Khattar for easy hiring and firing in Haryana, trade unions angry

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The proposal

• Haryana plans to bring in pro-industry amendments to labour laws

• The ML Khattar govt says labour reforms are a major priority

The trend

• Ever since the Modi govt came to power at the Centre, it has been trying to introduce labour reforms

• BJP-ruled states like Rajasthan have taken the lead in amending laws

More in the story

• Which laws and policies are set to change?

• Why are trade unions incensed about these proposed amendments?

Taking a cue from its western neighbour Rajasthan, the Haryana government is also planning to introduce labour reforms that would make hiring and firing easier for industrialists.

The Manohar Lal Khattar-led government also wants to give industry a free run when it comes to statutory compliance, by introducing self-certification.

"Labour reforms are a major priority. I am confident the reforms will be cleared by the Assembly," CM Khattar said last Sunday, 14 February, on the sidelines of the Make in India Week event in Mumbai.

Also read: Modi's labour reforms are the wrong fix. Here's why

Over the last few years, Haryana has witnessed some violent industrial unrest in the Gurgaon-Manesar belt. The Maruti-Suzuki automobile plant in Manesar has seen repeated instances of unrest in the last few years.

Khattar has claimed that industrial unrest is a thing of the past, now that he and the BJP are in power. He says the state is ready to embrace industry, and is seeking investments.

"Trade unions and industry now have cordial relations. The government has also undertaken many pro-labour policies, including raising the minimum wage," he said.

Trade unions, obviously, are incensed at these proposed reforms. But the key question remains if their opposition will carry any weight.

Also read: It can't be a gun to the worker's head: Rajeev Chandrasekhar on labour reform

Ever since Narendra Modi's BJP government took the reins of the country in 2014, the emphasis has been on amending the labour laws to attract investment and boost the industrial sector.

Since the Modi govt came to power, it has been trying to push through amendments to labour laws

India has a set of 43 labour laws, which are framed by the Centre but largely implemented by the states. And so, the states where the BJP is in power have taken a lead in amending these laws.

Sources say the Centre has told the states that since the Modi government cannot usher in reforms due to its minority numbers in the Rajya Sabha, they can go ahead and start amending the ones in the Concurrent List.

Also read: I told the PM you can't do it unilaterally: B N Rai on labour reform

The proposed reforms

• Industrial Disputes Act, 1947: Under the current act, industries employing 100 or more workers require permission to fire the workers, retrench them or close the unit. The government has proposed to raise this limit to 300 workers. The compensation paid to the workers will continue as per the present law. This will help industries employing up to 300 workers to restructure themselves without delay.

• Contract Labour (Regulation and Abolition) Act, 1948: Presently, an industry can employ up to 20 workers through contractors, without the formality of registration of licencing. The government proposes to increase this number to 50. This is being done to accommodate changing needs of industries that require a fluctuating strength of workers.

• Factories Act, 1948: According to the proposed amendment, factories employing less than 20 workers with the aid of electricity, or up to 40 workers without the aid of power, will be exempted from the definition of the Act. It also wants first-time offences to be compounded under the Factories Act, instead of going to a court of law.

• Self-certification: The state government also wants to introduce a 'self-certification' scheme for statutory compliance. Officials say the objective is to curtail unnecessary visits by government inspectors, "without compromising on the socio-legal rights of the workers". The government claims it wants a comprehensive inspection policy, in order to simplify business regulations. It wants to use technology and innovation to implement of statutory provisions in a transparent and accountable way.

Promises in industrial policy

In its Enterprise Promotion Policy, 2015, announced in July last year, the Khattar government had promised a series of labour reforms, including the examination of differential wages for Tier-II towns, as an incentive for entrepreneurs to set up units in such towns.

Also read: Why Rajasthan's labour laws are a peek into India's bleak future

The policy also envisages declaring IT, electronics, auto and textile industries as public utilities under the Industrial Disputes Act, 1947.

Unions incensed

Labour leaders are opposed to the move, saying these changes are management-friendly initiatives and a byproduct of neo-liberalisation.

Surender Singh, secretary of the Haryana unit of the Centre of Indian Trade Unions (CITU) told Catch: "There are two ways of tackling the violation of industrial laws. One is to fully implement the existing laws. The second is to legalise the violation. Unfortunately, the state government is adopting the second route."

He said it was an attempt to do away with the workers' rights of representation, organisation and protest. Terming the proposed labour reforms as promoting of hire-and-fire regimes, he said this would only result in further insecurity among the workers.

"If the limit of workers for retrenchment, lay-off and closure is increased from 100 to 300, almost 80% of the industrial units in the state would be covered. This is obviously not in the interest of the workers," he said.

Singh said industrialists have already been violating existing laws, through tricks like showing a small number of workers as 'employees', and outsourcing work to other units were employees were categorised differently.

Also read: #StandUpIndia: wage reform is a fig leaf, it won't benefit workers

All India Central Council of Trade Unions (AICCTU) leader Prem Singh Ahlawat said labourers across the state will launch a movement against attempts to undermine their power, in the name of reforms.

"Nothing is done in a transparent way. The laws have been consolidated in the hands of industry owners. The labour department has always toed the government line. Labourers are left to fend for themselves."

Indian National Trade Union Congress's (INTUC) Haryana secretary Amit Yadav said trade unions are planning to organise a march to the Assembly during the next session.

He said: "These so-called reforms will lead to industrialists setting up multiple small units, avail land at cheaper rates along with other benefits, and later sell the same to builders. The labourers will gain nothing out of it. This is happening in Rajasthan and also Madhya Pradesh. This is adoption of western models, where hire-and-fire is the norm."

Labour leaders are up in arms. They say these are industrialist-friendly moves, not worker-friendly

But the government is firm. As an official told Catch: "The government will have its way. Trade unionism is dead and gone."

The proposed labour reforms are likely to be passed by the cabinet soon, and will then be introduced in the Assembly.

More in Catch:

Modi is an HR manager ensuring low wages: Gautam Mody

#StandUpIndia: trade unions are a part of the solution, not the problem