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Opposition to labour codes continues, unions call for nationwide protests on August 2
Following the introduction of the Code on Wages Bill, 2019 and the Occupational Safety, Health and Working Conditions Code Bill, 2019 in the Lok Sabha on July 23, multiple statements by trade unions have denounced the move. While a statement by the Working People’s Charter Secretariat calls the codes ‘craftily written’ and exclusionary, another analysis by Gautam Mody of the New Trade Union Initiative (NTUI) claims that “labour laws are being amended for companies, not workers”.
The labour codes seek to amalgamate 44 labour laws into four labour codes for ‘ease of doing business’. The stated objective is to streamline labour laws for ‘ease of compliance’ through “single registration, coupled with single license and a single return”, extend legal protection to a wider range of workers who were previously excluded and other benefits. However, central trade unions have been up in arms against the bills alleging a pro-employer bias.
Business Standard has reported on proposals in the Code on Occupational Safety Health and Working Conditions, 2019 and Industrial Relations Bill, 2019 that require establishments to get written consent of workers before assigning overtime work, dropping plans to allow easier retrenchment and introducing fix-term employment.
Ten central trade unions have given a call for nationwide protests on August 2 against the introduction of the two bills, alleging that the government ignored their objections to the draft bills. Senior journalist Poornima Joshi, writing for The Hindu BusinessLine, explains how the Code on Wages Bill “entertains practically none of the suggestions of a Parliamentary Standing Committee”.
When it comes to work or business, more people move within a state than migrate out
Data on migration from the 2011 Census was made available last week. An analysis by Hindustan Times shows that Uttar Pradesh and Bihar have a ‘disproportionately high’ number of out-migrants while Delhi and Mumbai are favourite destinations, with more than one-third of their total populations constituted of migrants.
The growth rate of intra-state and intra-district migrants was found to be higher than inter-state migrants. This means more people are moving within states and between districts in the same state now than between 1991-2001. Two-third of migrant women cited marriage as the reason to move while work and business is the single-largest reason for male migration.
Also read | The Migrant Labourers of the Industrialised Hinterland
Another article by Gregory Randolph and Sahil Gandhi in Hindustan Times argues against the notion of migration as a social evil and explains why migrants are part of the solution, not the problem.
Minimum wages doubled in Maharashtra, still far less than 7th pay commission rates
According to a report by The Indian Express, the Maharashtra government has doubled minimum wages in the state. Labour department officials claim this move will benefit ten lakh shops and establishments and around one crore workers in total.
Minimum wages in the state are supposed to be revised every five years following recommendations from the Maharashtra Minimum Wages Advisory Board. However, this is the first time in nine years that it has been done. Maharashtra reportedly goes to polls in October and this move is being seen as a pre-poll one to garner support.
The wages have been revised for skilled, semi-skilled and non-skilled workers in municipal corporation limits, municipal council limits and the rest of the state. Details of the wages post revision can be accessed here.
Minimum wages in the state are supposed to be revised every five years following recommendations from the Maharashtra Minimum Wages Advisory Board. Photo: Reuters
Trade unions have expressed their opposition to this move as their demand of Rs 18,000 as the minimum wage was ignored. The seventh pay commission set Rs 18,000 as minimum wages for fourth class employees and unions have been demanding to raise all minimum wages to that amount. In addition to this, they also call it “an attempt to fool them with just one wage rise instead of two”.
“The wage hike was delayed by nine years, when ideally it should be done every five years. This means the government, instead of giving two hikes, is trying to pacify the workers with only one hike,” D.L. Karad, national vice-president, Centre of Indian Trade Unions, told The Hindu.
Major layoffs likely in Railways
To achieve its target of reducing the number of employees from 13 lakhs to ten lakhs, Indian Railways might let go of employees over 55 years of age on the basis of “physical and mental fitness, daily attendance record and discipline”. A Zee News report claims “all zonal managers have been directed to hold performance reviews of staff members and prepare their service record on its basis”.
According to the report, as many as three lakh employees above the age of 55 or those completing 30 years of service by the first quarter of 2020 might be asked to take early voluntary retirement.
Also read | IRCTC Readies Fare Strategy For First Train Route Under Railways ‘Privatisation’ Plan
“This is part of a periodic review that we are undertaking in which employees whose performance is not up to the mark or have disciplinary issues will be offered premature retirement. This government is very serious about this,” a source told PTI.
Earlier this month, protests erupted across the country against the government’s decision to ‘corporatise’ seven railway production units and seek greater involvement of the private sector. The Wire reported on protests against the 100-day action plan of the Modi government for the railways, you can read it here.
As many as three lakh employees above the age of 55 or those completing 30 years of service by the first quarter of 2020 might be asked to take early voluntary retirement. Photo: Reuters
Automobile sector slowdown: 32,000 jobs lost in 18 months
Data from the Federation of Automobile Dealers Associations (FADA), the apex automobile retail industry body, shows a slowdown in the automobile sector with 286 dealers from across the country winding up operations. Because of this, 32,000 jobs might be affected, reports Business Standard. The rising cost of running a business and dropping margins are said to be the reason for this slump. However, the FADA remains hopeful that the industry will bounce back and is “optimistic about the growth story of Indian auto for the next decade”.
The Automotive Component Manufacturers Association of India (ACMA) also recently sought government intervention to stimulate the sector, warning that one million jobs might be on the line in the automobile sector because of a prolonged slowdown.
Also read | Auto Slowdown: 286 Dealers Closed Down in 18 Months, 32,000 Jobs Impacted
“The automotive component industry contributes 2.3% to country’s GDP providing employment to 5 million people,” a report from PTI claims. “Considering the fact that the auto component industry grows on the back of the vehicle industry, a current 15-20% cut in vehicle production has led to a crisis-like situation,” ACMA president Ram Venkataramani told PTI, adding “if the trend continues, the layoffs are inevitable and an estimated ten lakh people could be laid off”.
International news
Madrid court rules Deliveroo couriers are employees, not couriers
In a significant victory for platform economy workers, a Madrid court ruled that “couriers for online food delivery group Deliveroo are company employees, not just freelancers, clearing the way for workers to demand a formal contract and corresponding benefits”.
Gig workers in Spain, like in most parts of the world, are not entitled to social security, wage protection or insurance as they aren’t considered to be employees of platforms they are associated with. Even in India, Uber and Ola drivers are called ‘driver partners’ and have been agitating to be recognised as employees.
“While the company says the couriers are freelancers, the court rejected that argument and said workers were subject to specific instructions and lacked the autonomy usually granted to independent contractors,” a report by news agency Reuters says. According to the report, there are an estimated 1,500 Deliveroo couriers in Spain.
Extra reading
Draft Emigration Bill, 2019 – The Missing Links – Read here.
Delhi’s Home-Based Workers: Invisible and Unpaid – Watch here.
