Central Trade Unions (CTUs) Demand for Labour Welfare

• 05 Sep 2024

For Prelims: Central Trade Unions (CTUs), Indian Labour Conference, Labour Codes, National Monetisation Pipeline (NMP), Privatization, Disinvestment, Raptakos case 1991, Fixed-term Employment, International Labour Organization, Gig Workers.

For Mains: Issues Surrounding Labour Reforms and Labour Welfare.

Source: TH

Why in News?

Recently, the Union government held a round table meeting with Central Trade Unions (CTUs) and has agreed to hold further discussions on the implementation of the four Labour Codes.

• Additionally, the CTUs called for the restoration of the old pension scheme requested the convening of the Indian Labour Conference (ILC), and sought increased support for the informal sector.

What are the Key Demands of Central Trade Unions (CTUs)?

• Reinstatement of the Indian Labour Conference (ILC): The CTUs demand the immediate convening of the Indian Labour Conference (ILC), a tripartite body that has not met since 2015.
  • They argue that significant changes in labour laws, including the codification of 29 central laws and the passage of four labour codes occurred without proper consultation with the ILC.
• Review and Revision of the Four Labour Codes: CTUs argue that the new Labour Codes favour large corporations and dilute workers' rights. such as, the new codes make it simpler for companies, especially those with fewer than 300 employees, to hire and fire workers without requiring government permission.
  • They demand further discussions on these Codes to address their concerns regarding job security, collective bargaining, work hours, social security provisions, and compliance requirements.
• Halt to Privatization and Disinvestment of Public Sector Enterprises: They oppose the National Monetisation Pipeline (NMP) which is seen as a move to transfer national assets to private corporations.
  • The CTUs demand an immediate halt to the privatization, disinvestment, and sale of Public Sector Undertakings (PSUs) and Public Sector Enterprises (PSEs), such as Indian Railways.
• Implementation of Fair Minimum Wages: The CTUs call for a minimum wage of at least Rs 26,000 per month, based on the 15th ILC (1957) recommendation and the Supreme Court’s ruling in the Raptakos case, 1991.
  • They demand regular wage revisions every five years, indexed to inflation.
• Employment Generation and Job Security: To address growing unemployment, the CTUs demand the withdrawal of fixed-term employment policies, which create job insecurity particularly in migrant workers.
  • They called for the abolition of the Agnipath scheme and adherence to the International Labour Organization (ILO) Convention No. 1 which mandates an 8-hour workday.
  • Detailed discussions were held on the Employment Linked Incentive scheme (ELI) schemes, which are projected to create two crore jobs in the country.
• Restoration of Old Pension Scheme (OPS): The CTUs call for the restoration of the non-contributory Old Pension Scheme, which they believe provides better social security to retired workers.
  • They demand a minimum pension of Rs 9,000 per month for those covered under the Employees’ Pension Scheme (EPS) 1995 and Rs 6,000 per month for those not covered under any scheme.

Registration Provision For Trade Union In India

• Registration Provisions : A registered trade union must have at least 10% or 100 workers, whichever is less, with a minimum of 7 members from the relevant establishment or industry.
• Exemption from Forming Trade Unions: There are certain organisations that are exempted from forming trade unions to ensure operational efficiency.
  • Some of the organisations which cannot form trade unions are:
    • Armed Forces: Employees of the Indian Armed Forces (Army, Navy, and Air Force) are not eligible to form trade unions.
      • This is governed by the Armed Forces Act, 1950, which restricts the formation of trade unions within the armed forces.
    • Police and Law Enforcement Agencies: The Police Forces (Restriction of Rights) Act, 1966 prohibits non-gazetted police employees below the rank of Inspector from forming any kind of union or group.

What is the Indian Labour Conference (ILC)?

