LABOUR REFORMS – THE NEED FOR PROTECTING EMPLOYMENT OR EMPLOYEES ! – A PERSPECTIVE ON CHANGING ECONOMIC SCENARIO
S.SENTHIL SRINIVASAN[1]
INTRODUCTION
The ‘demand-led’ vision theory of JOHN MAYNARD KEYNES focuses on job creation through state funding, in a recession driven economy. The world manpower demand scenario has been continuously deteriorating for the past two to three years, to say precisely from the beginning of 21st century. The world economic trends, especially in the developed countries are under a downturn, resulting in job insecurity, unemployment and inflationary pressures. The effect and impact of this turnaround is mild on the developing countries like India, for the factors, viz.
Abnormal growth of population
Emerging competitiveness and buyer oriented market.
Low dependency on foreign exchange transactions.
Rising income of the people and technological based products.
strong and stable growth of manufacturing sector and
Higher returns on short-term and medium-term investments.
The above factors are advantageous in addition to supporting features like,
a) Low cost of labour
b) higher labour potential and
c) Excessive labour supply.
The absences of these human qualities in the developed economies have been a challenge for a decade or so.
Inadvertently, the reforms envisaged and initiated by growth oriented developing countries like India have incredibly given a fillip, assuring stability and consistency in competing with world large economies like U.S.A, France, Japan and U.K.
THE REASONS:
When the developed countries are facing inexperienced hardships to retain the growth of their economies, the developing countries on the other wing, with reforms and gradual growth are sprinkling the business fields with policies like open market system, business expansion, and diversification, technological up graduation, disinvestment, privatization and foreign trade, with the intention to capture the world markets. Human resource potential in India is strong and growth prospects bright. This meritorious quality is the reason for stability in growth in contrast to the developed countries, But, the rate of unemployment in developing countries are ever increasing, in spite of upsurge in development of manufacturing and service sectors. After, a splendid twelve years of reform, in India the unemployment rate has risen to alarming percentage.
Undoubtedly this indicates the growth of India in economical terms, but at the cost of labour. No compromising statements will underpin this fact, for instance the IT sector.
THE INDIAN LEGISLATION:
In India, various set of labour laws enacted before three/four decades have been protection the manpower from innumerable issues which were in practice, since long time. Certain legislations like Bonded labour system(abolition) Act 1976, Dock workers (Regulation and abolition)Act 1970, Contract labour(regulation and abolition)Act 1970, Industries (development and regulation)Act 1951, Industrial disputes Act 1947, Minimum wages Act 1948, Payment of wages Act1936, Trade unions Act1926, Bonus and gratuity Acts 1965 and 1972 and Workmen’s compensation Act 1923are being protection the workers from the greedy clutches of employers, assuring employees with
a) Fair and reasonable wages.
b) Terms and conditions of employment
c) Fringe benefits.
d) Compensation of disablement.
e) Job security and enforcement of rights.
The Government and the businessmen are on their foot to amend/repeal/enact certain legislations favoring them through reforming the labour laws and legislations, claiming it as necessary horse to win the race in global competition, The question here is whether labour reforms is a necessity at this juncture? If yes, what type of reforms and in which areas, it is imperative? And At what degree or pace it has to be taken.
These questions are more important issues to the government and the country as the whole. Hence, it is to be undertaken only after discussion. National consensus and opinion are to be sorted before ending up with repealing or enacting any labour laws or amending existing provisions of law.
THE CONSIDERABLE FACTORS:
There are certain pertinent constituents that are to be considered before repealing/amending/enacting labour legislations. The labour reforms should be undertaken after considering the following factors-
The people Below the Poverty Line (BPL) which stands at 26.08% in India are to be brought down at least to 10 to 12%.
The disproportionate Industry Job ratio in manufacturing, tourism, hotels and agriculture are to be reviewed a reallocated in adequate and comparable proportions.
The living standards of work group should be improved with concrete policies and measures.
The demarcation of organised and unorganised sectors are to be sorted out and the domination of public sector enterprise employees which stands at 2/3 of organised category are to be reduced giving due emphasis to employees of private sector.
The Human Development Index of India though occupying 127th position in the world as the whole should be brought below 100th position at first instant.
Retrenchment of manpower in public and private sector, which is light of the day should be undertaken with due consideration to lessen the large scale unemployment.
Reforms should not fail in considering the assurance of Minimum wages to workers of all sectors including mining.
Provident fund contributions for the employees belonging to private sector is at lowest, compared to the public sector employees, adequate provisions are to be inserted through amendments to ensure provident fund schemes to private sector employees.
Certain labour laws like Industrial disputes Act, Workmen’s compensation Act and contract labour (abolition) Act have eventually failed in rendering justice to employees of private sector. The validity and transparency with simplifications in provisions are necessities of this hour.
Comprehensive labour laws with complexities must be simplified to cater the needs, problems and working conditions of employees of both sectors.
The role of Administrative Tribunals has to be well defined, empowering with certain independency in pronouncing judgments
Certain traditional and outdated labour legislations are to be identified with utmost diligence before repealing it.
The bonded labour and slavery are indeed eliminated but child labour practices, women employment in hazardous operations, low wage scale in certain private sector industries and anti-labour practices of managements, undue exploitation of workers are prevailing in the economy. Abandonment of all this evils is a must at the first instant before thinking of labour reforms.
Comparing china in reforming labour laws is not a wise thinking. China, off course has achieved something that India could imagine but this cannot be formalised and introduced in the immediate future.
CONCLUSION:
The reforms are indeed essential for growing countries and economies but it is also to look at what capacity and growth an economy can tolerate and sustain.
Even though India is renowned for human resource potential, the reforms at this juncture should not be based on instantaneous decisions, which shall prove to be filth in bringing stability and prosperity to workers. Indian labour force is not demanding an ‘IRON CHAIR’ policy of the government for their jobs, they are with certain expectations which will provide them with ‘CUSHION CHAIR’ to react to the unforeseen shocks in employment. If our total labour economy is transformed into skilled manpower then the reforms will be welcomed at all spheres.
As the government have a special policy and package to small scale sector, the labour force is also to be under the protection of government for some time from now, till India can retaliate to any type challenges posed by the developed economies and labour segment is able to withstand and sea change in employment.
“LABOUR REFORMS ARE FOR EMPLOYEES AND NOT FOR EMPLOYMENT”
[1] FACULTY, RESEARCH AND P.G. DEPARTMENT OF CORPORATE SECRETARYSHIP, BHARATHIDASAN GOVERNMENT COLLEGE FOR WOMEN, PUDUCHERRY – 605 003.
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Tags: changing, Economic, EMPLOYEES, Employment, LABOUR, Need, Perspective, Protecting, Reforms, Scenario