In this section, you will be provided with the various issues related to human resources in India like Labour and Skill development.
Contents
- 1 Human Resource updates/news
- 2 Introduction
- 3 What is brain drain?
- 4 Should India be worried?
- 5 What should India focus upon?
- 6 Introduction
- 7 What are the adverse effects of the pandemic on young healthcare workers?
- 8 The conclusion
- 9
- 10 What is the News?
- 11 Key Features of the YUVA Scheme:
- 12 About National Book Trust:
- 13 What are the new labour laws?
- 14 What are trade unions?
- 15 What are the key objectives of Trade Union Act (TUA)?
- 16 What are the key concerns with new labour codes?
Human Resource updates/news
Pandemic-induced brain drain – Should India be worried?
Synopsis: Recently, the COVID pandemic has exacerbated the brain drain problem in India but instead of obsessing over the issue of brain drain, government should be more concerned about implementing structural reforms. This will ensure that we create an environment where every last individual is able to thrive to his/her fullest potential.
Contents
Introduction
- India has wrestled with the problem of brain drain for many years. COVID pandemic has only given a turbo-boost to this phenomenon. It has amplified a pre-existing trend of high net-worth individuals leaving emerging economies for citizenship of advanced economies.
- COVID has accelerated the brain drain problem in India. Many high net-worth (HNI) individuals are leaving India for greener pastures. Well-off parents too are sending their children abroad especially USA.
But, the real problem is a lack of investment in the people which stay in India. This needs to be resolved as a policy-priority.
What is brain drain?
It is defined as emigration of highly-skilled labor as a proportion of the potential educated labor force in sending countries.
Brain Drain from India – figures
- A Global Wealth Migration Review report has revealed that nearly 5,000 millionaires, or 2% of the total number of high net-worth individuals in India left the country in 2020 alone
- A 2018 bank report found that 23,000 Indian millionaires had left the country since 2014.
- As per OECD data, around 69,000 Indian-trained doctors and 56,000 Indian-trained nurses worked in the UK, US, Canada, and Australia in 2017.
Trend of brain drain from India
- The first big post-Independence wave of educated and/or well off Indians emigrating started in 1960s. India lost many skilled professionals in medicine, science and information technology starting as early as the 1960s to countries including the U.K., U.S. and Canada.
- India saw the reverse migration of skilled IT and other professionals during the economic boom of the late 2000s. Anecdotal evidence suggests that these reversed flows have slowed down as the pace of economic growth has dropped.
- This phenomenon of back and forth movement of skilled people in a globalized world has been termed brain circulation.
Also read: Brain Drain in the health sector Should India be worried?
No. As per author, India should not be worried about this recent increase in brain drain because of the following reasons:
- No problems from brain drain: Emigration from India that began in 1960s continued all through the post-reforms era. Despite this India has witnessed growth in its economy. Even the economic crisis of 1990s happened due to Indian socialism and not due to brain drain from India.
- Indian diaspora helps: Indian diaspora acts as a soft power multiplier for the country, as well as a network through which both ideas and investment arrive here.
What should India focus upon?
Instead of worrying too much about brain drain, India should lay emphasis on the following:
- Responding positively to the pandemic-induced crisis: GoI and states should respond to the pandemic-induced economic downturn and implement necessary structural reforms.
- Focus on education and employment: India has too few institutions of excellence and of professional studies. Getting into ‘good’ Indian colleges is often harder than getting into US universities. No country has gone up the wealth ladder without widespread availability of both good public education and regular, skilled employment.
Also read:Surface (River) Water Pollution Conclusion
Building world-class public education infrastructure and coupling it with structural reforms is the way forward because we have enough people. All we need to do is to focus on leveraging this asset. Brain drain is not the actual problem, brain waste is.Source: Times of India
Effects of Pandemic on Young Healthcare Workers
Synopsis: Need to give attention to the requirements of the most vulnerable members of the caregiving team i.e. young healthcare workers.
Introduction
young medical interns, postgraduates, nurses, physiotherapists, pharmacists, etc are at the lowest steps in the hierarchy of training. It seems fair from an academic view and is according to any professional training path. However, this structure is apathetic for young health care workers.
- Even before the pandemic, duty hour restrictions were not followed for young healthcare workers. Sleep-deprived postgraduates used to work for 100-hours in a week.
- There is inconsistency in stipends rates. For example, Tamil Nadu and Himachal Pradesh offer the lowest monthly stipends to first-year residents at Rs 35-37,000.
What are the adverse effects of the pandemic on young healthcare workers?
During the pandemic, most public hospitals had young interns, postgraduates, nurses, and technicians staff in fever clinics, wards, and ICUs. They were overworked by the huge volume of patients.
- Firstly, they are physically distressed by working for 8-12 hours in a stuffy PPE suit and tightly-fitted face mask. One cannot even take a toilet break.
- It requires a tremendous cognitive effort to manage complex ventilator settings and drug interactions. Especially when the patient is admitted to the Covid-19 ward with multiple co-morbidities.
- Secondly, as the second wave hit, hospitals increased their beds and ICU capacity. But the healthcare workers remained overstretched. The burden further increased by poorly-informed public health measures and an increase in public frustration and indifference.
- Thirdly, the NEET postgraduate exams this year have been delayed. The shortage of workers will continue to overburden them.
- Fourthly, the growing amount of disinformation on social media which adds to distrust against doctors and nurses has left most trainees in an unfortunate position. They are defending their worth and the firmness of scientific evidence that updates medical practice.
- They also have to defend themselves against the several instances of violence and abuse by patient attendees.
- Fifthly, all of these factors have taken a toll on the well-being of young trainees. They are away from their families and the uncertainty about their safety amidst a global pandemic affects their mental health.
- Sixthly, suicide has claimed the lives of students, interns, and postgraduates in the last year across the country. Reasons were the stress of persistent duty hours, (some even suffering from severe conditions themselves).
