Alignment of Labour Laws from each stakeholder in India is a need of an hour

April 17, 2020

Labour Laws are an important catalyst to the growth of India in the manufacturing domain. The Make in India plan to in-source manufacturing in India can only be successful if there is sufficient labour in the market and with pro-labourer Labour laws.

There are multiple stakeholders for the labour laws such as Trade Unions, Employers, Political Parties, Government and Supreme Court. Each stakeholder has their own interests and motives for Labour Reforms.

Trade Unions:
• Workers Economic Welfare
• Job Security to Workers
• Boost the Union identity as saviour of Worker’s Right
• Union’s influence at workspace

Employers:
• Flexibility at workplace
• Cost Reduction
• Managerial Control

Political Parties:
• Political Support of Workers
• Financing by employers during election.

Government:
• Attracting FDI
• Economic Growth
• Making Economy globally attractive

The smooth sailing of Labour Laws reform can only be possible when interests of each stakeholder aligns. Some of the suggestions by which smooth sailing can happen are:
• Retrenchment of employees can happen via a process collectively developed by trade union and employers which gives a balance of control to both the parties, serving interests of both.
• Mechanism to ensure if the company needs new resources it will re-employ fired employees first.
• Companies can cut hours of workers rather than firing them to maintain costs.
• Companies should plan for employee’s skill enhancement which will benefit both employer and employee.
• A formal scheme of unemployment insurance can be provided to give compensation to fired workers.

Author:
Dr. Malay Patel, Associate Professor & Assistant Dean, Unitedworld School of Law (UWSL)

Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.