Labour asserts itself

It does not matter how many states, offices or sectors of the economy were affected by Wednesday's bandh, or how many workers and trade unions participated in the strike. Its success or failure should not be judged by the extent of disruption it caused to normal life, or clashes that it involved. The labour strike represented a viewpoint shared by large sections of society which runs contrary to the economic policies pursued since the launch of reforms in the early 1990s. It is a clash of ideologies classified broadly as socialist and capitalist. Workers favour a socialist model in which jobs are secure, there is no hire and fire, and they have legally protected rights. 

The pro-market economy policies follow the Western model in which jobs and salaries depend on personal and organisational performance and profits. If a company grows, it hires more people; if its performance slips, workers get laid off. Even CEOs get sacked for non-performance. Going by the demands the strike highlighted, the dispute is limited to possible changes in labour laws, higher minimum wages, government stake sales in public sector enterprises and encouragement to private participation in the railways, insurance and banks. The economic policies, however, focus on growth, job creation, foreign investment and boost to the corporate sector. Foreign companies keen on setting up shop here insist on having the power to lay off workers without the government's permission. Small companies seek exemptions from labour laws that raise their wage bill. It is difficult for them to comply with the requirements of labour laws. A higher spending on workers' benefits limits their capacity to grow. The government's over-all emphasis is on improving India’s ranking in the ease of doing business as determined by the World Bank. 

The challenge is how to narrow the differences. Given the opposition to labour reforms from socialist leaders within the Congress, the UPA did not even touch the issue. After backtracking on reforms since there are elections to win, it is unlikely the Modi government would stick its neck out to earn the wrath of the labour.