BMS objections on the new Code on Industrial Relations, 2020

No. BMS/D-20/226/2020

Date: 23-09-2020

BHARATIYA MAZDOOR SANGH

Dattopant Thengadi Bhawan, 27, Deendayal Upadhyay Marg, New Delhi-110002 Tel:- 011 23222654 Fax: 91-11-23212648
Website: www.bms.org.in E-mail : bmsdtb@gmail.com

Press Release

BMS objections on the new Code on Industrial Relations, 2020

BMS and other trade unions have given detailed objections to the previous draft of the Industrial Relations Code. None of the objections raised by BMS and other trade unions as well as the recommendations of PSCL (Parliamentary Standing Committee on Labour) in favour of workers are considered in the revised draft.

It is further tilted too much in favour of the employers and bureaucrats;and the last minute mutilationswill adversely affect industrial peace in the country.Some important changes like that on standing orders are not even discussed in the consultation process; which will be a violation of ILO convention 144 ratified by Indian Parliament. There is clear attempt to diminish the role of trade unions. The danger of bureaucrats replacing parliament is too much apparent in the IR Code, which may lead to constitutional issues. Even Supreme Court directions on constitutionality of some provisions are violated. Thus purpose of codification is defeated.

BMS opposes the following new changes:

1. Industrial Employment Standing Orders law is exempted for industries up to 300 workers is highly objectionable. At present it is 100 in statute and 50 in many states.

   1. In fact 2nd NCL has proposed to bring down the threshold for framing of standing orders from 50 to 20 workers.

   2. PSCL also opposed exemptions on standing orders saying “it can potentially create uncertainty in the minds of the Stakeholders”.

   3. Further MOLE told PSCL- “Model Standing Orders, Certification of Standing Order have not been changed as these are functioning well."

2. PSCL recommended a time limit of 45 days for registering a trade union. This was a long pending demand of joint trade unions. Still it was not included, whereas for permission to employers for lay off, retrenchment and closure, time limit of 60 days prescribed.

3. In the new provision of sole negotiating union,eligibility is a mere 51% or more.In the previous draft it was 75%. This is an overt attempt to monopolise single union and eliminate all other unions.

4. In the new provision, the eligibility for negotiating council of trade unionsis “not less than 20% of total workers”. In the previous draft it was not less than 10%.

5. The most controversial chapter VB (now Chapter X) on prior permission for lay off, retrenchment and closure is exempted upto three hundred workers.It will promote “ease

of 6. IR 1.

2.

closing business” not “ease of doing business”.
code is full of attemptsto replace power of parliamentby bureaucrats:

PSCL has criticised parliament’s power being replaced by arbitrary decision of government at 100 places in the code. This remains unchanged in the new draft. There is a larger regime of exemptions throughout the IR Code at the discretion of bureaucrats.

Bureaucrats who have held the post ofjoint secretary rank will be additional member in every tribunaltill the age of 65 years;when labour courts are also are getting converted to tribunals. Bureaucrats themselves will fix their salary and allowances which cannot be changed later. In the previous draft, persons with ability, knowledge and experience was the criteria. That is now replaced by mere joint secretary rank. But Supreme Court has decided against non-judicial members in Tribunals in Madras Bar Association case in 2010.

PSCL has opposed the provision giving power to bureaucracy to nullify awards, on the ground that the idea was struck down by High Courts of Andhra and Madras in 2004 and 2014 as unconstitutional. Still it is retained.
There is a new exemption provision saying, while making rules,bureaucracy can dispense with the condition of previous publication of such rules for public scrutiny.

3.

4.

These
anti-worker provisions, on which a statement is attached here with. Nothing is considered in the new Draft.
The ensuing National Conference of BMS to be held on 2, 3 & 4, October 2020 will decide the future course of action on the anti-worker provisions in the Labour Codes.

Virjesh Upadhyay

General Secretary

new changes are apart from a long list of objections raised by BMS on many other