The many challenges before trade unions

News:  Trade unions have intensified their agitation against the Codes in the wake of the government’s decision to repeal the farm laws.

The labour code requires repeal for many reasons. However, as opposed to the success of farmers’ protests, the trade unions’ agitations failed in achieving their demands.

What are the problems with the labour codes?

The Central Trade Unions (CTUs) have criticised the Codes for the below reasons

Firstly, the Labour Codes were passed with little debate and discussion. The Central government did not hold adequate consultations with trade unions on the Codes.

The absence of effective dialogue contradicts the International Labour Organization treaty, the Tripartite Consultation (International Labour Standards) Convention of 1976 (C.144), which India had ratified in February 1978.

Secondly, many clauses in the codes deprive labourers of hard-won labour rights.

Thirdly, the Codes disrupt the collective legal and industrial relations intelligence in the country. For instance, the government introduced changes in major contentious clauses (hire and fire, contract labour) that were not based on robust empirical evidence.

Further, the promises that were made are not backed by credible systems (social security fund, universal minimum wages, and social security).

Fourthly, liberalization of thresholds would intensify informalisation of the workforce. For instance, liberalization of major legal aspects such as contract labor, hire, and fire, standing orders.

Finally, the codes had many procedural deficiencies. The codes did not reflect several of the PSC (Parliamentary Standing Committee) recommendations or included clauses not mentioned in the draft Bills sent to the PSC.

Why strikes are unsuccessful?

The CTUs are divided: For instance, out of the 12 major CTUs, 10 have been jointly spearheading agitations calling for the repeal of all four Codes while the BMS has been conducting its own limited agitation.Furhter, thousands of enterprise-based unions lack political consciousness and therefore do not always support the CTUs’ agitations.

Labour Codes matter less even if they are repealed: This is because of two reasons,

One, though the CTUs for long succeeded in blocking labour law reforms at the national level, substantial reforms of laws and inspections have happened at the regional level.

Two, with the support of the government, employers have been able to achieve labour flexibility (the rampant contractualisation of the workforce) denied to them by formal laws. Hence, the Labour Codes matter less even if they are repealed.

Unorganised: Though there are around 400 million unorganised and informal workers, they are scattered and not organised in a consolidated manner to mount significant political opposition and demand labour market securities.

Industrial workers cannot organise longer and larger strikes: Unlike farmers, they would lose their jobs and wages.

Furhter, the presence of a huge number of underemployed or unemployed and informal workers weakens their bargaining power.

The failures of the Railway strike of 1974 and the Bombay textile workers’ strike of 1982-83 haunt the labour movement.

Neoliberal order: Labour reforms agendas such as privatisation, flexible labour markets, etc. are supported by global financial institutions like the World Bank and the International Monetary Fund.

Source: This post is based on the article “The many challenges before trade unions” published in The Hindu on 30th November 2021.