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WHAT DOES REPLACING 44 LABOUR LAWS IN INDIA WITH 4 LABOUR CODES MEAN?

Ankan

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Accumulation of ever-increasing capital is the fundamental force driving the development of the capitalist economic structure. But this very force gives rise to its contradiction in the form of falling rates of profit, thereby giving rise to a crisis. A crisis is primarily characterised with massive unemployment, and not surprisingly, crisis becomes the solution in the capitalist economic structure and does not necessarily present itself as a problem.

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The current situation is no different-globally as well as domestically. Since the financial crisis of 2008, there is a severe fall in the rate of profit. As a result, unemployment has increased significantly since 2008. 

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According to ILO’s World Employment and Social Outlook Trends, 2019-an estimated 172 million people were unemployed in the year 2018 with an unemployment rate of 5%. The same rate of unemployment is expected in the year 2019 and 2020, which would drive unemployment to 174 million by 2020.

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When the rates of profit fall and the existence of the capitalists and the capitalist economic structure as a whole come into question, the capitalist or the bourgeoisie class pushes the burden on to the working class. They do so by reducing the real wages of the workers or by changing the tax structure.

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In 1991 India adopted the policies of liberalisation, privatisation and globalisation following a balance of payment and fiscal deficit crisis. These neoliberal policies are nothing but economic policies which removed all the restrictions on foreign capital allowing Foreign Direct Investment (FDI) in various sectors like automobiles, banking, airports as well as education, health and agriculture. With foreign capital freely moving in the country, the next step was to change or scrap laws safeguarding the natural resources so that it can be exploited for profits. For example, the draft Environment Law Amendment Bill 2015 attempts to dilute the power of National Green Tribunal and even the provisions of the law aren’t clear.

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But the neoliberal policies also seek to exploit the human resources, i.e. labour. With the fall of the Soviet Union, there was a weakening of labour movements world over and thereafter neoliberal regime unleashed by Thatcher-Reagan administrations from the 1970s spread its octopus-like grip on every corner of the world. 

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In a capitalist economic system, there are two forces acting against each other – the capitalist or the bourgeoisie class and the working class or the proletariat. Since the 1970’s the capitalist class has systematically disenfranchised the working class.  

With India agreeing to the structural adjustment programs proposed by IMF and World Bank, the lives of the working class and their struggles would change forever. Laws which protected the rights of the workers such as Factories Act 1948, Industrial Disputes Act 1947, Contract Labour (Abolition and Regulation Act) 1970, Minimum Wage Act 1948, Child Labour (Prohibition and Regulation) Act 1986, Apprentice Act 1961, Exemption (from Furnishing Returns and Maintaining Registers by Certain Establishment) Act 1988 sought to be changed by successive governments. In fact, there is a complete unison among all the political parties sometimes even of the parliamentary left, especially since Nandigram and Singur when it comes to further the case of the neoliberal regime. 

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In the same endeavour, the NDA government headed by Narendra Modi has come up with nefarious policies which would replace the existing 44 labour laws with 4 Labour Codes – Code on Wages, Code on Industrial Relations, Code on Social Security and Welfare and Code on Occupational Safety, Health and Working Conditions. The Code of Wages has been passed, and the other three are in process.

“The proposed new labour law will help investors and is expected to accelerate growth, another official said.”Clearly, the concerned officials are clear with their intent with the changes in the labour laws. Labour Laws which previously protected the rights of the workers will now help the investors. The regulations will herald increasing contractualization, informalization and privatisation of workers, thereby weakening the working class even further.

 

But with increasing repression the working class organises themselves and fights for their rights violently, and in doing so they discover new horizons as is evident in the struggle of Maruti Workers, Workers of Munnar Tea Plantation, Safai Mazdoors of Mumbai etc. and as students we should rise to the historical task of building up of that uncompromising struggle.

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