Saturday, March 28, 2020

In India, the world’s biggest lockdown has forced migrants to walk hundreds of miles home | Joanna Slater and Niha Masih / Special planes for India’s rich, police lathis for working-class poor | Jyoti Yadav

1.  The Washington Post

In India, the world’s biggest lockdown has forced migrants to walk hundreds of miles home

March 28, 2020 at 2:49 a.m. GMT+5:30

NEW DELHI — The workers set out on foot in the wee hours of the morning for villages hundreds of miles away, walking along the roads they helped build and past apartment towers they helped raise.
Chandra Mohan, a 24-year-old plumber in a suburb of India’s capital, left at 3 a.m. on Friday. By midmorning, he had walked 28 miles, one bag on his back and another slung across his chest. He still had more than 600 miles to go to reach his home in the state of Bihar.
Mohan is one of thousands of people leaving India’s largest cities one footstep at a time, fleeing a pandemic in a historic exodus. There are no planes, no trains, no interstate buses and no taxis. So Mohan walked east with 17 other young men, all laborers like him. They were unsure of their route or where they would sleep or how they would eat, but one thing was certain: Without work, they cannot survive in the city.
“We’re doomed,” Mohan said bitterly. “If we don’t die of the disease, we’ll die of hunger.”
India has begun a 21-day nationwide lockdown — the biggest in the world — in a desperate bid to stop the coronavirus from spreading out of control in this densely populated nation of 1.3 billion people. There are more than 700 confirmed cases in India, a number that is rising rapidly. Nonessential businesses are shut, state borders are closed to regular traffic, and people have been asked to stay in their homes except to buy food or medicine.

Chandra Mohan, right, a plumber working in a Delhi suburb, is walking to his village, 680 miles away in another state. Hundreds of migrants like him have been forced to leave the capital as jobs have disappeared.
Chandra Mohan, right, a plumber working in a Delhi suburb, is walking to his village, 680 miles away in another state. Hundreds of migrants like him have been forced to leave the capital as jobs have disappeared. (Niha Masih/The Washington Post)
The suspension of passenger trains, the backbone of India’s transportation system, was announced Sunday with nearly immediate effect. Then, on Tuesday, Indian Prime Minister Narendra Modi declared the all-India lockdown.
Three days later, Indians were adjusting to a starkly different reality. Reports of widespread harassment of citizens by police had eased even as bottlenecks persisted in the distribution of essential goods in some parts of the country.
The speed of the transportation shutdown meant that India’s tens of millions of internal migrants had no time to get home. Indian cities rely on a vast workforce drawn from the rest of the ­country, laborers who move in search of opportunity and often leave their families behind for months or years. They work construction, drive taxis, staff restaurants and much more, living frugally and returning home each year.
For such migrant workers, who are often employed in low-paid, precarious jobs, the measures are a double blow. The economic shock has vaporized their incomes while the transport restrictions eliminated their normal ways home.
The result has been a walking exodus of thousands of people. Precisely how many are on the move is not clear, but since the lockdown was declared, each day has brought fresh reports of migrants trying to get home. Some have managed to hitch rides on trucks, or jam themselves into crowded private buses.

Hundreds of migrants in Delhi are walking on foot to villages miles away, with little food and water, after India announced a 21-day lockdown.
Hundreds of migrants in Delhi are walking on foot to villages miles away, with little food and water, after India announced a 21-day lockdown. (Niha Masih/The Washington Post)
The last time so many people were traveling long distances on foot was in 1947, during the bloody partition of the Indian Subcontinent, said Chinmay Tumbe, the author of a recent book on migration in India. When India became independent and Pakistan was created, millions of people fled to the other side of newly drawn borders. “Even then we had transport options,” Tumbe said. “There were trains running.”
There are already signs that workers are turning to smugglers in the hopes of getting home. Authorities found hundreds of people crammed into trucks and believe hundreds of others hid inside an empty freight car to move from one end of the country to the other, according to a local media report.
Rajiv Khandelwal is executive director of Aajeevika Bureau, an organization based in Rajasthan focused on migrant workers. His group has received “an avalanche” of distress calls in recent days, he said. Many callers are stranded at state borders, unable to cross and running out of food after losing their jobs.
“Everybody has a right to go home when so much fear and frenzy has been created,” Khandelwal said. “This is no way to condemn people on whose hard work these cities prosper.”
In its rush to institute a nationwide lockdown, India offered no formal help to poor migrants. That stands in sharp contrast to its treatment of citizens stranded abroad because of the pandemic: The government organized special flights to bring Indians home from China, Iran and Italy.
Arjun Kumar, 20, and his four cousins came to Delhi to work over the past year, earning $4.50 a day on construction sites. But there has been no work for days. Their home is more than 450 miles away in Basti, a district in the state of Uttar Pradesh. On Friday, they walked east under a light drizzle on roads emptied of traffic.
Kumar carried a purple shoulder bag printed with teddy bears and urged the group to keep moving. At least in their village, they won’t starve, he said. “Here in the city, who will feed us?”
Most of the people walking are men, many of them young, but there are also some families. Payal Kumar, 19, sat on the edge of a sidewalk Friday, using a scarf as a makeshift mask. She was barefoot; her only pair of sandals had broken as she walked. Her group’s water was gone, she was tired and had no idea how long it would take to reach their home 150 miles away.

Anar Singh, a hotel worker with his family, hopes to reach their village, 150 miles away, on foot.
Anar Singh, a hotel worker with his family, hopes to reach their village, 150 miles away, on foot. (Niha Masih/The Washington Post)

Payal Kumar, 19, is walking barefoot on a Delhi road after her sandals broke from a seven-hour walk.
Payal Kumar, 19, is walking barefoot on a Delhi road after her sandals broke from a seven-hour walk. (Niha Masih/The Washington Post)
Kumar was walking with her sister Divya and her sister’s in-laws. One of them, Anar Singh, 35, works as part of the housekeeping staff at a Radisson hotel. His employer told him to stop coming to work nine days ago when the hotel closed down. He says he has yet to receive his salary for the month. He had about $5 in his pocket.
The group carried bags containing a few items of clothing and some flatbreads to eat. They hoped to be able to shelter in a shop or market at night. “For now, we have to keep walking,” Singh said.
Near one of Delhi’s long-distance bus stations, migrants converged in the vain hope that some transport might be available. By midmorning, they numbered in the hundreds. Stick-wielding police officers began herding them down the road.
One officer stopped a group of migrants and used a loudspeaker to make an announcement. “You have to maintain a distance of at least one meter from each other,” he said. The weary crowd dutifully shuffled a bit apart. A good Samaritan pulled up and offered biscuits and tea from the back of a motorcycle.
Rajesh Mishra, 30, a painter who had been walking for four hours, listened to the officer’s speech. His home is 500 miles away in the city of Gorakhpur. “We’re stuck,” he said. “Either we stay and die, or leave and die.” Then he turned and joined the stream of people stretching into the distance.

