Page 49 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes countries and unions, governments and employers in several developing countries
have been resisting any formal linkage between labour standards and trade.
(c) Therefore, social clause linkage to trade is considered by the social partners in
developing countries as an effort of governments and workers in developed countries
to deprive the developing countries of their comparative advantage of cheap labour.

(d) The developed countries' arguments are based on the realization that "poverty
anywhere is a danger to prosperity everywhere." There is also concern about the
race to the bottom spurred by the notion that, "if you don't raise your standards, we
may have to follow suit."
(e) Developing countries adopted a dual strategy – oppose linkage of trade with Labour
Standards at international level: Nationally, continue to put pressure on government
to improve Labour Standards.

(f) Future of ILS is caught in the following opposing forces – Globalization and
Regionalization, North and South divide, supremacy of ILO and W.T.O., and diverse
pressures among the social partners about desirability of harmonizing labour
standards with deregulated labour market.
(g) Developed countries want Social Labeling, Guarantee for manufactured without
child labour, Fair Trade, etc.
(h) Developed countries arguments are as follows:-
i. Poverty anywhere is a danger to prosperity everywhere.

ii. If you do not raise your standard, we may have to lower ours.
iii. Social dumping could cause job losses in developed countries. Hence, VISA
restrictions for Indian software professionals.

iv. Competitive cost is the main issue.
(i) Bonded Labour (Abolition) Act, 76
(j) India advocates ILS within the framework of ILO, but opposes linkages with WTO –
All social partners – Govt., employees – TUs.

Case Study The Case of India

he Government of India is pursuing, rather half-heartedly, changes to some of the
labour legislations. The employing ministries have apparently been pressing for
Tsome of these changes. They include changes in the Factories Act to permit
employment of women in night shift, particularly in electronic units and export zones.

India has ratified 38 out of 182 conventions. ILO has influenced India in a big way. Our
legal framework on wages, working conditions, welfare, social security, protection of
vulnerable sections of society, HRD, equality, non-discrimination - influenced by ILO.
The Indian Constitution upholds all the fundamental principles of core ILS. India has
ratified 3 out of 7 core Conventions.
India was actively pursuing 14 projects to eradicate child labour in hazardous industries
by 2002. The All India Organisation of Employers have undertaken a project in Jalandhar

Contd...

44 LOVELY PROFESSIONAL UNIVERSITY