Corporate Rule under the Guise of Ease: How Deregulation Is Eroding Workers' Rights
K N Umesh
THE Modi-led government at the centre has unleashed a regime of destructive restructuring in governance through deregulation, for Ease of Doing Business (EoDB). The violations committed by the corporate and big-business sectors are decriminalised, while collective democratic expression and protest by the working people are being criminalised. In this process, the fundamental right to justice and the right to a dignified existence for the working masses are egregiously trampled upon, serving corporate interests.
DECRIMINALISATION
OF OFFENCES
The Union Budget 2025-26, reiterated the government's continued push to enhance ease of doing business, as done over the past decade. It states that “light touch regulations,” grounded in “trust,” will be implemented, deregulating the existing to create a “trust-based” framework and an Investment Friendliness Index for States will be designed to promote complete deregulation. The Jan Vishwas Bill 2.0 will be introduced to decriminalise an additional 100 legal provisions, as done by Jan Vishwas Act of 2023, which decriminalised 180 provisions across 41 legislations through which imprisonment clauses for violations or non-compliance are removed along with replacing the term ‘fine’ with ‘penalty’.
Boilers, crucial to industrial operations are most hazardous and industrial accidents arise due to boiler explosions, fires or toxic gas leaks. In-spite of it non-compliance with essential safety standards under The Boilers Act, 1923, are decriminalised, for corporate interests. The illegal use of boilers, evading standard maintenance procedures, moving boilers across state lines without proper authorisation, using boilers without displaying the authorised number or component, and failing to report accidents to the authorities, all punishable by up to two years of imprisonment, a fine, or both have now been replaced with only fine.
The removal of plantations or illicit cultivation punishable by imprisonment, a fine, or both are replaced with only fines under The Tea Act of 1953 while Plantation areas are increasingly being replaced by resorts and homestays by companies rendering workers jobless by removing plantations.
While environmental protection and climate change are pressing concerns, offenses under the Indian Forest Act of 1927, punishable by imprisonment, is now replaced with only penalty for encroachment of forest lands by wealthy corporations. But common citizens are penalised Rs 500 per day for grazing cows in reserved forests. Offenses committed by large businesses under the Environment (Protection) Act, 1986, and the Air (Prevention & Control of Pollution) Act, 1981, have been decriminalised, allowing violating industries to pay only a penalty. Three offenses under the Motor Vehicles Act, 1988, are made compoundable, allowing offenders to pay a penalty instead of facing imprisonment.
Offenses related to grading and marking punishable by imprisonment have been decriminalised under The Agricultural Produce (Grading & Marking) Act, 1937, replacing it with only a penalty primarily benefiting intermediaries, merchants, and business class, to exploit farmers by allowing the manipulation of grading practices.
Safety standards in food processing industries, the quality of medicines and drugs by pharmaceutical companies, and the sale of quality medicines by licensed pharmacy shops and druggists are all critical for public health. Offenses related to these punishable by imprisonment under The Food Safety & Standards Act, 2006, The Pharmacy Act, 1948, and The Drugs & Cosmetics Act, 1940 are decriminalised, replacing imprisonment by penalties.
While the right to privacy is increasingly under threat and government surveillance is on the rise, Chapter X of The Indian Post Offices Act, 1898, dealing with the opening of postal articles by a postal officer, punishable by imprisonment of up to two years, a fine, or both, is omitted.
The Oil Fields (Regulation & Production) Bill 2024, recently passed in the Rajya Sabha, decriminalises various offenses and significantly alters the entire framework for natural gas and petroleum crude oil, replacing these with the broader concept of "mineral oils." The Bill facilitates the merging and combining of leases, as well as the unitisation of leases across states, union territories, and offshore areas.
The Shram Suvidha and Samadhan Portals are revamped for enhancing "ease of compliance" for industry and trade as per the Union Budget 2024-25. These erode workers' rights, making it increasingly difficult for them to access long-standing complaint-based remedial measures, which are virtually eliminated under digital mechanism. The Samadhan Portal allows workers to file industrial disputes, claims under labour laws, and grievances online. When petitions are filed physically, the concerned labour authorities have to upload them online and act based on centralized, automated distribution of petitions to the authorities. In reality, these digital portals have provided neither "Samadhan" nor "Suvidha" to workers. But have ensured both "Suvidha" and "Samadhan" for employers.
COMPOUNDING OF OFFENCES
AND LABOUR CODES
Offences committed by employers were treated as criminal offenses, punishable by imprisonment, a fine, or both. The labour codes allow employers to pay reduced fines for violations through the process of ‘compounding of offences’ instead of imprisonment. When it is compounded, the court is requested to discharge the accused. Codes provide for an advisory of the Inspector -cum- facilitator to the employers to rectify the offences committed and avoid payment of even fine also. Compounding of offences of employers with the payment of only 50 per cent of the maximum fine is allowed in the code on wages. In the Social Security Code, Occupational Safety Health & Working Conditions Code and Industrial Relations Code, a sum of 50 per cent of the maximum fine for offences punishable only with fine and a sum of 75 per cent of the maximum fine for offences punishable with fine and imprisonment of less than 1 year is allowed.
But the Industrial Relations Code imposes fine on trade unions, office bearers, and members for illegal strikes, helping, abetting, or continuing strike and for failing to submit required returns, submitting false information, or not serving notices as per the code. Serving of the notice of strike leads to conciliation, and Strike pending conciliation is deemed illegal attracting punishments.
Bhartiya Nyaya Sanhita (BNS), Bhartiya Nagarik Suraksha Sanhita (BNSS), and Bhartiya Saakshya Adhiniyam (BSA) establish a legislative framework that effectively criminalizes protest demonstrations. Section 111 pertaining to ‘Organised Crime’ is a new addition in the Bhartiya Nyaya Sanhita (BNS), which is not present in the Indian Penal Code (IPC) and is imported from the Unlawful Activities (Prevention) Act. This section defines and punishes the abetment, attempt, and commission of organised crime, as well as being a member or harboring a member of an organised crime syndicate. The BNSS, provides 90-day period to file a charge sheet which can be used to block bail for the accused, detaining them for an extended period. If the accused is placed in police custody for remand, the police may extract a confession, which is valid evidence under BSA which can be used potentially for coerced confessions and the abuse of legal processes against those accused.
The Uttar Pradesh government has misused these provisions against CITU leader Bhuri Singh of Firozabad, arresting him on the midnight of January 8, 2025, and released on bail on February 1 following a complaint lodged by the Assistant Labour Commissioner (ALC) an authority under the Minimum Wages Act, at the behest of employers. The complaint was filed in response to Bhuri Singh raising concerns with the ALC regarding the non-payment of statutory minimum wages, including the Variable Dearness Allowance by employers.
REGULATION OF
RIGHT TO PROTEST
The Supreme Court directed to secure the right to protest with the regulation of prior permission from the police authorities. In practice it is been manipulated by the police denying permission outright or delaying responses until last minute. Even permission is granted with numerous conditions restricting the number of participants and the duration failing which cases are filed. This judicial intervention increasingly reflects the judiciary's role under the neoliberal regime, evolving into what can be described as executive judiciary. Under the neoliberal regime, it is being used more as a tool to curtail public opposition and restrict the exercise of democratic rights, rather than protect them.
The increasing pro-corporate changes like decriminalisation of offences, along with the criminalisation of protest actions all done under rule of law and Constitution symbolise an increasing shift toward neo-fascistic characteristics in governance. Against which the only option before the toiling masses is to intensify their collective struggle of defiance and resistance, in defence of their rights and freedom.