Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Background
- Four labour codes (2019–2020) cover wages, industrial relations, social security, and Occupational Safety, Health and Working Conditions.
- Passed without tripartite consultation at the Indian Labour Conference.
- Implementation risks diluting hard-won labour rights, especially for informal workers.
Why Informal Workers Are Vulnerable
- Informal sector constitutes over 90% of India’s workforce and produces ~65% of GDP.
- Codes largely exclude unorganised workers, except limited provisions under Social Security.
- “Consolidation” has weakened or repealed sector-specific protections.
Erosion of Occupational Safety and Health
- BOCW Act, 1996 protections diluted; ~180 safety rules missing in new OSHWC Code.
- Shift from physical inspections to web-based inspections undermines safety and wage enforcement.
- Violates ILO Convention 81 (labour inspection) ratified by India.
- Occupational diseases (silicosis, cancers, eye/skin/kidney ailments) not adequately addressed.
- Absence of ESI coverage leaves informal workers without health recognition or rehabilitation.
- Contravenes ILO Convention 161 on occupational health services.
Threats Under Social Security Code
- Organised workers receive defined benefits; informal workers get vaguely defined welfare schemes.
- Abolition of sectoral cesses (beedi, salt, mining) removes assured funding sources.
- No guaranteed employer or Union funding for informal worker welfare.
- Proposal for one central welfare board ignores sectoral diversity.
- e-Shram centralisation risks takeover of accrued welfare funds (~₹1 lakh crore).
- In Tamil Nadu, 39 sector-specific welfare boards risk dissolution.
- Loss of benefits: old-age pensions, maternity aid, education assistance.
State-Level Concerns and Way Forward
- Some States (e.g., Andhra Pradesh) have closed welfare boards post-Codes.
- Tamil Nadu has robust protections under Tamil Nadu Manual Workers Act, 1982.
- State hosts ~3 crore informal workers, ~2 crore registered with welfare boards.
- Recommended action: Protect State welfare boards; refuse Code implementation; demand saving clauses.
- Kerala-style resistance suggested to preserve State-level welfare architecture.
Conclusion
- Labour codes risk centralisation, underfunding, and invisibilisation of informal workers.
- Without safeguards, reforms may weaken welfare, safety, and social security for India’s largest workforce.