Labour Laws and the Pandemic

MAY 09


Eight political parties pan dilution of labour lawsGujarat, Madhya Pradesh, Haryana, Himachal Pradesh, Rajasthan and Punjab have extended the working hours from eight to 12 without amending the Factories Act. The parties said others States are likely to join this list.Eight political parties have written to President Ramnath Kovind protesting the dilution of labour laws, including extending the daily working hours from eight to twelve in six States, on the pretext of battling the COVID-19 pandemic.The joint letter, signed by CPI(M) general secretary Sitaram Yechury, CPI general secretary D. Raja, CPI(ML) general secretary Dipankar Bhattarcharya, All-India Forward Bloc general secretary Debabrata Biswas, Revolutionary Socialist Party general secretary Manoj Bhattacharya, RJD MP Manoj Jha, Sharad Yadav’s Lok Jantantrik Party, and president of Viduthalai Chiruthaigal Katchi Thol. Thirumavalavan, said the workers are being treated as slaves.

https://www.thehindu.com/todays-paper/tp-national/eight-political-parties-pan-dilution-of-labour-laws/article31539445.ece


Enable longer work hours: CII to Centre
"Further, it sought removal of labour advisories issued under the Disaster Management Act that prohibits employers from any wage reduction, layoff and retrenchment of workers. “... the MHA has now eased permissions to private establishments to resume operations. With commencement of economic activity, we request you kindly remove the applicability of DM Act for industry and let the Labour Laws preside.”
On review of labour laws, the industry body said it is critical that these changes are not rushed into without addressing industry concerns. “This is especially relevant today when the industry is redefining its business models and working practices in many sectors as a response to the COVID-19 pandemic. Labour codes should be further reviewed to enable greater ease of doing business and encourage entrepreneurship."

https://www.thehindu.com/business/enable-longer-work-hours-cii-to-centre/article31546269.ece


MAHARASHTRA
Maharashtra’s labour department has exempted industries registered under The Factories Act, 1948, from four sections of this Act related to working hours of the staff, till June 30. This is being done in view of the labour shortage following the nationwide lockdown imposed to curb the spread of the novel coronavirus. With the exemption from Sections 51,52, 54 and 56, employers can allow labourers to work in two shifts of 12 hours each.

This is not an amendment to the Act, but exemption from certain sections for limited period of time, that is June 30. It is evident that industries which are being allowed to work are facing massive shortage of labour. Unless we made some changes and exemptions, it would have been next to impossible for them to start functioning, 

https://www.thehindu.com/news/national/other-states/maharashtra-tweaks-labour-laws-to-increase-working-hours/article31539307.ece



KERALA
Making clear that Kerala has not taken any steps to dilute labour laws, Labour Minister T.P. Ramakrishnan says the government is taking necessary steps to promote investment while protecting the rights of workers.

“Earlier this year, the Centre brought in the Labour Code on Industrial Relations, 2019, consolidating 44 existing labour laws into four codes out of which one, the Wage code, was passed in Rajya Sabha with even the Congress supporting it. In the standing committee discussions on the other codes, the Left and some parties moved amendments and dissent notes, while the Congress did not. The latest moves by the States come in such circumstances, irking the INTUC and even the RSS-affiliated BMS who have made their opposition clear.,” said Mr. Kareem

https://www.thehindu.com/news/cities/Thiruvananthapuram/state-will-not-dilute-labour-laws-says-labour-minister/article31545374.ece



ODISHA“In exercise of power conferred by Section 5 and 65 of the Factories Act, 1948, the Government of Odisha hereby directs that all the factories registered under the said Act will be exempted from provisions relating to weekly, daily hours and interval of rest of adult workers under Section 51, 54, 55 and 56 for a period of three months and a 12-hour shift is allowed in the period,” says a government notification.

https://www.thehindu.com/news/national/other-states/coronavirus-lockdown-odisha-extends-work-shift-to-12-hours/article31540556.ece




MAY 8



Suspend labour laws for 2-3 years, employers’ associations urge governmentAmong the suggestions given by the employers’ associations were relaxation of the Industrial Disputes Act in order to treat the lockdown period as lay-off, treating wages paid during this period as corporate social responsibility (CSR) funding, increasing the maximum workforce to 50% from 33% upon reopening and suspending labour laws, except those governing minimum wages, bonus and statutory dues, for two to three years. The employers’ representatives also said working hours should be increased to 12 hours a day and the industries be given an appropriate package to ensure no job losses.
Among the participants were representatives of the Council of Indian Employers, FICCI, ASSOCHAM and PHD Chamber of Commerce and Industry.