The conclusion
- It is time we bring an end to our indifference towards young healthcare workers. There should be some amendments to the Epidemic Disease Act to protect frontline workers from exploitation. They should be provided with centrally-sponsored insurance schemes.
- Citizens must now speak out against the exploitation of young trainees. It should be a moral responsibility to end this toxic culture that feeds off public apathy.
Source: click here
“YUVA Scheme”- For Mentoring Young Authors Launched
What is the News?
The Ministry of Education has launched YUVA Scheme. It is the Prime Minister’s Scheme For Mentoring Young Authors.
About YUVA- Prime Minister’s Scheme For Mentoring Young Authors:
- Firstly, the Department of Higher Education under the Ministry of Education launched the YUVA (Young, Upcoming and Versatile Authors) scheme.
- Secondly, it is an Author Mentorship scheme. It aims to mentor authors under the age of 30. It will train them to promote reading, writing, and book culture in the country. This will allow India to project its writings globallya
- Thirdly, this scheme is in line with PM’s vision to encourage young writers to write about India’s freedom struggle.
- Fourthly, Implementation: National Book Trust of India under the Ministry of Education as the Implementing Agency will ensure execution of the Scheme.
- Fifthly, Part of: The scheme is a part of the India@75 Project (Azadi Ka Amrit Mahotsav). The project aims to bring out the perspectives of the young generation of writers, It would be on themes like unsung heroes, freedom fighters, and others in an innovative and creative manner.
Key Features of the YUVA Scheme:
- Firstly, Under the Scheme, a total of 75 authors will be selected through the All India Contest.
- Secondly, the themes of the contest are unsung heroes, freedom fighters, National Movement among others.
- Thirdly, the young authors will be trained by eminent authors/mentors. The books by these authors will be published by National Book Trust, India.
- Fourthly, the books will also be translated into other Indian languages. It will ensure the exchange of culture and literature thereby promoting ‘Ek Bharat Shreshtha Bharat’.
- Lastly, a consolidated scholarship of Rs.50,000 per month for a period of six months per author will be paid under the Mentorship Scheme.
About National Book Trust:
- National Book Trust(NBT) is an Indian publishing house. It was founded in 1957 as an autonomous body under the Ministry of Education of the Government of India.
- Mandate: The activities of the Trust include publishing, promotion of books and reading, promotion of Indian books abroad, assistance to authors and publishers, and promotion of children’s literature.
Source: PIB
Knowledge Economy in India
Synopsis: India has lost its leadership in the production of a knowledge economy. But still India maintaining leaderships in few sectors like space, pharma and information technology.
India as Knowledge economy
Background
- The global success of the Indian Space Research Organisation (ISRO) and the pharmaceutical industry signifies the diplomatic potential of India’s Knowledge Economy(production of goods and services is based principally on knowledge-intensive activities).
- For instance, recently ISRO launched Brazil’s Amazonia-1 satellite and India exported the COVID-19 vaccine to Brazil, as part of its “Vaccine Maitri” diplomacy.
- However, India does not hold its leadership position in the production of knowledge Economy like in the 1950s.
What was the reason behind the success of these two sectors?
- Sustained state support: India’s current knowledge economy leadership in space and pharmaceuticals is due to 50 years of sustained state support.
- It was Prime Minister Indira Gandhi who authorised the creation of ISRO in 1972.
- Again, it was her decision to enact the Indian Patents Act, 1970. The Act facilitated the growth of the domestic pharmaceuticals sector.
- Subsequent governments have all contributed to the development of both industries.
- The credit to Indian engineering, scientific and technological talent. There is large scale development of educational institutions throughout India. This made Indian students pursuing world-class standards at a fraction of the cost compared to developed countries.
- With these initiatives, India became the leader in the Knowledge Economy in the space and pharma sector. Further, India built the capacity to place satellites of several countries at globally competitive rates and also able to supply drugs and vaccines at affordable prices to developing countries.
- Moreover, It has to be noted that these two sectors were successful even when the western countries created constraints for indigenous technology development. For instance,
- Unilateral sanctions were imposed by the US to deny Indian industry access to technology and markets.
- A multilateral regime for intellectual property rights (IPRs) protection was created, under the aegises of the World Trade Organisation.
- Even today, Many developed countries oppose India’s Compulsory Licence of medicines.
Proof for India as a Knowledge Economy in the past:
There were many instances in the past that shows India’s knowledge is in high demand. They are,
- Students from across Asia and Africa sought admission to Indian universities for post-graduate courses.
- Indian expertise was sought by global organisations such as the FAO, UNIDO, etc.
- The government of South Korea even sent its economists to the Indian Planning Commission till the early 1960s. They got their training in long-term planning.
- Rail India Technical and Economic Services (RITES), had acquired a global profile with business in Africa and Asia.
- The development of India’s dairy and livestock economy also attracted global interest.
Why India its leadership in the Knowledge Economy?
Irrespective of the dominant position during the 1950s, India lost its leadership in the production of the knowledge economy. The reasons are,
- Flight of Indian talent to other developed countries. It had accelerated since the 1970s and has sharply increased in recent years.
- China has emerged as a major competitor offering equally good S&T products and services at a lower cost.
- The appeal of higher education in India for overseas students has decreased. This is the biggest setback for India trying to become the powerhouse of the knowledge economy. This is because of two reasons,
- The quality of education offered in most institutions is not up to date. The education institutes in India still teach old technologies instead of new ones.
- The social environment offered in India is no longer as cosmopolitan as it used to be. There is a significant growth in the narrow-minded ideologies in India.
- Lack of political and intellectual support to the development of India’s knowledge base and an inadequate commitment by the government. For example, the Technical Education Quality Improvement Programme (TEQIP) is discontinued without an alternative programme hurts the quality of technical education in India.
The success of the ISRO and Pharma sector is a tribute to public policy, government support, private sector involvement and middle-class talent. This has to spread across the sector to regain India as the leader of the Knowledge Economy.
