Modi government 2.0 hopes to realise its ease of doing business agenda by pushing proposed labour reforms through as soon as possible, but worker unions may not agree (Photo: File/India Today)

The labour ministry, under the new Modi government, is gearing up to table a new bill for labour reforms in the upcoming budget session of the Parliament. But objections raised by the RSS-backed Bhartiya Mazdoor Sangh may create roadblocks in the Modi Government’s ambitious reforms agenda.

Keen to project itself as an investment friendly regime, Modi government 2.0 is hoping to push reforms right from the first Parliament session. On top of its agenda are the labour reforms. Modi government has bracketed 44 labour laws into four major codes - wages, industrial safety and welfare, social security and industrial relations.

Government claims broad consensus among major labour unions as the proposed bill is likely to include national minimum wage for all kinds of employment.

Union Labour Minister Santosh Gangwar told reporters after the Group of Ministers meeting, "We will bring new labour law bill in upcoming session; all labour unions have been consulted on this."

But indications are that the government may not introduce reforms in all four codes in one go. This after RSS-backed labour union Bhartiya Mazdoor Sangh has hailed the Modi government's wage reforms but criticised the draft bill proposals in other three labour codes.

Some of the major objections raised by the RSS affiliate in the labour reforms include dismantling and merger of ESI, EPF with other central schemes and privatisation of social security fund. The Bhartiya Mazdoor Sangh claims that proposed industrial relations code will create jungle law as it will make hiring and firing of the workers easy; it puts restrictions on right to strike; it dilutes safety provisions; and dilutes threshold limit on coverage and provisions on working hours, leave and allowances.

Bhartiya Mazdoor Sangh has, however, said that it wants labour code on wages bill to be passed in Parliament at the earliest.

CK Saji Narayanan, President of the Bhartiya Mazdoor Sangh, told India Today TV, "We have objected to to three out of four labour codes, we are okay with wages code."

"The government is positive about consultations, minister is travelling to Geneva, he will be back on June 18, we are sure there will be discussions to include our concerns," CK Saji Narayanan added.

Labour unions backed by the Left parties have vehemently opposed the new reforms. The Centre of Indian Trade Unions (CITU) has alleged that Modi government buckled under the pressure of the corporate.

Tapan Das, General Secretary of CITU said, "Removing protection components of the labour and set an era of unilateralism, they will bring in hire and fire, hurdle to form labour unions, 70 per cent of labour will be out of coverage in the garb of ease of doing business. We will oppose them on the ground, even if they might push it through Parliament."

Notwithstanding these objections, the industry is hopeful that the new set of reforms will be be implemented at the earliest.

"Labour reforms in the form of clubbing 44 archaic laws is a welcome step for the industry, it is a welcome step, it will boost domestic economy, encourage FDI," Sourav Sanyal, Deputy Secretary General of ASSOCHAM, told India Today TV.

"It is wrong to say labour unions were not consulted, they were involved at every step to arrive at a consensus," he added.

While the government hopes that codifying labour laws will attract investment and spur growth, the bill could face a stiff challenge in Rajya Sabha where Modi Government is yet to gain a majority.



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