US and European groups have written to Indian Prime Minister Modi urging him to reject proposals that would relax or suspend some of the country’s state labour laws.
The pending legislation in some Indian states is aimed at helping Indian employers cope with the effects of the Covid-19 pandemic and boost investment in manufacturing industries.
But groups representing more than 2,000 brands and retailers from over 30 countries, primarily in North America and Europe, say the measures “would have immediate and grave consequences for workers.”
They could also damage India’s ranking on the World Bank’s Ease of Doing Business Index and harm the country’s long-term business prospects and labour economy, according to Fair Labor Association, Amfori, Fair Wear, American Apparel & Footwear Association (AAFA), Social Accountability International, and ICS. Between them, they say they place more than $9bn in orders from India, including apparel and footwear.
Among the changes to the labour laws and regulations are an increase in working hours to 72 hours a week in Gujarat, Uttar Pradesh, Madhya Pradesh and Himachal Pradesh; while the Uttar Pradesh government is said to have suspended 35 out of 38 labour laws governing trade unions, industrial dispute and contract workers.
Several Indian states have unilaterally made the changes through the promulgation of state executive orders, while others have proposed the suspension of labour laws for varying periods. While states are entitled to establish their own laws, they still need approval from the central government.
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By GlobalData“We are concerned that the amendments to state labour laws countermand ILO Convention 144 inasmuch as they were made without formal consultation with employers and workers,” the letter says. “Other ILO conventions could also be violated by the proposed amendments, including Convention 001, related to hours of work; Convention 081, related to labour inspections; and Conventions 87 and 98, regarding freedom of association and collective bargaining.
“In short, the proposed changes would seriously jeopardise the safety, security, and well-being of workers in India.”
The groups are urging the government to ensure the restrictions on labour laws are not implemented, and that state governments consult with affected stakeholders, including trade unions, before proposing additional changes to their labour laws.