Strengthening decentralisation for improving human capital
Synopsis: The poor performance of India in human capital indicators can be improved. If the 3 tier decentralized structure of governance gets strengthened.
Background:
- India has secured a poor 116 rank in the World Bank’s human capital index. Further, the data of the National Family Health Survey – 5 for 2019-20 highlights the poor performance in the domain of malnutrition.
- Similarly, issues in learning outcomes are highlighted by the National Achievement Survey 2017 and the Annual Status of Education Report 2018.
- Moreover, these statistics are expected to further worsen due to Covid-19 pandemic.
Therefore, the focus should be on enhancing the investment in human capital. This would require better decentralisation among 3 tiers – Centre, states and local bodies.
Why should there be a focus on a decentralised approach?
- First, the government has launched various programs like Poshan Abhiyan and Samagra Shiksha Abhiyan. But they have failed to deliver optimum results.
- Second, international studies show there is a positive correlation between decentralisation and human capital formation.
- Third, India spends only 4% of its GDP on human capital which is very less in comparison to its peers. This means these minimum funds should be spent in the most optimum way. It is possible with decentralisation.
What are the existing mechanisms for decentralization in India?
- The constitution allows the centre to support states in their fiscal domain. This can be done through tax devolution and grants in aid. In addition, the Centre can make ‘grants for any public purpose’ under Article 282 of the Constitution.
- Education was moved from the state list to the concurrent list by the 42nd amendment in 1976. It ensured better coordination between centre and states.
- The enactment of the 73rd and 74th amendment gave constitutional status to municipalities and panchayats as the 3rd tier of government. Further various domains like education, health and sanitation are given to them under the 11th and 12th schedule.
- The 14th Finance commission (FC) called for distributing 42% of centre’s taxes among states, an increase from earlier 32%. This was effectively retained by 15th FC as well.
Challenges to decentralisation:
- First, significant fiscal support by centre to states is in the form of grants-in-aid and centrally sponsored schemes (CSS). As per SC ruling in Bhim Singh vs Union of India, these routes are for special, temporary or ad hoc schemes under article 282.
- Second, states have been reluctant to transfer their power to local bodies under the 11th and 12th schedule.
- Third, the municipalities and local bodies are not fiscally empowered. This can be seen by low property tax collection which is under 0.2% of GDP, compared to 3% of GDP in some other nations.
- Fourth, even state finance commissions (SFCs) are not constituted on time by respective states for recommending tax devolution and grants-in-aid to the third tier.
Way Forward:
- The centre must use the route under Article 282 in a cautious way as it is listed as a ‘Miscellaneous Financial Provision. It should give maximum fiscal support using Articles 270 and 275, which fall under ‘Distribution of Revenues between the Union and the State.
- The centre should also encourage knowledge sharing between the states which would help them in improving their fiscal potential.
- The 15th FC’s recommendation should be duly implemented. It recommended giving no grants to any state after March 2024 if it doesn’t constitute SFCs.
- The 3rd tier of government should be vested with all the functions mentioned under the 11th and 12th schedule.
Thus, the need is to leverage the true potential of our multi-level federal system that would help in developing human capital.
UNDESA Report on Migrants
Why in News?
International Migration report 2020 has been released by the Population Division of the United Nations Department of Economic and Social Affairs (UNDESA).
Aim: To provide the estimates of the number of international migrants according to country, age and sex for all regions of the world.
Key findings for India:
- Indian diaspora is 18 million strong. It is the largest transnational population in the world.
- Destinations: The United Arab Emirates, the US and Saudi Arabia host the largest numbers of migrants from India.
- Reasons for migration: Migration from India is largely motivated by labor and family reasons. Forced displacement smaller, about 106 in the total.
- Growth in Migration: Between 2000 and 2020, India experienced the largest gain of nearly 10 million.
- Remittances in India: India is the main recipient of remittances worldwide. In 2019, it received USD 83 billion in remittances. The World Bank projects that in 2020, the amount will decline by around 9% to about USD 76 billion.
Other Key Takeaways from the report:
- Migrants: Currently, International Migrants represent about 3.6% of the world’s population.
- The US is the largest receiving country of international migrants, followed by Germany, Saudi Arabia, Russia and the UK.
- Impact of Covid-19: Covid-19 pandemic may have slowed the growth in international migrants by around two million by mid-2020.
- Remittances: Volume of remittances sent to low-and middle-income countries is projected to reduce by 14% in 2021.
USTTAD (Upgrading the Skills & Training in Traditional Arts/Crafts for Development) scheme
Facts:
- USTTAD Scheme: The scheme was launched in 2015 by the Ministry of Minority Affairs.
- Aim: To upgrade the capacity building and traditional skills of master craftsmen and artisans.
- Objectives:
- Capacity building and upgrading of the traditional skills of master craftsmen and artisans;
- Documentation of identified traditional arts/crafts of minorities;
- Set standards of traditional skills;
- Training of minority youths in various identified traditional arts/crafts through master craftsmen;
- Develop national and international market linkages; and
- Preservation of languishing Arts/Crafts.
- Knowledge Partners: To support Ministry and the Project Implementing Agencies (PIAs) with technical inputs for capacity building of master craftsmen/artisan and upgrading their traditional skills, following knowledge partners will be involved by the Ministry:
- National Institute of Fashion Technology.
- Sectoral Export Promotion Councils.
- Other expert agencies.
- Components of the scheme: The scheme has following programmes:
- Up-gradation of Skills and Training in Traditional Arts/Crafts through Institutions.
- USTAD Apprenticeship stipend for Research and Development.
- Support to Craft museum for curating traditional arts/ crafts.
- Support to minority craftsmen/artisans through Hunar Haat and Shilp Utsav for marketing their products through exhibitions throughout the country and abroad.
- Recognition of talented Master Craftsmen & Artisans.
National Youth Parliament Festival 2021
News: Prime Minister of India has addressed the valedictory function of the second National Youth Parliament Festival, 2021.
