By Dr. Gyan Pathak
Participation of Central Trade Unions (CTUs) in the pre-budget consultation exercise led by Union Finance Minister Nirmala Sitharaman on Monday is a significant development signalling a relief for the India’s distressed workforce that the Union Budget 2024-25 may bring. The joint forum of ten central trade unions – including INTUC, AITUC, TUCC, SEWA, HMS, CITU, AICCTU, LPF, AIUTUC and UTUC, had boycotted the virtual pre-budget consultation with the Union Finance minister last year, because the representatives of CTUs were given only 3 minutes of time, which the forum had said a joke.
Modi government’s arrogance shown towards the trade unions during its last full budget preparation for the year 2023-24 in its second term was not seen during the first budget preparation in his third term. It may be the impact of the election result that has reduced the majority of BJP into minority. Both the government and the central trade union leaders talked on a range of issues in the meeting held as part of budget making exercise. The pre-budget consultation is an annual exercise under which representatives of different sectors give suggestions and raise demands to be addressed through the budget.
The joint platform of 10 CTUs, barring the government supported and RSS affiliated Bharatiya Mazdoor Sangh (BMS), demanded the government to scrap the four controversial labour codes that the Modi 2.0 government had been insisting on implementing soon after Modi 3.0 government takes over. The four labour codes were brought in 2019 and 2020 but their implementation was delayed due to a range of issues including the states being not ready with their rules according to the codes that were brought by subsuming 29 labour laws of the country. The joint platform of CTUs have also asked the government to scrape the new pension scheme.
The CTUs have suggested that the government enhance resource mobilization through enhanced corporate tax and wealth tax, raise the ceiling limit for the income tax rebate for the salaried class, set up the social security fund and fill up all the existing vacancies in the Central government and public sector undertakings. They have also demanded to increase formal and regular employment and do away with the contractual jobs. It was also demanded that the practice of outsourcing should be immediately stopped.
Trade unions have also demanded to increase the minimum wage for the daily wage workers and double the workdays under the MGNREGA scheme. They demanded the minimum wage for the workers be increased from Rs 15,000 to Rs 26,000, considering the significant rise in the cost of living. An increase in the number of workdays under the Mahatma Gandhi National Rural Employment Guarantee Act from 100 days per year to 200 days was also demanded, which according to them will provide more opportunities for daily wage workers to earn their living.
The trade union leaders reiterated their old demand to give employee status to scheme workers such as ASHA, mid-day meal and Anganwadi workers and also para-teachers. Making these positions as permanent opportunities was also demanded along with social security provisions. They have also demanded an increased funding for central sector schemed for public welfare.
One of the most important demands was to convene the Indian Labour Conference (ILC), the top tripartite body in the country on labour issues, as soon as possible so that the issues relating to workforce can be discussed there. It should be noted that no session of ILC was held since its last session in 2015. Even the four controversial labour codes were got passed in the Parliament of India without consulting the ILC or the Central Trade Unions.
The unions also asked the government to stop the privatisation drive of PSUs, scrap the new pension scheme and restore the old pension scheme (OPS).
“The ceiling limit for the income tax rebate for the salaried class on their salary and gratuity must be substantially raised. Government-sponsored social security fund for the unorganised workers and agricultural workers has to be set up to provide them with defined universal social security schemes including minimum pension of Rs 9,000 per month and other medical, educational benefits,” the CTUs said in their memorandum.
They further said resource mobilisation has to be done by increasing the corporate tax, wealth tax and introducing inheritance tax instead of burdening common masses with the GST on essential food items and medicine. The joint memorandum said, “Over the decades, corporate tax rates have been slashed unjustly and at the same time increasing indirect tax burden on common people resulted in an utterly regressive tax structure. That must be corrected in the interests of fairness, equity and propriety. Even one per cent inheritance tax on the super- rich with the ceiling can fetch huge amount to the budget receipts.”
Government supported BMS submitted a memorandum with its demand separately. Their demand included broadening of the scope of MGNREGA with the provision for a guaranteed 200 days of work for each family. Besides, agriculture and allied sectors works should be linked to MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), their memorandum read. They demanded health benefits to all above 60 years of age. It can be made contributory with a token amount of Rs 100 per month and coverage of Rs 5 lakh annually. Moreover, Ayushman Bharat Scheme criteria should be extended from Rs 1.20 lakh to Rs 3 lakh, BMS suggested. (IPA Service)