Internal migrants, mostly from poor, rural areas have been hardest hit in India’s strict lockdown as work has come to a halt and transport has shut down.
Internal migrants, mostly from poor, rural areas have been hardest hit in India’s strict lockdown as work has come to a halt and transport has shut down. (Niha Masih/The Washington Post)

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2.

The Print

Real social distancing: Special planes for India’s rich, police lathis for working-class poor

Thousands of working-class poor are on the move due to the coronavirus lockdown imposed by Modi with only four hours' notice, only to face a brutal police crackdown.

27 March, 2020

People walk back to their villages along the Delhi-Meerut Expressway. The lockdown has shut all means of interstate public transport | Praveen Jain | ThePrint
People walk back to their villages along the Delhi-Meerut Expressway. The lockdown has shut all means of interstate public transport | Praveen Jain | ThePrint
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India has no dearth of intelligent people. They link the sound of conch shells and clapping with vibrations and scientific equations that can kill any virus. They can even link the 21-day nationwide lockdown to planetary constellations. But they will never be able to connect with the country’s marginalised people — the poor, migrant workers and daily labourers.
Thousands of labourers and working-class poor are being forced to move from one place to another due to the coronavirus lockdown imposed by Prime Minister Narendra Modi with only four-hours notice. Many of them are walking hundreds of kilometres carrying their children on their shoulders. These people have already been adjudged as the casualties in the war against coronavirus. While imposing the lockdown, no one spared a thought about what would happen to them.
No one was worried for them even in February, when a wide-eyed India welcomed US President Donald Trump with open arms. At that time, the poor were seen as a cause for embarrassment, and their slums were hidden behind a wall to make sure Trump doesn’t see them.
But the upper-class was still not done. The rich returned from their travels abroad carrying the novel coronavirus. The Narendra Modi government didn’t stop them from entering the country or screen them properly. By the time the government could detect the ‘infected’, it was too late. The damage had been done. Restrictions came in, which led to thousands of Indians getting stuck in foreign countries. The Modi government promptly ordered special planes to fly and bring them back.
But within India, the government couldn’t see the millions of poor people affected by the pandemic. Not a single vehicle was arranged for them — after all the trains, buses, autos and rickshaws had been stopped. Many of these people don’t know what coronavirus, quarantine, Covid-19 or lockdown means. It’s not their fault that they don’t.

Also read: How lockdown is disrupting the village economy in UP, one farmer at a time

The great divide

India reported its first positive Covid-19 case on 30 January. The Modi government had all the time in the world but it didn’t wake up to the plight of India’s poor. As the days passed, the government started making some arrangements — for the rich coming from abroad. Then came the festival of Holi. Most travellers during this period were people from the poor and marginalised section. They had no way to prepare and protect themselves, no idea that a deadly virus was also on the move. The virus was being passed on by the rich and most poor people had little contact with them.
The poor didn’t even know what had happened. One day they were told to clap and bang utensils — taali and thaali — so they did. Then suddenly, they were told they can’t step out and that essential goods like rice and wheat would be home-delivered.
For people who buy one kg wheat, tea and sugar every day, this seemed like Ram Rajya. They wouldn’t have to step out for anything. But they also knew that Ram Rajya can only come in Ayodhya (where Ram was born), and not for people in Hastinapur, where life can only be a Kurukshetra. And so they walked, barefoot, without food or water, to go back to their villages. The cities had shut their doors for them. But it wasn’t going to be easy. The police they ran into at every state border, every checkpoint, treated them as if they were roaming the streets with the coronavirus.
During this period of lockdown, a section of Indian society will easily protect itself. It will spend these 21 days doing all kinds of things at home — trying out new recipes, learning new skills, reading books, watching films, taking online courses, exercising. Three days into the lockdown and this group has already set things in motion. But another section is running from pillar to post in search of rice and wheat, getting beaten up by the police for defying the government, taking blows from anyone who is unhappy to see them on the streets, having its roadside thelas — and their livelihoods — turned upside down. After 21 days, we will see a new India. On one end will be the children of Kalidas and Varāhamihira; on the other will be survivors of this crusade.
Prime Minister Narendra Modi has equated the fight against coronavirus with the Mahabharata. He’s right. India’s poor are like those soldiers in the Mahabharata’s battle units — the various Akshauhinis — whom no one knew but remembered as having been of some use in the war.
Views are personal.


Thursday, March 26, 2020

India Covid 19 Response: Lockdown and the poor | Harsh Mander

The Indian Express

Lockdown and the poor

State’s measures to fight virus may protect you and me. But they are stripping the poor of dignity and hope