Facts:
- National Youth Parliament Festival: It is organized by the Ministry of Youth Affairs and Sports, Government of India in collaboration with one of the State Governments.
- But this year, the Ministry of Youth Affairs and Sports has decided not to have an anchor state and to go online and let each state bring their talent to the fore.
- Purpose: It is organised to commemorate the birth anniversary of youth icon Swami Vivekananda.
- Objective: To propagate the concept of national integration, spirit of communal harmony, brotherhood, courage and adventure amongst the youth by exhibiting their cultural prowess in a common platform.
- Eligibility: Youth in the age bracket of 18-25 years are invited to participate in the festival.
- Theme: The theme for the festival is “YUVAAH—Utsah Naye Bharat Ka”.
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- National Youth Parliament Festival: It is organized by the Ministry of Youth Affairs and Sports, Government of India in collaboration with one of the State Governments.
Cabinet approves MoC between India and Japan on Partnership in “Specified Skilled Worker”
News: Union Cabinet has approved the signing of a Memorandum of Cooperation(MoC) between India and Japan on a Basic Framework for Partnership for Proper Operation of the System Pertaining to “Specified Skilled Worker”.
Facts:
- Details of the Memorandum: Under the Memorandum of Cooperation, an institutional mechanism for partnership and cooperation between India and Japan on sending and accepting skilled Indian workers who have qualified the required skill and Japanese language test, to work in fourteen specified sectors in Japan.These Indian workers would be granted a new status of residence of “Specified Skilled Worker” by the Government of Japan.
- Implementation Strategy: A Joint Working Group will be set up to follow up the implementation of this MOC.
- Major Impact: The Cooperation would enhance people-to -people contacts, foster mobility of workers and skilled professionals from India to Japan.
- Beneficiaries: Skilled Indian workers from fourteen sectors viz. Nursing care; Building cleaning; Material Processing industry; Industrial machinery manufacturing industry; Electric and electronic information related industry; Construction; Shipbuilding and ship-related industry; Automobile maintenance; Aviation; Lodging; Agriculture; Fisheries; Food and beverages manufacturing industry and Food service industry would have enhanced job opportunities to work in Japan.
MEA launches Global Pravasi Rishta portal and app
News: Ministry of External Affairs has launched the Global Pravasi Rishta Portal and app in order to connect with nearly 3.12 crore Indians across the world.
Facts:
- Objective: To act as a dynamic communication platform by facilitating a three-way communication between the Indian Missions (meaning the embassies), external affairs ministry and Indian diaspora.
- Key Features of the Portal:
- The portal will enable the registration of Indian diaspora members(Persons of Indian Origin(PIOs), Non Resident Indians (NRIs), Overseas Citizenship of India(OCIs)) and will help connect the Indian Diaspora members to new and existing government schemes.
- It will lend a helping hand during crisis management. The Indian diaspora can reach the consular services and officers in time during emergencies.
- It will provide useful information to the Indian Diaspora such as passport, visa and other consular services.It will also act as a platform for the Government of India(GoI) to take useful opinion from Indian Diaspora in framing policies.
- Global Pravasi Rishta Portal will facilitate OCI, PIO, and NRI community members by connecting them to various existing and new government schemes which will benefit them in various areas of interest.
Need for such Portal:
- As of now, there is no effective communication channel available with the ministry to connect with the Indian diaspora worldwide.
- The Portal will enable three-way communication between the ministry, our missions and the diaspora.
- The rishta portal will enable communication with the diaspora on a realtime basis and will have the ability to issue emergency alerts and advisories.
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What are the implications of Emigration of India’s brightest youth?
Synopsis: recent trends that suggests increasing emigration of brightest youth from India, have implications for India.
Background
- Even after the renewed calls from the PM Narendra Modi for an Atmanirbhar Bharat, emigration of India’s best and brightest has not stopped.
- Recent findings by Indian Express have shown that, during the two decades of 1996-2015 the toppers (i.e., first rankers in Class 10 and Class 12 examinations from CBSE and ISC) had migrated and were studying or employed overseas, mostly in the US.
- Also, according to most recent data collected from high-profile private schools in New Delhi, has shown that post-2015, that the trend of out-migration of Indian talent (around 70% of their students) and wealth has accelerated.
- Apart from the CBSE and ISC students, there is now a growing number of International Baccalaureate (IB) students (who, study and prepare only to pursue their higher education abroad).
What are the implications of rising Emigration from India?
- First, there is a flight of financial capital to overseas. The Reserve Bank of India’s liberalised remittances scheme (LRS) for “studies abroad” has increased more than threefold, from US$ 1.54 billion in 2016-17 to US$ 4.99 billion in 2019-20.
- Second, it leads to the “secession of the successful” when wealthy families from big cities send their children to schools that in fact equip them only for further studies and life overseas
- Third, with flight of human capital, as the data suggests that an increasing number of non-resident Indians (NRIs) have become “not-returning” Indians, and are contributing more to their host countries than to their home country the PM’s belief that “brain drain” could help create a “brain bank” for India’s development is not going to happen.
- Fourth, there is now an emerging category of Indians migrating out and opting to stay out of India because they feel the sense of alienation in their motherland and this perception has grown especially among minorities which disturbs the very cultural fabric of India.
- Fifth, an equally worrying trend is the increasing number of India’s super rich is opting for the dual status of owning and managing business in India while living overseas.
It is high time that instead of attracting foreign nationals to work here, India focus on retaining its brightest minds, who are assisting other countries in achieving technological and economical breakthroughs.
Govt approves inclusion of four indigenous sports in Khelo India Youth Games 2021
Source: Click here
News: Sports Ministry has approved the inclusion of four indigenous Games to be a part of Khelo India Youth Games 2021.The games include Gatka, Kalaripayattu, Thang-Ta and Mallakhamba.
Facts:
- Gatka: It is a traditional martial art form originated from Punjab.It is associated with the Nihang Sikh Warriors and is used both as self-defense as well as a sport.
