Riding Roughshod Over Labour Concerns: Reforms Or Betrayal ?

The history has been palimpsest for the migrant workers of India- whether it was during partition or pandemic – they are the worst hit in such cataclysmic times. With the uncertainty engendered because of COVID-19 crisis, penniless and famished, they began to traipse the unfathomable miles to reach their homes with their families and the paltry possessions they had. The Modi Government earned praises for initiating repatriation flights for Indians stranded abroad but the internal migrants were given an impetuous lockdown restricting transportation by all means. This shows the callousness of the government towards migrants who are considered nonentity since eons. Amidst this, came the sad news of a cargo train running over 16 workers in Aurangabad and the overturned truck killing 6 in Madhya Pradesh. Instead of providing succor, some state governments  didn’t desist to add on to their miseries by introducing the ostensible `Labour Reforms’. Taking the excuse of coronavirus, these reforms have been introduced under the pretext to boost economic activities, induce investments and lure Chinese companies by providing cheap labour destination in India. But it’s simply a ploy to fulfill hidden agendas as labour laws were seen as a biggest stymie in `ease of doing business’ by the big corporate houses.

When the Labour Day (1^st May) and 202^nd birth  anniversary of Economist Karl Marx (5^th May) was just around the corner, the state governments of Uttar Pradesh, Madhya Pradesh and Gujarat had some nefarious designs in their minds which they unleashed in forms of executive orders, notifications and ordinances to ease the labour laws, snatching the rights from the labour which they had earned through long fought struggle. The Uttar Pradesh Temporary Exemption from certain Labour Laws Ordinance, 2020 has rendered defunct 38 labour laws for 1000 days except for four laws. The laws which are declared kaput include Trade Union Act, Industrial Dispute Act, Act on Occupational Safety and Health, Contract Labour Act, Interstate Migrant Labour Act, Remuneration Act, etc. As per the notification issued, as many as 11 key industries will be exempted from Madhya Pradesh Industrial Relations Act, 1961. It has done away with the licensing regime and registrations are eased as well. Moreover, it has exempted firms from various welfare provisions under the Factories Act, 1948. Third party certificates for factories falling under non hazardous category and employing up to 50 workers will be sufficient instead of inspections. In Gujarat, industries are not even required to pay ‘overtime ʼ to the working labourers. The workers can be forced to work 72 hours a week instead of the earlier stipulated 48 hours. Daily working hours have been increased from 8 hours to 12 hours. The provisions concerning their safety, sanitation and health have been waived off, exposing them to greater risks. The record pertaining to labour’s details will no longer be available since inspection has been done away with. Greater powers will be usurped and misused by the employers leading to exploitation of workers. The bargaining power of the labour will be severely affected because in case of any dispute, they will not be able to mobilise in order to press their rights. With changes like ‘longer day, lower pay’ and ‘hire and fire’ policy, the security of tenure of labour will be endangered. The labour laws were designed keeping in mind the welfare and protection of workers but the retrograde changes are leading to its  systematic degradation.

With the states taking such draconian measures, there are few other issues that deserve contemplation. Firstly, the timing and the process of these changes are both wicked. When the world is battling with a pandemic, the states are welcoming labour reforms because they are well aware  that trade unions will not be able to come to streets in order to protest. Also, when the national codification and labour law reform was on the anvil of Parliament, inevitably it points to the facile over-enthusiasm of the states. The consultational process also seems to have been skipped from the notice of the states as the decisions are arbitrary and cursory. Secondly, the constitutional provisions have been blatantly violated. Beginning with the Preamble which provides for social, economic and political justice and also for equality of opportunity, relaxation in the labour laws to provide a fillip to the dwindling economy can never be justified as an excuse for labour’s willful exploitation. Then, the fundamental rights guaranteed under Article 14 and Article 21 are also violated. Article 19(1)(c) provides for the right to form associations and unions which is also impaired to a great extent. Article 23 prohibits bonded labour but what happened in Karnataka was a step forward for its revivalism. The CM B. S. Yediyurappa after a meeting with real estate developers cancelled trains for stranded workers who wanted to go to their homes because labour was needed to revive economic activity. Our Directive Principles provide for equal pay for equal work under Article 39 and Article 43 imposes an obligation on the state to ensure living wage and proper working conditions for workers. During such times, even minimum wage is endangered, let alone living wage. Thirdly, the facility of concurrent list has been grossly misused. States under Article 213 and Article 254 passed the ordinances during the time when Parliament was itself deliberating on the issue. Not only does it depict a case of executive overreach but it also undermines the federal gestalt of Constitution. Fourthly, the labour standards provided by International Labour Organisation (ILO) of which India is a founding member and signatory to 47 of its conventions, have been ridden roughshod over by the state governments. It is again in stark contradiction to the Article 51 which articulates respect for International laws and treaty obligations. These factors zeroes in the travesty of these reforms.

