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Radical labor reforms announced by states like Madhya Pradesh, Uttar Pradesh and Gujarat have received strong criticism from many. Eminent labor economist Dr. Shyam Sundar believes it is an extremely retrograde step that jeopardizes the rights and security of the Indian workforce. Uttar Pradesh has announced that it has cleared the “Uttar Pradesh Temporary Waiver of the Ordinance on Certain Labor Laws, 2020” to exempt all establishments, factories and companies from the scope of all but four labor laws, for three years.
While the apparent objective is to boost investment in the state, affected by COVID-19, many labor experts believe that creating a more flexible and less structured policy would actually be rejected by foreign capital seeking an ethical framework. and solid legal while dealing with human work.
Pradeep Bhargava, former president of the Employers’ Federation of India and former chairman of the IIC’s National Committee on Industrial Relations, says the changes announced by the Madhya Pradesh government are positive and will help the industry operate in a more professional manner and independent. He also believes that it is counterproductive for employers to treat their employees unfairly or unsafely.
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