• ILC is the apex level tripartite consultative committee in the Ministry of Labour & Employment consisting of
  • Central Trade Union Organisations: Representing the workers.
  • Central Organisations of Employers: Representing the employers.
  • Government Representatives: Including the Ministry of Labour & Employment, State Governments, Union Territories, and relevant Central Ministries/Departments.
• It advises the Government on the issues concerning the working class of the country.
• The first meeting of the Indian Labour Conference (then called the Tripartite National Labour Conference) was held in 1942.

What are the Four Labour Codes?

• Four Labour Codes: The government has amalgamated 29 labour laws and codified them into 4 Labour Codes namely:
  • Code on Wages, 2019: It universalised the provisions of minimum wages and timely payment for all employees to ensure the "Right to Sustenance" for every worker.
    • It mandates that monthly salaried employees be paid by the 7^th of the following month, weekly wage workers by the week's end, and daily wage earners on the same day.
  • Industrial Relations Code, 2020: It provides a framework to protect the rights of workers to form trade unions, reduce the friction between employers, and workers and provide regulations for the settlement of industrial disputes.
    • The Code aims to achieve industrial peace and harmony by effectively resolving industrial disputes.
  • Code on Social Security, 2020: It includes self-employed, home-based, wage, migrant, unorganised sector and gig workers under social security schemes, such as life and disability insurance, health and maternity benefits, and provident fund.
  • Occupational Safety, Health and Working Conditions Code, 2020: It emphasises the health, safety, and welfare of workers employed in various sectors like industry, manufacturing, factory etc.
    • This Code is applicable in the following areas:
      • Factories having 20 or more workers where the manufacturing process is being carried on with the aid of power.
      • Factories having 40 or more workers where the manufacturing process is being carried on without the aid of power.

What Steps are Needed to Fulfill the Demands of CTUs?

• Inclusive Consultation and Dialogue: The government should schedule and conduct the ILC to discuss ongoing and future labour reforms, maintaining a tripartite dialogue among government, employers, and labour unions regarding four labour code implementations.
• Job and Social Security: Reconsider fixed-term employment policies that contribute to job insecurity and assess the Agnipath scheme’s impact on job stability.
• National Policy for Migrant Workers: The unions demand the formulation of a comprehensive national policy for migrant workers should be considered along with the strengthening and effective implementation of the Interstate Migrant Workmen Act, 1979.
• Ratification of ILO Convention: The unions call for the ratification of the ILO Convention C177 on home-based workers to ensure their rights to fair wages, social security, and health coverage.

Drishti Mains Question:

Q. Discuss the four labour codes and their features. What are the various concerns of labour trade unions regarding labour reforms?

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q.Consider the following statements: (2017)

1. The Factories Act, 1881 was passed with a view to fix the wages of industrial workers and to allow the workers to form trade unions.

2. N.M. Lokhande was a pioneer in organizing the labour movement in British India.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Ans: (b)

Q.The Trade Disputes Act of 1929 provided for(2017)

(a) the participation of workers in the management of industries.

(b) arbitrary powers to the management to quell industrial disputes.

(c) an intervention by the British Court in the event of a trade dispute.

(d) a system of tribunals and a ban on strikes

Ans: (d)

Q.With reference to the guilds (Shreni) of ancient India that played a very important role in the country’s economy, which of the following statements is/are correct? (2012)

1. Every guild was registered with the central authority of the State and the king was the chief administrative authority on them.

2. The wages, rules of work, standards and prices were fixed by the guild.

3. The guild had judicial powers over its own members.

Select the correct answer using the codes given below:

(a) 1 and 2 only

(b) 3 only

(c) 2 and 3 only

(d) 1, 2 and 3

Ans: (c)

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Mains

Q.Since the decade of the 1920s, the national movement acquired various ideological strands and thereby expanded its social base. Discuss. (2020)

Q.Why indentured labour was taken by the British from India to other colonies? Have they been able to preserve their cultural identity over there? (2018)

Q.Discuss the changes in the trends of labour migration within and outside India in the last four decades. (2015)