Why India’s labour is rejecting a new deal
5 years, 2 months ago

Why India’s labour is rejecting a new deal

Live Mint  

Labour reform was a big promise that Prime Minister Narendra Modi had made in the run-up to the parliamentary elections in 2014. While the corporate sector will see wage hikes of nearly 10% this year, the agricultural labour market saw a drop in real wages for the first time in recent years. Social insurance schemes, minimum wage laws, trade unions, bonuses, wage increases, medical cover, unemployment allowances, pension schemes and provident funds covered almost all types of risks. Migrant labour, gig economy workers, taxi drivers and house helps are typically very vulnerable to shifts in economic growth and can lose jobs almost immediately as economic growth slows down. What needs to be understood is that an economy which shows increasing inequality, poor economic growth and an underperforming education sector must relentlessly innovate on its large cash transfer programmes, on the public distribution system, on schemes like MGNREGS and on new ideas like negative income taxes.

History of this topic

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