The ramifications of these relaxations in labour laws will squarely be a zero-sum game between employers and employees with the former being at the gaining end, paving way for a gig economy. Instead of giving stimulus to industrialization and investments, these changes will lead to unemployment and will widen the gulf between rich and poor. This `race to the bottomʼ of labour standards will lead to industrial discontent which will be accompanied by labour unrest, hurting the welfare as well as efficiency of labour. The labour is being decoupled of the limited legal protection it enjoyed as a result of this social disaster. The Arabian adage that if camel once gets his nose in the tent, his body will soon follow, fits to a T  in this context as such instances of unconstitutionalism are blazing the trail for a much greater crisis in the future.

Several trade unions and organisations have raised their voices against the assault that is unleashed on labour due to changes made in laws. The President of the RSS affiliated Bharatiya Mazdoor Sangh (BMS), Mr.C. K. Saji Narayanan described these amendments as a `bigger pandemic ʼ and leading to the `law of jungleʼ. It called out for a nationwide protest on 20^th May against the gross violation of labour rights. Apart from this, as many as 10 Central Trade Unions (CTUs) have called for a day longer hunger strike on 22^nd May at Gandhi Samadhi, Rajghat, New Delhi. These unions also approached the ILO as the decisions take by states are against its 1921 Convention, as a response to which ILO stated that the states should abide by the global norms and labour standards. It also underpinned the need to have tripartite forum including industry, workers and government before taking such desultory decisions which favours one class and disfavours another. Apart from this, a Jharkhand based activist Pankaj Kumar Yadav also filed a PIL in the Supreme Court. The plea discusses as to how the ongoing health crisis has been superficially equated with public emergency under Section 5 of Factories Act, 1948 which deals with power to exempt the law during a public emergency. In such circumstances, the role of Judiciary as a `sentinel on qui viveʼ is of utmost significance.

In these shambolic times, it is the duty of the government to safeguard the interests of the vulnerable sections of the society. In this case, it has indeed come a cropper. The decision of announcing a sudden lockdown was not calibrated as there was no prior planning concerning the internal migrants who were reduced to penury. They were left with no work, meager resources to sustain their lives and no means by which they could reach their homes. Even the stimulus package announced by the FINMIN didn’t provide much relief to workers because it focuses on grants by loans instead of direct cash transfers. This again favours the corporate sector. The Government should take lessons from Vietnam, Canada, Bangladesh and UK who are genuinely taking steps to provide relief to the downtrodden classes. It should make provisions like cash transfers to unorganised labour force, relief to stranded workers so thst they can safely reach their homes and universal coverage of ration distribution should also be made available. The much needed reform should be brought in the bureaucratic setup as red tapism (not labour laws) is the greatest hurdle in the ease of doing business. The reforms already made are no less than a betrayal with the working force. The governments should take decisions of such gravitas after following both the consultational and constitutional processes. The revival of economy by paying such heavy price cannot be justified by any means. It is a wise rule to resist the beginning of evil so the Central government as well as Judiciary should make good the loss incurred by the states at the earliest as they should beware of camel’s nose!

References :

1. The Hindu ;15^th May,2020 ; Are India’s labour laws too restrictive?

https://www.thehindu.com/opinion/op-ed/are-indias-labour-laws-too-restrictive/article31585617.ece

2. Bar and bench ; 18^th May,2020 ; Exemption from labour laws: Unleashing the new normal ?

https://www.barandbench.com/columns/exemption-from-labour-laws-unleashing-the-new-normal

3. Bar and bench ; 14^th May,2020 Supreme Court moved challenging relaxation in labour laws in Gujarat Madhya Pradesh and Uttar Pradesh amid COVID-19 lockdown

https://www.barandbench.com/news/litigation/supreme-court-moved-challenging-relaxation-in-labour-laws-in-gujarat-madhya-pradesh-and-uttar-pradesh-amid-covid-19-lockdow

4. India Today ; 15^th May ,2020 ; Coronavirus lockdown and a tale of lobour reforms sans labour

https://www.indiatoday.in/news-analysis/story/coronavirus-lockdown-labour-reforms-migrant-workers-1678324-2020-05-15

5. Business Standard; 9^th May,2020 COVID-19 Crisis: UP exempts  biz from all but 4 labour laws for 3 years

https://www.business-standard.com/article/economy-policy/up-govt-to-exempt-businesses-from-all-but-three-labour-laws-for-3-years-120050701531_1.html

6. AL Jazeera ; 13^th May,2020 ; India’s workers face ‘race to the bottom’ of labour standards

https://www.aljazeera.com/ajimpact/india-workers-face-race-bottom-labour-standards-200513035932068.html

7. Firstpost ; 12^th May 2020 ; COVID-19 Lockdown: UP and MP watering down labour laws is a body blow to the working glass. https://www.firstpost.com/india/covid-19-lockdown-uttar-pradesh-and-madhya-pradesh-watering-down-labour-laws-is-a-body-blow-to-the-working-class-8355791.html

8. Scrollin ; 11^th May,2020 ; The political fix: why are Indian states junking labour laws in the middle of the COVID-19 crisis ? https://scroll.in/article/961585/the-political-fix-why-are-indian-states-junking-labour-laws-in-the-middle-of-the-covid-19-crisis