Theme-LABOUR RIGHTS IN THE GLOBALISING WORLD

EFFICACY OF INDIAN LABOUR LAWS AND LABOUR RIGHTS

Dr. Kailas C. Thaware

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Gokhale Institute of Politics & Economics,
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PUNE, - 411 004 (MS), INDIA.

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ABSTRACT
This paper discusses the efficacy of laws and labour rights. The experts and social
workers contributed for drafting various labour laws around the worlds that also reflected in
Indian laws. Labour legislations have also been shaped and influenced by various
committees, working groups, special task force study, etc. The Indian Constitution under
Articles 16, 19, 23 and 24 and Chapter IV under Articles 39, 41, 42, 43, 43A and 54) in both
Fundamental Rights and Directive Principles of State Policy guided for formulation of labour
policies, including the Acts, Laws, legislations, etc. However, rising pendency of cases in the
court of laws are concerned. The evidences show that labours in unorganized sector still
struggle for their rights. It is disheartening to note that pendency of cases relating to labour
rights in court increased many folds causing delay in justice. It adversely affects the
efficiency of labours and overall aggregate growth of economy. It is one of the major reasons
for slow growth of Indian economy.
The UN and ILO influenced most of the labour policies since their establishments in
respect to human rights, including right to work, protection of wages, work conditions, right
to organize, right against discrimination, social security, right to Justice, prohibition of child
labour, etc. The ILO framed guidelines for international labour standards that especially
included freedom, equity, security and dignity. In globalized economy, labour rights are
equally important with the growth to bring harmonized development.
Poverty and vulnerability exist among the labour class because they created no assets.
Since the first five-year plan, the implementing machinery neglected the labour rights despite
several study reports brought them into light. This attitude of the government resulted in
losing economic efficiency/ productivity of labours.
The survey observed that workers, who work in residential construction sites, usually
live at construction sites. The contractors arrange for temporary huts, which are made up of
iron tin. The primary survey observed that about 93 of workers live at construction sites in tin
shade. Only 7 per cent Labourers make their own arrangement in nearby locality on rent.
They are migrant workers from distance places. The study also observed that almost all
workers, including women members indulge open defecation though it is considered
unhygienic practices. They are prone to various diseases affecting their working efficiency.
The women family members usually take bath at open places. About 71 per cent workers get
electric supply and remaining live without electric supply. The contractors arrange it.
• Safety Standard: The safety standard act made it clear that employers have to comply
the safety standard norms prescribed by the regulation. However, the study observed that
there was no such government machinery set up for inspection. It needs to implement
rigorously in this sector.
• Children Rights: another important issue is rights of child living with parents at
construction sites. The study observed that not only rights of labour are violated but also
children rights are the on the stake
• The child has right to get good education up to age 14 under constitution and new right to
education act. However, the study observed that about 85 per cent of children just roam
with parents at construction sites. Neither parents nor government machinery act upon
implementing the right of education. Despite act was made in respect children education,
no child is benefited largely in construction sector.
• Child labour: Child Labour is very serious issue, but the study observed that children
work with parents without any hesitation, but their child life is exploited. No machinery is
act to stop such practices and no officials act upon child labour.
• Social Security: The weakest point in social welfare is the social security. Despite
international standard norms set by the ILO, the Government of India hardly give benefits
to the workers. In case of accidents, the contractors even do not take responsibility of the
dependents.
• Low Bargaining Power: As the workers are less educated, their bargaining power is very
low, comparing with those who are members of union/association. Since they are not
members of the union or associations, they have low bargaining power.
• Registration System: There is no registration system for the labours, who migrated from
distance places. They lost their identity and so social benefits under various schemes.
Therefore, it finds very difficult for proper planning for them.
• Ration Benefits: No workers received benefits on ration cards at construction sites, as
they did not make it. They neither take benefits at native places from where they migrated
nor they are allowed for new ration cards. They remain non-beneficiary of the subsidized
food grain.
. The construction sector accounts for about 6 per cent in total unorganized workers.
The unorganized sector mostly violates the labour rights. Despite this, the government does
not strictly implement rules and regulations against the violators. The employment guarantee
programmes 1 tried on employment rather than other objectives such as provision of
infrastructure, social security etc.
There has been a direct relationship between high poverty patio and violation of
Labour rights. It happens because law enforcing agencies unable to provide better services to
the citizens due to growing population.
 The ILO set standard hours of work 2, adequate rest periods, and annual holidays 3.
These norms ensure not only high productivity while safeguarding workers’ physical and
mental health but also jovial employer- labour relationship. The contract labour system
existed in India violate the standard norms set by ILO because the labourers are less educated
and not united. The evidences regarding working hours of labourers collected from the sites
of residential construction in Pune show that working hours in unorganized sector are higher
than the standard norms prescribed by the ILO. The working hours begin early in the morning
about 5 a.m. and works continue until 11 p.m. The standard norms are hardly followed.

