Monday, July 30, 2012

Maruti Labor Unrest and Damages


In one of the worst industrial disputes culminating in the killing of one of the top managers of the Maruti Maneswar plant, resulting in arrests and lockout, the labor laws of the state and the country have come under greater pressure. The killing is horrifying without doubt and this could have been avoided if the workers were recruited under proper methods. It is without doubt a tale of horrors as the workers having gone through enough stress and confusion have taken to the extreme methods to vent their feelings. The union which was the official platform for negotiation as reported in some media had more than enough tilting in the favor of the management.
Now who is wrong here? It is not good blaming the workers mostly who were contract laborers and the management of Maruti which has a system of management justifying the highly disciplined, stoic and uncompromising Samurai Japan where workers protested only with a black batch stuck on their uniform while outwitting even the employer by working extra time free of pay in their beloved land Nippon (Japan).These kinds of protest are foreign to our culture and so of course to the labor culture.

Then who is to be blamed for this? The labor laws, of course, as these are perhaps as old as the Jurassic period without much of amendments as the latter is the need of the hour in a liberalized economy like India where more foreign direct investments are to come. So what can be done? An example perhaps can throw some light into it.
In a house the kitchen is the core area and a person employs a cook to do the cooking while other employees tender the garden occasionally or daily while the security keeps guard. The milkman and the newspaper boys are there too yet they are not in core functioning of the house. It is inevitable that the owner of the house keeps the area of his compound as a core area so that the workers within it are able to function properly and that they are treated like one family. If any one of them is unhappy the owner risks of having bad food, security risks and a bad garden. Thus, the core area employees are entitled to better pay and better access to areas of the house and some secrets. As for the bad paper or the infrequent milk supply it can be substituted easily, but not the core area unless there is total avoidance of all the help in the house. In the light of the industry it can be very complex, but the idea is that as far the labor law is concerned it has to identify the core productivity area and generalize the law over it.

All routine functions of the industry are attributed as core area for the purpose of the labor act. This would mean that the recurring activities of the industry are all core areas for the purpose of the law. Again, recurring activities under the act should be one such activity that is done daily or within one whole week as a factor for considering it to be core activity. This would mean that all employees working in core productivity area are considered full time employees for the purpose of the act whether they are casual workers, contract laborers, half employees or full employees.
It is not the stringency of a well laid out law that intimidates the investors as much as the complex loosely covered and confusing law. The labor laws must always keep a level playing field for both the workers and the management and not set one against the other leading to no good.


Redefining Contract Laborer
If at all there is need for contract laborers then the definition of contract laborer must be redefined to suite the present conditions of the economy. It would be something more or less analogous to what our Father of the Nation did when he proclaimed all the downtrodden, chaste ridden lower strata of people of our erstwhile society as ‘Harijans’ (God’s own people). The idea was not to bring about any sudden physical change or immediate social improvement with regard to their conditions, but the psychological transformation that it gave to the masses of India both in the upper strata of the society as well as the lower strata, is a sure harbinger of good times ahead for all.
So also there is a need to give the contract laborer a status in the new liberalized economy. Instead of the term ‘contract laborers where all you actually need are a few spoken or written words, a large shovel and a bulldozer to gather all these contract laborers and then throw them inside the factory. If that is the case then the previous ways are quite okay.
However, this is definitely not so in a liberalized market economy as we are also changing with a liberalized mindset too where the value input of every individual counts a great deal at the production level as well as the society’s level. Being so, it is quite important to designate a status for the contract laborers in the modern society. They could be called for instance ‘professional incumbents’ or such terms and then giving a legal framework under which they will do their work. The framework as an act of law could be as suggested below.
.      There is no indefinite contract even if the workers are working under a contract or agreement.
..        1.   A contract laborer or a professional incumbent performs a task on a daily basis or weekly basis only and no more under a particular contract. A week is a period of six working days only. A contract however can be renewed starting from the day at a minimum of three days gap
.           2.   If a contract worker works continuously without a gap of minimum three days in any part of the whole year then he is deemed a full employee under the act for the whole year and is liable for compensation and pay of a full term employee
 3.  A contract worker is not liable for any damage under the act as they only perform a contractual obligation only and not fully responsible duty whether it is skilled work, trained or not trained.
      These are some of the suggestive measures that can be implemented with definite and stringent conditions so as to make it quite apparent and transparent that the legal side of the matter is well established.

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