Above: The Rana Plaza factory collapse in Bangladesh, i.e., Narendra Modi’s vision of the Indian economy.
I understand that workers in India need jobs, but I’m not sure that Narendra Modi going full neoliberal is going to build the kind of growth that will be good for India:
Responding to big business complaints that India has not done enough to open up its economy to foreign investment, and that its regulations limiting layoffs and plant closures are “onerous,” Modi declared “India is open-minded. We want change.”
The US business leaders subsequently sang Modi’s praises. GE CEO Jeffrey R Immelt told the Indian Express, “My interaction with him was outstanding. I am certainly looking forward to further investments in India as the climate for investments has switched to positive once again.’’ According to Indian press reports, Modi planned to signal to Immelt that his government is open to amending India’s nuclear liability law, which US energy companies have denounced because it could force them to pay significant compensation were they responsible for a catastrophic nuclear accident.
Regulations limiting plant closures! Why that might hold corporations accountable for their actions. Onerous indeed!
What does Modi have in mind to replace these odious regulations?
At the end of July, Modi’s cabinet cleared 54 amendments to the “Factories Act, 1948,” the “Apprenticeship Act, 1961” and the “Labor Laws Act, 1988.” Under these amendments, women would be eligible for night-shift work, the ceiling for overtime hours will be increased from 50 hours per quarter to 100 hours, and employers will no longer be liable to imprisonment for violating the Apprenticeship Act.
As a test case for the gutting of labour laws nationwide, the BJP state government in Rajasthan has pushed through amendments to the “Industrial Dispute Act”, “Factory Act” and “Contract Labor Regulation & Abolition Act.” These would raise the ceiling for the number of workers in a factory where employers can retrench workers without government approval from 100 to 300 and make it much more difficult for workers to form trade unions with collective bargaining rights.
The amendments to the Contract Labor Act would strip most contract workers of any protection under the labor laws, as contractors employing less than 50 workers will no longer be subject to its provisions. During the past two decades, Indian employers, including government-owned corporations, have vastly expanded their use of contract labour, so as to slash wage and benefit costs, circumvent restrictions on layoffs, and divide the workforce.
In the race to the bottom, I promise my nation will be at the bottom! Give it your best shot Bangladesh. We don’t mind if apparel companies kill 2000 of our workers. Multinationals, please come exploit us!
All of this is a sign of just how much power corporations have in dictating terms of employment today. Capital mobility is a powerful thing and the CEOs know how to use it.
This is also a good piece on Modi’s neoliberal beliefs that should make him a good friend of corporate leaders if he keeps the anti-Muslim rhetoric to a minimum.