Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

India’s shame — the trap of bonded labour 

Why in the News?

On May 1, as people around the world celebrate Labour Day to respect workers and their rights, the lives of millions of bonded labourers in India show a sad and harsh reality.

What are the key factors contributing to bonded labour in India?

  • Economic Vulnerability: Poor financial conditions force individuals to take loans or advances from employers or agents, trapping them in bonded labour. Eg: A family in Andhra Pradesh takes an advance of ₹2,000 to work at a brick kiln, leading them into a cycle of forced labour.
  • Social Discrimination and Exclusion: Marginalized communities, including lower-caste and ethnic minorities, are more likely to be exploited and trapped in bonded labour due to societal inequalities. Eg: A tribal family from Madhya Pradesh faces exploitation in a sugarcane farm in Karnataka, where they are denied fair wages and basic rights.
  • Lack of Education and Awareness: Illiteracy and lack of access to information prevent workers from understanding their rights, making them vulnerable to exploitation. Eg: Migrant workers in India often unknowingly agree to exploitative terms, not realizing they have legal protections, as seen with many labourers working in informal sectors without contracts.

Why has the government’s target of eradicating bonded labour by 2030 been deemed overly optimistic?

  • Low Rescue and Rehabilitation Rates: Despite a target of freeing 1.84 crore bonded labourers, only 12,760 were rescued between 2016 and 2021. Eg: To meet the 2030 goal, around 11 lakh people must be rescued every year since 2021, but actual rescues remain far below this mark.
  • Lack of Effective Implementation: Government plans and policies exist on paper, but enforcement at the ground level is weak due to administrative apathy and corruption. Eg: Mukesh Adivasi was trafficked and brutalised despite bonded labour being abolished in 1975, showing poor implementation.
  • Underestimation of the Scale and Complexity: The issue of bonded and forced labour is deeply rooted in economic, social, and cultural structures, making it hard to resolve with short-term policies. Eg: Millions of unorganised migrant workers face bonded-like conditions across industries, beyond the government’s current rescue capacity.

How does the lack of unionisation among unorganised workers affect their conditions and bargaining power?

  • No Collective Bargaining Power: Without unions, unorganised workers cannot negotiate better wages, safety standards, or working hours. Eg: Migrant workers like Mukesh were forced to work 14–16 hours daily without fair compensation or the right to protest.
  • Increased Vulnerability to Exploitation: The absence of union support leaves workers exposed to abuse, wage theft, and arbitrary dismissal. Eg: Thenmozhi’s family faced verbal abuse, beatings, and confinement in a brick kiln with no platform to seek redress.
  • Lack of Legal Awareness and Representation: Unorganised workers often remain unaware of their rights and have no representation to access justice or government schemes. Eg: Many bonded labourers accept exploitative terms due to illiteracy and isolation, with no union to guide or support them.

What was Dr. B.R. Ambedkar’s contribution to workers’ rights?

  • Advocated for Legal Recognition of Trade Unions and Collective Bargaining: Dr. Ambedkar strongly supported the formation of trade unions and the workers’ right to strike, believing these were essential for industrial democracy. Eg: As Labour Member in the Viceroy’s Executive Council (1942–46), he introduced laws ensuring trade union recognition and promoted fair negotiations between workers and employers.
  • Pioneered Labour Welfare Legislation: He played a key role in framing foundational labour laws related to working hours, minimum wages, and social security. Eg: The Indian Factories Act, 1948, limiting work hours and ensuring basic worker protections, reflected Ambedkar’s vision for humane working conditions.

How have recent Labour Codes undermined his legacy?

  • Weakened Collective Bargaining Rights: The Industrial Relations Code, 2020, imposes stricter conditions for strikes and allows employers to hire contract workers more freely, diluting workers’ ability to unionise and negotiate. Eg: A strike now requires a 60-day notice in all sectors, undermining spontaneous worker movements.
  • Erosion of Job Security: The new codes ease the norms for hiring and firing workers in establishments with up to 300 employees, without government approval, reducing job stability. Eg: Earlier, firms with over 100 workers needed government permission for retrenchment; this threshold has now tripled.
  • Dilution of Social Security Coverage: The Social Security Code, 2020, merges multiple welfare laws but leaves vast sections of informal workers outside its effective coverage due to unclear implementation mechanisms. Eg: Gig and platform workers are included in name, but lack defined contributions and benefits, weakening the universal welfare vision Ambedkar championed.

Way forward: 

  • Strengthen Enforcement and Rehabilitation: Ensure strict implementation of anti-bonded labour laws with timely rescue, rehabilitation, and compensation for victims.
  • Empower Workers through Unionisation and Awareness: Promote unionisation among informal workers and spread legal awareness to build collective bargaining power and prevent exploitation.

Mains PYQ:

[UPSC 2018] Despite implementation of various programmes for eradication of poverty by the government in India, poverty is still existing.’ Explain by giving reasons.

Linkage: Bonded labour is a manifestation of extreme poverty and the failure of poverty alleviation programmes to reach the most vulnerable, forcing them into debt bondage.

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