Written by Harsh Mander | Published: March 27, 2020 1:10:40 am
Gurgaon e-retailers allowed, gurgaon online delivery, coronavirus lockdown, COVID-19, coronavirus latest updates, delhi news, indian express Homeless people and daily wagers being fed at a shelter home at Yamuna Pushta , New Delhi, on Thursday. I won’t die of corona. Before that, I will surely die of hunger”. I heard this lament more than a dozen times from different people as I joined a group of young friends trying to feed a thousand homeless people in Old Delhi in our small, almost helpless gesture of solidarity with them. “Demonetisation was nothing compared to what we are going through”, said another. “We don’t know if and how we will survive this time”.
An hour later, I read with bemusement and despair the relief package Finance Minister Nirmala Sitharaman announced. Her objective, she declared, was to shield the poor from the economic impact of the coronavirus shutdown. “No one will go hungry”, she promised.
Did she really believe that five extra kg of wheat or rice and 1 kg of pulses for a family, Rs 1,000 for the aged, disabled and widows, Rs 1,500 over three months for women with Jan Dhan accounts, free gas cylinder connections, and a Rs 2,000 cash transfer to farmers under an on-going scheme, would ensure this?
Neither she, nor Prime Minister Modi in his three addresses to the nation on measures to fight the lethal spread of COVID-19, has acknowledged even a fraction of the potentially catastrophic impact of these measures on hundreds of millions of India’s informal workers, farmworkers and destitute people.
Modi tersely mentioned the poor and suggested that civil society should mitigate their distress. Sitharaman, at least, dwelt on the poor, but seemed to believe that cobbling together a token set of one-time tiny food and cash infusions into poor households will be enough defence for them from the tsunami that they face.
There are, also, implementation barriers for each of these. How, for instance, will they draw money from their accounts during the lockdown? And the most food-vulnerable people, such as street children, homeless and disabled persons, and remote and nomadic tribes don’t have either accounts or cards.
More significantly, neither acknowledged the devastating economic impact of a national lockdown on an economy of mostly informal workers which was already grinding down. Economist Jayati Ghosh in a recent interview estimated that the damage of the first two days of lockdown was greater than the full impact of demonetisation, and that the economy, which was on a sharp downslide, stood in danger of slipping into an abyss. It does not require formal economic training to recognise the veracity of her grim assessment.
Who will harvest, and who will buy the harvest? Small and medium enterprises have shut down, and construction, even informal workplaces like eateries and tailoring units, have closed. A homeless man told me, “I have grown up on the streets. I have no family. I learned to make tandoori roti and earned Rs 500 a day. Today, I am holding out my hands for two rotis from you”. My eyes were downcast in shame.
In places where we were offering food, there were several thousand homeless people waiting in line. Many said they had sat six hours for someone to come with food. Most said they had not eaten more than a couple of meals in the last three days. And the portions they got in charity were so meagre that they barely filled their stomachs.
If a rumour arose that some kind person is distributing food in a corner, a near-stampede would break out. The disabled, the aged, women and children are left behind. The food is elementary, insufficient, and most of all, destructive of their dignity. They want work, not pity. If work is taken away from them by state action, their survival should not be a question of private charity but of the highest public duty. And there are at least three more weeks of this for them to endure, as hunger will mount menacingly.
Many said that since there was no food and work for them in the city, their best chances for survival and emotional well-being was to return to their villages. But within brief hours of the Prime Minister’s announcement of the lockdown, trains and buses were abruptly cancelled. The Indian government found it fit to charter planes with medical staff to fly in migrants from other countries. But it felt no responsibility at all to the millions of migrants stranded without work and food in every corner of the country. If they try to walk to the state borders, they are beaten by the police. Those who persevere or cross by stealth are being compelled to trudge or cycle, sometimes thousands of kilometres, to reach their villages, dodging hunger and the police along the way. Truck drivers are trapped on highways across the country, in a purgatory from which they have no escape or succour.
Except for the announcement of a small financial package to improve health services, there is nothing to assure us that the poor will have access to a health system that works for them when the virus hits them. Where will they test, will they have to pay, and where will there be hospital beds and ventilators for them? We need to learn from Spain and New Zealand and nationalise the private health services at least for the duration of the pandemic. Otherwise the poor seem doomed to die not just of hunger but also of the virus when it catches up with them.
There have been many calls for bipartisan support to the Prime Minister as he leads the country out of this unprecedented crisis. P Chidambaram has declared that the PM is his commander-in-chief in this war. Many chief ministers concur. But I am afraid that I am unable to support this shockingly anti-poor lockdown. India could learn well from countries like South Korea and Taiwan which combatted the virus without national lockdowns. We must consider a roll-back.
The state is bereft of public compassion, the capacity and the will to stand equally with us all, rich and poor. There is no better time to recall the talisman Mahatma Gandhi left for us. When in doubt and confusion, he counselled, think of the most vulnerable person you know, and ask if the measures will improve her life and freedom. I met some of these “last persons” today. The measures the state has opted for may possibly protect you and me, but for her, they will only destroy her possibilities of dignified and hopeful survival.
Mander is a human rights worker and writer

India - Covid 19: The perils of an all-out lockdown | Jean Drèze

The Hindu

The perils of an all-out lockdown

If the poor must stay at home, they need income support and essential services

As the novel coronavirus spreads, a double crisis looms over India: a health crisis and an economic crisis. In terms of casualties, the health crisis is still very confined (seven deaths in a country where eight million people die every year), but the numbers are growing fast. Meanwhile, the economic crisis is hitting with full force, throwing millions out of work by the day. Unlike the health crisis, it is not class-neutral, but hurts poor people the most.

India slows down

Migrant workers, street vendors, contract workers, almost everyone in the informal sector — the bulk of the workforce — is being hit by this economic tsunami. In Maharashtra, mass lay-offs have forced migrant workers to rush home, some without being paid. Many of them are now stranded between Maharashtra and their homes as trains have been cancelled. The economic standstill in Maharashtra is spreading fast to other States as factories, shops, offices and worksites close with little hope of an early return to normalcy. With transport routes dislocated, even the coming wheat harvest, a critical source of survival for millions of labouring families in north India, may not bring much relief. And all this is just a trailer.
Coronavirus | 80 districts in lockdown to contain virus spread
This economic crisis calls for urgent, massive relief measures. Lockdowns may be needed to slow down the epidemic, but poor people cannot afford to stay idle at home. If they are asked to stay home, they will need help. There is a critical difference, in this respect, between India and affluent countries with a good social security system. The average household in, say, Canada or Italy can take a lockdown in its stride (for some time at least), but the staying power of the Indian poor is virtually nil.

Tap social schemes

Since time is of the essence, the first step is to make good use of existing social-security schemes to support poor people — pensions, the Public Distribution System (PDS), midday meals, and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), among others. Initial measures could include advance payment of pensions, enhanced PDS rations, immediate payment of MGNREGA wage arrears, and expanded distribution of take-home rations at schools and anganwadis. Some States have already taken useful steps of this sort, but the scale of relief measures needs radical expansion. That, in turn, requires big money from the Central government. It also requires the government to avoid squandering its resources on corporate bailouts: most crisis-affected sectors of the economy will soon be lobbying for rescue packages.
Coronavirus | Congress seeks cash transfers
Meanwhile, there is a danger of people’s hardships being aggravated by a tendency to shut down essential services. Public transport, administrative offices, court hearings, MGNREGA projects and even immunisation drives have already been suspended to varying degrees in many States. Some of these interruptions are certainly justified, but others are likely to be counter-productive. Remember, we are dealing not only with a health crisis but also with an economic crisis. Even if discontinuing public services helps to contain the health crisis, the economic consequences need to be considered.
To assess the case for various precautionary measures, we must bear in mind the dual motive for taking precautions. When you decide to stay at home, there are two possible motives for it: a self-protection motive and a public-purpose motive. In the first case, you act out of fear of being infected. In the second, you participate in collective efforts to stop the spread of the virus.
Some people think about precautions as a matter of self-protection. What they may not realise is that the individual risk of getting infected is still tiny — so small that it is hardly worth any self-protection efforts (except for special groups such as health workers and the elderly). Four hundred thousand people die of tuberculosis in India every year, yet we take no special precautions against it. So why do we take precautions when seven people have died of COVID-19? The enlightened reason is not to protect ourselves, but to contribute to collective efforts to halt the epidemic.
Manmohan Singh: ‘India has slid to being a majoritarian state in economic despair’

