Globalization, Labour Law Reforms & ILO Arun Kumar, Actrav-ILO-Turin

Changing World of Work Globalization, Economic Liberalisation, Privatisation & ‘withdrawal of State’ is changing the world of work Globalization, Economic Liberalisation, Privatisation & ‘withdrawal of State’ is changing the world of work More competition = more pressure on industries to reduce costs, increase productivity More competition = more pressure on industries to reduce costs, increase productivity Growing informal–unorganized economy Growing informal–unorganized economy Pressure for Labour law reforms (employment flexibility) Pressure for Labour law reforms (employment flexibility)

Management Practices Outsourcing-reduce regular workforce Outsourcing-reduce regular workforce Downsize, increase workloads Downsize, increase workloads Preference for casual-contract labour Preference for casual-contract labour Weaken TUs thru new HR policies such as - Weaken TUs thru new HR policies such as -  Create a committed workforce through employee welfare measures  Encourage employees to directly come to the Managers rather than go to the Union in case of problems  insecure employment

Changing nature of Employment While the labour laws are based on the premise of employer-employee relationship, the new form of employment in the industry is largely contractual, which is more in the nature of client-supplier relationship where the employment is offered not as appointment but as assignment. While the labour laws are based on the premise of employer-employee relationship, the new form of employment in the industry is largely contractual, which is more in the nature of client-supplier relationship where the employment is offered not as appointment but as assignment. Under this form of employment, proving identity as workers difficult what to talk of establishing employer-employee relationship. Under this form of employment, proving identity as workers difficult what to talk of establishing employer-employee relationship.

Divisions in the Job Market Workforce Divided, Protection under labour laws differs depending on which category a worker falls under, such as - Workforce Divided, Protection under labour laws differs depending on which category a worker falls under, such as - Regular, Contract, Casual, Temporary, Muster roll, Adhoc employees, etc. No comprehensive employer-employee relationship law that sets the basic labour standards and which apply to all the workers in the economy. No comprehensive employer-employee relationship law that sets the basic labour standards and which apply to all the workers in the economy.

Negotiating Change … What do Employers want? What do Employers want? What is important to TUs? What is important to TUs? While the ends may remain the same, means can change? While the ends may remain the same, means can change?

Negotiating Change … Adopt & advocate policies that will apply to all workers and prevent further divisions of the workers in the labour market – that is, put all workers in one boat. Adopt & advocate policies that will apply to all workers and prevent further divisions of the workers in the labour market – that is, put all workers in one boat. Propose nationwide floor labour standards –that apply to all –be it organised or unorganised, small or big employer, regular or temporary or contract worker (de-link labour standards from permanency of employment) Propose nationwide floor labour standards –that apply to all –be it organised or unorganised, small or big employer, regular or temporary or contract worker (de-link labour standards from permanency of employment) Roof to be attained thru Collective Bargaining – the right to which should be ensured Roof to be attained thru Collective Bargaining – the right to which should be ensured

Negotiating Change … While thinking of labour reforms, we also need to bear in mind the changing nature of employment in the economy. While thinking of labour reforms, we also need to bear in mind the changing nature of employment in the economy. Employers have tried to mask the employer-employee relationship thru various means – such as outsourcing work, using contactors, making workers appear as if self-employed thru sub- contracting of work, etc Employers have tried to mask the employer-employee relationship thru various means – such as outsourcing work, using contactors, making workers appear as if self-employed thru sub- contracting of work, etc Need for a Fair Contract Act Need for a Fair Contract Act

Negotiating Change … What is the floor that employers should respect? What is the floor that employers should respect? Core labour standards of the ILO Core labour standards of the ILO Especially -  Freedom of Association –the right to form unions, the right to recognition  Right to Collective Bargaining  Basic social security contribution  Access to skills training  No discrimination, No child labour

ILO ‘Standards’ as a basis for Labour Reforms 179 member States of ILO have till now adopted 187 Conventions (& 198 Recommendations)– International Labour Standards. 179 member States of ILO have till now adopted 187 Conventions (& 198 Recommendations)– International Labour Standards. Outcome of a democratic, transparent and participatory process at the international levelOutcome of a democratic, transparent and participatory process at the international level Approved by tripartite constituentsApproved by tripartite constituents ILO ‘Standards’ – provide for fundamental rights, Decent Employment, Social Protection & Social Dialogue for resolution of issues ILO ‘Standards’ – provide for fundamental rights, Decent Employment, Social Protection & Social Dialogue for resolution of issues

Issues for Consideration What changes are being proposed by Govts? Employers? What changes are being proposed by Govts? Employers? What minimum standards should there be in the labour law in the SPOCTU region? What minimum standards should there be in the labour law in the SPOCTU region? What should be in the labour law and what should be left to Collective Bargaining? What should be in the labour law and what should be left to Collective Bargaining? How can TUs increase their power to get desired labour law reforms? How can TUs increase their power to get desired labour law reforms?