest anti-national act. Need-based minimum wage should be guided by Supreme Court jurisprudence laid down in the Raptacos case, which is based on principles and test laid down by judiciary, and if any committee, any advisory board decided below this, has to give reason and recommendation.
The two codes were tabled for discussion by Santosh Gangwar, Minister of Labour and Employment. With this Parliament has struck the proverbial hammer on the fate of millions of workers, robbing them of the possibility of decent work and wages, omitting the principles of determining minimum wages, an equal workplace and avenues for access to justice.
Primarily driven by the interests of the industry, this predatory piece of legislation is all set to alter the labour protection landscape in India beyond repair and reclaim. It clearly shows that there is a clear drive to ‘informalise the formal’ or ‘levelling down’ which has been central to the overall architecture of the emerging labour regime.

The new minimum wage is indeed a precursor to the darker days to come

The new minimum wage of Rs 178 per day translates to Rs 4,628 per month. It goes against the Labour Ministry's own expert committee recommendation of Rs 375-447 per day, let alone the 15th Indian Labour Conference's suggestion of Rs 692 a day, Rs 18000 a month. The new national minimum wage, half of what was recommended, truly portends a death knell on India’s labour protection framework.
The rhetoric on labour codes passionately pitches a national minimum wage. A closer look at the provisions of the wage code busts this myth. First and foremost, it violates the Supreme Court and 15th Indian Labour Conference guidelines for a "needs based" criteria (covering nutrition, healthcare, education & provisions for old age) to fix the minimum wage – something that was adopted for Central government employees, but ignored for the larger mass of unorganized sector workers.
The most disturbing part is – no principles are laid down with regards to determining minimum wages, and the entire exercise is left to the Central Advisory Board.
Wages are also proposed to be determined by state level advisory boards, something that Indian industry has long wanted. Experts argue that such an arrangement would lead to a race to the bottom, as different states would compete to attract investments by lowering wages – an observation that is borne out by facts on the ground.
Reports have revealed that in the period between 2010 and 2015, several industrialists relocated from Okhla Industrial Area in Delhi to Uttar Pradesh and Haryana as the latter offered 25-35% lower minimum wages than Delhi. Flight of capital would become extremely convenient in such a regime, pushing state governments to compromise on worker’s wages and welfare.
One may well question the intention of the GoI in even announcing such a national minimum wage. In our judgment it is primarily a signal to the industry that the jungle has been let loose, only wilder this time, and wages can be pushed down to the lowest levels possible to suit capital interests.

The chowkidar is not even a worker as per law

Despite its claims, both the codes exclude millions of unorganized workers. The Occupational Safety and Health Code does not cover workers employed in small enterprises deploying 10 or less workers, or those in the informal sector. As per an estimate, this is over 85% of India’s labour market, especially including those in medium and small enterprises, which often tend to be more risky and vulnerable to occupational hazards and safety violations.
The Wage Code also does not cover the large mass of informal workers because its definition of “employer” is ambiguous and narrow. For example, the Code says, “Employer means a person who employs, whether directly or through any person, or on his behalf or on behalf of any person”.
Most workers would struggle to establish their employment relations to benefit from the Code provisions. On top of it, the Code has almost rejected the regulatory framework, perhaps they have attempted to eliminate all forms of inspection mechanism for unorganized sector. This means majority of workforce will be left behind form the fold of the Code, and their level of exploitation will be increased unimaginably.

Equality is not a mandate the labour codes support

The Wage Code is disturbingly silent on providing equal opportunity to women, and penalizing discrimination on the grounds of gender. In India, where female labour force participation has hit an abysmal 23%, this deletion is highly damaging. Most disturbingly, the Code does not have any provisions to prohibit discrimination against workers from Adivasi and Dalit communities.
There is pervasive evidence on the exclusion faced by such workers in the form of low earnings, wage thefts, abuse, harassment, low opportunities and minimal upward mobility. The new law is blind to it all!

Your wages can be stolen but the government doesn’t care

What happens if a worker does not receive due wages or receive them in time? As per the new Code, in case of a dispute, a worker can now approach only a quasi-judicial, appellate authority, not within the jurisdiction of courts – a violation of the Civil Procedure Code section 9 that requires mandatory judicial review of decisions.
What is worse is that a claim can only be filed by an appropriate authority, employee or trade union. This leaves out all workers in casual, informal, undocumented work, denying them any formal avenue to seek justice.
India's informal economy is structured through long serpentine chain of contractors. Migrant workers often do not know who their employer is. The new wage code weakens the principal employer liability to pay wages to contract labour, if the contractor has failed to do so. This has grave and far reaching consequences on the access to justice for informal workers, especially in a scenario where the volume of wage thefts from such workers is unacceptably high.
Codes show, there is a clear drive to ‘informalise the formal’ or ‘levelling down’, which has been "central" to the overall architecture of the emerging labour regime
Notably, the Occupational Safety and Health Code does talk about principal employer liability but it also stealthily passes the buck to the manager or the supervisor. It seems government is trying to legalize the contractualization, instead of abolishing it. We must reemphasize that the contract labour act was legislated in 1979, to abolish the contract system, and now it is going to be new normal under the code.