https://www.thehindu.com/news/national/coronavirus-lockdown-suspend-labour-laws-for-2-3-years-employers-associations-urge-government/article31537997.ece


KARNATAKAIn another U-turn, the Labour Department, which on Wednesday had decided to issue notice to employers for not paying salary or full wages for April, stopped execution of this order within less than 24 hours after it received more than 700 complaints from workers.
The decision not to issue notice to employers came apparently after Labour Minister A. Shivaram Hebbar directed officials on Thursday not to. Sources said that by then, the department had received 730 complaints from aggrieved workers on its helpline

https://www.thehindu.com/news/national/karnataka/labour-department-makes-a-u-turn-on-issuing-notice-to-employers-on-wages/article31530083.ece

The following suggestions were given by the representatives of the Employers Organizations:(i) Relaxation of the provisions of Industrial Disputes Act to treat the lockdown period as lay-off;(ii) Keeping in view the difficulties being faced by the industry and liquidity crisis, the wages paid by to the workers may be covered under expenses under CSR funds;(iii) To increase the maximum limit of 33% workforce to atleast 50% of the workforce after the reopening of the industry to allow increase of goods and services to optimum level;(iv) to waive the PMGKY’s condition of covering only those enterprises whose 90% or more employees were drawing monthly wages less than Rs 15,000 under the Scheme so that more workers can be covered under the scheme;(v) To suspend the labour laws for the next 2-3 years except the provisions like minimum wages, bonus and statutory dues, to help industry to come out of the present crisis;(vi) To increase the working hours to 12 hours per day.(vii) To provide an appropriate package to the industries so that the business is sustainable and there is no loss of job opportunities.(viii) Power supply to the industry may be provided at subsidized rates.(ix) The status of Migrant Labour is a matter of serious concern. A programme may be formulated for return of these migrant labour to work by providing counseling to alleviate their fears on Covid-19, providing financial help for their transportation, providing free groceries for about six months, etc.(x) To create a databank of Migrant Labour. To create a national epidemic fund to help the workers of unorganized sector and daily wagers.(xi) Reduce social security costs on both employees and employers.(xii) Instead of different zones like red, orange and green, there should only be zones viz. containment zone and non-containment zones to facilitate easy movement of workers and goods. Allow all activities in the non-containment zones.

https://pib.gov.in/PressReleasePage.aspx?PRID=1622243

MAY 7


Madhya Pradesh
"The newly opened industrial units can organise third-party inspections. They will be exempted from the requirement of keeping registers and inspections. And industries can change shifts at their convenience.New industries will be exempted from all Sections of the Factories Act, 1948, except for Sections 6, 7, 8, 21-41 (H), 59, 67, 68, 79, 88 and 112. “...we have relaxed the Sections for three months and proposed to the Centre to extend the relaxation for 1,000 days,” Mr. Chouhan said in a live video address from Bhopal.
The new units will be exempted from the entire Section in the Act on ‘right of workers’ that empowers workers to obtain details of their health and safety at work. Further, the employer is not bound to provide to workers ventilation, lighting, toilets, sitting facilities, first aid boxes, protective equipment, canteens, crèches, weekly holidays and interval of rest. Not even providing drinking water is mandatory now.Further, maintenance of register of adult and child workers and allowing for advance payments will not apply to new units. They can even get away without maintaining cleanliness on premises and ensuring safe disposal of waste and effluents. The entire chapter on ‘Penalties and Procedure’, fixing responsibility on employers in case of the violation of the Act, will not apply to the new units. Instead of 61 registers, just one will be maintained“Many firms across the world want to relocate now. And we want to invite them here. Industries have been demanding labour reforms for long. The changes, with workers’ rights kept in mind, became necessary as investors were stuck in a web of laws and red-tapism,” Mr. Chouhan said.The government has said factory registration will be done in a day now, instead of 30 days. “If the official concerned doesn’t give the go-ahead within a day, he will have to pay a fine to the aggrieved firm,” said Mr. Chouhan. And the licence should be renewed after 10 years, instead of a year.

https://www.thehindu.com/news/national/coronavirus-madhya-pradesh-pushes-working-hours-from-eight-to-12-in-factories/article31527330.ece