- Kalaripayattu also known as Kalari is an Indian martial art that originated in Kerala.It is believed to be the oldest surviving martial art in India.
- Thang-Ta also known as Huyen Lallong is a martial art form of Manipur and has been practised by the Meiteis. It is dedicated to fighting skill and worship.
- Mallakhamba: It is a traditional sport from Indian subcontinent and has been well-known in Madhya Pradesh and Maharashtra.It involves gymnasts performing aerial yoga or gymnastic postures and wrestling grips in concert with a vertical stationary or hanging wooden pole, cane, or rope.
What is Khelo India?
- Khelo India Programme: It was introduced by the Ministry of Sports and Youth affairs.
- Aim: To revive the sports culture in India at the grass-root level by building a strong framework for all sports played in our country and establish India as a great sporting nation.
- Objectives:
- Mass participation of youth in annual sports competitions through a structured competition;
- Identification of talent
- Guidance and nurturing of the talent through existing sports academies and new set up either by the central Government or State Government or in PPP mode.
- Creation of Sports Infrastructure at mofussil, Tehsil, District, State levels among others.
- Merger: The scheme is a merger of three schemes namely:
- Rajiv Gandhi Khel Abhiyan: Infrastructure in rural areas and encouraging sports through competitions
- Urban Infrastructure Scheme: Development of Infrastructure in urban areas.
- National Sports Talent Search: Identifying sports talent.
- Key Features of the Scheme:
- Under the scheme, Talented players identified in priority sports disciplines at various levels by the High-Powered Committee will be provided annual financial assistance of INR 5 lakh per annum for 8 years.
- State wise budget allocation is not made and projects are sanctioned based on their viability. Funds are released project wise.
- Verticals: To meet the objectives of Khelo India, the entire programme is divided in 12 verticals as mentioned in the below picture:
Note: Sports being a State subject, the responsibility of promotion of sports, including identification of young talent and its nurturing rests with State Governments. Government of India supplements the efforts of State Governments through its various schemes.
Central Trade Unions strike
Context- Trade unions called for nationwide strike to protest government policies.
Why Central Trade Union (CTUs) have called for a nation-wide strike and what are the demands
Central Trade unions called for national wide strike to protest against anti-farmer laws, anti-worker labour codes, privatization of public sector and the corporatization policies of the government.
Trade union’s demands-
- The demands of the joint platform include cash transfer of Rs 7,500 per month for all non-income tax paying families and 10 kilograms free ration per person per month to all needy people.
- Expansion of MGNREGA, the rural employment guarantee scheme, to provide 200 days’ work in a year in rural areas at enhanced wages and also extension of the employment guarantee to urban areas.
- Withdrawal of the “draconian circular on forced premature retirement of government and PSU employees”.
- Pension to all– scrapping NPS (National Pension System) and restoration of earlier pension with improvement in Employees’ Pension Scheme 1995 [EPS-95].
What are the key concerns with new labour codes?
- Against the Interests of Employees- The codes provide the liberty to industrial establishments to hire and fire their employees at will.
- The new labour codes dilute workers’ rights in favour of employers’ rights.
- Inspection system has been diluted in the Wage Code.
What are the other options that trade union have to dilute this resolution?
Trade unions have six options-
However,
- Central government did not conduct an effective and sustaining social dialogue and at the State level, social dialogue institutions are largely absent or weak.
- The new Labour codes ignore the recommendations of Parliamentary Standing committee.
- And the labour reforms bills passed in the absence of the Opposition.
- International Labour Organization’s intervention– Trade union did wrote to ILO, seeking its intervention to protect worker’s rights but the ILO’s intervention only provide provided a temporary respite to trade unions as the government did what it has been doing.
Way forward-
- Approaching the judiciary- Trade unions must shed their judicio-phobia and approach to judiciary provided they have strong legal grounds to challenge reforms introduced by Central or State governments.
- Strike alone will not make much difference– Trade unions must explore other avenues such as seeking the ILO’s intervention, judicial action and social dialogue
- This strike is a reminder of this potential, positive reconstruction of laws.
Draft rules for the Code on Social Security, 2020 | 16th November, 2020
Context: Draft rules for the Code on Social Security, 2020 have been released by Ministry of Labour and Employment for comments.
Salient features of Draft rules for the Code on Social Security, 2020
Beneficiaries of the rules will be Unorganised Workers, Gig Workers, Platform Workers, and BOCWs.
For workers
- Unorganised workers, gig workers, and platform workers would require to be registered on a central government portal for availing any benefit under any of the social security schemes framed under the Code.
- The rules also provide for the Aadhaar-based registration of BOCW (Building and Other Construction Workers) on a portal of the Centre, State government or the BOCW welfare board of the State.
- Draft rules operationalize the benefits of Code for Social Security i.e.
- Employees’ Provident Fund, Employees’ State Insurance Corporation, Gratuity, Maternity Benefit, Social Security and Cess in respect of Building and Other Construction Workers
- Social Security for Unorganised Workers, Gig Workers, and Platform Workers.
- Where a building worker migrates from one State to another he shall be entitled to get benefits in the State where he is currently working and it shall be the responsibility of the Building Workers Welfare Board of that State to provide benefits to such a worker.
- Provision has also been made in the rules regarding gratuity to an employee who is on fixed term employment.
For establishment,
- Rules provide single electronic registration or cancellation.
- Procedures for self-assessment and payment of cess has been defined with regard to building and other construction workers
- The rate of Interest for delayed payment of such cess has been reduced from 2% every month or part of a month to 1%.
- Assessing officer can visit the construction site only with prior approval of the secretary of the Building and Other Construction Workers Board.
Labour Code on Social Security 2020
Key Features
- Consolidation of multiple laws: It will replace nine social security laws, including Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others.
- Universalizes social security: Social security has been extended to those working in the unorganised sector, such as migrant workers, gig workers, and platform workers.
