What are the reasons for the delay in implementation of the four labor codes? Why are the central trade unions against this move?
What are the reasons for the delay in implementation of the four labor codes? Why are the central trade unions against this move?
the story So Far: Code on Wages (passed in Parliament in August, 2019), Code on Industrial Relations, Code on Social Security, and Code on Occupational Safety, Health and Working Conditions (all passed in Lok Sabha and Rajya Sabha on 22nd and 23rd September, 2020) Not implemented yet. The Center claims that the four codes are a big step in the process of labor reforms. Central trade unions (CTUs) have so far held three general strikes against the code, alleging that whatever social and economic security is left in the employment sector as a result of the code will be taken away. Farmers’ organizations also supported the trade unions in their opposition. Employers’ unions also had mixed feelings about the Codes, but they generally welcomed them.
where does it stand?
The government says that the delay in implementation is due to the delay in making rules by the states. Since labor is a concurrent subject, both the states and the Center will have to frame rules for the codes. The Center had also offered help to the states so that the codes could be implemented from July 1, 2022.
Union Labor Minister Bhupendra Yadav recently said that some states have not yet framed rules. According to a recent report, 24 states have so far published draft rules for all four codes.
what is the procedure?
States are publishing draft rules and inviting comments from stakeholders on those draft rules. The Center had also published draft rules for certain sections of the four codes. The trade unions have asked the Center to stop this piecemeal approach and issue full rules of the four codes.
Since the four Labor Codes are an amalgamation of 29 Central Laws and about 100 State Laws which are similar to various Central Laws, it is taking a lot of time to create, publish and consult with the stakeholders. There are also complaints from opposition-ruled states that the codes are “poorly designed”.
The way in which the three codes were passed in Parliament in just two days without much discussion, the opposition had raised objections. Recently, Kerala Labor Minister V. Shivankutty told the Kerala Assembly that the state prepared draft rules as most of the provisions in the codes are “anti-labour”.
essence
The government says that the delay in implementing the four labor codes is due to the delay in making rules by the states.
States are publishing draft rules and inviting comments from stakeholders on those draft rules. The Center had also published draft rules for certain sections of the four codes.
Trade unions have warned of protest if the code of conduct is implemented. He says that the Center will have to repeal it in the same way as it had repealed three agricultural laws.
What does the Center want to do?
The Center intends to implement the four codes simultaneously. “Our effort will be to implement the codes in 2022. The labor minister has offered to hold discussions with representatives of trade unions and employers to resolve differences,” an official said.
The SP Mukherjee Committee, which is working on the issue of minimum wages, has not yet completed its work. Setting a national minimum wage is important in the implementation of the Code on Wages. The Center had recently said that the scope of Employees’ State Insurance Corporation (ESIC) would be expanded to all districts within two years.
Social security for the unorganized workers is a promise in the Social Security Code and for this purpose the expansion of the ESIC network is an inevitable step.
What are some concerns?
The central trade unions in the opposition camp are opposed to all four codes. The Bharatiya Mazdoor Sangh (BMS), a Rashtriya Swayamsevak Sangh (RSS)-backed trade union, opposes the Industrial Relations Code and certain provisions of the Code on occupational safety, health and working conditions.
According to the Center for Indian Trade Unions, one of the central trade unions said, “The objective of this exercise is to raise the threshold level of employment in an establishment and to exclude a large section of the workforce from the purview of all labor laws by means of repeal. A large number of labor laws meant for certain specific classes of employees/workers, sales promotion employees, working journalists, etc.”
The BMS says that the code should not be implemented in one go. “Differences should be resolved through mutual dialogue. We have concerns about the Industrial Relations Code, particularly the provisions on the registration and functioning of Central Trade Unions. Our advice to the government is to implement only those sections and codes where there is a great unanimity among workers, employers and the government,” said BMS general secretary Binoy Kumar Sinha.
Employers’ associations such as the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) had objected to the proposal to raise the minimum wage and expand the social security network by involving employers as well.
what is next?
Trade unions have warned of more protests if the model code of conduct is implemented. He says that the Center will have to repeal it in the same way as it had repealed three agricultural laws.
The Centre, too, is concerned with the political repercussions of its implementation and thus, this could be a possible reason for the delay. Employers are concerned that a further increase in wage bills will hamper their profits in a slowdown-hit economy and hope the government will discuss more.