India Inc backs labour code plan on minimum wage

The success of the proposed labour reforms in the long-term, however, hinges on implementation.

The proposed labour code, which advocates a universal minimum wage and promotes formalization of the workforce, is a step in the right direction, according to India Inc. The code also intends to modify the definition of inter-state migrant workers, which will allow welfare benefits to move with labour movement.

Labourer at work in a building near Gaur Chowk ,during the nationwide lockdown, in Noida.(Virendra Singh Gosain/HT PHOTO)

“For any business to flourish, there needs to be a proper ecosystem and a conducive environment,” Jaxay Shah, president, Confederation of Real Estate Developers’ Association of India, said. “Labour welfare is an integral part of any industry and efficiency improves when labourers feel secure. The cost of labour will go up with some of these measures, but that has already been happening over the last few years when there has been so much disruption and liquidity trouble for industry.”

Vikram Kirloskar, vice-chairman, Toyota Kirloskar Motor, tweeted that the relief measures, such as food and shelter for stranded migrant workers, relief on crop loans and concessional credit for farmers and easy credit for street vendors, will go far in providing immediate relief to those affected by the lockdown.

The success of the proposed labour reforms in the long-term, however, hinges on implementation. Varun Aggarwal, founder and lead, India Migration Now, a research and advocacy initiative, said the fundamental issues are delivery of welfare and communication to those who need it. “Policies such as low-cost housing are a step in the right direction. For implementation to work, there needs to be a system of registration of migrant workers,” he said.

(Kalpana Pathak contributed to the story)