Role of NGOs/Civil Society Groups

Non-governmental organizations (NGOs) play a significant role towards sustainable

development of the economy. Campaigns by these NGOs have been successful in
driving various inter-governmental issues ranging from regulation of hazardous wastes
to a global ban on land mines and the elimination of slavery of workers. Drawback of the
state from public functions and regulatory activities, NGOs have started targeting on
powerful corporations - many of which can bring revolutionary changes over entire
nations in terms of their resources and influence.
Contract labor is an essential source of employment in India. And many NonGovernment Organizations have come up to help in managing the legal issues with
Contract Labor and third party vendors. Since the interests and objectives of the
employer and the worker differ in their basic nature, there needs to be a supporting link
between these two in order to protect and prevent the abuse of law by anyone.
Under the contract labor system, the contractors hire laborers at low wages with no
other facilities that are applicable to regular workers or any allowance. Factories,
industries hire poor and needy workers including the harmful occupations due to their
easy of availability and the lack of skills leave no option with laborers. Hence, this
system is easily misused by the contractors. This has led to widespread exploitation of
the workers rights and also the human rights were violated. To prevent the exploitation
of contract labor, CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
was passed.
Contract Labor Act, 1970 emphasizes the overall welfare of the labor employees in India
and prevents them against the exploitation from the contractors and principal
employers, parity of pay, obligations of contractors and principal employer,
representation in the state and central advisory boards, etc. Contract labor act also
entitles the benefits of other labor laws such as:

The Weekly Holidays Act, 1942

The Employers Liability Act, 1938
The Payment of Wages Act, 1936
The Payment of Wages Act, 1936
The Payment of Gratuity Act,1972
The Apprentices Act, 1961

The NGOs/ Civil Society groups can play a significant role in mobilizing public opinion
and spreading the awareness about legal rights of the workers which helps in the proper
implementation of the law. They have the capabilities to arose a massive public
movement and pressurize the Government on certain labour related issues like
abolition/ regulation of laws. They can ask for submission of reports, or file petitions in
courts on behalf of labours with limited resources. In developing countries like India,
such bodies play a special role and contribute to pave the vast gap between the needy
and the resourceful.
Various Roles played by NGOs are:

Technical Assistance: NGOs provide technical and legal assistance to the plaintiff
by filing the cases for them or assisting them with PILs
Mediatory Role: NGOs provide legal advice and communication with the State
and Central advisory boards
Consultative role: NGOs advise the plaintiffs about the course of action that
should be taken in case of exploitation or where the contract labour act was
violated.
Facilitating communication between the contractor and the labourers. The labour
unions facilitate the communication of issues and opinions from the labourer
point of view.

CONCLUSIONS AND SUGGESTIONS

Greater flexibility of employment has been promoted by liberalization of mixed
economy to compete in globally. Industries hire contract labour under pressure of
antediluvian labor laws to address the cyclical demands and creating business friendly
compliance mechanism. The system of employing contract labor is prevalent in almost
all sectors; in agriculture, manufacturing and high GDP yielding service sector.
Employment of contract labor in India has remained in debates and raised conflict of
interest among the social partners because it has become a significant and growing
form of employment, engaged in different occupations including skilled, semi-skilled and
unskilled jobs. But reliance has been reduced on contract labor system by concomitant
changes made in the Industrial Disputes Act, 1947.
Hence, any amendment in the laws at the center or state level wont make any
significant impact unless the concerned authorities including governments and PSUs
are in line with them. Economic Growth is important, no doubt but we need to set our
priorities right and not neglect the growth of the society and its members. Addressing
the issues of contract labor through a sustainable method avoiding future industrial
unrest is the need of the time and the only remedy to it is by bringing this segment of
workers under social security net.
Recommendations and Reforms to be taken
Better designed labor regulations:
The restrictive and complex India's labor regulations have constrained the growth of
manufacturing sector. More labor- intensive investment can be created through better
designed labor regulations and could help to create for millions of unemployed people in
India and those trapped in poor jobs.
Second Labour Commission has suggested for for clubbing of 18 laws into a single
law as Small Industries Regulation Act (SIRA) for small industries.
Entrepreneurs should not be harassed as small scale companies are the greatest
source of employment. Hence, laws needed to be simplified for this sector for improving
growth.

 It is difficult for small units to follow various provisions of labour laws, so a

comprehensive Act for the small scale sector is needed.
Every labour Act has a different objective and has a different definition, therefore
uniform labour laws is not a viable solution.
For social security of workers, there is need to have a single rate of contribution but
there are several sources of social security such as provident funds, employees state
insurance etc so decision has to be made for the rate or factor.
Cheques should be used for Wage payments and RBI should modify its policy to
maintain even zero balance in accounts.
Industrial Disputes Act 1947 has become archaic as per the current scenario going in
the industry.
Electronic format should be used for maintaining records.
Labour laws definitions can be simplified to be easy to understand.
Regarding contract labour, every industry has different needs and it may not be
possible to keep every worker on muster roll with demand for labour changing with
business cycle.
Promotion of industry can be facilitated by Government.
Social security benefits are needed to be provided to employers especially in the small
scale sector.
Small scale units serve as suppliers to the large industrial units who avail the benefits
from the products of these small scale units while employing less labour force.
Therefore, the large corporates should be made to provide more contribution towards
social security and provident funds as compared to small scale units. This will help
towards the growth of small scale sector and also improve employment.
It is to be ensured that contract labour is not exploited, it cannot be abolished
Collective bargaining provision cannot be applied to the small scale sector industries.
Amendment to the Minimum Wages Act, 1948 has to be done following the
clarifications for the different components of the minimum wage.
Comparing of wages of a regular worker with many more years of experience with
contract worker is not desirable while supporting the minimum wages for contract
workers.

 Self-certification by the employers should be welcomed as it is being already followed

by Income Tax where income tax return is filled by oneself only.
Simple and less time consuming method can be implemented for collective bargaining
provision.
Uniform system of wages payment should be followed under the Minimum Wages Act,
1948.
Adequate laws should be made for governing the migrant labours.
Bonded labor need to be reformed to a more clear version, as the present one has lot
of ambiguity.
An Inter State Council or some mechanism need to be implemented for recording
migration of labors from one state to another, especially when most of them work in
hazardous industries.
Uniform law should be made to take care of most of the organized and unorganized
workers class.
Confrontations like slogan shouting, strikes etc should not be used for resolving issues
and disputes while goodwill method should be approached.
Organizational requirement are to be redefined addressing the issues of workers for
successful implementation of Trade Union Law. Also trade unions cannot be flag
bearers of political parties necessarily.
Sufficient number of Labour Enforcement Officers (LEO) should be employed in States
by the Planning Commission and labor laws need to regularized to strengthen the
Labour Department

REFERENCES:
1. The Role of NGOs and Civil Society in Global Environmental Governance pdf,
By Barbara Gemmill and Abimbola Bamidele-Izu
2. ROLE OF CIVIL SOCIETY ORGANIZATIONS IN GOVERNANCE,
By Dr. Aisha Ghaus-Pasha, 6th Global Forum on Reinventing Government Towards
Participatory and Transparent Governance 24 27 May 2005, Seoul, Republic of
Korea
3. Site:http://www.citehr.com/354347-35-interesting-questions-related-contractlabour-pf.html
4. Report: Contract Labour Act in India- A Pragmatic View By Meenakshi Rajeev, 912 August 2009