The road to rolling out labour codes
- Government says delay in implementing four labour codes is due to delay in framing rules by States.
- Trade unions are warning about protests if codes are implemented.
- Labour is a concurrent subject, both States and Centre will have to prepare rules for codes.
What is the process?
- Four labour codes are amalgamation of 29 Central laws and about 100 State laws.
- Opposition had objected to way the three codes were passed in Parliament without much discussion.
- State prepared draft rules hesitantly as most of the provisions are “anti-worker.”
- SP Mukherjee committee, working on the issue of minimum wages, is yet to complete its task.
- Ambit of Employees State Insurance Corporation (ESIC) will be expanded to all districts within two years.
What are some of the concerns?
- Centre of Indian Trade Unions: It is aimed at pushing out large section of workforce out of the coverage of all labour laws.
- Done through increasing threshold level of employment in an establishment
- Repealing number of labour laws meant for certain specific sections of employees/workers viz., sales promotion employees, working journalists, etc.”
- Employers’ associations like CII and FICCI had expressed reservation for increasing minimum wages and expanding social security network by involving employers too.
What lies ahead?
- Trade unions are warning about more protests if the codes are implemented.
- Centre is worried about political fallout of its implementation.
- Employers are worried that further increase in salary bill will hamper their profits in a recession-hit economy.