Monday, April 29, 2024

Migrant labourers – the probable impact

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Migrant labourers

As per the Economic Survey (2017), there are approximately 42 crore internal migrant workforce in India. Out of them approximately 20% (10 crores) are migrant workers. A study by the Centre for the Study of Developing Societies (CSDS) and Azim Premji University in 2019 estimates that 29% of the population in India’s big cities is of daily wagers. Relatively less developed states such as Bihar and Uttar Pradesh have high net immigration. Uttar Pradesh and Bihar account for the origin of 25% and 14% of the total inter-state migrants, followed by Rajasthan and Madhya Pradesh, at 6% and 5% respectively.

There are 3 types of migrant workers:

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  1. Permanent migrants
  2. Seasonal migrant
  3. Casual migrant (we are somewhere here)

Status

There had been status quo in last seven decades (since 1950) for migrant labour as they were not on Indian Social-Economic-Political landscape. It is estimated that there was a mass migration of around 1.5 crore people during the 1947 division but this time, it is at a much larger scale (at least 5–6 times higher). As they had no savings, no homes, no dwellings and no resources of long-term living, they had to go through immense hardship. Practically, they are nobody’s children – they are neither here nor there. There is no state or central registry for compiling their data.

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Governments in India clearly have no systematic understanding of their existence and scale. As they migrated, neither native politician nor migrated politicians are interested in their welfare as they do not vote anywhere. This is one of the core reason, – no one – be it central, state or local bodies – thought for their welfare before the lockdown and it took sizable 40 days to start the first Shramik train.

They are not even a beneficiary of Public Distribution System (PDS). They are deprived of taking subsidized ration from states ration shops as they have come from a different state. Recently, one nation-one ration card system has been introduced wherein they can avail subsidized schemes under the central government’s National Food Security Act (NFSA). Still, they are not entitled to have subsidized schemes granted by state governments as they are treated as ‘not son of the soil’.

As per Centre for Monitoring Indian Economy (CMIE), in April–May 2020, around 12.2 crore people lost their jobs. Three-fourths were small traders and wage labourers. Labour Force Participation rate for Indian woman for the past 20 years is decreasing badly. Interestingly, it has just acknowledged that they are also important as they contribute around 10% of the Indian GDP. They are also important in the circulation of money as they work, earn and do remittance to their homes/villages (approx.60000 crore).

Structural issues resurface

As suddenly invisible becomes greatly visible, not only in India but on Liberalization, Privatization & Globalization (LPG) landscape:

Following under covered laws, regulations and reforms which exist in the system but not being implemented have resurfaced which will definitely be having serious consequences and it is high time to work in this direction for creating proper insulation and work plan for future:

  • Article 14, 15, 16, 19(1), (c) , 24, 38, (2), 41, 42 and 43(a) which talk about Rights or Labor Rights, like the right to equality, right to work, right to secure work, a living wage and a decent standard of life, security scheme, health, right to form an association, right to freedom, cultural and educational rights, etc.
  • Factories Act (human conditions)
  • Industrial Dispute Act
  • Minimum Wages Act (support Article 21-Right to life,23-Right against exploitation)
  • Inter-State Migrant Workman Act 1979 (Regulation of Employment and Conditions of Service) Act mandates that labour contractors who export workers to other states have to register at both ends and take licences.
  • Those who employ more than five migrant labourers are duty-bound to provide proper wages for (1) Housing, (2) Medical facilities, (3) Pass Books, (4) Displacement allowance, etc.

State Government stand

After the crisis in March and April 2020, some state government took a controversial stand:

  • Uttar Pradesh: All labour laws except 2–3 to be suspended for 3 years. Even basic safety and health facilities are also suspended
  • Madhya Pradesh: Labour laws to be suspended for 1000 days
  • Gujarat: Labour Laws to be suspended for 1200 days
  • Assam: Fixed Term Employment is to be implemented. All are contract workers/not at par with permanent workers

Counter statement

As India is a part of International Labour Organisation (ILO) since 1919 who is responsible for framing legislations for these migrant workers, recently all trade unions of India have formally lodged a complaint with ILO against changes in labour laws overnight (challenging ordinances passed by state governments to dismantle labour reforms-how constitutional guarantee given to Indian labour can be withdrawn for the first time in the history of India).

Above labour laws are suspended in lieu of 2005 Disaster Management Act but it is also being argued that above constitutional guarantees can be suspended in external aggression or war and not in the pandemic. Further, High Courts and Supreme Court can also make Directive Principles of State Policy as part of their judgement.

Current legislations (Labour Reform Laws)

Currently, for effective enforcement, 44 existing central labour laws are proposed to be condensed into the following 4 codes:

  1. Wages  –  already passed.
    The following labour reform laws have already been put up in the Parliament and are supposed to be passed and implemented in due course after clearance from parliament standing committee.
  2. Industrial Relations (labour and capital)
  3. Occupational Safety, Health and Working Health
  4. Social Security — 15 laws clubbed(PF/Medical/pension/leave encashment for all part-time, casual, contractual, fixed-term, domestic, home-based)

It means that contractual workers will ultimately be betrayed at par with workers on a roll.

Conclusion

Because of the above-stated reasons, all four pillars – Legislature, Executive, Judiciary and Media – of our constitution have no other way out but to wake up to come forward, form and implement labour reforms laws and offer Indian migrants a better social safety guaranteed protection fall back for their return – laws shall be formulated on a relatively faster pace and also implemented strongly.

As Central Government has also increased allocation to Rs 1 lac crore under MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) to boost employment in villages, migrant workers shall get jobs in native place/already having a place to live – less attraction towards metros. Urbanisation may take a hit  –  shortage of workers in metros. (Marketing opportunities might increase manifold in rural areas as they are used to buy branded products in their respective metros from there they have migrated and search same in their villages). As new labour laws (as stated above) wherein all workers might fall into permanent kind of status-manpower cost shall increase considerably.

The Parliament’s Labour Committee will most likely pass a law to allot a Portable Social Security (PSSN) number which is to be linked with Aadhar unique identification number. Here the intention is also to break contractor net and workers may be contacted directly. Responsibility shall shift to the principal employer.

So, as stated earlier, keeping in view above factors in mind, it is suggested to chalk out a detailed action plan regarding working on numbers of workforce required over a period of time, their identification, less dependency on contractors, manpower cost working, their skill development programs, labour laws enforcement and compliant framework and automation which will facilitate to have seamless and economical law abide smooth working. I am not an expert on the above issues. These are just my thoughts based on certain facts and figures (needs to be checked with experts) which I wanted to share with you.

Sanjay Gupta
Sanjay Gupta
Sanjay Gupta is vice president, corporate procurement and packaging development at DS Group, Noida. An experienced marketer and innovator, Sanjay has been a part of the DS family since 2001.

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