As I have noted elsewhere, the politician-union-gov't employee triangle means that politicians and unions use gov't companies and job guarantees to hire future voters and union members. 3 people do the job of 1 person. Gov't companies can run loses because the tax payers are blindly paying for it. If Bajaj and Hero compete, sometimes Hero will win, sometimes Bajaj. When one wins, it hires more people, when the other loses it has to fire people. Neither company can read the crystal ball and predict how the market will react to their bikes so they cannot guarantee jobs. If oil price goes up, both will lose their 125cc market. If they can't fire people during bad times, they will resist hiring too many during good times - and use contractors instead. Unions should become employment agencies, make a commission on skilled workers and move them from Hero to Bajaj, if bike market fails, move them to Tata cars. Unions can use the commission money to train employees. Gov't can offer to pay smart companies that hire unemployed workers as a means of fulfilling their constitutional commitment rather than forcing workers to stick with bad companies through job guarantees.
Like the tools and machineries/vehicles in India labours are being hired through brokers/ contractors gradually giving fewer wages repeatedly through bargaining day by day and it is a painful as well as very critical condition. Due to this, very few brokers are becoming very rich and very big in quantity becoming from poor to poorer.
Keeping in view of profit margin big bosses of multinational companies are pressing their subordinates to bring down the production cost through minimizing expenditure of their production, simultaneously the brokers cut short belly of the poor labourers. To prevent these phenomena our Government have to be more vigilant and make policy accordingly to prevent the hiring of labourers through brokers/contractors.
Labour laws are very old in India, they need updation, in Govt.Sector, one can divorce his wife but cannot part with a mischievious workman, due to procedural hurdles, India has been influenced by Communist system in relation to labour laws, we need a good social justice theory.where even on impression basis one can part with a undesired workman with suitable compensation even without an enquiry. One big practical anamoly is that everyone who is serving even for a day is covered by PF, where some portion of employer contribution goes to Family pension, paricularly poor workman who works for a limited period say for 7 days, or upto 6 months, does not get anything, in case of parting with, as such huge amount is lying with PF authorities, but that poor fellow suffers. Some system should immediatly be evolved.
