22/07/2019 - Government Policies | GS II |

IAS Parliament 5 years

KEY POINTS

· 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 Code on Wages has some positive proposals, such as extending the minimum wage law to all activities, not just the 45 ‘scheduled’ ones.

· 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.

· The latest Economic Survey cites studies to observe that a 10 per cent rise in minimum wages leads to a 6.34 per cent increase in employment in rural areas in the case of both men and women, with a statistically insignificant impact in urban areas — questioning the bias against raising wages.

· India’s manufacturing is likely to prosper on the back of a skilled and well paid workforce, with a supportive ecosystem in terms of infrastructure and logistics, as Economic Survey 2017-18 suggests.

· Garment wages in not just China, but Vietnam and Indonesia are higher than in India and their yet their exports are growing.

· An approach to labour regulation that cuts out compliance headaches, while improving the lot of the employees should be the guiding principle.