Globalization & Labour Flexibility: A Review of Contract Labour (Regulation & Addition) Act 1970 from Multiple Perspectives
STES SKNCOE - Department of Management Studies
December 4, 2008
Centre for Management Research and Development, January-June 2008
Since the economic reforms of 1991 there has been no looking back. The Indian economy has been integrated with the world economy, liberalization and privatization has been the order of the day. The Indian industry which was hitherto working in a protected Environment has been exposed to global competition. Organizations are reacting to this by resorting to restructuring, re-engineering and retrenchment. The focus is on cutting cost and being competitive. These changes have had a great impact on labour. It is widely argued that in an open economy and liberalized trade, the country can no longer afford to carry on labour marked rigidity. In a recent study of labour market rigidity carried out by the World Bank India scores high on labour market rigidity. In this context the employers and their associations have been demanding more flexibility at work place on matters related to labour, specially the right to higher & fire Employees, flexibility in service condition, sub contracting etc. The recent changes in labour markets on the other hand are threatening the very existence of the working class. The size of regular workforce as a proportion of total work force is shrinking. There has been negative growth a public sector employment & marginal growth in private organized sector. There is increasing evidence of casualization and contractualisation of work. The Industry has been demanding rationalization of various labour laws which act as a hindrance in having a flexible work force. The two most commonly debated acts being the industrial disputes Act 1947 & the Contract labour (Regulation & abolition) Act 1970.
This paper tries to review and analyze the Contract labour (Regulation & abolition) Act 1970. From the prospective of multiple stakeholders i.e the employers, workers & the Government in light of the recent amendment and interpretation by various courts to bring about a better understanding and need for labour reforms
Number of Pages in PDF File: 11
Keywords: Labour flexibility, labour laws, contract labour, labour reforms
Date posted: December 4, 2008
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