The ILO designed a set of principles for sickness, disease and injury arising from their
employment. It is estimated that about two million people die every year from work-related
accidents and diseases, 160 million people suffer from work-related diseases, and 270 million
from fatal and non-fatal work-related accidents every year.

Social security is the protection for minimum happy survival. Despite international
standard framed by the ILO, the government did not design impressively and so implemented
it in India, particularly for the contract workers in unorganized sector. Safety net provided
through social security helps the helpless workers during their illness, accidents, old age, etc.
The ILO estimated that only 20% of the world’s population have adequate social security
coverage, while more than half lack any kind of social security coverage at all. ILO standards
provide for different types of social security coverage under different economic systems and
stages of development. Illness, accidental benefits, family benefits, children’s development
and old age coverage are neglected in contract labour system. Contract labour system in India
is not well regulated.

1. Introduction
This paper discusses the efficacy of laws and labour rights. The experts and social
workers contributed for drafting various labour laws around the worlds that also reflected in
Indian laws. Labour legislations have also been shaped and influenced by various
committees, working groups, special task force study, etc. The recommendations of the First
National Commission on Labour (1969) under the Chairmanship of Justice Gajendragadkar,
National Commission on Rural Labour (1991), Second National Commission on Labour (
2002) under the Chairmanship of Shri RavindraVarma etc. and judicial pronouncements on
labour related matters specifically pertaining to minimum wages, bonded labour, child labour,
contract labour etc. contributed for developing labour laws and protection of the labour
rights. The Indian Constitution under Articles 16, 19, 23 and 24 and Chapter IV under
Articles 39, 41, 42, 43, 43A and 54) in both Fundamental Rights and Directive Principles of
State Policy guided for formulation of labour policies, including the Acts, Laws, legislations,
etc. Labour is a subject on the concurrent list Under the Constitution of India. Both the Union
and the State governments are competent to enact legislation subject to certain matters being
reserved for the Union. The Industrial Disputes Act, 1947 was enacted in April 1947 to
provide for the investigation and settlement of industrial disputes. Majority of the State
Government adopted the Central Act with few amendments. The Contract Labour
(Regulation and Abolition) Act and the Contract Labour (Regulation and Abolition) Rules,
1971 were enacted with the objective of preventing the exploitation of contract labour, to
regulate the employment of contract labour in certain establishments and to provide for its
abolition in certain circumstances. However, the evidences show that labours in unorganized
sector still struggle for their rights. It is disheartening to note that pendency of cases relating
to labour rights in court increased many folds causing delay in justice. It adversely affects the
efficiency of labours and overall aggregate growth of economy. It is one of the major reasons
for slow growth of Indian economy.
2. Methodology
For this study, the researcher purposively selected south Pune area, which was
proximity to Corporation boundary, but they are included in Grampanchayat.This study
survey selected 15 construction sites and interviewed total 200 workers, randomly selected
from workers, Based on the discussions held with workers and general observations from the
construction sites, this study tried to find out Labours conditions, facilities at construction
sites, labour rights, implementation of standard norms set by the ILO, and the role of
government officials.
3. Constitutional Provisions
The labour laws originated from welfare views expressed by Indian leaders, so it
reflected in the debates of the Constituent Assembly, which insisted on the welfare provisions
inserting in the Constitution keeping in view the International Conventions and
recommendations. Accordingly, the welfare measures for protecting and safeguarding the
interest of labour entered into the Chapter-III of Indian Constitution under Articles 16, 19, 23
