Freedom of Association at Work

The International Labour Organisation (ILO) released its Social Dialogue Report. The report emphasizes the importance of governments maintaining basic rights at work, particularly freedom of association (the right to join unions) and the right to collective bargaining (negotiating work conditions collectively with employers).

Key Findings and Recommendations:

• Decline in Labor Rights (2015-2022): The report found that between 2015 and 2022, there was a 7% decline in countries’ compliance with the freedom of association and right to collective bargaining.
  • This decline was attributed to increased violations of the rights of workers, employers, and their representative organizations.
• Focus on Peak-Level Social Dialogue (PLSD): The report stressed the importance of Peak-Level Social Dialogue (PLSD), a process that brings together governments, employers, and workers to discuss labor and social policies.
  • PLSD includes bipartite dialogue (between employers and workers) and tripartite dialogue (including the government).
  • The ILO encouraged countries to improve their social dialogue institutions (NSDIs), providing them with better resources and technical support to ensure effective participation.
• Recommendations for National Social Dialogue Institutions (NSDIs): NSDIs should work to include underrepresented groups and conduct regular evaluations to see how effective they are in socio-economic decision-making.
• Role of Social Dialogue in Economic Development: Social dialogue was highlighted as a way for countries to balance economic development with social progress.
  • The ILO believes that social dialogue can help ensure fair transitions during low-carbon and digital transformations of the economy, which are being driven by technological changes, climate change, and demographic shifts.

Role of Trade unions in emerging sectors:

• Compared to conventional industries such as manufacturing, public utilities, and conventional financial sectors such as traditional banking and insurance, forming unions in modern and emerging sectors is much more difficult.
• Long ago, Freeman and Medoff examined the effect of trade unionism on the exit behaviour of workers in the context of the ‘exit-voice-loyalty’ model of Albert Hirschman.
• It is believed that IT employees do not need trade unions as they have competitive compensation pay packages, supposedly good conditions of work and a mechanism to address grievances. And so, they stay on and are loyal to the company and the industry.
• If these conditions are violated, they switch to other organisations as they have the required skill sets (exit); hence, labour turnover in this sector has been rather high.
• They do not collectively bargain or strike or resort to legal action as middle-class employees who go to court would be stigmatised (voice). And many survive by simply keeping quiet (loyalty).

What is the Framework Regarding Labours in India?

• Constitutional Framework: Under the Constitution of India, Labour as a subject is in the Concurrent List and, therefore, both the Central and the State governments are competent to enact legislations subject to certain matters being reserved for the Centre.
• Judicial Interpretation:In the case of Randhir Singh vs Union of India, the Supreme Court stated that “Even though the principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal which is to be achieved through Article 14,16 and 39 (c) of the Constitution of India.
  • Article 14:It provides for equality before the law or equal protection of the laws within the territory of India.
  • Article 16: It talks about the right of equal opportunity in the matters of public employment.
  • Article 39(c):It specifies that the economic system should not result in the concentration of wealth and means of production to the detriment of the entire society.
• Legislative Framework: There have been several legislative and administrative initiatives taken by the government to improve working conditions and simplify labour laws. Most recent is the consolidated sets of 4 labour codes which are yet to be implemented.
• Labour Codes:
  • Code of Wages, 2019
  • Industrial Relations Code, 2020
  • Social Security Code, 2020
  • Occupational Safety, Health and Working Conditions Code, 2020