The erosion of hard-won labour rights

Source– The post is based on the article “The erosion of hard-won labour rights” published in “The Hindu” on 1st May 2023.

Syllabus: GS 2– Issues associated with human resources –

Relevance– Issues related to labour rights

News– The article explains the issues of dilution of labour rights by some states.

What are some historical facts about labour rights?

On May 1, 1886, Chicago in the United States became the major site of a demonstration by labour unions in support of an eight-hour workday.

There was a violent confrontation between labourers and police in a meeting at the Haymarket Square in 1886. It became a symbol of the international struggle for workers’ rights.

In 1889, the International Socialist Conference declared that, in commemoration of the Haymarket Square affair, May 1 would be an international holiday for labour.

In 1919, the International Labour Organization adopted the Hours of Work Convention. It limited the number of working hours to eight a day and 48 hours a week. British India ratified the Convention on July 14, 1921.

How has there been curtailment of labour rights in recent times by Indian states?

Several States amended the Factories Act, 1948, using the ordinance route. Recently, the Tamil Nadu and Karnataka governments also increased the number of working hours a day.

Employers, especially in the garment and electronic industries, have demanded for a flexible work time regime to manage export orders.

Under the pretext of ‘ease of doing business’, regional governments offer many subsidies and exemptions to attract global and domestic capital. Apart from quantitative subsidies, these global companies press for qualitative subsidies.

Employers prefer no unions or weak unions where cheap and skilled workers are available. This leads to a race to the bottom. One State after another amended labour laws despite the fact that these companies do not help significantly reduce unemployment rates.

The typical demand is to increase the number of hours of work a day while adhering to the eight-hour-day rule. For instance, Karnataka has increased the number of working hours a day, to 12 while complying with the weekly threshold of 48 hours.

There is movement from the three shifts regime to the two shifts regime. The worker spends about nine hours in the factory.

What are demands by corporations regarding amendment in labour rights?

Employers, especially in the garment and electronic industries, have demanded for a flexible work time regime to manage export orders.

In India, mainstream economists are in favour of increasing exports, even at the cost of labour rights and human rights. They recommend emulating countries like Bangladesh and Vietnam.

In 2022, according to the Global Right Index by the International Trade Union Confederation (ITUC), Bangladesh ranked among the 10 worst countries where labour rights are not guaranteed.

The companies believe they can enhance production by maximising the workers’ time at the factory. This would help them cut travelling allowance and transaction costs.

What are the consequences of amendment in labour laws?

Workers are likely to be away from home for at least 14 hours since some of them spend two hours travelling to work. Eventually there is bound to be diminishing marginal productivity and employers may not benefit.

By extending the hours of work and ensuring job insecurity, India is going back to the 19th century in the name of ease of doing business. Due to lack of political unity as well as trade union cooperation, States are able to change labour laws without much opposition.