Experts worry about flipside of labour codes

HYDERABAD: While the Telangana industry has welcomed the passage of the Industrial Relations Code Bill in Rajya Sabha on Wednesday, it is also concerned about its effect on labour rights. 

The Industrial Relations Code Bill proposes to increase the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.

This will give employers more flexibility to hire or fire labourers at establishments with less than 300 workers, experts say. 

“From an industry standpoint, the changes in the regulatory framework under the IR code is constructive and provides a salubrious climate for fearless growth of industrial organisations apart from creating jobs,” Srinivas Garimella, chairman of the industrial development committee of the Federation of Telangana Chambers of Commerce and Industry (FTCCI), said.

But as experts said, it may turn out to be a rough hand that has been dealt to workers. “In Telangana, be it manufacturing or services, very few industries are large and most fall under the small and medium categories.

"This will impact most of our labourers and they will become vulnerable,” Amir Ullah Khan, an economist and professor, said. But he saw a silver lining in the Bill, if it brings more investment into the country.