Issues in Law and Public Policy on Contract Labour in India : Comparative Insights From China

This book discusses the increasing use of contract labour in India that has accompanied attempts to liberalise the economy. After briefly examining Indian labour laws and public policy, it juxtaposes the country's labour market practices with international labour standards. The questions that are raised are then explored through a series of empirical studies investigating the use of contract labour in a variety of industries and locations, manifesting a wide-spectrum of concerns including labour standards, productivity and employment relations. The set of comparative research studies within India are supplemented with a field study from the Shenzhen and Guangzhou industrial regions of South China, which are in an advanced stage of industrial development. The unprecedented inflow of capital into China has captivated many developing countries, including India, which has gone on to mimic similar strategies particularly in terms of labour market deregulation. In this context, a set of crucial questions arise - can enforcing 'labour market flexibility' in itself provide the required impetus for a nation's industrial growth? Is the Chinese success in becoming the major destination for foreign direct investments (FDIs) a consequence of a flexible labour regime or is there some other concealed strength to be found in Chinese labour market institutions? In particular it needs to be noted that after double-digit growth for more than 25 consecutive years, China has recognised some of the fallacy of its development path and in 2008 adopted fairly stringent labour laws, which now regulate its labour market. This Chinese trajectory perhaps has lessons for India and other countries that are still struggling on the liberal path. In particular, the Chinese example helps put the Indian field studies in perspective and provides insights into India-specific policy recommendations that could also be useful for the developing world. The book concludes with the observation that where production entails long-term relationships, the interests of both the employer and the workers need to be maintained sustainably. As the title suggests, the book provides takeaways, not only for academics and researchers working in this field but also for lawyers, consultants, politicians, bureaucrats, and policymakers. “The comparative study of India and China is critical to understanding the forces driving contemporary and social economic development. There are very few studies which look systematically at labour is regulated in the two countries. Pankaj Kumar and Jaivir Singh fill this gap through legal analysis and fieldwork in the two countries.” Professor Simon F. Deakin, Faculty of Law, University of Cambridge, Cambridge, UK "This book discusses the increasing use of contract labour in India that has accompanied attempts to liberalise the economy. After briefly examining Indian labour laws and public policy, it juxtaposes the country's labour market practices with international labour standards. The questions that are raised are then explored through a series of empirical studies investigating the use of contract labour in a variety of industries and locations, manifesting a wide-spectrum of concerns including labour standards, productivity and employment relations. The set of comparative research studies within India are supplemented with a field study from the Shenzhen and Guangzhou industrial regions of South China, which are in an advanced stage of industrial development. The unprecedented inflow of capital into China has captivated many developing countries, including India, which has gone on to mimic similar strategies particularly in terms of labour market deregulation. In this context, a set of crucial questions arise - can enforcing 'labour market flexibility' in itself provide the required impetus for a nation's industrial growth? Is the Chinese success in becoming the major destination for foreign direct investments (FDIs) a consequence of a flexible labour regime or is there some other concealed strength to be found in Chinese labour market institutions? In particular it needs to be noted that after double-digit growth for more than 25 consecutive years, China has recognised some of the fallacy of its development path and in 2008 adopted fairly stringent labour laws, which now regulate its labour market. This Chinese trajectory perhaps has lessons for India and other countries that are still struggling on the liberal path. In particular, the Chinese example helps put the Indian field studies in perspective and provides insights into India-specific policy recommendations that could also be useful for the developing world. The book concludes with the observation that where production entails long-term relationships, the interests of both the employer and the workers need to be maintained sustainably. As the title suggests, the book provides takeaways, not only for academics and researchers working in this field but also for lawyers, consultants, politicians, bureaucrats, and policymakers."-- Provided by publisher Foreword 5 Acknowledgements 7 Contents 8 About the Authors 10 Abbreviations 11 List of Figures 13 List of Tables 14 List of Maps 15 List of Photos 16 List of Graphs 17 1 Introduction 18 1.1 Background 20 1.2 Contract Labour in India 22 References 29 2 Contract Labour in India: In Law and Public Policy 31 2.1 Acts and Statutes Concerning Contract Labour 32 2.1.1 Structural Analysis of Contract Labour Laws in India 35 2.1.1.1 The Contract Labour (Regulations & Abolition) Act, 1970 37 2.1.1.2 The Social Security Acts 40 2.1.1.3 The Factories Act, 1948 43 2.1.1.4 Minimum Wages Act, 1948 44 2.1.1.5 Industrial Disputes Act, 1947 45 2.1.1.6 Trade Union Act, 1926 45 2.1.1.7 Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 46 2.1.2 Judicial Interpretation of Labour Laws 47 2.1.3 Policy on labour 51 2.1.4 Law and Public Policy: Comparative Insights from China 58 References 65 Important Acts & Statutes; For India 67 For China 67 3 Globalization, Labour Market Flexibility and Labour Standards 68 3.1 Globalization 68 3.2 Labour Market Flexibility 71 3.3 Labour Standards 74 3.3.1 ILO and Labour Standards 76 3.4 The Debate on Labour Market Flexibility and Labour Standards 78 References 82 4 The Concept of Collective Bargaining: ILO—India and China 85 4.1 Collective Bargaining: Past and Present 86 4.2 Collective Bargaining in India 89 4.3 Collective Bargaining in China 93 4.4 The Debate on Granting Collective Bargaining Rights: ILO—India and China 96 References 100 5 Contract Labour in Practice: Some Case Studies 102 5.1 Fieldwork in Rudrapur Industrial Area 105 5.2 Rudrapur Case Studies 115 5.2.1 Medium-Scale Seasonal Enterprise 115 5.2.2 Large-Scale FMCG Industry 120 5.2.3 Heavy Automobile Industry 124 5.3 Fieldwork at DMRC 131 5.4 Fieldwork at Brick Kilns of Danapur Region, Bihar 142 5.5 Fieldwork in Gujarat State 158 5.5.1 Dahej Special Economic Zone 159 5.5.2 Makarpura Industrial Area 165 5.6 Fieldwork Insights from Guangzhou and Shenzhen Industrial Zone, China 169 References 177 6 Fieldwork Observations and Analysis 179 References 200 7 Conclusion: Lessons Learnt for Policy Recommendations 202 References 209 Présentation de l'éditeur : "This book discusses the increasing use of contract labour in India that has accompanied attempts to liberalise the economy. After briefly examining Indian labour laws and public policy, it juxtaposes the country's labour market practices with international labour standards. The questions that are raised are then explored through a series of empirical studies investigating the use of contract labour in a variety of industries and locations, manifesting a wide-spectrum of concerns including labour standards, productivity and employment relations. The set of comparative research studies within India are supplemented with a field study from the Shenzhen and Guangzhou industrial regions of South China, which are in an advanced stage of industrial development." Front Matter ....Pages i-xxiii Introduction (Pankaj Kumar, Jaivir Singh)....Pages 1-13 Contract Labour in India: In Law and Public Policy (Pankaj Kumar, Jaivir Singh)....Pages 15-51 Globalization, Labour Market Flexibility and Labour Standards (Pankaj Kumar, Jaivir Singh)....Pages 53-69 The Concept of Collective Bargaining: ILO—India and China (Pankaj Kumar, Jaivir Singh)....Pages 71-87 Contract Labour in Practice: Some Case Studies (Pankaj Kumar, Jaivir Singh)....Pages 89-165 Fieldwork Observations and Analysis (Pankaj Kumar, Jaivir Singh)....Pages 167-189 Conclusion: Lessons Learnt for Policy Recommendations (Pankaj Kumar, Jaivir Singh)....Pages 191-199