Expert Speak India Matters
Published on Jul 01, 2020
The Covid-19 pandemic has upended several long-held paradigms.
The migrant labour crisis must push for structural reforms

In addition to many other factors, India’s economic growth is enabled by the migrant labourers from Uttar Pradesh, Bihar, Jharkand, Rajasthan and Madhya Pradesh. According to the 2011 census, there were 5.6 crore such migrant labourers. Though there is no official data available, it is estimated that currently there are at least 10 crore migrant labourers, accounting for 10% of India’s GDP. Despite their contribution, their interests have not been effectively met. Unlike farmers, who benefit (though inadequately) from several government schemes and labourers in rural areas who benefit from MNREGA — migrant labourers receive no formal government support. While many states such as Uttar Pradesh, Madhya Pradesh, Haryana, Rajasthan, etc., have made sweeping changes to labour laws so that employing workers is made easy, they don’t address the issues faced by migrant labourers — it may exacerbate them. In order to improve the working and living conditions of migrant labourers and their families, there is a need to implement a comprehensive national strategy for migrant labour welfare, by making changes to the Occupational Safety, Health and Working Conditions Code, 2019 (herein referred to as code) that has been tabled in the Lok Sabha.

Unlike farmers, who benefit (though inadequately) from several government schemes and labourers in rural areas who benefit from MNREGA — migrant labourers receive no formal government support.

In order to protect the interests of migrant labourers and avoid their exploitation, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, was passed in 1979. The law is meant “to regulate the employment of inter-state migrant workmen and to provide for their conditions of service and for matters connected therewith.” As per this law, establishments hiring inter-state migrants must register themselves and only licensed contractors can engage such labourers. The licensed contractors must provide details about the labourers whom they engage, to the state labour department. Migrant labourers engaged for work must be paid wages on par with domestic labourers, and must be provided allowance when they’re displaced, in addition to being paid allowances for and wages during their inter-state journey. The law also mandates that migrant labourers be provided healthcare benefits and accommodation, by their employer.

If adhered to in letter and spirit, the law eliminates the cost advantage of engaging migrant labourers in states such as Maharashtra, Tamil Nadu, Gujarat, Delhi etc., where the cost of local labour is high. As a result, establishments engaging migrant labourers under-report the number of labourers they engage and don’t provide the welfare that migrant labourers are entitled to. The labour department officials in the home states are often aware of this under-reporting and resort to rent seeking behaviour at the cost of migrant labourers’ welfare.

Establishments engaging migrant labourers under-report the number of labourers they engage and don’t provide the welfare that migrant labourers are entitled to.

Labour is a subject on the concurrent list, and is governed by 100 state and about 40 central laws. In an effort to streamline India’s complex labour laws, the central government has tabled the code in the Lok Sabha. The code subsumes and replaces thirteen existing labour laws, including the Inter-State Migrant Workmen Act. However, the code contains the limitations of the original act, so far as migrant labourers’ welfare is concerned. It does not adequately recognise the unique situation of inter-state migrant labourers, and on most matters, treats them on par with domestic labourers. The code, much like the earlier law, absolves the governments of the home states, in promoting the welfare of migrant labourers. The code was conceived and tabled before the Covid-19 outbreak. In light of the lessons learned on the plight of India’s migrant labourers, the following aspects must be incorporated into the code, before it is made into a law:

1. National migrant labourers data base and unique identity

2. On-going state support — legal and financial literacy

3. Comprehensive skill development roadmap

4. Healthcare support

5. Migrant Labourer Provident Fund

National migrant labourers data-base and unique identity

Official data on migrant labourers is collected by the state government, from employees and licensed contractors who engage them. While most contractors under-report, many don’t report and a lot of migrant labourers are engaged by contractors who are not licensed to engage them. This leads to poor data availability on migrant labourers. Even today, the most reliable data on migrant labourers is from the 2011 census. Absence of data is one of the reasons why the central and state governments were taken off-guard after the lockdown was announced.

While most contractors under-report, many don’t report and a lot of migrant labourers are engaged by contractors who are not licensed to engage them. This leads to poor data availability on migrant labourers.

Item 81 of the seventh schedule of the Indian constitution lists inter-state migration as a subject under the centre. Using this listing, comprehensive national database of migrant labourers needs to be developed by the central government, with data being fed by the states Through the database, a unique Aadhar linked identification card must be generated for every inter-state migrant labourer. This Aadhar linked identification must be linked to the JAM trinity (Jan-Dhan, Aadhar and mobile) and would bring them under the formal net. Receiving benefits that are designed for migrant labourers, including cash transfers, must be contingent on obtaining this identity. Such a national database would provide real-time information to the centre, home states and destination states. Employers and contractors must also be mandated to register the migrant labourers they engage, using their unique identity, on the Shram Suvidha portal. This would allow for easy data gathering and visualisation, based on which policy and welfare measures could be introduced and implemented with ease.

