People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXVII

No. 15

April 13, 2003


Hire & Fire, Contract Labour And The Group Of Monsters

Tapan Sen

  THE cat is finally out of the bag. After assuming charge of the labour ministry, the present labour minister had made many high-flown pro-labour statements, sometimes resembling delirium. But his moves are monstrous and just in the opposite direction.

  The minister, for example, made a commitment in the last Indian labour conference that the report of the Second National Commission on Labour would be discussed with all the central trade unions before the government takes any step in the matter of changing the labour laws.

  But, quite consistent with the BJP-led NDA’s culture, where deeds are at wide variance with the words, the government of the day, or for that matter the labour minister, moved ahead to implement their pro-employer changes in labour laws. They did not bother even to ignore the statement made by the subordinate minister of state for labour in parliament regarding consultation with the trade unions in the matter, well before finalisation of the government’s position on the recommendation of the Second National Commission on Labour.

  Only a few weeks ago, as per the arrogant statement made by the labour minister in the press, the group of ministers (GoM) has finalised the draft amendments of the Industrial Disputes Act, removing all embargo on retrenchment and closure and ensuring total liberty for the employers to instal a ‘hire and fire’ regime.

  Then, later, the same group of ministers hurriedly finalised the draft amendments to Contract Labour (R&A) Act to facilitate total contractisation of the workforce. Both these amendment bills are going to be introduced in the current budget session of parliament.

  The Second National Commission’s recommendation allowed deployment of contract labour in all non-core jobs and also in the core jobs in case of exigencies. The GoM completed the unfinished task left by the commission and finalised the definition of non-core jobs to embrace more than 80 per cent jobs in any industrial establishment. As decided by the group of ministers, the so-called non-core jobs which may entail deployment of contract labour include 1) maintenance, service and repair of equipments, machines and plants, 2) construction and maintenance of buildings, roads and bridges, 3) gardening, 4) loading and unloading of raw materials and finished goods, 5) running of hospitals, educational and training institutions, guest houses and clubs, 6) sweeping, cleaning, dusting, and collection and disposal of wastes.

  Once the above definitions get the legislative sanction, the first item itself --- i.e., maintenance, service and repair of equipments, machines and plants --- will throw at least 80 per cent work in any major manufacturing establishment open for deployment of contract labour. And the definition   of the so-called non-core jobs has been so much enlarged that in an overwhelming part of the manufacturing and service sectors, deployment of contract workers in almost all jobs will be legitimised, thereby casualising the entire workforce.

  Secondly, the group of ministers has not left anything to chance. Their loyalty to the interests of the employers lobby, both domestic and foreign, is total. Hence even after providing for such an all-embracing coverage for deployability of workers with fragile service security, to the benefit of the employers class, it did not miss to add a caveat as well. The draft cleared by the group of ministers has also laid down that besides the jobs covered by the definition of the non-core, “companies can hire contract workers for any sudden time-bound incremental work” in other areas also. Quite a long rope has been provided, isn’t it ?

  The above caveat has got its own satanic implications. It will allow the employers, to begin with, to get the same work done simultaneously under the same roof by two sets of workers with differing service conditions --- by permanent workers and by workers under contract. This would create tremendous pressure on the rights and wages and other facilities of the permanent workers, besides putting the bargaining capacity of the  concerned union, if any, under severe strain.

  The misdeed by the group of ministers does not end here. It has completely liberated the principal employer from any obligation towards the contract workers they will be hiring for more profit. As per the existing statute, the principal employers are required to ensure that the contract workers are treated as per the law of the land in respect of minimum wages, timely payment, safety measures and other basic statutory requirements. One must note that whatever benefits the contract workers have so far achieved through organised effort, be it about the regularity of payment of wages and other basic statutory amenities or their regularisation in permanent work, it was by compelling the principal employers to get involved either through judicial means or through organised struggle. Now, under the amended Act, such obligations for the principal employers have been given a complete go-by, thereby throwing the contract workers into a more vulnerable situation.

  And now the last, but not the least. Under the amended dispensation, the contractors, small or big, will no more be required to obtain a license. They will thus be liberated practically from all checks and regulations by the enforcement authority. In this background, the proposal made by the GoM for payment of 45 days’ retrenchment compensation to contract workers sounds like nothing but a cruel joke. 

  Hence under the deregulated regime, contract work will reign with an in-built provision for “hire and fire.” Those who are left out --- the extremely minority section of permanent workers --- will be tackled by the provisions of “hire and fire” to be made specifically through the amended Industrial Disputes Act in the deregulated and vulnerable working atmosphere. An ideal condition of slavery is thus being sought to be imposed on the working class of the country by the BJP-led NDA regime.

  Will this design of slavery be allowed to pass?