New labour codes: Kerala to take the lead in pressuring Centre to protect workers’ rights

India's labour market, a cornerstone of its economic and social fabric, has been undergoing a significant transformation with the introduction of four new labour codes. These codes aim to consolidate and simplify the labyrinthine existing labour laws, a move lauded by some as essential for economic growth and ease of doing business, but vehemently opposed by others as detrimental to workers' rights. The recent decision by Kerala to lead the charge against these codes, following a national-level labour conclave, underscores the ongoing friction and diverse perspectives on these reforms.

**Background Context and the Genesis of Reforms:**

For decades, India's labour landscape was characterized by a multitude of complex, often archaic, laws – over 40 central and more than 100 state-level statutes. This fragmentation led to significant compliance burdens for industries, deterred investment, and arguably failed to adequately protect workers in the unorganized sector. The call for rationalizing these laws gained momentum, with the Second National Commission on Labour (1999-2002) recommending consolidation into broader codes. The central government, aiming to boost industrial growth, attract foreign investment, and formalize employment, initiated comprehensive reforms. This culminated in the parliamentary passage of four major codes between 2019 and 2020: the Code on Wages (2019), the Industrial Relations Code (2020), the Code on Social Security (2020), and the Occupational Safety, Health and Working Conditions Code (2020). These codes subsume 29 central labour laws, promising a more streamlined regulatory environment.

**What Happened: Kerala's Stance and the Conclave:**

The recent development sees Kerala taking a proactive role in articulating concerns over the new labour codes. At a national-level labour conclave held in the state, a consensus emerged that these codes possess an 'anti-worker' nature. Consequently, it was decided that Kerala's State Labour Minister, accompanied by representatives from prominent Central trade unions, would meet the Union Labour Minister. This collective representation aims to pressure the Central government to reconsider or amend provisions deemed unfavorable to workers. This move highlights the federal nature of labour policy, as labour is a subject on the Concurrent List of the Seventh Schedule of the Indian Constitution, allowing both the Centre and states to legislate on it.

**Key Stakeholders Involved:**

* **Central Government (Ministry of Labour & Employment):** The primary architect and proponent of the new codes, emphasizing 'ease of doing business,' formalization, and industrial growth. Their vision is to create a conducive investment climate and generate employment.

* **State Governments (e.g., Kerala):** States play a crucial role in the implementation of labour laws. While some states have expressed readiness, others, like Kerala, are vocal in their opposition, citing concerns about worker welfare and the dilution of rights. This divergence reflects varying political ideologies and priorities.

* **Trade Unions (e.g., CITU, INTUC, AITUC):** These organizations are the most vocal critics of the new codes. They argue that the codes weaken collective bargaining power, make it easier for employers to retrench workers, reduce social security benefits, and dilute occupational safety standards. They represent the organized workforce and often champion the cause of the unorganized sector.

* **Employers/Industry Associations (e.g., CII, FICCI):** Generally supportive of the reforms, they advocate for greater labour market flexibility, reduced regulatory burdens, and simplified compliance procedures, believing these changes will boost productivity and competitiveness.

* **Workers:** The ultimate beneficiaries or sufferers of these reforms. Their rights, wages, working conditions, and social security are directly impacted by the provisions of these codes.

**Significance for India:**

This debate holds immense significance for India. Economically, the government aims to attract domestic and foreign investment, which it believes is hampered by rigid labour laws. Easier hiring and firing, coupled with simplified compliance, are seen as catalysts for job creation and economic growth. However, critics argue that this comes at the cost of job security and worker protection, potentially leading to increased contractualization and exploitation, impacting India's social justice framework.

Politically, the issue tests the cooperative federalism enshrined in the Indian Constitution. With labour being a Concurrent subject (Entry 22, 23, 24 of the Concurrent List), states have the power to enact their own laws or modify central ones. The divergence between the Centre and states like Kerala could lead to varied implementation across the country, creating a complex and uneven labour market. Socially, the reforms touch upon fundamental rights like the right to form associations (Article 19(1)(c)) and the right to livelihood (Article 21), as well as Directive Principles of State Policy (DPSP) such as securing a living wage (Article 43), just and humane conditions of work (Article 42), and participation of workers in management (Article 43A). The perceived dilution of these principles raises concerns about social equity and worker welfare.

**Historical Context and Future Implications:**

India has a rich history of labour movements, deeply rooted in the anti-colonial struggle and post-independence nation-building. Early labour laws were largely protective, influenced by socialist ideals. The economic liberalization of 1991 ushered in debates about balancing worker protection with economic efficiency. The current reforms are a continuation of this shift, aiming for a more market-oriented labour regime. However, the strong opposition from trade unions and states like Kerala suggests that the implementation will not be smooth. Future implications include potential for continued industrial unrest, legal challenges to specific provisions, and ongoing negotiations between the Centre, states, and trade unions. The ultimate success of these codes will depend on their ability to strike a delicate balance between fostering economic growth and ensuring equitable treatment and social security for India's vast workforce, particularly those in the informal sector who often lack formal protections.