Labour
Code on Industrial Relations Bill
This bill merges three existing Acts - Trade Unions
Act 1926, Industrial Employment (Standing Orders) Act 1946, and the Industrial
Disputes Act 1947.
The basic purpose is to provide a comprehensive
instrument for the employers’ class to suppress the workers, drastically curb
workers’ rights to protest and agitate and press for their grievances, to prune
trade union rights to the extent of making it almost impossible even to form a
trade union. It is nothing but a direct
affront on the rights to freedom of associations and collective bargaining as
envisaged in the ILO core conventions no 87 and 98. It is a blatant attempt by
this government to ensure a trade union free workplace for its corporate
masters.
According to this code on industrial relations, it
is necessary for a trade union to have 10% of the workers in an establishment
or industry or 100 workers, whichever is less, as applicants for registration. Although it provides for granting of
registration of union within 60 days from the date of receipt of the
application subject to application being in order, it vests wide discretionary
powers with the Registrar under section 10 of the bill to grant or not to grant
or reject registration. Wide powers have also been vested with the registrar
for cancellation of registration of any trade union.
All the office bearers of the trade unions in the
organised sector must be persons actually working in that industry. No outsider
is allowed. Here office bearer means committee member also. As per existing
law, one third of the office bearers could be non-worker organisers/whole-timers.
For unorganised sector, not more than two non-worker/whole-timers (instead of
existing 50% of the committee members) will be allowed to become office bearer
of the union. Any office bearer of a
registered trade union could be disqualified if he or she is already office
bearer of 10 unions. Office bearers of trade union can also be disqualified by
Industrial Tribunal but criteria of such decision by Industrial Tribunal has
not been spelt out giving scope for arbitrary decision.
Despite so many restrictions in formation of trade
union in an establishment, granting of recognition and negotiating right to the
trade union continues to remain the absolute prerogative of the employer. The
demand of the trade unions for making recognition of trade union mandatory in
all establishments has been totally ignored.
Right to hire and fire has been given to employer in
all establishments employing up to 300 workers. In these establishments,
employers are not required to take prior permission of the government for
retrenching workers or closing down establishments. This means more than 90 per
cent of the workforce in the factory sector and almost all the contract workers in
manufacturing sector will come under ‘hire and fire’ regime. They will be at the mercy of the
employers in respect to their employment. This will ultimately impact all other
lawful rights of the workers. The employers can ignore or deny these rights as
per their sweet will.
The retrenchment compensation, of course, is
proposed to be enhanced to 45 days per year of service rendered. But this means
nothing to a worker losing his livelihood owing to the lust for profit of the
employer. Even in establishments employing more than 300, the appropriate
government has been vested with all powers to exempt them from their obligation
of taking prior permission for retrenchment and closure. Can criminality go any
further?
This labour code on industrial relations also
empowers the employers to unilaterally change the service conditions of the
workers. They are required to give 21 days’ notice for making such change which
is provided by the existing Act also. What is new in this bill is that after 21
days, the employers can unilaterally impose those changes even during the
pendency of conciliation proceedings in the labour department or case in
Tribunal on those changes based on disputes raised by the union/worker.
The bill imposes several restrictions amounting to
virtual ban on strikes and collective agitations by the workers. The right to
strike and collective agitation by the workers will be snatched away. As per
existing Act, workers/unions are required to give 14/21 days notice for going
on strike in public utility services. According to this bill, six weeks’ notice
is required to be served before going on strike in all establishments whether
public utility services or not. Conciliation proceedings will be deemed to have
started on the date on which strike notice is received by the conciliation
officer, irrespective of whether conciliation has been called by him or not.
Workers cannot go for strike during pendency of conciliation proceeding and up
to seven days after conclusion of conciliation. This makes it virtually
impossible for the workers and their unions to go on a legal strike. The Bill
also proposes to introduce ban on agitations like go-slow, demonstration etc
during pendency of conciliation proceedings. Definition of strike has also been
arbitrarily extended for casual leave availed by fifty percent or more workers
in the establishment.
Huge penalties ranging from Rs 20000 to Rs 50000 or
imprisonment of one month or both are sought to be imposed on workers for
participating in a so called illegal strike. Incitation or helping a strike
action too attracts a huge fine ranging from Rs 25000/- to Rs 50000/- or one
month imprisonment or both.
