The timing of two recent Bills, introduced hastily and passed equally hastily by Parliament, has puzzled most observers. What prompted the ruling party to suddenly implement the Labour Codes which were enacted in 2019 and 2020? Why was there such hurry and stealth to replace the MGNREGA with VB-GRAM-G? They did not make much sense beyond the usual rhetoric of structural reforms and modernising the economy.

The objective of both these acts is, however, becoming clearer — they diminish the bargaining power of labour and depress wages. Workers, farmers and the opposition have been quick to join the dots, prompting nationwide protests. With over 600 million workers in rural and urban India, their resistance could become formidable if mobilised effectively.

Some key questions persist: will there be adverse political consequences for the ruling party? Can rural and urban workers do what the farmers did? Can they force the government to roll back the twin changes designed to weaken them?

The Labour Codes curtail the bargaining power of workers, weaken trade unions and strip individual workers of protection from exploitation by employers.

The MGNREGA, though imperfect, did bolster rural poor employment and incomes. Despite low wages (often less than minimum wage) and a limit of a maximum of 100 days of work per adult member of a family (approximately 20 days of wages per family member per year), it supplemented incomes in times of crises, like the Covid-19 pandemic. Though it offered only 50 days of work on average as against the promised 100 — due to underfunding — it still offered relief to marginalised communities.

The government, while justifying the changes, now argues that the Labour Codes will protect workers’ rights and the VB-G-RAM-G will benefit farm workers by increasing workdays from 100 to 150. The Centre has proposed raising the allocation to Rs 95,692 crore from Rs 86,000 crore in........

© National Herald