Display creativity

A similar reasoning applies to the case for shutting down public services as a precautionary measure. Self-protection of public employees is not a major issue (for the time being), the main consideration is public purpose. Further, public purpose must include the possible economic consequences of a shutdown. If a service creates a major health hazard, public purpose may certainly call for it to be discontinued (this is the reason for closing schools and colleges). On the other hand, services that help poor people in their hour of need without creating a major health hazard should continue to function as far as possible. That would apply not only to health services or the Public Distribution System, but also to many other public services including administrative offices at the district and local levels. Poor people depend on these services in multiple ways, closing them across the board at this time would worsen the economic crisis without doing much to stem the health crisis.
Keeping public services going in this situation is likely to require some initiative and creativity. An explicit list of essential services (already available in some States) and official guidelines on coronavirus readiness at the workplace would be a good start. Many public premises are crying for better distancing arrangements. Some services can even be reinvented for now. For instance, anganwadis could play a vital role of public-health outreach at this time, even if children have to be kept away. Many public spaces could also be used, with due safeguards, to disseminate information or to impart good habits such as distancing and washing hands.
Also read | Blunting the economic impact of a pandemic
The urgent need for effective social security measures makes it all the more important to avoid a loss of nerve. The way things are going today, it will soon be very difficult for some State governments to run the Public Distribution System or take good care of drinking water. That would push even more people to the wall, worsening not only the economic crisis but possibly the health crisis as well. This is not the time to let India’s frail safety net unravel.
Jean Drèze is Visiting Professor at the Department of Economics, Ranchi University

India: Covid-19: An emergency economic manifesto | Yamini Aiyar and Mekhala Krishnamurthy

Hindustan Times

Covid-19: An emergency economic manifesto

To prevent distress, the State must manage the movement of people, food, money, schemes

analysis Updated: Mar 25, 2020 20:07 IST
Yamini Aiyar and Mekhala Krishnamurthy
Yamini Aiyar and Mekhala Krishnamurthy
India needs uniform outcomes, not uniform measures. Command and control won’t work. Be flexible, work with states
India needs uniform outcomes, not uniform measures. Command and control won’t work. Be flexible, work with states(Parveen Kumar/Hindustan Times)
India is now in a lockdown. Whether this lockdown saves us from the dangers of the coronavirus disease (Covid-19) or not is a question that will be answered in the future. But there is absolutely no doubt that the economy is suffering, and will continue to suffer enormously, putting millions of Indians in serious danger. The urgent and immediate task for the next 21 days is to ensure that all citizens are saved from hunger and destitution. Doing this right will require the Indian State to spearhead a relief effort that does much more than allocate budgets and offer stimulus packages. It will need to effectively coordinate and manage, at a minimum, the movement of people, the movement of food, and the movement of funds and schemes. In the next 21 days, our administrative machinery will face its biggest test yet. It will need to improve Centre-state coordination and ensure speedy, decentralised administration, two things that the Indian State is notorious for failing at. To respond, the State must focus its capacities in at least four critical arenas.
First, managing the movement of people. Images of hundreds of thousands of workers stranded at bus stands and walking home have dominated the news this week. When India closed its international borders, Indians around the world were given two to three days to make their way back home. However, Indians living in India were not offered this luxury. Even before Tuesday’s lockdown announcement, states had begun closing their borders and the railways, too, shut down with no prior warning or notice. The first thing that the Centre needs to do is to set up a central coordination hub that connects all inter-state bus terminals to identify locations that passengers need to be taken to, and work with state governments to deploy special fleets of buses to take people back to their homes. This will also require careful management and coordination between states so that information is shared widely and movement is managed in a way that avoids overcrowding and ensures safe passage. A national helpline needs to be set up immediately to direct passengers and governments on where to deploy buses. In addition, while passengers wait, state governments must make immediate arrangements for the provision of temporary shelter and food at these sites. Some state governments, such as Uttarakhand, have already begun this process. This must be extended across all major cities in India.
Second the movement of food. In the days to come, the much-maligned Public Distribution System (PDS) is going to be the lifeline for most Indians. Many state governments have already expanded access to PDS and the Centre is likely to extend this across the country. The good news is that the government has a large buffer stock of food grains and adequate stock of pulses at its disposal. However, rations will need to be moved from the centrally-managed Food Corporation of India (FCI) godowns to states, districts and onward to ration stores. It is likely that food needs will vary district by district. Thus, states will have to urgently develop agile inventory management systems; and direct chains of communication between districts, states and the Centre will have to be established to ensure supplies reach where they are needed. Over the years, some states like Chhattisgarh have developed sophisticated inventory management and tracking systems. They can take the lead in coordinating this at the national level. At the distribution end, efforts are already underway to remove hurdles to access such as biometric authentication and other paper work. The PDS now needs to move to a demand based approach, similar to MGNREGS where any resident who approaches the PDS is given a specified quota of wheat/ rice and pulses.
Third, the procurement and supply chains for agricultural commodities, especially fresh produce need to be strengthened. The lockdown has placed agricultural markets across the country in a crisis. Given the imminent economic uncertainties, traders and wholesalers are nervous about buying and mandis are shutting down, leaving farmers and traders with nowhere to sell. In this context, the government needs to reopen and reassure both buyers and sellers in critical commodity markets. At a minimum, this will need three urgent steps. First, expand government procurement of fresh produce through state marketing federations, cooperatives and farmer producer organisations, wherever possible. The excess fresh produce can be deployed for use at the district level for expanded midday meals and other food related schemes being implemented in states. Second, open credit lines to traders and buyers, remove all border restrictions on movement, and ensure that non-payment of Agricultural Produce Market Committees fees and cesses do not impede mobility during mandi closures. Third, rather than closing mandis, adapt them to ensure social distancing and safe transfer, handling and storage, especially during the peak wheat procurement season coming up.
Finally, movement of schemes and money. Our social protection administration is notorious for its one-size-fits-all approach and administrative red tape that makes spending at the frontlines in accordance with felt needs difficult. The current crisis calls for an expansion of current schemes like the midday meals, ICDS-based supplementary nutrition and pensions. But states have varied levels of implementation capacity and are best positioned to determine which scheme can be deployed effectively to reach the most number of people at speed. So rather than direct state governments to follow a uniform approach, the Centre must create an untied pool of funding, by temporarily bundling its schemes into a core basket of funds that states can draw on and adapt according to their needs. States have already taken the lead in announcing state-specific relief packages. They are also at the forefront of implementation. A flexible mechanism of funding will ensure states are able to deploy resources in ways that play to their strengths and ensure that support reaches citizens at speed.
Responding to the coronavirus crisis requires careful communication and a coordinated approach across all levels of administration. At this point, however, the loudest message that has been delivered seems to be about complete enforcement of the lockdown, and the need for uniform measures. But now, more than ever, India needs uniform outcomes, not uniform measures. Indeed, if we are to have any chance at all, we will need more agility, adaptation and flexibility in our implementation of emergency response and relief in the coming days and weeks. Command and control will not work for such a highly distributed and dynamic disease. And a national lockdown cannot be sustained without coordinated movement. The Indian State needs to step up to the challenge for its people and for safeguarding their future.
Yamini Aiyar is president and chief executive, Centre for Policy Research. Mekhala Krishnamurthy is a senior fellow and director of the State Capacity Initiative, CPR and associate professor, Ashoka University
The views expressed are personal