Uttar Pradesh
U.P. clears ordinance exempting businesses from labour laws
The Uttar Pradesh government has cleared an ordinance exempting businesses and industries from labour laws, except for a handful, for the next three years as a measure to get the State's industrial activities back on track in wake of the COVID-19 crisis.The State Cabinet gave its nod to the ‘Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinance, 2020’.The provisions would apply to all existing and new businesses and factories, the government said.However, some labour laws would continue to operate, the government said. Labour laws provisions related to women and child will continue to exist. So will The Bonded Labour System (Abolition) Act, 1976, Building and Other Construction Workers Act 1996, Section 5 of Payment of Wages Act, 1936 and Workmen Compensation Act 1923.

https://www.thehindu.com/news/national/other-states/up-clears-ordinance-exempting-businesses-from-labour-laws/article31529945.ece




MAY 6

The following suggestions were given by the representatives of the Central Trade Unions:

1. To provide more trains to transport the migrant workers stranded in various parts of the country. These labourers may also be provided with financial assistance to run their families and may also be facilitated to return to work once the situation gets under control.
2. Creating a National Register for migrant workers/ unorganized workers with the facilities of portability and data transfer to help the migrant labour in getting employment and other assistance;
3.  Supporting MSMEs, particularly small and tiny industries through measures like interest waiver/restructure of on loans, providing subsidized electricity, etc.  There is also a need ensure proper supply of raw material to these industries;
4. Government need to work out strategies for sectors like hotels, cinema, sports, automobiles; severely affected due to lockdown
5. Providing subsidy to small and tiny industries in wage component so that these employers are able to pay full wages to all workers for the lockdown period, etc.
6. ASHA/Anganwadi volunteers who are doing a commendable job in reaching out to the victims of the pandemic need to be properly incentivised.
7. Workers who have lost jobs due to lockdown should also be provided cash incentives.

(viii)The working hours to the workers should not be increased during this time

(ix) Strict implementation of the labour laws and advisories issued by Ministry of Labour & Employment regarding payment of wages and non-deduction of salaries.

(x)   Monitory assistance, free supply of ration and medical facilities to the unorganized workers and daily wagers

(xi) Government to procure the farm produces so that the farmers can pay wages to the

       agricultural workers.

(xii) Train fare not be taken from the Migrant Workers going back to their home

https://pib.gov.in/PressReleasePage.aspx?PRID=1621495




MAY 05

The jobs bloodbath of April 2020

by Mahesh Vyas - CMIE

The unemployment rate in the month of April 2020 was 23.5 per cent. Data for the first week of May indicates that the rate could climb further. This worsening should be expected as the lockdown continues to get prolonged. Initially, a lockdown only hurts the most vulnerable labour that is informally employed in unorganised sectors. Gradually, it starts hitting the more secure jobs. Start-ups have announced lay-offs and industry associations have warned of job losses. Even NASSCOM, India’s IT association with over 2,800 member companies, has warned of job losses. These are not mere warnings anymore because job losses are seen across all types of employment.

The Consumer Pyramids Household Survey estimates that employment fell by a massive 114 million in April 2020. In March 2020, employment had already dropped to 396 million. This was the lowest employment since we started measuring it over four years ago. Even this low level dropped dramatically by 29 per cent to 282 million in April 2020.

Average employment during 2019-20 was 404 million. Compared to this, the fall in March was a minor 2 per cent. But, they still added up to 8 million job losses. Compared to the same average of 2019-20, the fall in April is a massive 30 per cent, which translates into a loss of 122 million jobs. This is a mind boggling loss of jobs.

The unemployment rate in March was 8.7 per cent. This is the highest unemployment rate in 43 months. Or, since September 2016. The rate has climbed rather steeply from the 7.16 per cent level of January 2020. The unemployment rate has been rising steadily since its low point of 3.4 per cent in July 2017. But, the 98 basis point increase in March 2020 over the previous month, is the largest monthly increase recorded. And the 158 basis point increase over two months ended in March 2020 is similarly, the largest increase over a two month period recorded so far.

https://www.cmie.com/kommon/bin/sr.php?kall=warticle&dt=2020-05-05%2008:22:21&msec=776





MAY 1



One of the key demands of the unions is a rollback of a recent decision to increase the working hours, from 8 hours to 12 hours a day, in states such as Rajasthan, Gujarat, Madhya Pradesh, Punjab, Haryana and Himachal Pradesh. The decision was taken by the States, for a period of 3 months, to compensate for a loss of production in factories due to the lockdown.

https://www.business-standard.com/article/economy-policy/a-may-day-minus-the-solidarity-march-in-india-as-lockdown-plays-spoilsport-120050101230_1.html