People's Democracy

Is Ministry Of Labour Only For Dismantling Labour Rights?

Chittabrata Majumdar

(Excerpts from the speech in Rajya Sabha on the working of the Ministry of Labour on 17-3-2006 - Editor)

ON a primary glance of the outcome Budget and the Performance Budget placed, and on what we have seen from our experience, the functioning of the ministry of labour is failing to protect the interests of labour.

Whatever steps have been taken by the labour ministry, are mainly aimed at patronising the employers. This is in contravention of the NCMP. The NCMP says: "The UPA government is firmly committed to ensuring the welfare and well-being of all workers, particularly those in the unorganised sector who constitute 93 per cent of our workforce.  Social security, health insurance and other schemes for such workers like weavers, handloom workers, fishermen and fisherwomen, toddy tappers, leather workers, plantation labour, beedi workers, etc., will be expanded." 

LOW ALLOCATIONS

Allocations made in the Budget are mocking at the commitments made in NCMP. We find that in this year's Budget, the finance minister has provided only Rs 1176.55 crore for labour welfare and Rs 548.88 crore for social security and welfare.  Out of Rs 1176.55 crore for labour welfare, Rs 840 crore is towards regular contribution for the Employees Pension Scheme for those who are covered under the EPF Act.  The rest is accounted for general head of industrial relations and welfare measures for the unorganised sector workers stand completely ignored.

Rs 548.88 crore, meant for social security and welfare, includes Rs 435.05 crore for meeting the regular annual payments for pension and other benefits for freedom fighters.  There is an allocation of Rs 40.73 crore for child and women and Rs 26.60 crore for the handicrafts. So, actually, for the unorganised sector workers, nothing is there in the Budget, though it has been promised in the NCMP that the government will look and take steps for the betterment of the unorganised sector workers. 

COMMITMENTS VIOLATED

The NCMP further states on labour: "The UPA rejects the idea of automatic hire-and-fire. It recognises that some changes in labour laws may be required, but such changes must fully protect the interests of workers and families and must take place after full consultation with trade unions."   

But the government is moving in the opposite direction. Yesterday, on March 16, an incident occurred in Ludhiana.  The peaceful demonstration by the workers of Oswal woollen factory were brutally lathi charged by the police and large number of workers were arrested. The police even attacked the union office to arrest the leadership. The workers were agitating over non-implementation of labour laws and other demands. About 200 workers were booked under false and fabricated charges.

The case of Honda factory, which happened in July last year, is well known to everybody. We find that with the indulgence of the state governments, the employers in both the unorganised and the organised sector, even where multinationals companies are there, are not allowing the workers to form unions.  Their unions are not getting registered by the Labour Department.  Even when the union is registered, the management is refusing to talk to the unions to settle the disputes.  When the disputes are raised by the union with the Labour Department, in many cases, the Labour Commissioner’s office also does not take any action for the proven violation of statutes and lingers on to convene a meeting and settle the dispute. In many cases, when the meeting is convened, the management does not cooperate. And, there are cases where some agreement was arrived at with them; but even then, the management is not implementing those agreements, with the labour department remaining an indulgent onlooker. 

NO RESPONSIBILITY?

And, what is the role of our Labour Department?  We raised this issue, a number of times, with the Labour Department.  But, the Labour Department did nothing, actually. Sometimes, their reply is that it is the responsibility of the state governments. We have some all India labour laws such as, the Trade Union Act, the Industrial Disputes Act and many others, but these Acts are not being implemented.  If the states do not implement these laws, does the centre not have responsibility to intervene? 

In Sikkim, the Trade Union Act and the Industrial Disputes Act are not being implemented. Industries are there, workers are there, but they are not being allowed to form any trade union.  Disputes will be there, but where will those disputes be settled? We raised the issue with the Labour Department.  But the matter has not been attended to.  

So, what is the role of the Labour Department?  It has been said that this Department will look after the interests of the workers and their families. 

What has the Economic Survey for 2005-06 commented?  "…Indian labour laws are highly protective of labour and labour markets.  Labour markets are relatively inflexible.  These laws apply only to the organised sector.  These laws have restricted labour mobility consequently….” This approach militates against the basic spirit of the commitments made in the Common Minimum Programme?  So, on the one hand, in CMP, it has been announced that the interest and rights of labour and their families would be fully protected, on the other hand, the Economic Survey pleads against such commitments.  It was said that labour laws are for only 7 per cent workers in the organised sector and saying this attempts are being made to dismantle even those labour laws to take away all rights and protections on the plea of bringing flexibility. The goverenment is trying to withdraw those rights and facilities and to convert the workers in the organised sector into unorganised  sector workers. The government is doing nothing to protect the rights and interests of the unorganised sector workers.  So, for the unorganised sector workers, protective measures are not being taken and for the organised sector workers, whatever the protective measures are there, they are being dismantled, to make them as unorganised. This is the direction in which the government is moving. 