India: Covid-19: What can be done immediately to help vulnerable population | Reetika Khera

From Ideas for India

Covid-19: What can be done immediately to help vulnerable population

  • Blog Post Date 25 March, 2020

Author Image
Indian Institute of Management Ahmedabad
reetika.khera@gmail.com
The central government has not made any announcement so far on how it plans to cope with the economic emergency that many are already facing because of the lockdown to control COVID-19 spread in India. In this post, Reetika Khera puts forward a few suggestions on what can be done to help people immediately, ranging from cash and in-kind assistance to special measures for migrants in urban areas and urgent health-related measures.
The spread of the Coronavirus Disease 2019 (Covid-19), and subsequent unplanned lockdowns to control its further outbreak have created an economic havoc in the lives of million s who are part of the informal sector – not just daily wagers, but also the gig economy workers. According to the Employment-Unemployment Survey, 2015-16, over 80% of India’s workforce is employed in the informal sector; one-third are casual labourers.
Within 24 hours of the Prime Minister’s address on 19 March, crowds at railway and bus stations across the metros started swelling. If they cannot earn, they wanted to get home where they would have at least some food and shelter.
The economic situation resulting from the lockdown that is necessary to contain the spread of the virus, will affect even those who will escape Covid-19. The central government has not made any announcement so far on how it plans to cope with the economic emergency that many are already facing. Here are a few suggestions on what can be done immediately to deal with this situation.

Cash assistance

The world over, including in India, cash transfers are being advocated as the first line of action. At first glance, they seem like the easiest and quickest option, but there are some caveats attached to them:
a. Deciding the ‘base’ is not trivial: Who gets the cash, and how much? Should it be for all the MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) workers? Should they all get the same (irrespective of how much they worked in the past)?
b. The possibility of hoarding and price rise, may erode the value of cash.
c. The density of bank branches in rural areas is thin. Mass cash transfers will create crowding, which in turn will create risk of community transmission of the virus.
d. There is also a largely unacknowledged issue of a mess in the banking system due to the move towards the Aadhaar-Payment Bridge System, which results in rejected or diverted payments, etc. Recent data from the health ministry suggested that nearly 10% of direct benefit transfers (DBT) failed due to this payment bridge. Besides this, payments that appear successful on the DBT portal, get misdirected into other people’s accounts.
Yet, there are cash transfers that can (and must) be used. Given the urgency, it would be better to ride on existing cash transfer programmes. This will still leave out some vulnerable populations (for example, the urban poor), but for them, other measures are suggested below.
  1. Advance payments: Give three months’ pension (for old age, widows, and persons with disabilities) in advance in April. The elderly survive on the goodwill of other earning members of the family. As family earnings dry up, the elderly may suffer.
  2. Enhanced payments: The central government’s contribution to social security pensions has been stuck at Rs. 200 per person per month. These must immediately be increased to at least Rs. 1,000 per month.
  3. Universal coverage: Universalise social security pensions. Identifying all those who are above 60 years of age, single women, etc. is one easy way of scaling up cash transfers.
  4. Clear arrears: For MNREGA workers, the central government must immediately clear all wage arrears from the 2019-20 financial year.
  5. Cash transfers for MNREGA workers: Provide 10 days’ wages for job card holders in cash at Panchayat Bhawans or anganwadis (childcare centres), or through their bank accounts for the coming three months, without work, due to the risk of community transmission. This will amount to approximately Rs. 2,000 per month per household for all the job card holders (under 140 million households). This will cost approximately Rs. 1 billion over three months.
  6. Work guarantee for MNREGA workers for later: In later months, when risk of community transmission subsides, assure them work for at least 20 days per month for those who are willing to work. In any case, 100 days of work on demand is a legal obligation of the Indian government under the MNREGA. As other economic activities pick up and the work requirement is reintroduced for MNREGA, the numbers will automatically fall. According to MNREGA website, currently only 80 million job cards (out of 140 million) are ‘active’.
  7. Revert to NEFT payments: For all cash transfer schemes (for example, pensions, MNREGA wages, Pradhan Mantri Kaushal Vikas Yojana, etc.), avoid Aadhaar-Payment Bridge System because of the problem of rejected and failed payments. As mentioned above, the failure rates are high. Use NEFT (National Electronic Funds Transfer) instead, as it is more reliable.

In-kind assistance

Given the possibility of hoarding, disruption in the supply chains, and the lack of work opportunities, providing in-kind assistance is important at this stage. If hoarding happens on a large scale, it may lead to price rise, eroding the value of cash.
After the implementation of the National Food Security Act (NFSA), the Public Distribution System (PDS) covers two-thirds of the Indian population. This broad network, which still suffers from exclusion errors, must be utilised immediately to provide assistance. It provides priority households with 5 kg grain per month for Rs. 1-3/kg; Antyodaya (poorest of the poor) households get 35 kg per month.
There is currently a problem of surplus stocks of food grain with the Food Corporation of India (FCI). The wheat procurement season has already begun in some states, and was about to begin in others.
  1. Double rations: The central government could utilise the excess stocks to provide double rations to all ‘Priority’ households and AAY (Antyodaya Anna Yojana) households, for an initial period of 3 months, to be extended if the emergency continues.
  2. Expand PDS coverage: Excess stocks can also be used to provide 20 kg per household to ‘General’ cardholders (also called APL (above poverty line) in some states) at least at a controlled price (say, Rs. 10/kg). Not all states have this category of cards but those that do, can use it.
  3. For advance or free distribution: Some states have announced free distribution for 1-2 months (for example, Karnataka) and advance distribution (for example, Chhattisgarh).
  4. Inclusion of other essentials: The government must consider provision of soap, dal, and oil through the PDS for the coming months.
  5. Discontinue ABBA: The central government must stop Aadhaar-based biometric authentication (ABBA) immediately because of risk of transmission. It has already discontinued Aadhaar-based attendance for central government employees on the same grounds. At least two studies show that ABBA achieves nothing in terms of reduced corruption and possibly makes matters worse by increasing transaction costs and exclusion. A few states, including Kerala, Chhattisgarh, Jharkhand, and Odisha have suspended ABBA already. A central notification is urgently required.
  6. Home delivery of food for children: Nearby anganwadis and schools should provide dry rations at home. They can also try to give eggs and dates in the pack because both have long shelf life and high nutritive value. Following Kerala’s announcement, several states have announced this, other states can emulate the same model.

