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My answer- 01JAN2016 01-01-2016

Dear students, failing to motivate you  to write the answers, I have taken up this task from today. I will be answering a quesiton myself everyday. Hope few of you will join me., 

Discuss the amendments to the labour laws proposed in India. Do you think they are shifting the balance away from the welfare of the labour? Throw light with recent examples of Industrial unrest. 


Labour and capital relations across the history are intricately connected with Human welfare and a revolutionary zeal. The golden mean that can balance the both is still elusive and it is mostly dependent on the nature of the state and its stated economic policy.

After liberalization phase, India is more depending on foreign and private capital flows for its growth. In this context the balance shifted in favor of the capital and many of the labour reforms are aimed at liberating the industry from these regulatory clutches. They include

1)      The Small factories (regulation of employment and conditions of services) bill - 2014 - It aims to exempt firms with and up to 40 employees from compliance with 6 major labour laws.

2)      Code on Industrial relations will replace Trade Unions act of 1926, Industrial disputes act and Industrial employment (standing orders) act -1946. The code provides for a greater flexibility to hire and fire the employees.

Added to this, enforcement of existing laws itself is very weak and collective bargaining power and space for the operation of the unions decreased drastically. The growing temporary workers in the factory floors with little social security benefits and out of the unionism is creating a new class of workers whose rights and benefits are damaged either way. Their demand for rights is often leading to a violent unrest. Violence at Maruti Suzukis manesar plant is a typical example of this. Added to this, there many workers in unorganized sector, whose welfare and security are never taken care of. The ILO s world of work report clearly exposes this fact.

The aim of the Government is to provide the flexibility in labour markets and increase the economic growth with better atmosphere for doing business.  However, growth at the cost of the welfare can make it exclusive and far from development.




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