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LATEST NEWS UPDATES | A mirage sold as a panacea for the unorganised sector -Mohan Mani and Babu Mathew

A mirage sold as a panacea for the unorganised sector -Mohan Mani and Babu Mathew

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published Published on Dec 7, 2020   modified Modified on Dec 7, 2020

-The Hindu

The labour codes will only better India’s ‘ease of doing business’ ranking instead of improving conditions of employment

In an interview with The Hindu in October this year, the Union Labour Minister claimed that the four labour codes would generate employment and secure the basic rights of the workers. He also claimed that the labour codes seek to universalise the right to minimum wage of workers and social security entitlements. These appear to be extremely positive steps from the perspective of all workers. Why, then, have the labour codes not been universally welcomed by workers and their organisations, with even the Bharatiya Janata Party-affiliated Bharatiya Mazdoor Sangh opposing the codes? What are the reasons for this cold reception to what the BJP claims is a game changer for all workers in the country?

Universal social security

Let us first look at the claim of universal social security. The codes mandate benefits of Employees’ State Insurance (ESI) and Provident Fund (PF) only for workers belonging to establishments employing 10 workers or more. This leaves out nearly 80% of all Indian workers — the informal sector — from the ambit of these benefits. These workers have to be satisfied with a promise of some special schemes for them in their as yet undefined future. They may also be allowed access to underutilised Employees’ State Insurance Corporation hospitals — and even that only on payment of a usage charge! The most ubiquitous workers we encounter in our daily life — our domestic help, or the street vendor, or even the paper boy who delivers the morning newspaper home — are all left out of reckoning of this universal coverage.

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The Hindu, 7 December, 2020, https://www.thehindu.com/opinion/lead/a-mirage-sold-as-a-panacea-for-the-unorganised-sector/article33264791.ece?homepage=true


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