PPT on Contemporary Issue

8/3/2019 PPT on Contemporary Issue

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CONETEMPORERY ISSUES ON

LABOUR LAW REFIRMS IN INDIA

PRESENTED BY:- SAURABH MISHRA

MONIKA BHASKAR

REETIKA ARORA

REENA SHARMA


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INTRODUCTION

For the past 6-7 years it has been argued (especially byemployers) that labour laws in India are excessively pro-worker in the organized sector and this has led to seriousrigidities that has resulted in adverse consequences in termsof performance of this sector as well as the operation of the

labour markets. There have been recommendations by thegovernment to reform labour laws in India by highlighting theneed for flexibility in Indian labour laws that would giveappropriate flexibility to the industry that is essential tocompete in international markets. The main issue has beenslow employment growth despite increasing GDP growthtermed as jobless growth the arguments for which are thatthe existing labour laws are less employment friendly andbiased towards the organized labour force, they protectemployment and do not encourage employment oremployability.


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NEED FOR FLEXIBILITY IN LABOUR MARKET AND

LABOUR LAWS:-

The first one emphasizes on the need for labour force to changeaccording to the market fluctuations which happens because ofincrease in specialized products that requires firms to quickly changethe size, composition, and at times the location of the workforce.

The second emphasizes on lowering the labour costs and increasingproductivity because of rising competitiveness.

The third is the political economy perspective which advocates freemarkets where there would be no government intervention andinterference of trade unionism.

He also mentions that in those countries where labour marketrigidities are caused by excessive legislative regulation, flexibilitytends to focus on how national legislative reform may grant greaterfreedom for individual employers or social partners to negotiate theterms of flexibility.


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LABOUR LAW THAT ARE OF CURRENT CONCERN:-

The absence of flexible labour marketsin the organized sectorgrowth in output is not leading to a proportionate growth inemployment hence the employers are going for more capitalintensive production processes because of labour becoming a fixedinput. Hence though the labour laws are meant to protect the jobs of

the workers, the scope for creation of more job opportunities in futureis being lost. Therefore Indias comparative advantage of enormous

labour abundance is not being adequately utilized because of thehigh wage lands created by the labour legislation in the organizedsector (Debroy, 2001).

There is a lack of consensus amongst the employers and workerswhich is being an impediment to any proposed changes in the labourlaws. To understand this, we first begin with a brief description of thelabour legislation and then move on to the particular laws that are themajor causes of concern.


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STRIKES AND LOCKOUTS IN YEAR 1999-2005:-

YEAR STRIKES LOCKOUTS

1999 540 387

2000 426 345

2001 372 302

2002 295 284

2003 255 297

2004 236 241

2005 155 185


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GOVERNMENT AND OTHER RECOMMANDATIONS:-

Section 9A which concerns the job content and the area and natureof work of an employee. It says that in case the job content or thenature of work needed to be changed of an employee or group ofemployees, a 21 day notice has to be given to the employee and inpractice also required the consent of the employee.

Another major issue put forward by many economists and policymakers is the multiplicity of labour laws. Unification andharmonization of the labour laws has been highly recommended byDebroy (2001, 2005). He says that apart from the seventh schedulethere are separate statutes for cine workers, dock workers, motortransport workers, sales promotion employees, plantation labour,working journalists and workers in mines.


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CONCLUSION:-

In the context of above discussions, there are many things needed tobe looked upon. The first is that of the whole question of whetherimproving the status of the organized sector manufacturing byreforming the labour laws would practically make a difference to thegrowth of employment considering that labour in the organized sectorforms only 6 per cent of the total labour force the rest being in theunorganized sector.

Secondly, whole debate on whether rigidity of the labour laws ishindering growth of the manufacturing sector and hence employmentgeneration in this sector seems vague if large scale flouting orviolations of labour laws are taken into consideration.


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THANKING YOU..

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PPT on Contemporary Issue