THE Labour Code on Industrial Relations Bill, 2015, seeks to codify the statutes dealing with industrial relations, that is, the Trade Unions Act, 1926, Industrial Disputes Act, 1947, and Industrial Employment (Standing Orders)
Act, 1946.

Power to Exempt

  • Firstly, the Code gives the Government the power to unconditionally exempt any establishment or class of establishments from the provisions of the code if it is satisfied that adequate provisions exist for the investigation and settlement of industrial disputes in respect of workers employed there. This unbridled power allows the Government to put workers outside the scope of the Code without any protection whatsoever.

Arbitrary Terminations

  • The Industrial Disputes Act, 1947 mandates that industrial establishments employing 100 or more workers required the permission of the Government before effecting any retrenchment, layoff or closure. The Code increases this number to 300, thereby putting large number of workers in the firing line, and subject to arbitrary terminations and closures.

The draft Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014

THE draft Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014 exempts all factories employing less than 40 workers from 14 central labour laws, namely (1) The Factories Act, 1947; (2) The Industrial Disputes Act, 1947; (3) The Industrial Employment (Standing orders) Act 1946; (4) The Minimum Wages Act,1948; (5) The Payment of Wages Act, 1936; (6) The Payment of Bonus Act, 1965; (7) The Employees State Insurance Act, 1948; (8) The Employees Provident Funds and Miscellaneous Provisions Act, 1952; (9) The Maternity Benefit Act 1961; (10) The Employees compensation Act,1923; (11) The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979; (12) (State) Shops and Establishments Act; (13) The Equal Remuneration Act, 1976; (14) The Child Labour (Prohibition and Regulation) Act, 1986. It has been apprehended that such a change would take out more than 70 per cent of the factory establishments in the Country out of the coverage.

Attack on Unions and Freedom of Association

  • The Trade Union Act presently permits outsiders to be office-bearers of trade unions. This is necessary given the precarious nature of workers while negotiating with employers. However, the Code requires that all the office-bearers of a registered trade union be persons actually engaged or employed in the establishment/industry with which the trade union is concerned. Further in respect of a trade union in the unorganized sector, the same is limited to two persons. Such a restriction restricting the freedom and choice of the workers to determine their office- bearers is in blatant violation of the ILO Convention of Freedom of Association and Protection of the Right to Organize. Further, the code prohibits a person holding office in more than 10 unions, which is also contrary to the principles of freedom of association.

  • The Code also attacks Unions by increasing the grounds on which the registration of a trade union may be cancelled, including the failure to hold bi-annual elections and the failure to submit annual returns. This is a direct attempt to interfere with the internal administration of the unions.

  • The Code fails to recognize the long-standing demand of trade unions mandating recognition of trade unions from employers, as in the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971.

The Right to Strike and Limitations

  • The Code prohibits a worker from going on strike without giving two- week notice of the strike. The Industrial Disputes Act, 1947 has such a restriction only for public utility services, but the Code widens the scope of such restriction placing it for all establishments. The Code further mandates that any person who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out shall be punishable with a fine which shall not be less than rupees twenty five thousand but which may be extended up to rupees fifty thousand or with imprisonment up to one month, or with both. Such a draconian provision is intended to create an atmosphere of fear in respect of strikes.

  • The Code attacks trade unions by mandating that if default is made on the part of any registered trade union in giving any notice or sending any statement or other document as required by or under any provisions of this Code, every office-bearer or every member of the executive of the trade union, shall be punishable with minimum fine of Rs. 10,000/- extendable up to Rs. 50,000/-.