- Covers Agricultural workers: For the first time, provisions of social security will also be extended to agricultural workers also.
- National Social Security Board: It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers, and platform workers.
- Social security organisations: The Bill provides for the establishment of several bodies to administer the schemes. These include a Central Board to administer the provident fund schemes and national and state-level Social Security Boards to administer schemes for unorganised workers.
- Social security fund: The Bill proposes setting up a social security fund using a corpus available under corporate social responsibility.
- Reducing employee PF contribution: The bill provides for an option for reducing provident fund contribution (currently at 12% of basic salary) to increase workers’ disposable income.
- Gig Workers: The bill states that the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
- Exemption: Under the bill, the central government is empowered to exempt selected establishments from all or any of the provisions of the code and makes Aadhaar mandatory for availing benefits under various social security schemes
Concerns related to Code on Social Security, 2020
Following are the concerns that are associated with the Labour Code for Social Security and welfare:
- It does not provide for a uniform definition of “social security”.
- There is no dedicated central fund. The proposed corpus will be split into numerous small funds creating a multiplicity of authorities and confusion.
- There is no clarity on how the proposed dismantling of the existing and functional structures, such as the Employees’ Provident Fund Organisation (EPFO) with its corpus of ₹10 lakh crore will be handed over to a government.
- Though gig workers are covered under social security schemes none of these benefits are secure, which means, the Central government, from time to time, can formulate welfare schemes that cover these aspects of personal and work security, but they are not guaranteed. All these benefits will be dependent upon the will of the state government.
- For Ex; in some states like Karnataka, where a platform-focused social security scheme was in the making last year, will possibly offer some financial assistance by the Centre.
- The Social Security Code states the provision of basic welfare measures is a joint responsibility of the Central government, platform aggregators, and workers. But doesn’t mention which measures will be provided by which stakeholder.
- Following recommendations of the National Commission on Labour (2002) have not implemented:
- Removal of thresholds based on the size of establishment for making certain benefits mandatory and application of social security system to all establishments.
- the existing wage ceilings for coverage should be removed
- Mandatory linking with Aadhaar may violate Supreme Court judgment
Way forward
- 2nd National Commission on Labour (2002) had recommended a separate law for small scale units (having less than 20 workers) with less stringent provisions for conditions such as payment of wages, welfare facilities, social security, retrenchment and closure, and resolution of disputes.
- The government in India should also consider granting the gig workers the status of employees of the aggregators. That would automatically provide them all the labor benefits like PF and ESI.
- The government should consider providing a loan scheme to the platform workers, to end their dependency on the platform aggregator companies.
- To mitigate operational breakdowns in providing welfare services, a tripartite effort by the State, companies, and workers to identify where workers fall on the spectrum of flexibility and dependence on platform companies is critical.
- All important recommendations of the National Commission on Labour (2002) and the standing committee on labor 2020 must be incorporated in the bills.
Labour law reforms and Trade unions
Context- The new labour codes clear attempt to diminish the role trade unions.
Contents
What are the new labour laws?
The current government has introduced new versions of three labour codes in Lok Sabha which are-
- Industrial Relations Code.
- Code on Occupational Safety, Health & Working Conditions Code.
- Social Security Code.
- Labour code on wages.
However,
- Central government has excluded trade unions from pre-legislative consultations on drafting the new labour codes.
- The new Labour codes ignore the recommendations of Parliamentary Standing committee.
- And the labour reforms bills passed in the absence of the Opposition.
What are trade unions?
A trade union can be defined as an organized association of workers in a trade or profession, formed to further their rights and interests. In India, Trade Unions in India are registered under the Trade Union Act (1926).
Functions-
- Protect the interests of workers–
- Trade Unions protect the worker from wages hike, provide job security through peaceful measures.
- They also help in providing financial and non-financial aid to the workers during lock out or strike or in medical need.
- Collective Bargaining– A process of negotiation between employers and a group of employees in respect to working condition. It is the foundation of the movement and it is interest of labour that statury recognition has been accorded to Trade Union.
What are the key objectives of Trade Union Act (TUA)?
- Right to registration– The law provided a mechanism for the registration of trade unions, from which they derived their rights, and a framework governing their functioning.
- The TUA gave workers the right, through their registered trade union, to take steps to press their claims, and where necessary, as in the case of a malevolent employer, agitate for their claims and advance them before the government and the judiciary.
- Immunity from civil suit in certain cases- No suit or other legal proceeding shall be maintainable in any Civil Court against any registered Trade Union in respect of any act done in contemplation or furtherance of a trade dispute.
What are the key concerns with new labour codes?
- In case of deregistration of trade union –
- The collective decision taken by its members and elected officers can be treated as illegal.
- Vulnerable against charges of conspiracy– The trade union’s members and elected officers lose their immunity from prosecution for criminal conspiracy for collective decisions and actions.
- It will lead employment dispute resolution outside the legal framework.
- The Industrial Relations Code (IRC) widens the grounds under which a trade union may be deregistered.
- Against the Interests of Employees– The codes provide the liberty to industrial establishments to hire and fire their employees at will.
- The new labour codes dilute workers’ rights in favour of employers’ rights.
Way forward-
A vibrant and responsible trade union environment is the requisite for inclusive growth to any economy. It checks growing inequality and falling living conditions of the working class.
If trade union is deregistered then the workers effectively lose their fundamental right to freedom of association.
Gig Economy and platform workers under labor laws in India | November 2nd, 2020
What is the Gig Economy and platform work economy?
- It is characterized by short-term contracts or freelance work as opposed to permanent jobs. It often involves connecting with customers through an online platform. Example: Delivery boys of app-based food, consultants, bloggers.
- The platform work economy is sometimes referred to as the gig worker economy, but Gig economy is a broader term that includes platforms
- In India, there are about 3 million gig workers that include temporary workers including independent contractors, online platform workers, contract firm workers, and on-call workers.