Are we encouraging slavery like system

Labour bondage and other forms of coercive work have existed in India for centuries. Coercive work is also assuming new forms in the contemporary labour market. Vulnerability to coercive labour is rooted in longstanding patterns of inequality, social exclusion, discrimination and inadequate labour market governance. In the contemporary economy, distressed migrants employed in the informal sector who are willing to accept advances are particularly vulnerable to coercive labour relationships.
By permitting recoverable advances, the Code on Wages, 2019, leaves marginalized workers vulnerable to coercive labour. Recognizing the stubborn persistence of coercive labour in India, the Supreme Court has explicitly linked advances to coercive labour and has even declared a legal presumption that advances suggest the presence of bonded labour.
Despite this presumptive link between advances and coercive labour relationships highlighted by the Supreme Court, the Code on Wages, 2019 retains provisions permitting employers to recover advances. Using provisions such as “deductions for recovery of advances of whatever nature”, will lead us to dark days and encourages slavery like practices across informal economy.
We should not be using archaic provisions of statute came before independence (Payment of Wages Act 1936), especially when India claims to abolish forced labour and slavery.

How to supply cheap, pliable labour – that’s the core mandate

The entire tenor of both the codes reeks of eagerness to appease industry and create the much hyped labour market flexibility and ease of doing business. This is exemplified by the flexible provisions for overtime, a move that can potentially legitimize 14- hour workdays as the norm.
Furthermore, the vocabulary replaces inspectors by introducing facilitators who merely have an advisory function, as opposed to their previous regulatory role. There is no mention of the labour department and its functionaries across both the codes – an omission that is more than deliberate.

Higher minimum wages for workers in Delhi and efforts of Working Peoples’ Charter

In a historic counter to this dismal state of wages in the Indian labour market and policy discourse, the workers’ movement has made a major stride forward in the National Capital Territory (NCT) of Delhi.
The Working Peoples’ Charter, along with other trade unions and workers’ organizations of Delhi, despite attempts by representatives of the industry in the Minimum Wage Advisory Committee to bypass the recommendations of the Raptakose judgment and recommended the first upward revision of minimum wages in 22 years in the NCT, based on revised estimates of living costs.
The Delhi government is currently in the process of implementing the wage hike on the recommendations of the Minimum Wage Advisory Committee. The amendment takes into account the positive impact of inflation on the cost of commodities in the workers’ consumption basket. This effort through created hope for the entire nation to advance the agenda of need based minimum wage and implementation of supreme court landmark order in Raptacos Bret case.

Labour Codes could be the most poorly (and craftily) written piece of legislation in India’s history

Finally, it is most ironical that the parliament is about to debate on what could be the most poorly (read shoddily) written piece of legislation in Indian history. Both the codes have no understanding of informal labour and its requirements from the law. There is a lot of ambiguity in the way provisions are phrased.
At times the codes get too specific and at times too vague, reflecting either poor ground work done or a deliberate ambiguity to allow for excessive discretion of the appropriate government.
The Occupational Safety and Health Code most notably subsumes the Building and Other Construction Workers’ Act, 1996, leaving out millions of construction workers in the lurch who were enrolled with the welfare Board created under the Act. The code makes shoddy, vague mentions of provisions for construction workers, too visible to miss.
While many of us have been fighting for a change in labour laws ourselves and demanding a protective framework for informal workers in India, the proposed changes are far from what we have strived for. Our collective analysis shows that the new codes are crafty – in the garb of promoting worker welfare and enabling formalization, it is seeking to repudiate basic human and labour rights to workers.

Comments

TRENDING

Impact of state repression? Kashmir's 65% people prefer independence: Cambridge study

By Rajiv Shah 
Even as the Government of India’s controversial move to abrogate Article 370 of the Constitution and bifurcate Jammu and Kashmir (J&K) into two union territories is not only refusing to down die but has acquired international dimensions, a recent study, published by the Cambridge University Press, has claimed “pro-independence attitudes” among that 65% of Kashmiris, warning, this sentiment worsens when the state machinery resorts “repressive violence”.

