Wednesday 17 June 2020

Dilution of labor laws puts children at risk

Key Facts:-

  • The relaxation of labor laws across 11 States combined with the closure of schools and reverse migration to rural areas due to the nationwide lockdown will force lakhs of children into child labor, while those already employed will be forced to work longer hours for meager wages and under hazardous conditions, warn activists and labor law experts
  • The changes made to labor laws by various State governments can be broadly divided into two categories — allowing longer working hours and suspending labor rights resulting in lax enforcement
  • The easing of norms will lead to an overall increase in insecurity and informalisation of labor, loss of bargaining power among laborers, and deterioration in working conditions, but the impact on children and adolescents will be more severe. There will be an increase in hazardous work
  • India contributes to nearly 15% of the global child and adolescent laborers. There are over 10 million working children in the age group of 5 to 14 years and 22.87 million adolescents.
  • Even in the absence of these relaxations, children were extremely vulnerable as witnesses of food and livelihood insecurity resulting in them falling out of the safety net
  • Adolescents may willingly drop out of school to help their families improve their financial resources.

Labour Laws Diluted

  • Amid the coronavirus-induced lockdown, an increasing number of states that include Uttar Pradesh, Madhya Pradesh, Rajasthan, and Gujarat has pushed through changes to their labor laws by way of ordinances or executive orders.
  • Since labor is a concurrent subject under the Constitution of India, states can frame their own laws but need the approval of the Central government.

Key Points

  • The Uttar Pradesh government has approved an Ordinance exempting businesses from the purview of all the labor laws except few for the next three years.
    • The labor laws related to settling industrial disputes, occupational safety, health and working conditions of workers, and those related to trade unions, contract workers, and migrant laborers will become defunct.
    • However, laws related to bonded labor, deployment of women and children, and timely payment of salaries will not be relaxed.
  • The changes in the labor laws will apply to both the existing businesses and the new factories being set up in the state.
  • Similarly, the Madhya Pradesh government has also suspended many labor laws for the next 1000 days. Few important amendments are:
    • Employers can increase working hours in factories from 8 to 12 hours and are also allowed up to 72 hours a week in overtime, subject to the will of employees.
    • The factory registration now will be done in a day, instead of 30 days. And the license should be renewed after 10 years, instead of a year. There is also the provision of penalty on officials not complying with the deadline.
    • Industrial Units will be exempted from the majority of the provisions of the Industrial Disputes Act, 1947.
      • Organizations will be able to keep workers in service at their convenience.
      • The Labour Department or the labor court will not interfere in the action taken by industries.
    • Contractors employing less than 50 workers will be able to work without registration under the Contract Labour (Regulation and Abolition) Act, 1970.
    • Major relaxations to new industrial units are:
      • Exempted from provisions on ‘right of workers’, which includes obtaining details of their health and safety at work, to get a better work environment which includes drinking water, ventilation, crèches, weekly holidays and interval of rest, etc.
      • Exempted from the requirement of keeping registers and inspections and can change shifts at their convenience.
      • Employers are exempt from penalties in case of violation of labor laws.

Rationale Behind the Changes in Labour Laws

  • States have begun easing labor laws to attract investment and encourage industrial activity.
  • To protect the existing employees, and to provide employment to workers who have migrated back to their respective states.
  • Bring about transparency in the administrative procedures and convert the challenges of a distressed economy into opportunities.
  • To increase the revenue of states which have fallen due to closure of industrial units during Covid-19 lockdown.
  • Labour reform has been a demand for Industries for a long time. The changes became necessary as investors were stuck in a web of laws and red-tapism.

Issues Involved

  • The labor law changes will allow more factories to operate without following safety and health norms and give a free hand to new companies to “keep laborers in service as per their convenience”.
  • Denying the rights of workers is a violation of human and fundamental rights.
  • It may create insecurity among the workers.
  • The changes may lead to desperate conditions for workers.
Source: The Hindu

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