Provisions for gig and platform workers in labour laws of India
Code on Wages, 2019 expands the definition of an employee by using ‘wages’ as the primary definition to define who an ‘employee’ is. But it doesn’t explicitly mention or cover the gig workers, platform workers under this definition.
Important features of Labour Code on Social Security & Welfare, 2017
- Platform workers: For the 1st time Code on Social Security bill attempted to define platform workers in the following words;
“Platform work means a work arrangement outside of a traditional employer-employee relationship in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services or any such other activities which may be notified by the Central Government, in exchange for payment.”
- Universalizes social security: Social security has been extended to those working in the unorganized sector, such as migrant workers, gig workers, and platform workers.
- National Social Security Board: It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganized workers, gig workers, and platform workers.
- Gig Workers: The bill states that the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
- Social Security Fund: Government will establish a social security fund that will be funded by central or state governments, gig worker and aggregator contributions, the corporate social responsibility fund, or other sources.
- Contribution of Gig/platform companies has been capped at 1-2% of their annual turnover but contribution should not be more than 5% of the amount payable to gig workers.
Need for providing benefits to the gig workers
Unemployment and low consumption:
- Periodic Labour Force Survey released in 2019 from the Ministry of Statistics and Programme Implementation shows the unemployment rate at a 45-year high, at 6.1%; the highest levels of joblessness is among urban youth.
- It also reported that domestic consumption has reduced, industrial growth has flatlined, private investments are lower, and market volatility has hit drivers of employment. Thus, many undergraduates and diploma holders are looking towards the gig economy as a solution to get employment.
High employment provider
- As per Human resources firm TeamLease estimates, in the 2nd half of 2018-19, 13 lakh Indians joined the gig economy.
- Despite becoming the biggest job provider, Most of these workers don’t see the gig economy as a full-time option due to job insecurity, amplified by complex contracts, the changing rates of incentives, and the lack of control over impossible targets.
- Gig economies work outside the traditional employment structures excluding them from minimum-wage protection and social security.
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Important role played by gig workers during a pandemic
- Platform workers were responsible for the delivery of essential services during the pandemic at great personal risk to themselves. They have also been responsible for keeping platform companies afloat despite the pandemic-induced financial crisis.
- This has cemented their role as public infrastructures that also sustain demand-driven aggregators. The dependence of companies on platform workers merits a jointly assumed responsibility by public and private institutions to deliver welfare measures.
- Despite all this, gig workers faced a continuous dip in pay and no rewards for being essential workers. The base pay of Swiggy workers was reduced from Rs. 35 to Rs. 10 per delivery order. All India Gig Workers Union formed to protest against this discrimination.
Financial dependencies of workers on the gig economy
Workers require existing assets like vehicular assets for entry into the platform economy, thus they have to rely on intensive loan schemes provided by workers rely on intensive loan schemes. It creates a dependency of workers on Platform Company.
It removes the flexibility benefit provided by the economy to its workers and make him liable to work under their terms and conditions.
Issues in Labour laws coverage for gig workers
- Even though platforms are part of the idea of how work will evolve in the future, the current laws do not see them as future industrial workers.
- Due to the absence of clear provisions in the labour codes, Platform delivery people can claim benefits, but not labour rights. The terms ‘gig worker’, ‘platform worker’ and ‘gig economy’ only appears in the Code on Social Security but not in other labour codes.
- This makes them the beneficiary of the programs released by the state, but not of labor rights.
- It doesn’t provide them a right to move the court to demand better and stable pay or regulate the algorithms that assign the tasks.
- This also means that the government or courts cannot pull up platform companies for their choice of pay, or how long they ask people to work.
- Though gig workers are covered under social security schemes none of these benefits are secure, which means, the Central government, from time to time, can formulate welfare schemes that cover these aspects of personal and work security, but they are not guaranteed. All these benefits will be dependent upon the will of the state government.
- For Ex; in some states like Karnataka, where a platform-focused social security scheme was in the making last year, will possibly offer some financial assistance by the Centre.
- The Social Security Code states the provision of basic welfare measures is a joint responsibility of the Central government, platform aggregators, and workers. But doesn’t mention which measures will be provided by which stakeholder.
What should be done?
- Amendments to labor laws in Ontario and California have shown a move towards granting employee status to platform workers, thus guaranteeing minimum wage and welfare benefits.
- This is the view propagated by international agencies in the EU, including the European Trade Union.
- The government in India should also consider granting the gig workers the status of employees of the aggregators. That would automatically provide them all the labor benefits like PF and ESI.
- The government should consider providing a loan scheme to the platform workers, to end their dependency on the platform aggregator companies.
- To mitigate operational breakdowns in providing welfare services, a tripartite effort by the State, companies, and workers to identify where workers fall on the spectrum of flexibility and dependence on platform companies is critical.
Labour Code on Occupational Safety, Health & Working Conditions, 2018
Labour Code on Occupational Safety, Health & Working Conditions, 2018
In News: Lok Sabha has cleared three labour code Bills viz the Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.
Key Features of Labour Code on Occupational Safety, Health & Working Conditions, 2018
- Consolidation of laws: It will amalgamate 13 labour laws including the Factories Act, 1948; the Mines Act, 1952; the Contract Labour (Regulation and Abolition) Act, 1970 etc.
- Mandatory registration: All establishments covered by the Code must be registered with registering officers
- Advisory Bodies: The bill provides for the setting up of Occupat ional Safety and Health Advisory Boards by the central and state governments at the national and state level.
- Annual health check-up: It has been made mandatory in factories and its charge will be borne by the employers.
- Duties of employers: Appointment letters for all workers (including those employed before this code), underlying their rights to statutory benefits.
- Policy on Working Hours: Overtime work must be paid twice the rate of daily wages. Female workers, with their consent, may work past 7pm and before 6am, if approved by the central or state government.
- Leave policy: No employee may work for more than six days a week. Workers must receive paid annual leave for at least one in 20 days of the period spent on duty.
