Labour laws – What’s seriously wrong in India?

After the dismal years preceding and following the recession years 2008-10, India finally rose following PM Modi’s 2014 election slogan: “Ache din ayenge” (good days soon). Though the achievements of PM Modi are a point of debate considering lack of basic infrastructure across the nation, one of the striking things that remain unattended is the labour sector in India.

Labour laws vary from one state to another and are beyond the comprehension of even the educated Indians, let alone the poor workers in the unorganised sector toiling forever in distant lands in hope for the elusive elevation in life that everyone promises.

Labour laws in India have always been weak and unsatisfactory – for both the workers (most don’t even know about their rights – even the highly educated ones) and the employers. Why should India not have a common uniform set of labour laws and labour offices, given most of the people in India now work away from the homeland and labour unions have lost trust of the people? How are the circumstances different in different states? Why is this ambiguity in labour laws and how can labour rights vary from state to state? These are important questions that need to be addressed as soon as possible – and incorporated in the new labour laws.

Migrant labour/unorganised sector have borne the brunt of economic growth over the decades. Meagre wages, contract labour practices, forced child and women labour, and uncertain work atmosphere have made their lives more miserable than ever. While laws on paper prohibit such practices, it is common to see child labour in brick kilns, construction work, factories and in households.

A major loophole is something called “contractual labour”. This is prevalent right from the grassroots to factories to MNCs like CRISIL Ltd. This is an extremely lop-sided mechanism, where a “Contractor” is given a fixed amount which he/it uses to hire and get things done – with absolutely no liability for the real employer.

For example, a factory in Hyderabad uses this mechanism of Contractual labour. Around 50 workers from Bihar, Odisha, etc, work in the factory – they get a daily wage based on the whims of the Contractor who takes a neat cut every day and month. There is no job certainty even for the next day. The same goes for white collar workers where it extends up to one year if he/she never raises any voice on anything – equally disturbing for a worker who had relocated with family and has to take care of parents back at home (the empty nest).

Workers in the factory work in a pitiable environment, amid dust and heat, get no PF or gratuity, no accident insurance, not even good food or water (to even purchase). Amid constant abuse, insults and racial remarks (Are there no jobs in your state? Why did you come here?), they don’t even have an appointment letter or wage receipt that could help them file a complaint. They usually work for 12 hours a day.

The same goes for MNCs – though on paper they get PF etc, the vulnerability and abuse is the same, especially for the migrant workers and in places like Chennai (and several other cities) where “outsiders” are frowned upon, mistreated, isolated, racially abused, their home states insulted constantly, and financially discriminated in terms of hikes, promotions and perks – overtime payment/shift allowance is selective in MNCs like CRISIL Ltd, S&P Global, etc. The migrant labourers (all classes) are often asked to do more work than the locals. And like factory workers, the ones in the MNCs cannot complain to the Labour office because they do not know about the local laws, because of several clauses in the “contract”, and due to lack of protection against intimidation, etc, for doing so – at all levels — the company, state and central.

There is a major concern about the white-collar workers (managers and administrators). They face constant exploitation, racism and discrimination, reverse racism, forced overtime, metal harassment, HR nexus, etc, which have become so common that they have become a norm. Such employees don’t even have any forum or labour laws to protect them if they complain. This has led to lot of stress in personal lives, leading to depression and suicides. Shouldn’t government include them in the upcoming labour law revisions?

Indeed, you seldom see a happy migrant labourer face in the cities, and the number of cases of mental depression is rising every day for both the worker and his/her family.

Labour laws in India have become a joke, mainly due to non-implementation. Let us consider the problem of minimum wage. Most of us do not know how much it is. Even with the educated class – for example teachers. Most of them have been paid below minimum wage norms for decades, but they can’t complain because of fear of job loss. Companies seem to find great pleasure in the minor savings they get by not paying overtime and the minimum wages, and in exploiting the desperation for a likelihood.

There is a proposal to reduce working days to four per week, but daily maximum hours will be increased to 12. This is likely to multiply the problems and lead to further exploitation of workers. Isn’t in inhuman to ask people to work for 12 hours a day? Further, the overtime ceiling has been increased. This could well be the death knell for the workers in India, who have sacrificed their everything for a livelihood and also the development of India.

The laws against sexual harassment at workplace have been successful, with companies making it mandatory training and providing protection to the complainant. For example, CRISIL Ltd has strong laws against sexual harassment at workplace. However, there is almost nothing on workplace bullying and racism. Other MNCs like Bank of America (BofA) could not provide any information about its policy on workplace harassment and racism though the US has stringent laws.

The above highlighted problems are just the tip of the iceberg in brief. We are not even talking about the problems faced by the disabled and marginalised sections. We are also not even thinking about drawing the best talent from other countries (taxes are not the only reasons behind brain-drain).

Now, let us move to the complaint/compliance mechanism. Officially one can register a labour compliant online, but on ground it is not possible due to various reasons. Most of the time, the website isn’t functioning properly. Then, there are laws and byelaws that handicap a serious complainant. There is no acknowledgment or tickets issued. This is the case in a city like Chennai too.

When one enters a labour office in person, a different kind of harassment starts. By seeing the heaps of files, one can safely conclude that unless you are powerful or have contacts that can help you, your file is going to be hidden in one of those heaps. If one manages to register a complaint, the investigation by the labour inspector is non-existent or inordinately delayed. They mostly believe the words of the company and put the onus of proving the company wrong on the employee. Laws are currently extremely unfavourable for the managerial and administrative workers. Higher authorities (usually an IAS is the Labour Commissioner) are inaccessible and there are no timelines for the resolution of cases.

The Labour department across states is rotting, with heaps of files, zero computerisation, lethargic inept and corrupt officials, and weak laws. The central government has become a sort of an advisory body with its e-shram portal bogus.

There is a dire need for unification of the state laws and publicise widely – on radio, TV, and print too. There is equally a dire need to put a robust compliant mechanism in place – for all workers, including the managerial and administrative workers (online with tickets). The government needs to break the inertia and realise that cosmetic changes are doing more harm than good. Much more needs to be done, and done urgently – at least for the sake of the next generation.

For readers:

Can India become a superpower without strong labour laws and complaint mechanism in place? What are your recommendations?

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