In urban areas

The measures listed above will still leave out an important category of vulnerable people: these are people working as migrants in urban areas, whose homes are in rural areas. With the lockdown they are stuck without work, and sometimes even without shelter in urban areas. They will not be covered by either the MNREGA or the PDS. Therefore, special measures are needed for them.
  1. Shelter for migrants: There is a need to use stadiums, community halls, etc. for accommodating migrant workers temporarily, and provide soap and other hand-washing facilities to reduce risk of community transmission.
  2. No harassment of migrant workers: Strict instructions must be given to police in all states that they cannot harass, beat, or ask for money from migrant workers stuck in cities. Action must be taken against such officers to deter such behaviour. Videos of police violence emerged from different parts of the country on 22 March (see for instance, from Goa and Bhiwandi), and migrant labourers are especially vulnerable.
  3. Community kitchens for all: As a large part of the workforce is in the informal sector, many are out of work, and either returning home or stuck in cities without employment. Such people need food and shelter. For food, the central government can supply free food grain and dal from the FCI. Migrants can use this to run community kitchens (like Amma's canteens in Tamil Nadu, Indira canteens in Karnataka, daal-bhaat kendras in Odisha, Chhattisgarh, and Jharkhand). These can be self-managed by the workers and provide them an opportunity to earn some money. There is need to target railway stations and bus stations, and Block headquarters in rural areas, for setting up new community kitchens for those who are similarly affected. To minimise the chances of community transmission, the density of such feeding centres needs to be very high, where entry is either regulated (10-15 at a time), or food packets are provided for pick-up.
  4. Essential services: Each state should clearly specify what services are included under essential services, and the administration must ensure that the providers of these services are not harassed.
  5. Controlled prices for essential goods: As cities enter lockdown, make provision of essentials at controlled prices (not necessarily subsidised) to reduce panic buying and hoarding. Existing (government and private) networks of shops can be used for this purpose. For example, in Delhi, Safal outlets can be used; in Bangalore, Hopcoms; and so on.
  6. Controlling panic: Each district administration needs to set up a daily (area-wise) roster for people to get essential goods and services, to minimise disruption of daily life.

Urgent health-related measures

  1. Education, not surveillance: Deter community members from indulging in peer-to-peer surveillance. Instead, educate people regarding the importance of self-isolation.
  2. More public education: Launch very widespread messaging regarding washing hands, logic of social/physical distance, not touching mouth, eyes and nose without washing hands.
  3. Enhanced testing: Let people know what symptoms to watch out for, and at what stage they should approach doctors. Do NOT deter them from approaching doctors for fear of escalating numbers.
  4. Free testing: Scale up testing immediately. Tests should be made free, whether they are conducted by the private labs, or by the government.
  5. Mobilise frontline workers for education: Mobilise ASHA (Accredited Social Health Activists) workers, Anganwadi workers and helpers, ANMs (Auxiliary Nurses-Midwives) to create mass awareness about symptoms, spread, and precautions. Enhance their salaries/honorarium, and provide protective gear for them.
  6. Public hygiene: Provide hand washing stations across cities, especially at railway stations, bus stations etc. That will send an important message.
  7. Nationalise or regulate private health services: Wherever necessary (for example, in the case of protective equipment), the government may consider temporary nationalisation (for instance, the National Health Service (NHS) in the UK, has taken over private hospitals). At the very least the government must take steps to ensure price regulation of these sectors, by taking exemplary and swift action against unscrupulous behaviour (for example, fake testing, inflated pricing of masks, soap, sanitisers, etc.).
  8. Listen to public health professionals: More health related recommendations have been made by the Jan Swasthya Abhiyan, which are available here.

Friday, March 16, 2018

India: Three cities, 36 workers, the same story - Even daily jobs are now hard to find

via: scroll.in, 16 March 2018

Three cities, 36 workers, the same story: Even daily jobs are now hard to find

A new series on availability of work and trends in wages based on interviews with 12 workers each in Delhi, Mumbai and Chennai.



“Have you come here to get us work?” Monu Raikwad asked a Scroll.in reporter one cold February morning. The scrawny 28-year-old man was squatting among a group of people on the periphery of a park in Delhi’s Subhash Nagar that serves as a labour naka – a place where daily wage workers assemble every morning in the hope of finding assignments. If they were lucky, they could find work as masons or painters at construction sites or as porters lifting materials. Hired and paid on a daily basis, the workers, most of whom are rural migrants, lead a precarious existence in the best of times.
How has life changed for them since 2014? In May that year, a new government led by the Bharatiya Janata Party came to power under Prime Minister Narendra Modi. One of his main election promises was to give “high priority to job creation”. Four years later, in the absence of regular and reliable data on employment in India, his government’s performance on that count is the subject of heated debate among economists and commentators.
But, among the most vulnerable workers in urban India, there appears to be startling consensus: both work and incomes are down.
Scroll.in reporters in three cities – Delhi, Mumbai and Chennai – visited labour nakas in February, asking 12 workers in each city the same set of questions about availability of work and trends in wages.
The workers were aged between 23-62 years and most of them did construction-related jobs. Barring two, all the workers were male.
All 36 workers across the three cities reported getting fewer days of work since 2014, with most identifying 2016 as the year when work dried up. While the daily wages had increased, the reduced number of workdays meant that 32 workers reported a drop in monthly income. They said they could no longer afford to buy milk, vegetables and a host of essentials.


Why has work shrunk?

As many as 23 workers attributed the drop in workdays to Modi’s decision in November 2016 to demonetise high-value bank notes. Overnight, 86% of India’s currency was made illegal. With new notes taking long to enter the system, the liquidity crunch paralysed economic activity for months. Among the worst-hit sectors was construction, which is India’s largest employer of workers after agriculture. While the latest GDP data has shown a slight recovery in the construction sector in the third quarter of 2017-’18, conversations with workers indicate the after-effects of demonetisation persist.

Seven workers identified the Goods and Services Tax as one of the factors responsible for their economic hardship. Introduced in July 2017, the GST replaced all other indirect taxes in India with the aim of simplifying taxation and boosting inter-state trade. However, the implementation of GST has been marked by confusion, complicated slabs, arbitrary changes and delayed refunds. This has hurt businesses.