WORKERS MALIGNED

And while doing so, as a complementary measure, the government agencies are campaigning through media that workers and their trade unions are against development and reforms and they are the villains of growth and prosperity. As regards the industrial relations, what do we find?  Actually, if anybody goes through the newspapers, TV reports, etc, he will conclude that the workers are presently opposed to development and are thus the biggest evil force in our country. These are the campaigns going on against the workers in our country.

When some strike occurs, it is said that the loss suffered by the economy is due to the action of the workers.  But what is the record of the employers?   In 1999, 10.62 million man days were lost due to strikes. In 2004, man days lost due to strikes came down to 4.83 million days. But what about lockout?  In 1999, man-days lost due to lockouts were 16.16 million. And, the man-days lost due to lockouts rose to 19.04 million in 2004. Do not lockouts, which are much more than the strikes, cause far greater loss of production and injury to economy? But, you will not find a single word about actions of the employers. What the Labour Department is doing to stop this type of practice?  On the other hand, what we find is that the unlawful closure and retrenchments are being allowed by the government. machinery.

Today, there is a tremendous development in technology, and, as a result of that, the productivity of industries has increased.  But who are garnering the benefits of these technological developments? These benefits should be shared by everybody; including the employers, the workers; and the consumers.  But what is happening today?  With the development of technology and its introduction in manufacturing process, the hours of work is being increased. The fruits of this technological development are not being shared with the workers at all and benefits of increased productivity are being totally appropriated by the employers. The employees are facing downsizing and retrenchment. This situation cannot continue unopposed.     

According to the existing laws in our country, eight-hour day is to the followed for employing the factory workers. But an honest inquiry will reveal that in many of the factories and workplaces, twelve hours work without any extra remuneration has become the norm. In most cases, the workers are forced to work twelve hours a day with the same remuneration as that for eight hours. Who will look into that? Is the law meant only for workers and not for the employers or others?

Further, is the Labour Department serious at all about examining as to whether instead of adult workers, child labourers are being used in factories without even minimum wages?  Rather, the government is proposing dismantling of the inspection system on the labour related issues. That is meant to allow the employers to act according to their whims and at will, to use 'hire and fire' policy against the workers.

RIDICULOUS SUGGESTIONS

The Economic Survey states: "Evidence suggests that States, which have enacted more pro-worker regulations, have lost out on industrial production in general”. … “States where wages are higher than in neighbouring ones because of strong bargains or social security provisions, such as high minimum wage, had high incidence of unemployment in general."

What lesson is this central government trying to impart to the state governments -- that governments should not enact laws or implement the provisions to protect the interests of the workers, as otherwise they would lose investments and there would be no employment? Ridiculous indeed!

What type of employment the government is talking about? In our country, Contract Labour Regulation and Abolition Act is there. According to the Act, in a perennial work, employment of contract labour is illegal. But everywhere, even in the government organisations also, in the jobs of perennial nature, contract labourers rather than permanent workers are being appointed. Moreover, about contract labourers there are, regulations which, the principal employers have to abide by and ensure implementation of various terms. But those are not being looked into and the contractors are not following those laws. So, through the employment of contract labour, everything is being done at a much cheaper cost, and, as there is a high rate of unemployment in our country, they are not finding any problem in having supply of workers at very nominal wages. But is that a civilised and desirable approach?

How would the market in our country develop if the purchasing power of the society gets reduced in this manner?

Now, we gets shall be talking about industrial development. What does the Economic Survey say about annual growth rate? It says, in mining and quarrying, the production has gone down from 1995-96 to 2005-06.  In manufacturing, production has gone down.  In electricity, production has gone down.  Without electricity, can the manufacturing be done? Ultimately, the purchasing power of the entire society is being reduced which will create further crisis in the system that is going on. 

ATTACKS GALORE

All types of attacks are going on against the organised sector workers too.  The interest rate on provident fund is reduced.  Earlier it was 12 per cent over time it came down to 9.5 per cent.  This year it has been reduced to 8.5 per cent.  It is being proposed that in the coming year it will be 8 per cent only.  So by reducing the earnings of the retired workers, how is the government protecting the interest of the workers and their families? 

And on pension bill and related matter, the government’s proposal is quite damaging. The employees may lose all their earnings because the proposal is for investment in the share market. 

Another frontal attack on the livelihood of the workers is in the offing. The labour minister himself is involved in that. A new series of Consumer Price Index has been announced. Two or three meetings were held with the representatives of trade unions. Trade unions did not accept that.  Instead of 1982 as base year, the base year is being shifted to 2001 without correcting the inbuilt defect in the existing series, which will lead to enormous loss to the workers. All the trade unions unitedly proposed that an Index Review Committee should be formed to examine the various aspects, correcting the defects and for taking a final decision and in that Committee trade union representatives should also be included.  But it has not been done.  Instead, the new series has already been announced.  So, what is the use of such discussions with trade unions?  What about the protection of rights of workers and their benefits and all talks of consensus with the trade unions?  All these things are going on.

Should we take it for granted that this government will not formalise anything about the workforce in the informal sector; rather, this government will informalise the workers who are working in the formal sector.