and 24 and Chapter IV under Articles 39, 41, 42, 43, 43A and 54) in both Fundamental
Rights and Directive Principles of State Policy.The Acts, Laws, legislations were enacted in
the line of the provisions of the constitution. However, the evidences show that labours in
unorganized sector still struggle for their rights. Pendency in court on rise causes delay in
justice, adversely affecting the efficiency of labours and overall aggregate growth of
economy. It is one of the major reasons for slow growth of Indian economy.
4. International Standards
The UN and ILO influenced most of the labour policies since their establishments in
respect to human rights, including right to work, protection of wages, work conditions, right
to organize, right against discrimination, social security, right to Justice, prohibition of child
labour, etc. The ILO framed guidelines for international labour standards that especially
included freedom, equity, security and dignity. In globalized economy, labour rights are
equally important with the growth to bring harmonized development. The rules of the global
economy should be aimed at improving the rights, livelihoods, security, and opportunities of
people, families and communities around the world.(World Commission on the Social
Dimension of Globalization 4, 2004).
5. Labour Problem Aggravated
In addition, various working groups and National Commission on Labour reviewed
the labour condition from time to time and recommended welfare measures in favour of
labourers. Almost all working groups, commissions on Labour and the others recommended a
number of welfare measures on the social security of labours; however, labours still live with
same problems by the end of the twelfth five-year. Poverty and vulnerability exist among the
labour class because they created no assets. Since the first five-year plan, the implementing
machinery neglected the labour rights despite several study reports brought them into light.
This attitude of the government resulted in losing economic efficiency/ productivity of
labours. Several other problems faced by the labors are lack of access for the poor to credit/
finance, loans for upgrading skills, loans for housing, children’s education, etc., but no policy
was designed to address such issues.
Despitelabourers still live with their families including children in very apathetic
inhumane and unsecure conditions at work place. Although “right to education” bill enacted
by the Central Government, the children staying with parents at work place are largely

4
ILO: A Fair Globalization: Creating opportunities for all, Report of the World Commission on the Social Dimension of
Globalization (Geneva, 2004), p. 143.).
deprived of basic education, adversely affect their ability to learn for growing. Labour
officials, who appointed for inspection of the sites, usually never visit, while education
officials do the same as well. Now questions are: Do Indian laws protect Labour rights? Do
children of labour avail educational rights at work place? It is certainly not.
Almost no increase of workforce was reported inorganized sector, but substantial
increase in the unorganized sector has taken place over the period. Despite it, there is a huge
gap in social security rewarded to organized workforce and unorganized work force. 5
When security measure compared with ILO standard, the Indian Government seems to fail
complying. Particularly, unorganized sector workforce feel more unsecure than the other
workforce.
6. Study Findings
Let’s see the examples of workers in construction sector.
• Hut Habitants and Amenities:The survey observed that workers, who work in
residential construction sites, usually live at construction sites. The contractors arrange
for temporary huts, which are made up of iron tin. The primary survey observed that
about 93of workers live at construction sites in tin shade. Only 7 per cent Labourers make
their own arrangement in nearby locality on rent. They are migrant workers from distance
places. The study also observed that almost all workers, including women
membersindulge open defecation though it is considered unhygienic practices. They are
prone to various diseases affecting their working efficiency. The women family members
usually take bath at open places. About 71 per cent workers get electric supply and
remaining live without electric supply. The contractors arrange it.

