Abstract
Over this chapter, we collect together the insights gathered from our analysis of law and public policy, and from the ethnographic data, we have gathered from all over India and China to suggest how India should devise labour laws and policy that both give employers sufficient flexibility but also provide a voice to workers. Broadly speaking, it is suggested that India replaces the contract labour system—getting rid of exploitative middlemen contractors and tendering practices that lower wages, and offer fixed-term contracts to workers across the board. In addition to this, it is suggested that collective bargaining institutions be strengthened and law and public policy be oriented to support this. This might indeed also provide support to the recent moves to skill the workforce because workers will be motivated to learn, innovate and be more productive.
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Notes
- 1.
As per Reserve Bank of India figures, the net capital inflows to India increased from $7.1Â billion in 1990/91 to $45.8Â billion in 2006/07 and further to $108.0Â billion during 2007/08. See https://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=406 (accessed on 12.01.15).
- 2.
The Times of India: India Business (04 February 2014). http://timesofindia.indiatimes.com/business/india-business/Income-inequality-on-the-rise-in-countries-like-India-IMF/articleshow/29857803.cms (accessed on 12 January 2015).
- 3.
For details, see https://www.forbes.com/sites/sarahsu/2016/11/18/high-income-inequality-still-festering-in-china/#46cd98051e50 (accessed on 27 April 2018).
- 4.
While some economists estimate that wealth inequalities in China have risen as high as 73 in 2010, whereas the government estimates a minor reduction of gini index from 49 in 2010 to 46 in 2015. Still, even going by the conservative estimate inequalities in China have reached an alarming position. For details, see ibid.
- 5.
A term used by the author for deregulation and increased labour flexibility.
- 6.
On 21 September 2008, the CEO of Graziano Trasmissioni India was killed at the Greater Noida, plant by a mob of around 200 workers who also vandalized the property. See http://www.ft.com/cms/s/0/55e0e210-177b-11de-8c9d-0000779fd2ac.html#axzz30kTcUzBx (accessed on 12 January 2015).
- 7.
In a major outbreak of industrial violence following the death of a trade union leader, a top official of Regency ceramic company in Yanam, a small enclave of Puducherry in Andhra Pradesh state, was killed by contract workers at his residence on 27 January 2012, besides destroying property worth millions of the company. http://www.thehindu.com/news/national/andhra-pradesh/violence-erupts-in-yanam-as-workers-go-on-the-rampage/article2836717.ece (accessed on 12 January 2015).
- 8.
In the leading Japanese car making company, Maruti, strife (July 2012) scores of employees got injured and a senior manager was killed. See Workers Autonomy Strikes in India: Maruti Suzuki Strike at Manesar, Haryana state (June, September, October 2011), Mouvement Communiste, May, 2012; p. 18. http://mouvement-communiste.com/documents/MC/Booklets/BR5_India_EN_vF_complet.pdf (accessed on 12 January 2015).
- 9.
It is after considerable rethinking that Maruti management has declared to dispense with the third-party contract labour system, though the actual implementation is yet to be seen. For details, see http://www.moneycontrol.com/news/business/maruti-chief-to-improve-communication-end-contract-labour_747405.html, also see Punjab state government initiative to end contract labour. http://articles.economictimes.indiatimes.com/2002-08-27/news/27333378_1_contract-labour-fci-workers-food-corporation (all accessed on 16 January 2015).
- 10.
It is contended that the primary reason for engagement of contract labour by the employers is to evade long-term employment liabilities as required for regular workers. By striking down the possibility of ‘absorption’ or ‘regularization’ of contract workers even after an elongated period of engagement, the judgement has ended this concern of the employers and opened up the possibility of direct engagement like through written direct contract.
- 11.
As already enumerated, the fixed-term contract as introduced by the Ministry of Labour and Employment, Govt. of India, vide gazette notification dated 16 March 2018.
- 12.
‘Transaction cost’ as used in new institutional economics is the cost of economic exchange like the cost involved in getting information, arrangements, bargaining, etc., for conducting a task.
- 13.
See Back to Our Common Future: Sustainable Development in the twenty-first century (SD21) project, Summary for policymakers, United Nations Department of Economic and Social Affairs, Division for Sustainable Development, June 2012. http://sustainabledevelopment.un.org/content/documents/UN-DESA_Back_Common_Future_En.pdf.
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Kumar, P., Singh, J. (2018). Conclusion: Lessons Learnt for Policy Recommendations. In: Issues in Law and Public Policy on Contract Labour in India. Springer, Singapore. https://doi.org/10.1007/978-981-10-8444-7_7
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