While demonetisation and GST were common factors cited across all three cities, some workers highlighted local factors too. In Delhi, two workers said the move by civic authorities to seal unauthorised structures had dampened the construction sector. In Chennai and Mumbai, four workers blamed migrants from other states for their economic hardship.

In Chennai, eight workers attributed the shortage of work to the “sand problem”. In November 2017, the Madras High Court banned illegal sand mining in the state, which workers said had brought construction work to a standstill. Three workers interviewed by Scroll.in reduced all these factors to one event: the death of Amma, as J Jayalalithaa, the former chief minister who died in 2016 was popularly known.

The other political leader who featured in the interviews was Prime Minister Modi – three workers blamed him for their drop in workdays.


How does this fit into the larger picture?

India’s data on employment levels in the economy takes a little time to generate.
Since the 1970s, the National Sample Survey Office under the Ministry of Statistics and Programme Implementation has conducted an Employment-Unemployment Survey in households every five years. Since the data is collected at homes and not workplaces, it reflects employment levels in both the formal and informal economy. The last NSSO survey was done in 2011-’12. It pegged the unemployment rate at 27%, up from 18% in 2004-’05.
This five-yearly exercise has since been replaced by a Periodic Labour Force Survey, which will be conducted annually. The first round began in April 2017. The results are unlikely to be released before the end of 2018.
To generate more timely data on employment, since 2010, the Labour Bureau of the Ministry of Labour and Employment has been conducting annual household surveys, which ask fewer questions than the National Sample Survey Office but have a comparable, if not larger sample size.
In a response to a question in the Lok Sabha on March 3, 2018, however, the minister of state for labour and employment, Santosh Kumar Gangwar, said these annual surveys had been discontinued.

Despite this, economists say there is enough evidence to show that employment growth in India has slowed down.
Combining data from the Labour Bureau’s annual surveys with the NSSO surveys, Santosh Mehrotra, a professor of economics at the Jawaharlal Nehru University’s Centre for Informal Sector and Labour Studies, estimated that the annual number of people leaving agriculture slowed down from five million between 2004-’05 and 2011-’12 to just one million between 2011-’12 to 2015-’16. “For the first time in India’s history, after 2004-’05, the absolute numbers in agriculture had begun to fall, because people were finding work in construction in both rural as well as urban areas,” he said.
Jayan Jose Thomas who teaches economics at the Indian Institute of Technology, Delhi, said even this employment growth was not enough to absorb the rising number of people entering the workforce every year, and most of the new jobs were low-value ones. “But it still served a purpose in reducing poverty,” he said. Now, he said, “all indications suggest that even this may have slowed down”.
Mehrotra said construction has slowed down because a sluggishness in the economy. “Investment is down, capacity utilisation is down, credit offtake is down, exports are down,” he said. “In this situation, how would jobs get created?”
He said the worker interviews done by Scroll.in reporters were “very consistent” with the larger trends in the economy.
Vijayabaskar, a professor at the Madras Institute of Development Studies, agreed. “Given the fact that the bulk of employment outside agriculture was generated in the construction sector in the last 15 years, it is not surprising that people are reporting a decline in employment,” he said. In his fieldwork in rural areas, he often comes across people who have returned from the cities because they are no longer able to find work in construction. “They cannot afford to stay,” he said. “You don’t even get to see them in the cities.”

A painter waiting for work at the labour naka outside the Khar railway station in Mumbai. Photo: Shone Satheesh
A painter waiting for work at the labour naka outside the Khar railway station in Mumbai. Photo: Shone Satheesh
Demonetisation came as a further shock to an economy that was already slowing down, say economists. Given the low frequency of the household employment surveys, however, there is inadequate data on the trends in the labour market since 2016.
Apart from the household surveys, the Labour Bureau also conducts Quarterly Quick Employment Surveys that measure employment in eight sectors of industry and services by surveying enterprises with more than 10 workers. These surveys show the net jobs created in eight sectors of the Indian economy declined sharply from 10 lakh in 2011-’12 to just 1.35 lakh in 2015-’16. “Earlier, we were creating 10% of the jobs needed to absorb the net addition to the workforce,” said Praveen Jha of the Jawaharlal Nehru University’s Centre for Economic Studies and Planning. “But now creating just 1% of the requirement.”

Since the enterprises covered in the quarterly surveys constitute just 1.4% of the total number of establishments in India, many have questioned whether they are truly representative. The daily wage workers interviewed by Scroll.in, for instance, are unlikely to feature in such enterprise surveys, which do not capture the picture in the unorganised sector.
But economists say there are other ways to estimate the trends among informal workers. Mehrotra pointed out that in the aftermath of demonetisation, there was a sharp increase in work demanded under the Mahatma Gandhi National Rural Employment Guarantee, which guarantees 100 days of work to every rural family that demands employment, within 15 days of their demand and within 5 km of where they live. “On November 7, 2016, the person-days demanded was 34 lakh across the country,” he said. “By December 12, that had jumped to 50 lakh, and by the beginning of January, to 82 lakh. These workers had been laid off from informal work in cities, and were returning to their villages to safety and in search of livelihoods.”

Asked about the losses suffered by workers in the unorganised sector due to demonetisation, the minister of state for labour and employment, Santosh Gangwar, said in a response in the Lok Sabha on March 3: “Employment in unorganised sector depends on variety of factors and it is difficult to pin-point the degree of impact of demonetisation thereon. There is no such input available with this ministry.”
Another dataset that captures trends in urban employment is the Consumer Confidence Survey done by the Reserve Bank of India every month in six metropolitan cities. The surveys, which cover about 5,000 respondents, show rising pessimism about urban employment.

Vinoj Abraham, who teaches economics at the Centre for Development Studies, Thiruvananthapuram, wrote in the Economic and Political Weekly that all sources of data – the Labour Bureau’s annual and quarterly surveys – show a slowdown in employment growth between 2012 to 2016. “Much of the employment decline is probably concentrated in the unorganised sector, while the organised sector has experienced a slowdown in growth,” he wrote. “Thus the weakest among the working class are bearing the brunt of the employment decline.”
At the labour naka in Delhi’s Subhash Nagar that morning, the sun rose higher but no employer was in sight. The workers grew tired of the wait. “I have not got any work for the past three days,” said Monu Raikwad, who prepared to head back home empty handed for the fourth day in a row.