Table-1: Types of House At Work Place and Amenities (Percentage)

Types of
House Yes No Total
Tin Shade 93 7 100
Thatched
House 00 00 00
Rented House 5 95 100

5
TFYP WORKING GROUP Sr.No.48/2001, REPORT OF THE WORKING GROUP ON SOCIAL
SECURITY, FOR THE TENTH FIVE YEAR PLAN (2002-2007), Government of India Planning Commission
October- 2001)
 Pakka House 00 00 00

Amenities Yes No Total

Open
defecation 100 00 100
Open Bath 100 00 100
Tap Water 00 100 100
Electricity 71 29 100

• Safety Standard: The safety standard act made it clear that employers have to comply
the safety standard norms prescribed by the regulation. However, the study observed that
there was no such government machinery set up for inspection. It needs to implement
rigorously in this sector.
• Children Rights:another important issue is rights of child living with parents at
construction sites. The study observed that not only rights of labour are violated but also
children rights are the on the stake
• ry child has right to get good education up to age 14 under constitution and new right to
education act. However, the study observed that about 85 per cent of children just roam
with parents at construction sites. Neither parents nor government machinery act upon
implementing the right of education. Despite act was made in respect children education,
no child is benefited largely in construction sector.

• Child labour: Child Labour is very serious issue, but the study observed that children
work with parents without any hesitation, but their child life is exploited. No machinery is
act to stop such practices and no officials act upon child labour.
• Social Security:The weakest point in social welfare is the social security. Despite
international standard norms set by the ILO, the Government of India hardly give benefits
 to the workers. In case of accidents, the contractors even do not take responsibility of the
dependents.
• Low Bargaining Power:As the workers are less educated, their bargaining power is very
low,comparing with those who are members of union/association. Since they are not
members of the union or associations, they have low bargaining power.
• Registration System: There is no registration system for the labours, who migrated from
distance places. They lost their identity and so social benefits under various schemes.
Therefore, it finds very difficult for proper planning for them.
• Ration Benefits:Noworkers received benefits on ration cards at construction sites, as they
did not make it. They neither take benefits at native places from where they migrated nor
they are allowed for new ration cards. They remain non-beneficiary of the subsidized
food grain.

7. Unorganized Workers
It is estimated that about 92 per cent work force are engaged in unorganized sectors.
Despite the constitutional provision are madefor the free and compulsory education to the
children up to 14 years of age, about 42.43 per cent work force is illiterate. Of them, about 80
per cent workforce is working in rural area. The share of agriculture and mining is about 56
per cent, while the share of service sector and trade is 13 per cent each. The construction
sectoraccounts forabout 6 per cent in total unorganized workers. The unorganized sector
mostly violates the labour rights. Despite this, the government does not strictly implement
rules and regulations against the violators. The employment guarantee programmes 6 tried on
employment rather than other objectives such as provision of infrastructure, social security
etc.

