SHYAM SUNDER

Contemporary Reforms of Labour Markets and Industrial  Relations System in India --Edited by K.R.Shyam Sunder ; Published by Academic Foundation ; Pages  379 ;Price Rs.1495/-

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The book under review is a festschrift  to Prof.Lalit Deshpande, one of the  foremost development and labour economists of India, who retired from the Department of Economics of the Bombay University. Deshpande contributed enormously to the labour market studies and produced the first comprehensive study of labour market flexibility.

The Editor of the volume, Dr.K.R.Shyam Sunder is an acknowledged research scholar on labour institutions and industrial relations. He is currently Professor in Xavier Institute of Management in Jamshedpur. He is the author of 11 books and has to his credit over 50 articles. TheILO  has published five of his projects.

 Since the introduction of economic  reforms by Manmohan Singh, there has been an insistent  demand from  employers, the central and the state governments to usher in labour law and governance reforms . Understandably , trade unions have been opposing them. The reform of labour laws has gained momentum since the assumption of power by BJP-led NDA government at the Centre in May 2014. A few  state governments like Rajasthan carried out significant reforms of the labour laws. The NDA government has taken a big stride in the reform initiative by rationalising numerous labour laws into four codes on wages, industrial relations, social security and safety and working conditions.  These Codes underscore meaningful reforms at once  ensuring flexibility for employers and benefits for workers. These  reforms have far reaching implications. In view of this there  is an imperative  need for a comprehensive introduction to and analysis of these reform measures in a single volume. 

This volume, in honour of Prof L.K. Deshpande, provides rich insights into the contemporary labour law reform debates in a comprehensive manner. It contains articles chiefly  from stakeholders in the industrial relations system, viz. representatives of trade unions and employers, business consultants, and government officials in addition to a few academicians. The writers offer  rich and varied perspectives, backed by their long-standing on-field experience, on the changes in and the proposed reforms to labour laws and policies. This volume is  fills a great  void in the literature on the ongoing debate. It is undoubtedly  a major contribution to enabling an understanding of the ongoing labour law and governance reforms and their possible impacts on the ease of doing business and also on workers’ rights.   

  There are 14 contributors to this book, apart from the Editor. The contributors are drawn from different backgrounds which include trade unions, employers’ organisations, researchers, labour administrators, legal experts, etc,

The Essays provide critical, diverse often radically divergent viewpoints and offer us a historic perspective on the debate on contemporary public policy on labour and industry.

The first four essays are by the Editor. The introductory chapter discussed the legal and institutional framework Government  the “Industrial Relations System”. The next chapter maps out the various reforms/ initiatives and proposals  taken by different governments at the Centre and the dynamics thereof. The federal strategy and the reforms introduced at the State level are discussed in depth and it is argued that action taken at all levels indicate that these processes have reinforced informality in the labour market.

Former Secretary of the Labour  Ministry, L.Mishra, distinguishes between “reforms in labour laws” and “reform of labour”. He has analysed the rationale of labour regulation and cautions against “casual actions” in the name of reforms.  

Michael  Dias,who is both an advocate and employers’ representative poses some of the  toughest questions. He cites instances where employers have been penalised for the slightest aberrations. According to him the economic reform agenda of the Government will not help those in the unorganised sector but keep the already powerful organised sector workers. He fears that laws will drive employers to go for robotisation, artificial intelligence which will mechanise work and destroy jobs.

Saji Narayanan meticulously details the kind of attacks on labour rights. He sees many good aspects of Social Security Draft Code. Wage and Social Security Codes are pro-worker legislation which if properly implemented will herald revolutionary times for workers.

The opposite view is held by CITU leader Tapan Sen. He asks searching  questions about every reform measure. He fears corporate service government, an indulgent and errant enforcement machine, feudal landlords out to vanquish the working  classes.

Manish Sabharwal  and Sonal Arora of “Teamline”, one of the largest temp staffing companies in India cite impressive statistics to drive home the point that Contract Labour Act needs reforms to enable big and good players to operate efficiently so that win-win labour market situation will prevail.

This argument is countered by.V.K.Hattanagi who argues that not withstanding all the labour laws and the existence of enforcement machinery supported by general administrative set up and judiciary, an ordinary worker will  have to wait for a long time even to secure his/her unpaid and legal and contracted wage. Most of the contract workers are not organised and are not part of unions of regular workers.

While the economy prospers both workers and employers should prosper and this is what industrial relations is about.

The book provides a rich insight into the contemporary labour law reform and the economic and political changes taking place in India.

The book is compulsory reading for all persons interested in labour markets, law reforms, institutions and development.

P.P.Ramachandran

24/02/2019.