Daily wage workers sit by the roadside in Subhash Nagar area of West Delhi. Every morning, about 100-200 workers assemble at a busy road intersection and wait for their potential employers for the day.  Photo: Aabid Shafi
Daily wage workers sit by the roadside in Subhash Nagar area of West Delhi. Every morning, about 100-200 workers assemble at a busy road intersection and wait for their potential employers for the day. Photo: Aabid Shafi
All graphics by Anand Katakam.
More in this series:
From four chapatis to two: Job shortage forces Mumbai’s daily wage workers to cut back on meals
As incomes drop, Chennai’s daily wage workers miss Amma, blame Modi
From construction to sanitation: How daily wage workers in Delhi survived demonetisation

Wednesday, February 22, 2017

India: changes to Factories Act will affect over 50% of factories

scroll.in - Feb 20, 2017

labour laws

Months after note ban, Centre revives changes to labour law that will affect over 50% of factories

Labour ministry officials have made a fresh proposal to amend the Factories Act, 1948, which defines health and safety measures for workers.

Restructuring labour laws seems to be back as a priority on the agenda of the Union government.
Soon after it assumed office, the Narendra Modi-led National Democratic Alliance government had proposed amending the Factories Act, 1948, a law central to regulating work conditions in industrial units. This was one of the Union government’s first legislative amendments. However, more than two years later, the factories amendment Bill has still not been passed as it has not got the approval of the Rajya Sabha, and there has been slow movement on other proposed legal reforms such as efforts to codify over 44 labour laws into four statutes.
But recently, the Ministry of Labour and Employment circulated a two-page note among central trade unions as a fresh proposal to push amendments to the Factories Act. The government argues that these amendments are necessary to create new jobs and make it easy for businesses to grow.
However, trade unions and workers’ groups, whose representatives met labour minister Bandaru Dattatreya on February 14, have opposed the proposals. They say that these proposed changes, which push more than half of all factories outside the purview of any regulations, were already rejected by the Parliamentary Standing Committee on Labour in 2015. The unions say the implementation of labour laws in India has already been weakened by successive governments over the years, and the new changes fail to provide for decent work conditions.
The unions, including the Rashtriya Swayamsewak Sangh’s trade union wing, the Bharatiya Mazdoor Sangh, have also criticised the manner in which the government has introduced these changes – labour ministry officials circulated a broad outline instead of making available the actual language and details of the fresh amendments being proposed, which would have enabled meaningful consultation with unions and workers groups.

‘Affects two-thirds of factories’

The Factories Act, 1948, defines a factory based on the number of workers it employs. If a unit uses power for manufacturing, it is considered a factory if it employs more than 10 workers in a year. Units that do not use power for manufacturing are identified as a factory only if they employ at least 20 workers.
The Act also defines minimum safety, health and welfare measures for workers that must be followed by a unit defined as a factory.
In its amendment Bill, introduced in Parliament on August 7, 2014, the government had proposed changing the original Act to double the threshold level of employment from 10 workers to at least 20 workers in case of factories using power, and from 20 workers to 40 workers in case of factories not using power for manufacturing. This meant that units employing less than these numbers would no longer have to follow the standards set out in the Factories Act.
Data from the Annual Survey of Industries shows that about one lakh (or 58%), of the 1.75 lakh factories in 2011-’12 employed less than 30 workers. Of the total, 36% of all units employed less than 14 workers, while 10.6% had workers in the range of 15-19, and 11.6% of the total units had 20-29 workers employed in the previous year.
Taking note of this data that was presented by central unions, the Parliamentary Standing Committee on Labour rejected the proposal to increase threshold defining limits, in its 116-page report presented on December 23, 2014.
The report said:
“..More than 70 percent of the factory establishments in the Country will be out of the coverage of the Factories Act and workers will be at the mercy of employers on every aspect of their service conditions, rights and protective provisions laid down under the Act..,”
In the new proposal circulated on February 14, the labour ministry has stated again that state governments will have the power to double employment threshold limits from 10 workers to 20 workers in units using power for manufacturing, and from 20 workers to 40 workers in units that do not use power for manufacturing, except in factories with “hazardous processes”.
Additionally, the Centre has also proposed that state governments could decide the employment threshold for a unit to be considered a factory under the Factories Act by simply issuing a notification to this regard.
Tapan Sen, a Rajya Sabha member of Parliament with the Communist Party of India (Marxist), who is a member of the Parliament Standing Committee on Labour, pointed out that the government was lying in order to proceed with its proposed amendments.
“Despite the Parliament Standing Committee on Labour rejecting the proposed amendments in the 2014 Bill – on threshold, and on increasing spreadover time and overtime permissible – the labour ministry blatantly lies saying ‘the Parliament standing committee has accepted majority of the amendment proposal’,” he said.
Sen added: “They have organised a hurried meeting and circulated the amendment again to simply create a record that they followed a process of consulting the unions, and push for the same proposal.”
Besides, the proposal on the threshold limit, the ministerial note also proposes:
  • To modify list of industries involving hazardous processes.
  • Replacing the concept of approval and licensing of factories with the “concept of deemed approval” based on “web-based registration, self-certified declaration and web-enabled inspection”. (This means that a unit would be considered registered and ready for business by default two weeks after registering online. These units would be inspected for compliance with the Factories Act according to randomised turns.)
  • Setting up of an Occupational Safety and Health Board of India.
  • New definition of the terms “child”, “adolescent” and “young persons”.

‘No details’

Pawan Kumar, a zonal organising secretary who attended the labour ministry meeting on behalf of the Bharatiya Mazdoor Sangh, said the proposal lacked details.
“The proposal did not even mention the proposed amendments as per which sections were being referred to,” said Kumar. “We asked the minister ‘Which version of the Bill are you now suggesting fresh amendments to since there are two versions of 2014 and 2016?’ But he did not say. We asked for details of the composition of Occupational Safety Boards as it was not specified that it would have government, workers, employers representation.”
KR Shyam Sundar, a professor of Human Resource Management at Xavier School of Management in Jamshedpur, said that while some changes to the 1948 Factories Act, last amended in 1987, may be necessary, the government’s current proposal was a half-done measure.
“It is true that small units may find it difficult to comply with a few provisions of the Factories Act,” said Sundar. “But if the government wants to allow states to double the [employment] thresholds, it must also create a second set of regulations specific or suited to regulating the work conditions inside smaller units.”
He added: “As of now, India lacks an occupational health policy framework. How will the proposed boards create an effective mechanism, when there is no policy framework in place?”
Sundar also questioned the motivation behind the government’s decision to revive the amendments now.
“A World Bank report published in January on the state of the economy had criticised the continuation of India’s restrictive labor laws as adversely affecting investor confidence,” he said. “The government may be reviving labour law changes debate to fare better on international financial institutions business climate rankings, especially following demonetisation.”
Labour ministry officials said they would hold a second meeting with representatives of trade unions and workers’ groups before the ministry finalised amendments to the Factories Act.