Editorial February 2016

 Oppose tooth and nail the Government’s Pro Capitalist Corporate   policies   aimed   at   destroying   the   interests   of      working    class.

The Govt. of India’s pro-Capitalist Corporate policies are aimed at stripping the working class of India of all the protective provisions it has in the Industrial Disputes Act 1947, Factories Act and other legislations, so as, to make it easy for companies to “hire and fire” the workers for maximizing the company’s profits, leaving the workers with poor salaries, worst working conditions and insecurity of job. In addition to that, these policies are also aimed at neutralizing the Trade Unions and replacing the regular employees with permanently temporary workers and casual labourers, paying them only subsistence wages, at the mercy of the employer.

These policies are pursued in spite of right to collective bargaining is enshrined in our Constitution. The Article 19(1) (c) of constitution of India grants all citizens the right to form a union. Art.39 (D) provides equal pay for equal work. On top of it, we also have a Contract Labour (Regulation and Abolition) Act, 1970 that prohibits employment of contract workers for core industrial work. And yet, the Indian state has either stood by or actively colluded while employers tried every tactic, including illegal termination, to prevent union formation, and kept hiring temporary workers for regular jobs. There has been a persistent corporate chorus demanding a labour regime that allows companies to freely hire temporary workers even for core operations and to deprive them of the labour law protection. The Government is eager to deliver the same

The contentious issues in the amendments introduced to Labour laws pertained to   mainly three areas among others: One, the proposal to raise the threshold level of employment in establishments for the application of the Factories Act to 40 irrespective of usage of power. By this, more than 75 per cent of the work force would be out of the coverage of the Factories Act, Two, the increase in the spread over of working hours in a day may lead to harassment of workers who would be compelled to stay for a longer period with out compensation and Three, the hiking of the maximum permissible overtime work from 50 hours in a quarter to 125 hours would have an adverse impact not only on the health, social and family life of workers but also endangers the employment generation.

Further, the Small Factories and Other Establishments (Regulation of Employment and Conditions of Work) Bill provides for the exemption of 14 labour laws in establishments employing up to 40 workers.

The definition of manufacturing is also made problematic as it excluded mechanical bottling and packaging processes from manufacturing process. This will push workers engaged in these activities outside the ambit of the Factories Act.

Another serious concern is that the new provision is enabling the employers to separate any department or unit of a factory and declare it as a different factory by simply getting permission from the State government. This will allow the employers to keep the strength of workforce under 40, thereby exempting the unit from the protective labour laws.

Further, a provision in the new set of amendments says that a court will take cognisance of a complaint only if the matter is approved by the State government concerned. This would result in arm twisting of labour inspectors effectively, preventing them from doing their job.

Additionally, the amendments say “employers would be encouraged to provide paid maternity leave”, thereby, diluting the statutory right of women workers for paid maternity leave.

Another aspect pertaining to women workers on the night shift is the dilution of the provision of transportation from the factory premises to the doorstep of their residence, a proviso which was there in the earlier draft.

In furtherance of the goals of the corporate companies the Government came up with the establishment of START UP COMPANIES. The start-up entities are defined as those incorporated or registered not prior to five years with annual turnover, not exceeding Rs 25 crore. These entities, as per the notification made by the labour secretary, government of India, would be allowed to self-certify compliance with the nine basic labour laws viz, Industrial Disputes Act 1947, Trade Unions Act 1926, Building and Other Construction Workers Act 1996, Industrial Employment (Standing Order) Act 1946, Inter-State Migrant Workmen Act 1979, Payment of Gratuity Act 1972, Contract Labour (Regulation & Abolition) Act 1970, the EPF Act 1952 and ESI Act 1948. This means there will be no inspection by the enforcement machinery in all these establishments at least for three years allowing the concerned employers to violate freely these basic labour laws.

Already many big corporate houses, both domestic and foreign have been showing interests in channelising their business through these so-called start-up companies to take advantage of the three years tax holidays and exemption from inspection by tax-officials for the start-ups by the government of India. To add to these huge concessions, they have been allowed exemptions from obligations under all basic labour laws including the social security and welfare related ones, imposing conditions of virtual bonded labour on the workers employed or going to be employed in these start-up entities.

It has become clear that, for the Government of India, promoting investments means suppression of workers’ rights, not to allow formation of trade unions, denying welfare benefit to workers, reckless contractorisation and denial of basic social security benefit like EPF, ESI etc.

Such brazen anti-worker designs sought to be pushed through, in a dubious and deceptive manner, warrants all-out condemnation and opposition by the trade union movement irrespective of their affiliations. The AILRSA calls upon the working people and the trade union movement to expose such anti-worker deceptive designs of the central & state Governments and put up united struggle to oppose them tooth and nail.

                                                                       Thota Hanumaiah.