Dholera 'inundated': Gujarat govt tries selling low lying area as top smart city site

Counterview Desk
Even as the Dholera Special Investment Region Regional Development Authority (DSIRDA) of the Gujarat government was busy organising a junket for Gujarat-based journalists for the area sought to be sold as an ideal special investment region (SIR) for industrialists, well-known farmers' activist Sagar Rabari has wondered why no investor has so far agreed to put in money in an area situated in Ahmedabad district along the Gulf of Khambhat.

Hindus to be 'sent' to Kashmir? Despite Israeli settlements, peace eludes the region

By Anand K Sahay*
Curfew, news and communications blackout, transportation shut-down... News reports from Kashmir are worrying. So are the views relayed through the media, especially television. Old-fashioned repression seems to be consorting comfortably with expressions of concern “for our Kashmiri brethren”. We are looking at Orwell’s 1984 in the making.

Congress' anti-democratic laws led to Modi govt's 'Constitutional' changes: Scholars

Counterview Desk
A large number of academics* said to be belonging to several Indian and international institutions, even as taking strong exception to the Narendra Modi government's alleged move to amend the Constitution through "illegitimate" means, have taken strong exception to their colleagues in academia who we have become "all too accustomed to adopting a calculated silence in the face of such indignities."

Kashmir normal? Schoolboys, teenagers being arbitrarily picked up, detained: Report

Counterview Desk
A four-person team, consisting of Jean Drèze, well-known development economist; Kavita Krishnan, who is with the Communist Party of India (Marxist-Leninist); Maimoona Mollah of the All India Democratic Women's Association (AIDWA); and Vimal Bhai of the National Alliance of People's Movements (NAPM), back from a five-day fact-finding mission (August 9-13) from Kashmir, has said that people they spoke to “expressed their pain, anger, and sense of betrayal against the Government of India.”
In a report, “Kashmir Caged”, released along with a short eight-minute film, they said, the abrogation of Articles 370 and 35A, dissolution of the state of Jammu and Kashmir (J&K), and bifurcating it into two Union Territories, is not being supported by anyone they met, except for BJP spokesperson on Kashmir affairs Ashwani Kumar Chrungoo, who claimed 46% vote share in J&K.
Excerpts from the report: When our flight landed, and the airlines staff announced that passeng…

Modi's Gujarati mind? Why govt move to 'sell-off' defence PSUs isn't in national interest

By Sandeep Pandey*
The Standing Committee on Defence, 2017-18, of the 16th Lok Sabha highlights the idea of Buy Indian-IDDM (Indigenously Designed Developed and Manufactured). The Committee expressed concern over the import content of equipments produced and developed by Defence Research and Development Organisation (DRDO), Ordnance Factories (OFs) and defence Public Sector Undertakings (PSUs) because of the dependence it creates for military hardware on foreign suppliers.

Central Gujarat effluent channel 'releasing' highly polluted industrial wastewater: PM told

Counterview Desk
Senior environmentalists of the Paryavaran Suraksha Samiti (PSS), Vadodara, Rohit Prajapati and Krishnakant, in an open letter to the Prime Minister, the Gujarat chief minister, the Gujarat chief secretary, and senior Government of India and Gujarat government officials dealing with environment, pollution and climate change have said that the authorities’ response their pleas to take action against the leakages and flow of polluted wastewater from the effluent channels of Central Gujarat industrial areas has met with complete inertia.

Can't go to court with RTI information, rule Ahmedabad authorities: Kankaria accident

By Pankti Jog*
In a shocking reply to an application filed by me, the Ahmedabad Municipal Corporation (AMC) authorities have said that the information provided under the Right to Information (RT) Act should be used in court or in a judicial process. The Act is known to be a major tool that enables citizens to seek certified copies of documents, records from any public authority of state and Central government within 30 days, as per provisions of the Act.

Quit India Movement 'betrayal' and dubious role of Hindu Mahasabha, RSS leaders

By Shamsul Islam*
After the recent guillotine of Article 370, Hindutva ideologue Ram Madhav, while celebrating the occasion stated that it was honouring of the sacrifices of Dr Shyam Prasad Mukherjee and thousands others who laid down their lives for its removal. It is to be noted that Dr Mukherjee was a cadre of RSS and was groomed into a Hindutva leader by another Hindutva icon, VD Savarkar.

Strategy for united struggle against Hindutva 'fascism': Ideological silence is 'no option'

By Dr Bhabani Shankar Nayak*
Electoral alliance and opportunism of national and regional political parties, neoliberal economic marginalisation and soft secular Hindutva line pandering to Hindu majoritarianism laid the foundation of Hindutva fascism in post-colonial India.