There appears to be a consensus among industry and even sections of the political class that little needs to be done for the labour sector, while employers get all sorts of concessions. Nation cannot progress with dispirited workers
The Indian labour sector is suffering from a ‘caste’ system — the pampered Government or semi-Government workers and the exploited non-Government ones. Even the so-called organised sector does not match the conditions of the Government workers.
In a scenario like this, ‘reform’ has become a dreaded word. The more is the reform, the higher is the suffering of the Indian workers. It is not restricted to any one sector. This is the story in every area. Thus, when someone says that an investor in the US, the West or anywhere in the developed world, wants more labour reforms in India, it rattles labour.
Can India take the giant leap without caring for the working classIJ Certainly not. But the employers of all hues seem to disagree. They want pliant workers who would subsist on below-poverty wages, prepared to be kicked out at the employers’ whim, but also contribute to the growth of the economy. Their wishes are encapsulated in a Bengali phrase: “Bamuner gai, khaabe kam, doodh debe beshi” (The Brahmin’s cow should have less to eat but must yield more milk). It had not happened to the Brahmin and neither is it happening to the new employers.
The Indian economy is sliding because of its holy cow — the workers — is at the receiving end and is being asked to shed more (Do the workers have anything to shedIJ). So what do those investors wantIJ How would they be contributing to the economyIJ
They have complaints against everything , be it the tax system, the wages, the welfare system, the regulations. They want a free run to escape all the laws. The Union Carbide phenomenon continues. Foreign direct investment is good, but should someone bringing a few pennies be allowed to romp home with all profitsIJ Is the country that helps them repatriate enormous profits supposed to remain deprivedIJ
Indian labour has suffered through the era of supposed protection. The workers were sacked by the industry in droves without even giving them their basic minimum wages and other benefits. The closed or abandoned mills around Kolkata, Mumbai and Kanpur are stark testimonies of the sufferings of even the organised labour.
The ushering in of information technology and related activities initially brought glee. Some workers were paid in six figures, while others drew handsome wages by Indian standards. The euphoria did not last long. The IT industry, despite soaring profits, has now squeezed its high-paid employees, forcing most of them out of the sector. The new wage standard varies from Rs 5,000 to Rs 40,000. Those who put in some years and rise to higher scales are often put to conditions that they quit the job.
The phenomenon is widely prevalent in the private banking and insurance companies. More employees are outsourced and they are not privy to any benefits proposed by the law or the company rules.
The courier industry does not have a law or regular employment. Staff members work at the lowest level of wages of around Rs 5,000, with the dagger of job loss hanging over their heads.
Foreign companies like Nestlé or Pepsi hardly have any plant that they can call their own. Every activity — from manufacturing to distribution — is outsourced. Indian businesses are given loans to produce their products at prices fixed by the companies. The foreign firms have no obligation towards the Indian workers. As the recent crisis hit Nestlé India, many such outlets closed down overnight leading the workers to starvation. Some committed suicide. The company has little to lose. The losses are to their Indian operators and workers.
The International labour Organisation noted this. It says that “on the policy front though many achievements have been made, bottlenecks have emerged in the implementation of policies and delivery programmes. In certain areas, fragmentation and coordination of initiatives have become a challenge for policy makers.”
The IlO report, ‘Decent Work Country Programme 2013-2017’, finds that 92 per cent of people were employed in the informal sectors. It expressed concern over the rising contract jobs, euphemistically called “outsourcing”. It also mentions that half of the workers are engaged in agriculture and just 11 per cent are in manufacturing. There are not many non-farm jobs in the rural areas. It also finds number of women workers in the rural areas declined while there was some rise in the urban women employment.
It also noted with concern that 27 million micro, small and medium entrepreneurships, may have relevance for the youth employment but their competitiveness is limited. But the red herring is that “there is no specific provision for labour laws”. It obliquely suggests that the laws there are more violated than observed.
That is where foreign companies take fancy in employing MSMEs to bypass laws. The IlO notes that labour protection is inadequate. It says that the social protection and the minimum wages remain amongst the basic essentials. So it has found in the 166 functional Special Economic Zones.
It has been found that India’s growing education sector also does not pay its faculty and other staff as per provisions of the law. Recently, a faculty member of a well-known private university had to seek Prime Minister Narendra Modi’s intervention to get his gratuity paid on the termination of his job. Most of the teachers in universities or secondary and primary schools are ‘officially’ paid a wage through the banks but they have to refund at least half of it to their employers in cash. This happens in the national capital, Delhi, and all over the country.
The prosecution of an employer for the violation of the law is rare and time-consuming. Mere eight per cent workers are working in the so-called organised sectors. The plight is horrendous. The private sector —foreign or indigenous — has paid scant attention to it. Can India grow with such a dismal record on labour scenarioIJ What more reforms does the industry or business needIJ
It seems there is almost a consensus that the least needs to be done for labour. In the name of ‘reform’, the workers are set to be deprived of the even least they have.
Modi has to look at the workforce with a fresh vision. labour laws don’t need reforms; they need a new approach to treat labour with compassion. Besides, the Government alone cannot remain the model employer. Industry has also to chip in to give the best.