6
MaikelLieuw-Kie-Song and Kate Philip (2010), Employment Sector Employment Report No.6, ILO, Geneva.)
 Since the liberalization of most of the economies in era of globalization and the
establishment of WTO in 1995, created opportunities for many, but at the same time, millions
of workers are passing through new challenges of unsecure jobs, social security and
deprivation, particularly in developing countries. In 2001, it was estimated that virtually half
of the world’s population survived on US$2 or less per day, while some 1.1 billion people, or
21 per cent of the world’s population, were living on US$1 or less per day 7.
8. High Poverty Ratio and Violation of Labour Rights
Tendulkar Committee report (2010) estimated that about 37 per cent population lives
below poverty line. The all-India HCR has declined by 7.3 percentage points from 37.2% in
2004-05 to 29.8% in 2009-10, with rural poverty declining by 8.0 percentage points from
41.8% to 33.8% and urban poverty declining by 4.8 percentage points from 25.7% to 20.9% 8.
There has been a wide percentage variation among the social groups. In rural areas,
Scheduled Tribes exhibit the highest level of poverty (47.4%), followed by Scheduled Castes
(SCs), (42.3%), and Other Backward Castes (OBC), (31.9%), against 33.8% for all classes.
In urban areas, SCs have HCR of 34.1% followed by STs (30.4%) and OBC (24.3%) against
20.9% for all classes. When states are compared among them, nearly two-third of SCs and
STs are poor in rural Bihar and Chhattisgarh. Uttar Pradesh, Orissa, Manipur are also having
high ratio of poverty. There is a direct relationship between high ratio of poverty among the
7
World Bank: World Development Report 2005: a better investment climate for everyone (Washington, DC, 2005), pp. 136-156.
8
Press Note on Poverty Estimates, 2009-10, Government of India Planning Commission, 19 March, 2012, New
Delhi
labour class and the violation labour rights. It happens because law enforcing agencies unable
to provide better services to the citizens due to growing population.

9. Contract Labour

The law prohibits the use of labour on contract for a work of perennial nature; its use
increased arbitrarily. Even law takes its own course in justice to arrive on the consensus,
despite having legal protection, and international guidelines. Delay in decision of court
handicaps the social justice to the common man. Labour in unorganized sector, for example
domestic workers, construction workers, security works etc. have lesser protection. The inter-
state migrants are unsecure despite having inter-state migrants dispute acts, as illiterate
workforce is not aware about it.

10. Inequality

Inequality within many countries and between the world’s richest and poorest nations
has also grown exponentially over the last few decades. In 1960, the income gap between the
wealthiest and the poorest fifth of the world’s population was 30 to 1. By 1999, it had
increased to 74 to 1. In 1995, average GDP per capita in the richest 20 countries was 37 times
the average in the poorest 20 - a gap that doubled in 40 years. 9 With this gap, labour rights
violation also increased in the poorest countries as implementing agencies rarely help for
benefits to poor.

11. Wide Disparity in Consumption Expenditure

The NSS 66th round estimated that

thepercapitaexpenditureleveloftheurbanpopulationabout 88 per cent higherthan that oftherural
population. Inequality in India persists and a gap is wideningbetween not only rich and poor
but also urban and rural. Thepoorest10 per
centofIndia’sruralpopulationhadanaverageMPCEofRs.453, while the poorest 10 per
centoftheurbanpopulation had 32 per cent higher. Thetop10 per cent
oftheruralpopulation,rankedbyMPCE,hadanaverageMPCEof Rs.2517–
about5.6timesthatofthebottom10 per cent. Thetop10 per centoftheurbanpopulationhad an
averageMPCE ofRs.5863 – about 9.8 times that ofthebottom 10 per cent.

9
E. Lee: The Asian financial crisis: the challenge for social policy (Geneva, ILO, 1998).
 12. International Labour Standards
In 1919, the signatory nations to the Treaty of Versailles created the International
Labour Organization (ILO). Since its establishment, it framed series of rules- international
labour standard rules and codes. It also insisted upon their effective implementations. Acting
upon guidelines set by the ILO, and welfare measures of Indian government, number of
regulations, rules, Acts are framed, but these are not properly implemented. As a result,
labours live in destitute conditions.Employers/contractorsdeliberately deviated from the
social obligations. The officials of government unwillingly implement it.
Declaration of Philadelphia (1944) recognized the labour rights in full faith, which
made labour more powerful in labour market. Freedom, safety and dignity are prime
important in labour market.
Safety standards can reduce costly accidents and health care fees. Employment
protection can encourage workers to take risks and to innovate. Social protection such as
unemployment schemes and active labour market policies can facilitate labour market
flexibility; they make economic liberalization and privatization sustainable and more
acceptable to the public. Freedom of association and collective bargaining can lead to better
labour-management consultation and cooperation, thereby reducing the number of costly
labour conflicts and enhancing social stability10.
13. Working Hours and Rest Periods
The ILO set standard hours of work 11, adequate rest periods, and annual holidays 12.
These norms ensure not only high productivity while safeguarding workers’ physical and
mental health but also jovial employer- labour relationship. The contract labour system
existed in India violate the standard norms set by ILO because the labourers are less educated
and not united. The evidences regarding working hours of labourers collected from the sites
of residential construction in Pune show that working hours in unorganized sector are higher