While retaining the employers’ prerogative to
recognise or not to recognise the union or negotiate with it on issues that
have been raised, the bill severely restricts the workers’ right to access
justice through adjudication/ tribunal etc. According to the section 95 (4) of
the bill, workers’ side would be entitled to legal representation in any
proceedings before a tribunal, only with the consent of the employers. As per
section 95(3), no party to a dispute shall be entitled to be represented by a
legal practitioner in any conciliation proceedings or in proceedings before a
court. These restrictions are only designed to put the workers and their unions
into difficulty.
Restrictions are imposed on the Tribunal itself in
the matter wording their awards. Section 70 of the bill provides that the award
of the Tribunal shall not contain any information obtained in the course of
investigation or enquiry which is not available otherwise than through evidence
given before the Tribunal, if the firm or company in question has made a
request in writing to that effect. This, while intruding upon the Right to
Information, would also create problem for the workers and their unions to
fight the case of appeal against the award of the Tribunal in higher court.
Further, section 58 restricts the power of Tribunal in the case on
discharge/dismissal of workers only to rely on materials on record and debarred
to take any fresh evidence in relation to the matter.
On the other hand, numerous provisions have been
incorporated on almost every aspect of industrial relations to empower the
appropriate governments to exempt the employers from whatever minimum
obligations they have even under the changed laws. For example, section 97 says
that if the appropriate government is satisfied that adequate provisions exist
for investigation and settlement of disputes within the establishment, it may
exempt the establishment from any obligations under the changed law. The government
can also exempt any establishment from the obligation of giving 60 days’ notice
for the closure and of providing compensation of 45 days’ per year of service
rendered for closure/ retrenchment and allow payment of only 3 months’ pay. The
government can also exempt even establishments employing more than 300 workers from
observance of procedures/ formalities/ obligations required under the law. However,
no consideration of any sort is shown for workers and trade unions.
This is how the present BJP led government seeks to
push the workers who produce the wealth of the nation and revenue for the
exchequer into slavery. If this government is not unashamedly corporate servile,
what is?
The Labour Ministry has called two formal tripartite
meetings to discuss these labour codes. All the central trade unions have
unanimously rejected the proposals, while the government and the employers’
organisations have ganged up as usual in support.
Onslaught
on PF and ESI
The social security rights of the workers provided
under the EPF and ESI Acts are also not spared by the present government, which
is determined to demolish and destroy these to favour the market forces.
Without even consulting the EPFO, the Finance
Minister announced in his Budget speech that Rs 6000 crores from EPF fund would
be utilised for general old age pension, which is totally unlawful as EPF funds
can only be utilised for the benefit of EPF subscribers. He also announced
government’s intention to make EPF optional in favour of the New Pension System
designed to utilise pension funds for speculation in stock market. Even before
this years’ budget is presented to the Parliament, the Finance Ministry
notified diversion of minimum 5% and up to 15% PF accumulation to stock market
totally ignoring the unanimous opposition from the entire workers’ group in the
Central Board of Trustees. Now the government has proposed to amend the EPF Act
to make EPF scheme optional for workers in favour of New Pension Scheme. While
all the trade unions rejected the proposals, the employers’ group totally
supported the project of looting the hard earned life time savings of the
workers.
Similarly the government has mooted a proposal to
amend the ESI Act to make ESI optional in favour of medical insurance. In their
eagerness to benefit the employers’ class the government totally ignored the
fact that ESI not only offers comprehensive medical benefits to the enrolled
workers and their dependents but also provides other benefits like cash
benefits in times of physical distress due to sickness, temporary or permanent
disability, and confinement for insured women. Dependents of insured persons
who die in industrial accidents, employment injuries or occupational hazards
are entitled to monthly pension under ESI. Whereas, medical insurance provides
medical benefits only for in patient treatment for the insured person limited
to the insured amount, ESI provides full medical benefits including out patient
treatment to the subscriber workers and their dependents for a nominal
subscription.
The main purpose behind these evil designs is to
provide business to the private insurance companies that have mushroomed owing
to the opening up of the insurance sector to private players, both national and
foreign, under the neoliberal policy regime. This was affected by amending the
Insurance Act. One misdeed is promoting another, in the process putting the
social security protection of lakhs of workers at stake.
Deceptive
ploy of Announcement of Social Security Scheme for Unorganised Sector
While aggressively pursuing their project for
dismantling the entire labour legislation and enforcement machinery, meant for
mainly the organized sector establishments, the government has been
unscrupulously trying to project itself as pro labour by announcing some
welfare and pension schemes for unorganised sector workers with great fan fare.
