Explained: How Modi government plans to change lives of workers
In his second term, Prime Minister Narendra Modi is pushing for labor reforms, which will affect the workforce in both organized and unorganized sectors. After clearing the Code on Wages Bill last week, the Union Cabinet could clear Occupational, Safety, Health and Working Conditions Code, popularly known as OSH code, in its meeting on Wednesday, HT reports. Here's everything you need to know about it.
Before understanding OSH code, let's talk about Wage Code
Last week, the Union Cabinet approved the bill on Wage Code and is hoping to get it passed in the ongoing session of Parliament. The Wage Code is one of the four codes which will absorb existing 44 labor laws. The four codes deal with wages, social security, industrial safety and welfare, and industrial relations. The Centre is taking these steps to improve ease of doing business.
Despite being tabled earlier, the bill couldn't be passed
Interestingly, the BJP-led Cabinet introduced the Wage Code in the Lok Sabha on August 10, 2017. The bill was referred to Parliamentary Standing Committee on December 18, 2018. However, it lapsed when 16th Lok Sabha dissolved. If passed, Wage Code will replace the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976.
The bill allows Centre to fix minimum wages
The Wage Code allows the Centre to fix minimum wages for employees of certain sectors, including railways and mines. Meanwhile, the state governments are free to set minimum wages for other categories. As per the code, the minimum wage will be revised every five years.
New OSH code will include provisions of various labor laws
After the Wage Code, the Centre has now turned its attention towards another major labor reform. The proposed OSH code will reportedly cover 400 million workers. The bill will include provisions of several laws like Factories Act, the Mines Act, the Dock Workers Act, the Working Journalists, and other Newspaper Employees Act, and the Cine Workers and Cinema Theater Workers Act.
Soon, women miners will get separate bathing places, creches
Last year, an OSH code was circulated by the government. It underscored that employers not only have to provide a safe working environment but also conduct an annual medical examination for all employees. Further, the code said that women working in mines should be given creches for children, aged less than six years. Moreover, it also suggests making separate bathing places and locker rooms for women mine workers.
India's labor laws are complicated and need to be solved
Notably, the Centre's idea of simplifying labor laws struck a chord with experts. Santosh Mehrotra, a professor of economics at Jawaharlal Nehru University, said, multiple labor laws in India have become a nightmare for employers and employees. "As our economy evolved and the labor force grew, the government kept adding new laws without considering that contradictions might arise with older laws," he added.
Mehrotra said the government needs to pay attention to details
"So 2014-19 saw the repeal of over 10 laws seen as redundant. The remaining 35 or so have been rationalized into four codes. What this attempts to do is fantastic but the devil lies in the details," Mehrotra went on.