10
World Bank: World Development Report 2005: a better investment climate for everyone (Washington, DC,
2005), pp. 136-156)
11
Selected relevant ILO instruments1. Hours of Work (Industry) Convention, 1919 (No. 1); 2. Hours of Work
(Commerce and Offices) Convention, 1930 (No. 30).These above two conventions set the general standard at 48
regular hours of work per week, with a maximum of eight hours per day. Another two instruments 1. Forty-Hour
Week Convention, 1935 (No. 47) ; 2. Reduction of Hours of Work Recommendation, 1962 (No. 116) are set out
the principle of the 40-hour workweek. The others two instruments Weekly Rest (Industry) Convention, 1921
(No. 14) and Weekly Rest (Commerce and Offices) Convention, 1957 (No. 106) are set for the general standard
that workers shall enjoy a rest period of at least 24 consecutive hours every seven days.
12
Holidays with Pay Convention (Revised), 1970 (No. 132).
than the standard norms prescribed by the ILO. The working hours begin early in the morning
about 5 a.m. and workscontinue until 11 p.m. The standard norms are hardly followed.
14. Safety and Health
The ILO designed a set of principles for sickness, disease and injury arising from their
employment. It is estimated that about two million people die every year from work-related
accidents and diseases, 160 million people suffer from work-related diseases, and 270 million
from fatal and non-fatal work-related accidents every year. The ILO has estimated that 4% of
the world's annual GDP is lost as a consequence of occupational diseases and accidents. In
2003 the ILO adopted an global strategy to improve occupational safety and health which
included the introduction of a preventive safety and health culture, the promotion and
development of relevant instruments, and technical assistance. 13
15. Social security
Social security is the protection for minimum happy survival. Despite international
standard framed by the ILO, the government did not design impressively and so implemented
it in India, particularly for the contract workers in unorganized sector. Safety net provided
through social security helps the helpless workers during their illness, accidents, old age, etc.
The ILO estimated that only 20% of the world’s population have adequate social security
coverage, while more than half lack any kind of social security coverage at all. ILO standards
provide for different types of social security coverage under different economic systems and
stages of development. Illness, accidental benefits, family benefits, children’s development
and old age coverage are neglected in contract labour system. Contract labour system in India
is not well regulated.

16. Concluding Remarks

Despite laws were enacted for protection of labour rights in India, their
implementation are so satisfactory. The evidences regarding working hours of labourers
collected from the sites of residential construction in Pune show that working hours in

13
Occupational Safety and Health Convention, 1981 (No. 155)

Occupational Health Services Convention, 1985 (No. 161)

Promotional Framework for Occupational Safety and Health Convention, 2006 (No. 187)

Occupational Safety and Health (Dock Work) Convention, 1979 (No. 152) - [ratifications]
Safety and Health in Mines Convention, 1995 (No. 176)
Safety and Health in Agriculture Convention, 2001 (No. 184)
unorganized sector are higher than the standard norms prescribed by the ILO. The working
hours begin early in the morning about 5 a.m. and works continue until 11 p.m. The standard
norms are hardly followed. Social security is the protection for minimum happy survival.
Despite international standard framed by the ILO, the government did not design
impressively and so implemented it in India, particularly for the contract workers in
unorganized sector. Illness, accidental benefits, family benefits, children’s development and
old age coverage are neglected in contract labour system. Contract labour system in India is
not well regulated.

Reference:
The references are given in foot notes.
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