It has announced three such schemes, Pradhan Mantri Jeevan Jyoti Bima Yojana,
Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana with media
blitzkrieg. Despite carrying the tags of Prime Minister and the name of a
former Prime Minister, the schemes are all contributory without any financial
support from the government. There is no
implementation machinery. And what are the schemes? Atal Pesion Yojana is the
old Swabalamban scheme introduced during the UPA-II regime with pension
guaranteed depending upon the contribution of the worker. Likewise, Pradhan
Mantri Suraksha Bima Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana are
modifications of already existing Aam Admi Bima Yojana. It is now expected that
the new schemes will replace the earlier schemes. None of those earlier schemes
could cover even an insignificant segment of 45 crore unorganised sector
workers. In a span of 8 years, the Rastriya Swayasthya Bima Yojana could
register only around 3.85 crore people, majority of who are from the unionised
segments of unorganised workers like construction, private transport etc.
Efficacy of these new schemes to benefit the unorganised sector workers are yet
to be seen.
Lie
Campaign to Befool People
The
irony is that such inhuman attacks on the working people are being sought to be
justified by the government through a total lie campaign putting Goebbels to
shame. It is being claimed that these changes in labour laws would attract
investment and generate employment. This in essence means that giving total
liberty to retrench workers will encourage the employers to employ more. This
has no basis and is contrary to all available evidence. The reality is just the
opposite. As has already been mentioned, labour laws in our country are more
violated than implemented. Despite this, during last three decades, employment
growth rate in organised sector continued to remain negligible. The period 2005-2010
witnessed the highest GDP growth rate at 8.5% annually on an average. But
employment growth rate collapsed from 2.7% during 2000 – 2005 to mere 0.7%
during 2005 - 10.
During
the entire three decades long neoliberal policy regime, the productivity of
labour in organised sector has consistently increased. But their share as wages
has gone down consistently in real terms. Along with this, the number of
regular employment in organised sector consistently declined. The number in the
unorganised sector has been consistently increasing reaching almost 90 per cent
of the total workforce in the country. What is more alarming is that the
permanent workers in the organised sector are increasing being replaced by contract and temporary workers
with working conditions similar to those in the unorganised sector. This indicates
that the employers in the organised sector have been seeking to drastically cut
down on their labour costs to maximise their profits even in the midst of the
economic slow down. They have been shifting to informal low paid employment
taking advantage of the unemployment among skilled and young workforce in the
country.
But
there is a limit to manage the slowdown and economic gloom when impoverishment
among the mass of populace got widened and deepened. So despite a low-wage
scenario throughout the country, manufacturing sector’s growth started dipping
since last couple of years reaching a negative figure in the last quarter of
the last financial year. This phenomenon explodes the myth that ‘hire &
fire’ regime and suppression of labour will lead to increase in employment.
This
is the reality. Not only India, but the entire world is witnessing the same
phenomenon. The World Employment Report published by ILO had once observed that
the empirical evidences of employment scenario show that the countries with
higher labour flexibility do not have any brighter performance in employment
generation either. Subsequent ILO observations year after year confirmed the
same reality. Hence the lie campaign
justifying the move for retrograde pro employer amendments in labour laws by
the Govt totally exposes their servility to the interests of corporate/big
business, both domestic and foreign.
In fact, such all out
onslaught on the working class and the bid to impose slavery on them is
integral to corporate sectors’ desperate bid to tackle the deepening crisis the
entire capitalist system is engulfed in; the present right-wing Govt in the
centre, as the most subservient instrument of the corporate lobby, both
domestic and foreign, is operating in that direction to perpetrate loot on
peoples’ livelihood and national assets and to weaken the working class
movement through such all out onslaught on workers’ rights and livelihood. What
could not be done during last six decades in respect of pro-employer amendment
in labour laws is being sought to be achieved by the Narendra Modi Govt in one
year’s time. Working class movement is being targeted to facilitate
hurdles-free crime on people and the nation.
United
Combat –the Need of the Hour
These
atrocious attacks on the working people of the country, who create wealth and
build the nation, on whose labour rests the profit of the employers should be
combated resolutely. The lie campaign by
the stooges of the capitalist class, the anti worker character of the
neoliberal policies and the politics behind these policies must be thoroughly
exposed.
It
is to resist and repulse these attacks on the working class that the united
trade union movement gave the call for a countrywide general strike on 2nd
September 2015. This strike must act as a strong warning to the BJP led
government that the working class of the country, which has a great history of
struggles and sacrifices, is not going to let these attacks pass. In its fight
against the attacks on its basic rights the working class has to seek and gain
the support of all sections of the people. Resistance to atrocious design of
the corporate-servile Govt to accelerate the loot on the workers, on the
people, on the national assets and the nation as a whole must be heightened by
rallying mass of the people in such resistance struggle.