Labour under Stress: An Assessment Based on Primary Information

Introduction Logic of economic reforms in India has been growth- centric It subscribes to global capital and is based on competitive capitalism which is considered to bring in growth via efficiency This can be achieved by initiating structural shifts, scale expansions, low profit margins and cost reduction, quality improvements with productivity growth. However, competitive pressures weaken the implicit social contract in the economy, and especially in its formal sector.

The Analysis: I The channels of cost cutting adjustments across industries include the use of (i) productivity augmenting technology and (ii) flexible labour by recruiting more labour on a contractual basis. What are the implications of these reforms for Indian labour, particularly in the organized manufacturing sector ?

Analysis: II Information available with secondary data does not enable an in-depth inquiry into the conditions of labour under globalisation. We used results of a field survey to enquire into the qualitative dimensions of work which include the dissimilarities in wages, working hours, institutional voice representation, and skill at a disaggregated level.

Analysis III We have grouped the labourers according to the characteristics we consider as important for analysing the impact of economic reforms. These include job tenure, age, education, skill, migration, trade union membership, trade orientation. growth rates, and locations of industries. Attributes as above are used to group all 615 workers we have interviewed in terms of a binary classification according to the specific characteristics described above.

Analysis III The device allows us to have a comparative analysis across different categories and attributes of workers interviewed in the survey. It enables the testing of the hypothesis relating to the impact of economic reforms on labour in the sample.

The Results: I Job tenure: Unlike what is postulated in the manual for reforms, labour flexibility has worsened the status of workers according to our survey. Thus casual workers are much hard pressed than the permanent and regular workers in every respect of the job- related aspects which include wages, hours of work, PF, gratuity, alternate job prospects, union membership as well as savings propensity.

Results: I Age: Younger workers (entry-level) are less privileged than the older ones in terms of job- related aspects as above. Thus, reforms have not equalized the facilities and compensation for labour of different categories.

Results II Education: However, education (skill) imparts capacity to have better facilities. But the possibility of getting jobs is not guaranteed even for skilled workers, an observation which contests the supply-side argument of neo-liberal doctrines for skill formation as a remedy for unemployment.

Results: II Migration: In general migrants are generally worse off as compared to the resident dwellers who work. Possibly this is related to their casual status as noted above which again refutes the neoclassical doctrine of the leveling of the worker status.

Results III Union membership It helps in achieving better labour facilities. But trade unions are not common

Results III Trade orientation: Workers in export-oriented industries are not better off compared to others while those in import-oriented industries re marginally better off. Thus trade-opening has not helped much in the cause of labour welfare and benefits, which contests the predictions of the mainstream theory and policy.

Results III Special Economic Zones (SEZs): Have not provided better facilities to workers employed there-in

Results IV Technology: Workers in capital intensive industries get less non-wage benefits as compared to others but their wages are relatively higher. Those in labour intensive industries have witnessed declines in labour intensity and a mix of changes in wage/non wage benefits. The technological upgrading has thus not been generally beneficial for labour.

Results IV Social orientation: Plays a role as is evident in the inferior status of the workers with low social standing in terms of castes/social background.

Conclusion (details in written paper) No evidence of an improved economic status of workers in our sample with changes as have come about under economic reforms.