Revive the voice of the worker in government

International Labour Day marks the contribution and sacrifice of workers in building today’s world. Today, we remember the long struggle by workers for fair and equal pay, safer working conditions, and the right to organise and have their voices heard in their workplaces, in courts, and in the government.

Since independence, governments have safeguarded and empowered workers, but unfortunately, the Modi government has only rolled workers’ rights backwards. The rights of all workers are being weakened, whether they work in agriculture, for public or private organisations, or in the unorganised urban sector. Their voices are going unheard.

Consider the four labour codes that were rushed through Parliament, like the three farm laws that were later withdrawn. It is true that over 40 laws introduced since Independence need to be updated to meet today’s challenges. However, the Modi government has used this pretext to weaken protections for workers and usurp the constitutional powers of state governments.

There are four fatal flaws in the labour codes that make them anti-worker.

First, the codes do not apply to most workers or establishments. For example, establishments employing less than 300 people can fire workers or close units without permission. Contractors employing fewer than 50 people are exempt from workplace safety laws. Provident Fund, gratuity, insurance, and maternity benefits are all unavailable in smaller establishments.

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Second, even if the codes apply to an establishment, governments have enormous flexibility to waive requirements of workplace safety, social security, and protection from layoffs, retrenchment, or closure.

Third, the codes significantly weaken the ability of workers to fight for their rights by making it more difficult to form a union, declaring any strike without two weeks’ notice illegal, and penalising those who support such a strike.

Finally, and most importantly, the codes ignore key challenges facing workers. How can crores of workers with no written contract be helped? How can contract workers’ positions be improved? A worker struggles when they lose their job or suffer an injury; how can this struggle be reduced? The codes are silent.

Clearly, the Modi government thinks of labour laws as an inconvenience to be removed. It does not understand that labour laws, when well-designed and enforced, both protect workers and create certainty for businesses. This is why BJP governments in states like UP and MP have been unable to attract foreign investors in manufacturing despite waiving key labour laws for three years, citing Covid-19 as an excuse. As a former Chief Economic Advisor to the Modi government said, investors realise that if rules change drastically and suddenly in one direction, they may be reversed suddenly as well.

The government has a duty to safeguard workers’ retirement. Workers’ wages are deducted and entrusted to the Employees’ Provident Fund Organisation to be invested carefully. However, today, EPFO’s interest rate of around 8.1 per cent is the lowest since 1977, despite inflation being in double digits. The EPFO savings of 27 crore workers may not be sufficient for a retired life with dignity under such circumstances.

The public sector enabled crores of workers, especially from Dalit, Adivasi, and OBC communities, to climb to the middle class within a generation. PSUs created townships and ecosystems where even the children of Group C and D employees could get an excellent education. Many are now doctors, engineers, bankers, and professionals. This security is fast eroding, with over 30 lakh vacancies in government positions across India, and the reckless privatisation of well-performing PSUs in strategic sectors like BEL and BHEL. In addition, the Agnipath scheme will deprive 3 out of every 4 recruits in the armed forces of job security and social security. Army jawans cannot be treated like gig workers. We should not be surprised if the government soon introduces this backdoor contract system to other government jobs as well.

The entire economic policy of the Modi government favours crony capitalism and weakens workers’ earnings and positions. The budget spends on large capital projects by cutting social welfare schemes like MGNREGA. MGNREGA is being quietly strangled by cutting budgets to the lowest in 8 years, mandating apps for attendance, and a payment system that excludes 57 per cent of workers. The flawed GST cripples small and medium enterprises, particularly those in the informal sector. Subsidies and tax cuts go to large corporates, rather than small and medium enterprises, which employ most workers. Amit Shah’s new Ministry of Cooperation is designed to weaken cooperatives, as we are witnessing with Nandini in Karnataka.

While the younger generation rightly celebrates wealth creators, I also see that many do not have the time or patience for workers’ rights. They believe the market economy should dictate the fate of workers. They do not mind if the government tilts the balance in favour of industrialists who are risking their capital, rather than fairly protecting the interests of both employers and employees.

Workers’ rights are not just about fair wages; they protect workers’ dignity, which is critical for our economy in the long run. Without dignity, youngsters will simply choose not to enter skilled jobs that are the foundation of the manufacturing sector. Today, we face a disastrous situation with 17.5 crore youth who are neither studying nor part of the workforce.

All these examples prove that the voice of workers goes unheard in PM Modi’s government. Recall how workers suffered during the sudden COVID-19 lockdown, when crores of people in cities were deprived of work with no warning or thought for their survival. Remember the desperation of families who were forced to walk hundreds of kilometres to go home? These inhuman incidents could never have occurred if the government had thought about labourers even for a moment.

In sharp contrast, governments that respect the voice of the worker are able to develop innovative measures for their welfare. The Congress-led UPA government, where I was Labour Minister, introduced the Rashtriya Suraksha Bima Yojana, which provided health insurance to nearly 12 crore unorganised workers. MGNREGA has provided livelihoods for crores, especially during Covid-19. The governments of Himachal Pradesh, Rajasthan, and Chattisgarh have restored the old pension scheme. New technologies have created opportunities, but also new forms of labour insecurity. The Rajasthan government is tackling these problems through a welfare board and a Rs 200 crore social security fund for gig workers.

PM Modi and the BJP think rebranding schemes and rejigging laws will help workers. I am a labourer’s son and have led a labour union; I know that much more is needed to tackle the real problems facing workers today. The crucial first step is to stop ignoring workers in decision-making, and instead revive the voice of the worker in government.

(The author is President of the Indian National Congress.)