On-going state support

The Odisha government set-up the Shramik (labour force) Sahayata toll-free helpline for its migrant labourers working in other parts of the country, to avail support from the Odisha state government. In addition, the Odisha state government has set up help desks and migration support centres for migrant labourers, and seasonal hostels for the children of migrant workers. Through these initiatives, Odisha also pays special attention towards strengthening anti-human trafficking units that often exploit young woman seeking employment opportunities. While these support centres are within Odisha, governments of home states from which many migrant labourers originate must open such service centres in destination states to which the labourers migrate.

Migrant labourers must be made aware of their legal rights under the various central and state laws. This would create an enabling environment for the contractors who hire them, to comply to the extant laws.

The code must mandate that states that has an outgoing migrant labour force in excess of 500,000, must set-up such support centres within the state, and states that supply in excess of 500,000 migrant labourers to a particular state must set-up such service centres in the destination state. Through these centres, state governments must regularly and proactively reach out to labourers and solicit data about their workplace conditions, engagement terms, health condition etc., which would not only be useful in plugging data gaps, but also in ensuring the continued welfare of migrant labourers.

These service centres must also support migrant labourers in two specific areas: legal rights and financial awareness. The migrant labourers must be made aware of their legal rights under the various central and state laws. This would create an enabling environment for the contractors who hire them, to comply to the extant laws. As part of the ongoing migrants labourers support programme, the home state government must tie-up with NGOs such as Shram Sarathi, in promoting financial literacy and support them in their financial inclusion. Financial inclusion of migrant labourers plays a big role in the economic upward mobility of their families.

Comprehensive skill development roadmap

India’s vast migrant labourers would continue to be short-changed, so long as they are low or no skilled. With rapid technological progress changing the landscape of employment across all industries, India’s migrant labourers need to be enabled to not just be relevant, but also to take advantage of these changes. Under the Pradhan Mantri Kaushal Vikas Yojana, a skill development programme targeting the youth, 69 lakh people have been trained so far; no such program exists for migrant labourers. The Ministry of Skill Development and Entrepreneurship must develop a similar skill mapping and skill development roadmap targeting migrant labourers. The skill development initiative must be matched to industry requirements both in their home state and the destination state. A report by the National Skill Development Council lists four areas in which migrant labourers from Uttar Pradesh could be trained, for them to receive better wages and improved work conditions: construction, retail, transportation and household work. There could also be industry specific training, that can be imparted based on coordination with states requiring specific skills. For example, the glass and glassware manufacturing industry in Gujarat employs a lot of migrant labourers from Rajasthan. The Rajasthan government could train its migrant labour force on glass manufacturing and handling skills, so that they can be productive from day one. Training of India’s ten crore migrant labourers with industry relevant vocational skills would go a long way in making India a global manufacturing hub. The wages that the migrant labourers receive must also be indexed with the skills they possess.

There could also be industry specific training, that can be imparted based on coordination with states requiring specific skills.

Healthcare support

The code currently mandates that contractors engaging migrant labourers provide healthcare benefits to the migrant labourers; this leads to increased costs, resulting in non-compliance and under reporting. While the intention behind mandating the employers to provide healthcare support is aimed at a positive outcome, its real-world ramifications are undesirable. Hence the government must take responsibility of providing health care benefits to migrant labourers. Upon availing the unique identity, all migrant workers must be automatically enrolled into the Ayushman Bharat health insurance scheme. This minimises the healthcare obligations of the employer, which will incentivise them to report accurately.

Migrant Labourer Provident Fund

The government must enact a law that institutionalises a provident fund covering all migrant labourers. A fixed amount must be determined, based on parameters such as age and skill levels, and must be deposited into a dedicated provident fund account. This contribution must be jointly made by the central, destination state and home state governments. This fund would act as a social net for the migrant labourers and their families.

A fixed amount must be determined, based on parameters such as age and skill levels, and must be deposited into a dedicated provident fund account.

The Covid-19 pandemic has upended several long-held paradigms, and has also exposed the plight of migrant labourers. Despite their significant contribution to India’s GDP, they never garnered the policy or political attention they deserve. India’s migrant labourers deserve an enabling eco-system that improves their current condition and makes their future sustainable. Lasting changes to their working conditions through comprehensive reforms is the least that they deserve, and this would also benefit the rest of India. Now that we know the magnitude of the problem, India must use this opportunity to come forward and usher in sweeping structural reforms on the backdrop of the Occupational Safety, Health and Working Conditions Code, 2019 tabled in the Lok Sabha.

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Contributor

Prasanna Karthik

Prasanna Karthik

Prasanna Karthik is a strategy consultant and public policy professional based out of New Delhi. He is a Fulbright as well as Clinton Global Initiative ...

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