Rebooting Labour Reforms

While ‘codifying’ labour laws, labour interests shouldn’t be overlooked

The compression of 44 labour laws into four ‘codes’ or broad categories — wages, social security, industrial relations and occupational health and safety — forms a central aspect of the Centre’s labour reforms push since 2015. This is not a bad idea, as it simplifies access to numerous provisions of the law by all stakeholders concerned. As part of this exercise, the Cabinet recently approved the tabling of the Code on Occupational Safety, Health and Working Conditions Bill in Parliament, which encapsulates 13 laws. The Wage Code Bill, on which the Parliamentary Standing Committee on Labour drew up its comments last December, will be introduced in Parliament soon. While piloting these changes, it is important that the Centre reaches out to a cross-section of stakeholders, some of whom have already expressed misgivings.

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The Code on Wages has some positive proposals, such as extending the minimum wage law to all activities, not just the 45 ‘scheduled’ ones. A benchmark national minimum wage will set a floor. However, the definition of worker is not clear. The calculation of the level of minimum wage by an expert committee is at variance with ILO parameters. A lean inspector regime is all very well, but it must monitor workplace safety. The code on industrial relations has evoked strong reactions, as the right to form unions and accord them powers of representation have been severely curtailed. This can be both anti-democratic and economically counterproductive. An approach that regards workers as partners in production is likely to promote industrial harmony. Shutting out legitimate avenues of expression can lead to violent outbursts.

Source: The Hindu BusinessLine

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