MAY DAY : LABOUR HOLIDAY : 1ST MAY 2012

 MAY DAY : LABOUR HOLIDAY : 1ST MAY 2012

The first of May, celebrated as international workers day each year only serves to underscore its irrelevance for nine out of ten workers in India, who work in the unorganized sector and almost by definition, lack any protection such as maternity benefits or provident funds.

The key reason behind such a bizarrely skewed ratio of the formal and informal economy lies in India’s labour laws that implicitly incentivize contractual and informal employment. Although reforms to overhaul such laws to enlarge the size of the formal sector have not found too many patrons so far, there are growing demands for a better deal for the unorganized sector.

The absence of a social safety net for the unorganized sector has been the biggest deterrent to introduce a simplified and flexible labour law regime so far. The fear that organized workers might face the double trauma of joblessness and scant social security has made it difficult for political parties, who risk alienating a privileged and vocal minority, to support labour reforms. Consequently, there is little attempt to replace arcane labour laws that are unfriendly both to workers and employers, with simpler laws.

The move to universalize pensions can be a part of a broader process that bridges the gap between the organized and unorganized sector and lays the initial conditions for labour reforms. As political economist Pranab Bardhan points out in his writings, labour reforms are most likely to succeed when introduced as a package deal that promises wider social safety and unemployment assistance while offering more flexibility to employers. Such a deal will herald a real May Day for Indian workers.

No Indian politician has yet gathered the courage or imagination to introduce such a package deal. The benefits to the economy will be considerable but the past record of the current regime at least does not inspire much hope.

May Day or Labour Day is on 1^st May in India.   Labourers of all classes big and small demand honourable living conditions.

"Living costs have gone up but Labourers salaries remain unchanged. Labourers  only make enough to eat but there is no money in the bank, no money for our children's education,".

There's also no job security

May Day protests sweep across Asia.