The road to rolling out labour codes

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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.