Prime Minister Narendra Modi has said India needs a mechanism where both the industry and workers benefit equally. He said that we need to come out of the mindset that both are at loggerheads. PM Modi further stated that trade unions have been given a new right that will get them statutory recognition.
"We need to come out of the mindset that industry and labour are always in conflict with each other. Why not have a mechanism where both benefit equally? Since labour is a concurrent subject, the law gives flexibility to state governments to modify the codes further as per their unique situation and requirements," said PM Modi in an interview to The Economic Times.
India was suffering from a twin problem of workers not having any social security because of the country's labour laws and companies not wanting to hire more workers for fear of the same laws that disincentivised labour-intensive production, said the PM. He said that the inspector raj system and complicated labour laws had a strong deterrent impact on employers.
PM Modi said that the government has made employer-employee relations more systematic and symmetrical. He added that the provision of notice period offers an opportunity for amicable settlement between the two parties.
He also spoke about the labor reforms and said that these reforms are very pro-worker. Even if they are hired for a fixed term, workers would be entitled to social security and benefits. PM Modi said that the labour reforms will create significant employment while ensuring minimum wage and social security. "It will ensure timely payment of wages and give priority to occupational safety of the workers, thus contributing to a better working environment," he added. In the last few weeks, we have finished what we had set out to do. The 44 central labour laws with over 1,200 sections have been assimilated into just four codes," he said.