Auto makers to press for labour law reforms

In the last one month, there has been several reports of growing discord between workers and management in the automobile industry and thus reaching to strikes and lock-outs. It can be recalled that while Maruti Suzuki’s Manesar plant strike had been 13 day long, MRF Kottayam plant had been locked-down. There had been problems at GM’s Halol plant, Hyundai, HMSI, Hero Honda, Bosch and several other companies. Now it has been reported that with growing incidence of worker strikes in the Indian automobile industry, major manufacturers have called for labour law reforms, while trade unions said existing rules must be implemented strictly to avoid confrontations.

The report quoted General Motors India Vice-President P Balendran as saying “The rigidity in labour laws has led companies to increasingly resort to outsourcing and contracting of labour. To be very precise, the need of the hour is flexible labour reforms.” The contract system gives companies greater autonomy in choosing when to lay off workers, he said. It was mentioned that Balendran said existence of more than one union creates confusion and problems and “in many cases, the unions are politically affiliated and follow the party ideology”.

According to the report, Hyundai Motors India’s Senior Vice-President (Finance and Corporate Affairs) R Sethuraman said, “The labour laws are not problematic, and reforms are always welcome.” He said when politically affiliated unions take centre stage, the negotiations practically are never conducted with “one’s own workforce. “This is not healthy because managements are forced to negotiate with a bunch of people, who, for political reasons, invariably create an atmosphere of distrust and fear in the minds of the workforce. This is not good. Additionally, just as trade unionism is allowed under Indian labour laws, companies have also been bestowed rights under Indian law, wherein they can decide on whom they decide to talk to or negotiate with,” he said.

It was also mentioned that however, national trade union leaders have an opposite view to the problem and insist that formation of a union, or even multiple unions, and getting political affiliations are workers’ rights and are allowed under the Indian labour laws.“Most of the auto companies do not respect the Indian labour laws and formation of unions, which is workers’ constitutional right. Our machineries to enforce labour laws are very weak and there is a need to tighten it,” All India Trade Union Congress (AITUC) Secretary D L Sachdev said. There is no need to reform the laws and its up to the management to decide with which union it wants to negotiate in the presence of multiple unions, he added. Sachdev said the registration process should be “taken away from state labour departments to an independent body” and maximum time to register a union should be fixed at 40 days.