THE
MEANING OF THE PROPOSED LABOUR LAW CHANGES
Unmindful of
the experience of a decade of implementing the IMF, World Bank and
WTO dictated economic policies which pushed the country in a dire
straight. The finance minister had to admit in his budget speech
that we could not achieve the targeted growth in our economy it
had to suffer a serious slow down. He tries to find solos in the
international environments where the world economy is facing a
serious recession. The actual fact is that the policies pursued by
the government ended in a demand deceleration and put the
country's economy in the slow growth orbit the details of which We
do not wish to go into. However suffice to say that the new
supply-side economic policy contemplated in the new budget is
going to bring in further economic deceleration. The wholesale
privatisation of the public sector, practically transferring the
public wealth to the big capitalists of the country and abroad.
Twelve thousand central government employees are to be sent out
from service as part of the downsizing operation. The cabinet also
decided to go for the labour law changes without any loss of time.
It is proposed the restrictions in the existing industrial
disputes Act for retrenchment, Lay-off and closures for industries
employing more than 100 workers. This is ought to be changed. The
provision of hundred is to be increased to thousand so that it
will cover more than 92% of the organised Indian industries
comprising of employing 35 million workers. If this contemplated
change is approved by the parliament the employers will be free to
lay-off, retrench or to close down the industry. The so called
"safety provision" of increase in retrenchment compensation will
not stand in the way of closures and retrenchment since the
employers know well that they can easily could make up this amount
within a short span of time by employing low paid temporary casual
or contract workers in the industry.
The employers' clamor for flexibility on labour laws in order to
give them absolute right of "hire and fire" is sought to be
provided through this change.
The real purpose of this law is to reduce the wage expenditure
of the employers to nominal levels. The sub-standard Indian wage
structure is sought to be further slashed down through the
mechanism as indicated above. The workers in industry will have no
security of employment. They will be recruited for different jobs
as temporary casual, contract, apprentices and probationers etc.,
which is possible in India where unemployment is the highest in
the world. Hundreds will flock at the factory gate if an opening
is announced. And the employers condition what ever it is they
will be forced to agree since there is no other way out.
Thus this attempt is to make the workers to agree whatever
conditions put forth by the employers for getting a job. In other
words to make the Indian workers simple slaves who has been
deprived of all the rights and privileges which they have acquired
through bitter battles. Not only the wage level of industrial
workers would be reduced but also it will have adversely impact on
the income of total working population wherever they are engaged
as wage workers.
The economic impact of this process would be further
deceleration of demand and consequent adverse impact resulting in
curtailing of production leading to aggravate the economic crisis,
which will ultimately go against the country's progress and that
will be the result of indiscriminately implementing the world bank
prescriptions.
Therefore it is natural all the trade unions of the country
unitedly oppose the economic policy of the government of India
including the proposal for labour law change. This is not only to
save the workers livelihood but also to save the country from
peril.
