Economic Highlights
New Delhi, 4 September 2015
Central TUs Strike
LABOUR LAWS VS REFORMS
By Shivaji Sarkar
The September 2 strike by trade
unions has highlighted the problems of the workers and how they have been
ignored over the years not only in deciding their wages but also some key
elements that affect them the most - interest rates and taxes. The so-called
proposed reform in labour laws calls for a relook.
The 10 unions, including the
Bharatiya Mazdoor Sangh (BMS) stated to be close to the ruling BJP combine and
which did not join the strike, have raised some vital issues of how the workers
voices have remained unheard for the last two decades. One aspect that has
softened the unions is the Government’s willingness to negotiate with them. The
Government, they are happy, has not taken the strike as a prestige issue and
labour minister Bandaru Dattatreya averred that the talks would continue.
The unions representing 15 crore
workers have demanded raising the minimum wages nationally to Rs 15,000 per month.
It seems to be a modest demand. A worker has to travel to his office, fend for
his family, educate children and also pay for health care. The official ESI
facility is not easily available for various reasons, one being their location.
Can anyone have all these even at this minimum wage?
Prices, despite a fall in wholesale
index, remain beyond their reach. With higher prices cost of conveyance has
gone up. Health care is expensive. Workers and their families are unable to
meet these expenses. They are unable to have minimum level of nutrition.
The bureaucracy does not feel that
the workers need that much. They proposed less than half of it, Rs 6330, as the
minimum wage. It is based on “calorific” needs. This was the major reason for
the chasm between the unions and the Government. They were forced to go on a
day’s strike to highlight their plight. The proposed slab is unsuitable for the
workers as they would not be even able to fend for the minimum daily
requirements. Striking a generous posture the Government increased the proposal
to Rs 7098 per month.
They have some other demands as well
and that included higher limit for bonus and correction in the provident fund
system, social security coverage and non-interference in existing labour laws.
During the past two decades, the
unions have raised their voices sporadically. They did not resort to industrial
action except strikes in the banking sector on some occasions. The Economic
survey 2014-15 is eloquent on declining mandays lost due to srikes and
lock-outs from 17.6 million in 2009 to 14.46 million in 2011; 3.65 million in
2013 and 1.79 million in 2014. This exemplifies that the workers are keen on
contributing to the progress.
The Economic Survey expresses
concern on the deceleration in the compound annual growth rate (CAGR) since
2004-05 based on current daily status (CDS). It states that employment as per
CAGR is as low as 1.8 per cent.
The workers have suffered immensely
owing to job losses, denial of wage hike, unpaid provident fund and other dues
and having one of the worst conditions at working places. The grievance
redressal process of the labour department could not provide much succor owing
to the laws that favour the employers and their machinations. Employers
reportedly have not paid billions, if not trillion, of rupees of their dues.
As per official reports about four
lakh workers lost job during the past about five years. This is supposedly in a
regime where workers are “protected” by laws. If those laws are diluted one can
presume that the future of workers would be bleaker. So why such “reforms” are
being contemplated, the workers have been asking.
The Economic Survey 2014-15 says
that the informal employment increased by 9.5 million to 435.7 million from
2004 to 2012. This means people are getting odd jobs, which are extremely
temporary. The rise of informal employment also means that organized sector
employment is coming down. This should be of concern to the nation as rate of
labour force will continue to be higher than that of the population in 2021.
According to Labour Report (2007),
300 million youth will enter the labour force by 2025 and 25 per cent of the
world’s workers will be Indians as the population would comprise of the
youngest people with average age of 29 years compared to 37 in China and the
US; 45 in Europe and 48 in Japan.
The youngest population definitely
requires a more caring nation. The low unsustainable wages are likely to create
more problems.
The workers are also concerned that
the Government does not negotiate with the unions on critical issues like
income and other tax rates. Any tax is a burden on the working class. Though
their wages have not risen, their contribution to the tax kitty both direct and
indirect has increased significantly. The workers rue that they pay highest
income tax of 33 per cent on total wages of Rs 22,000 a month and over 40 per cent
of their wages go as various indirect taxes. The Government never discusses the
tax issues with them though the industry is always consulted.
Lowering of interest rates is also
impacting their savings. It helps only the ten largest borrowers who have
pushed banks to Rs 3 lakh crore NPAs. An average depositor loses more because
of loss in lowering of rates. The worker and retired persons feel that they are
punished for saving and contributing to the nation’s growth.
Any cash they put in bank as savings
is taken as an income and made liable to taxes. Savings on which they already
have paid taxes attract more taxes and they rue that it is deducted by banks as
tax deducted at source (TDS) without any rational. Most of the deductions are
unwarranted and they have to shell out extra to chartered accountants to get a
refund of illegal and improper deductions.
The nation moves on the sweat and
blood of the workers. The shabby treatment they are meted out against the VIP
treatment to government employees is leading to social chasm and disquiet. The
past regimes had ignored this aspect. The NDA government has to prioritise and
put the labour at the forefront for taking the nation ahead. It should call for
a national discussion for equitable and sustainable wages with all
stakeholders.---INFA
(Copyright, India News and Feature Alliance)
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