- Working conditions and welfare facilities: The employer is required to provide a hygienic work environment with ventilation, comfortable temperature and humidity, sufficient space, clean drinking water, and latrine and urinal accommodations.
Way Forward for Labour Code on Occupational Safety, Health & Working Conditions, 2018
- Reforms should be made with the consensus of all stakeholders -The workers, their unions, and employers and their associations etc.
- Any reform should strive to increase the trust between workers and employers.
- There is a need for a national policy for domestic workers at the earliest, to recognise their rights and promote better working conditions.
- To achieve the objective of training the 10 million apprentices, the government should form National Apprenticeship Corp by merging the Regional Directorate of Skill Development and the Entrepreneurship and Board of Apprenticeship Training.
Labour Code on Social Security & Welfare, 2017
In News: Lok Sabha has cleared three labour code Bills viz the Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020
Key Features of Labour Code on Social Security & Welfare, 2017
- Consolidation of multiple laws: It will replace nine social security laws, including Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others.
- Universalizes social security: Social security has been extended to those working in the unorganised sector, such as migrant workers, gig workers and platform workers.
- Covers Agricultural workers: For the first time, provisions of social security will also be extended to agricultural workers also.
- National Social Security Board: It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
- Social security organisations: The Bill provides for the establishment of several bodies to administer the schemes. These include a Central Board to administer the provident fund schemes and national and state-level Social Security Boards to administer schemes for unorganised workers.
- Social security fund: The Bill proposes setting up a social security fund using corpus available under corporate social responsibility.
- Reducing employee PF contribution: The bill provides for an option for reducing provident fund contribution (currently at 12% of basic salary) to increase workers disposable income.
- Gig Workers: The bill states that the central or state government may notify specific schemes for gig workers, platform workers, and unorganised workers to provide various benefits, such as life and disability cover.
- Exemption: Under the bill the central government is empowered to exempt selected establishments from all or any of the provisions of the code and makes Aadhaar mandatory for availing benefits under various social security schemes
Concerns
- Does not provide for uniform definition on “social security”.
- There is no dedicated central fund. The proposed corpus will be split into numerous small funds creating a multiplicity of authorities and confusion.
- There is no clarity on how the proposed dismantling of the existing and functional structures, such as the Employees’ Provident Fund Organisation (EPFO) with its corpus of ₹10 lakh crore will be handed over to a government.
Labour Code on Industrial relations, 2020
In News: Lok Sabha has cleared three labour code Bills viz the Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020
Objectives Labour Code on Industrial relations bill, 2020
- It aims to create greater labour market flexibility to encourage entrepreneurs to engage in labour-intensive sectors and to improve ease of doing business in India.
- It would consolidate three laws i.e. Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947.
Key Features of Labour Code on Industrial relations, 2020
- Contract workers: It seeks to allow companies to hire workers on fixed-term contract of any duration. Fixed term employment refers to workers employed for a fixed duration based on a contract signed between the worker and the employer.
- Reduced Threshold: Companies employing up to 300 workers will not be required to frame rules of conduct for workmen employed in industrial establishments. Presently, it is compulsory for firms employing up to 100 workers.
- Dispute redressal: It provides for setting up of a two-member tribunal (in place of one member) wherein important cases will be adjudicated jointly and the rest by a single member, resulting in speedier disposal of cases.
- Regulation for Trade Unions: Introduces a feature of ‘recognition of negotiating union’ under which a trade union will be recognized as sole ‘negotiating union’ if it has the support of 75% or more of the workers on the rolls of an establishment.
- Statutory benefits: Underlines that fixed-term employees will get all statutory benefits on a par with the regular employees who are doing work of the same or similar nature.
- Regulates strikes: As per the bill, the workers in factories will have to give a notice at least 14 days in advance to employers if they want to go on strike. Presently, only workers in public utility services are required to give notices to hold strikes.
- Re-skilling Fund: Proposes setting up of a “re-skilling fund” for training of retrenched employees. The retrenched employee would be paid 15 days’ wages from the fund within 45 days of retrenchment.
Concerns
- The Industrial Relations Code of 2019 has curtailed the right to form unions and accord them powers of representation.
- It takes away the negotiating rights of trade unions as it would be difficult for any one group to manage 75% support.
- It will give tremendous amounts of flexibility to the employers in terms of hiring and firing, dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
Labour Rights Codes on wages Bill
Introduced: Lok Sabha (23rd July 2019)
Passed: Lok Sabha (30th July 2019)
Passed: Rajya Sabha (2nd Aug 2019)
Present status: Received assent on 8th August, 2019.
Ministry: Labour and Employment
Objectives of the Labour Rights Codes on wages Bill, 2019
- The bill seeks to consolidate laws relating to wages by replacing- Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976.
- To formulate a statutory National Minimum Wage for different regions. The economic survey 2018-19 had also mentioned that a national mandatory minimum wage is a requirement.
Key provisions of Labour Rights Codes on wages Bill, 2019
- Defined Wages appropriately: it removes the multiplicity of wage definitions leading to significantly reduce in litigation as well as compliance cost for employers.
- Uniform wages: The Bill stipulates to link minimum wages only to factors such as skillset and geographical location. This would bring down the number of minimum wage rates across the country to 300. These labour Codes seek to universalise the right to minimum wage of workers, presently available to only about 30% of the workforce engaged in the scheduled employments.
- Extends to all sectors: It seeks to universalizes the provisions of minimum wages and timely payment of wages to all employees irrespective of the sector and wage ceiling.
- National Floor Level Minimum Wage: To be set by the Centre and will be revised every five years, while states will fix minimum wages for their regions, which cannot be lower than the floor wage.
Concerns associated with Labour Rights Codes on wages Bill, 2019
- The bill does not define “who is a worker” clearly.
- The calculation of the level of minimum wage by an expert committee is at variance with ILO parameters.
- A ‘national minimum wage’ is a good idea, but its computation is cause for concern. Instead of a single national minimum wage, the bill proposes multiple minimum wage structure at different geographical zones.
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