Growing unemployment and limited employment opportunities as also the entry of lakhs of fresh job-seekers in the labour market every year, on the one hand, and the policy of liberalisation, privatisation and global market economy, on the other, have enabled the private and public sector enterprises to break the law on this count with impunity. The only difference is that the corporate sector employers had been demanding amendment to the Industrial Disputes Act and Contract Labour Act to let them practise 'hire and fire' and 'entry and exit' as and when they feel its need. Therefore, they appreciate the Government's inaction on the issue. The public sector enterprises do so in a sly manner, with the tacit support of the Government.

Yet another factor helped the menace of contractorisation and casualisation to grow apace and pose a threat to the labour movement. It is a fact that the organised labour woke up to the menace too late, engaged as it appeared to be, in the fight to defend the rights of workers under persistent attack from the employers and policy-makers of liberalisation, privatisation and globalisation (LPG). Divisions in the labour movement often enable the employers to steal a march over them. The case of the unity of the bank employees should be a lesson for them.

Of late, there has been a redeeming feature, too. Acutely conscious of the damage being done by the new strategy of the corporates and LPG policy-makers, all central trade union organisations (CTUOs) have called upon the regular workers to help the contract workers organise themselves and raise their demand for minimum wage equal to that of the regular workers in similar jobs along with other facilities being made available to regular workers in the enterprises. This is not a one-time or one-day fight. The organised trade unions have to make the fight for contract and casual workers an integral part of the fight of the regular workers for wages and rights.

The Government, which has allowed employers of all the sectors to flout the law generally, adopts a neutral posture and avoids facing the reality. Some times, the UPA Government and its Labour Minister have to face an unpleasant situation in Parliament. This was the case, for instance, on July 13, 2009 when two members of Parliament, Yashbant N S Laguri and Mansukh Bhai D. Vasava posed a number of questions pertaining to contract and casual workers employed by the Central Government and Public Sector Undertakings and sought the Government's response. Going by the ground reality, the Government's answers should put it in the dock in Parliament. The questions asked by the two MPs were:

the number of non-muster roll and casual workers appointed in the Central Government, Public Sector Undertakings during each of the last three years and the current year, separately, state-wise;
the details of minimum wages paid to them;
the mechanism put in place to ensure minimum wages to contract and casual workers through the labour contractors;
whether the Government has formulated any policy for regularisation of the above workers including contract workers; and
if so, the details thereof and if not, the reasons therefor.

Issues raised by these questions pertain to the Contract Labour (Regulation and Abolition) Act 1970 This Act applies to every establishment, public or private, in which 20 or more workmen are employed or were employed on any day of the preceding twelve months as contract labour and to every contractor who employs or who employed on any of the 12 months 20 or more workmen.

Moreover, it is obligatory on the part of “every principal employer of an establishment to make an application on the prescribed form for registration of his establishment within the stipulated period under Section 7 of the Act read with Rules framed thereunder giving all the particulars specified thereunder.”

Under the Act, it is obligatory on the part of the principal employer to see that the wages of the workers are paid on a fixed date and time and that payment is made on a working day at the work site. The Act also enjoins upon the principal employer to ensure the presence of his authorized representative to supervise the payment of wages by the contractor to workmen, “who must certify at the end of the entries that the amount shown in such and such column has been paid to the workmen concerned on such and such date…” Also, it is the responsibility of the principal employer to make payment of wages in case the contractor fails to do so; he can recover the amount from the contractor later.

The Act also outlines “obligation” to provide certain amenities to contract workers, which include provision of canteens, rest rooms, drinking water and other facilities, first-aid facilities, crèches, etc.

Lastly, whoever contravenes any provisions of this Act or of any Rules made thereunder prohibiting, restricting or regulating the employment of contract labour, or contravenes any condition of a licence granted under this Act is punishable with imprisonment or fine or with both.

Unfortunately, the punishments are so meagre that the employers are hardly afraid of them and keep flouting the law. Still, if enforced firmly, the PSU and corporate managements can be put to shame at least.

The two MPs have focussed their questions only on the Central Government and the PSUs. If they had also included some corporate managements, the coverage could have been comprehensive and revealed the enforcement mechanism's shortcomings much more and made the questions more serious and composite.

According to public sector trade unions, the PSU regular employees are about 15 lakh; at least half of this number are also contract workers which remain out of the PSU focus. The number of contract workers in Central Government Departments cannot but be large who constitute the “silent contributors” to GDP.

The questions have put the Government and the Labour Ministry in the dock. These were part of the “Unstarred” questions which are not for discussion in the House but only for information of the House. The Labour Ministry, for the time being, evaded a straight answer, saying “The information is being collected and will be laid on the Table of the House.”

The Central Government employees and the PSU trade unions certainly know the reality. It will be interesting even for them to see how the Government places the “reality” before Parliament eventually. (IPA Service)