{"id":2090,"date":"2020-11-10T11:31:35","date_gmt":"2020-11-10T11:31:35","guid":{"rendered":"https:\/\/idronline.org\/2020\/12\/23\/labour-rights-productivity-at-what-cost\/"},"modified":"2025-11-11T09:03:44","modified_gmt":"2025-11-11T03:33:44","slug":"labour-rights-productivity-at-what-cost","status":"publish","type":"post","link":"https:\/\/idronline.org\/kn-in\/labour-rights-productivity-at-what-cost\/","title":{"rendered":"Productivity at what cost?"},"content":{"rendered":"<?xml encoding=\"utf-8\" ?><p class=\"p1\"><span class=\"s1\">Back in May 2019, we were visiting a large garment factory in Arsikere, Karnataka, when we asked some of the workers, &ldquo;What would you do if you got Saturdays off?&rdquo; Their responses to this simple question summed up their priorities. A majority said they would spend time with family or friends and take care of their children. Many said they would use this time to relax or do household chores. Only a few said they&rsquo;d look for additional pay.<\/span><\/p><p class=\"p1\"><span class=\"s1\">Since garment factories in India are characterised by a <a href=\"https:\/\/cse.azimpremjiuniversity.edu.in\/wp-content\/uploads\/2018\/05\/Thomas_Jayan_Jhony_Chinju_Garments.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">predominantly female labour force<\/span><\/a>, it seems almost obvious that a shorter workweek would not only give existing female workers a better work-life balance, but also incentivise prospective women to join the workforce&mdash;many of whom are bound by other time constraints.<\/span><\/p><blockquote><p><span class=\"s1\">How would giving workers time off affect the productivity and profits of the business?<\/span><\/p><\/blockquote><p class=\"p1\"><span class=\"s1\">But the broader question that still remains is: How would giving workers time off affect the productivity and profits of the business? Will the anticipated effect be positive <i>and <\/i>sizeable, enough to incentivise a policy change in favour of lowering daily or weekly working hours? Answering these questions requires us to examine the link between working hours and productivity. This is particularly relevant in the context of the <a href=\"https:\/\/indianexpress.com\/article\/explained\/govts-new-versions-of-labour-codes-key-proposals-and-concerns-6603354\/#:~:text=Lok%20Sabha%20has%20cleared%20three%20labour%20code%20Bills.&amp;text=The%20Lok%20Sabha%20Tuesday%20cleared,Working%20Conditions%20Code%20Bill%2C%202020.\" target=\"_blank\" rel=\"noopener noreferrer\">amendments<\/a> made to India&rsquo;s labour laws in the wake of COVID-19.<\/span><\/p><div class=\"idron-article-in-content\" style=\"margin-bottom: 15px;\" id=\"idron-4200906995\"><a href=\"https:\/\/idronline.org\/what-is-idr-answers\/\" target=\"_blank\" aria-label=\"What is IDR Answers Page Banner\"><img src=\"https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1.png\" alt=\"What is IDR Answers Page Banner\"  srcset=\"https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1.png 1250w, https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1-300x60.png 300w, https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1-1024x205.png 1024w, https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1-150x30.png 150w, https:\/\/idronline.org\/wp-content\/uploads\/2024\/09\/What-is-IDR-Answers-Page-Banner-1-768x154.png 768w\" sizes=\"(max-width: 1250px) 100vw, 1250px\" width=\"1250\" height=\"250\"   \/><\/a><\/div><p><a class=\"sidebar-related-article\" href=\"https:\/\/idronline.org\/making-labour-systems-work\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Related article: Making labour systems work<\/strong><\/a><\/p><h3 class=\"p1\"><span class=\"s1\"><b>What do India&rsquo;s labour laws say about working hours?<\/b><\/span><\/h3><p class=\"p1\"><span class=\"s1\">Globally, labour laws have been put in place with the purpose of protecting employees&rsquo; rights and setting forth employers&rsquo; duties, and Indian labour laws are <a href=\"https:\/\/www.researchgate.net\/publication\/272300948_The_Evolution_of_Labour_Law_in_India_An_Overview_and_Commentary_on_Regulatory_Objectives_and_Development\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s3\">no different<\/span><\/a>. <a href=\"https:\/\/www.india.gov.in\/sites\/upload_files\/npi\/files\/coi_part_full.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">The Indian Constitution<\/span><\/a> guarantees every citizen the right to work, <\/span><span class=\"s4\">secured to the best abilities of the state.<\/span><span class=\"s1\"> However, with upwards of <a href=\"https:\/\/www.india-briefing.com\/news\/labor-laws-india-guide-federal-state-industry-specific-regulations-18133.html\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">200 separate<\/span><\/a> pieces of labour legislation in the country, there is no strict definition of &lsquo;labour laws&rsquo; to draw any boundaries. The current laws not only regulate the conditions of work of industrial establishments, but also industrial relations, payment of wages, and registration of trade unions, among other subjects. <\/span><\/p><p class=\"p1\"><span class=\"s1\">Without a set definition to serve as a compass, the scope for what can be regulated is wide, and can thus fall at the discretion of the regulators. One area where this has played out is in the context of <a href=\"https:\/\/www.ilo.org\/dyn\/natlex\/docs\/WEBTEXT\/32063\/64873\/E87IND01.htm\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">The Factories Act, 1948<\/span><\/a> (amended in 1987)&mdash;an iconic act relating to minimum conditions of employment, which lays down all the provisions concerning occupational safety and health in factories, including working hours. Section 51 and 59 of the Act state, &ldquo;No employee is supposed to work for more than 48 hours in a week and nine hours in a day. Any employee who works for more than this period is eligible for overtime remuneration.&rdquo;<\/span><\/p><p>\n<div id=\"attachment_24227\" style=\"width: 1034px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-24227\" class=\"wp-image-24227 size-large\" src=\"https:\/\/idronline.org\/wp-content\/uploads\/2020\/12\/line-of-women-workers-in-a-garment-factory_5_Nayantara-Parikh-edit.jpg\" alt=\"line of women workers in garment factory_PC Nayantara Parikh\" width=\"1024\" height=\"683\"><p id=\"caption-attachment-24227\" class=\"wp-caption-text\">With upwards of 200 separate pieces of labour legislation in the country, there is no strict definition of &lsquo;labour laws&rsquo; to draw any boundaries. | Picture courtesy: Nayantara Parikh<\/p><\/div>\n<\/p><p class=\"p1\"><span class=\"s1\">However, the same act also allows state governments to exempt factories from these provisions relating to work hours for three months if factories are dealing with an exceptional amount of work.<\/span><\/p><p class=\"p1\"><span class=\"s1\">Where freedom is allowed, freedom is usually taken. <\/span><\/p><div class=\"idron-content\" id=\"idron-2645969734\"><a href=\"https:\/\/idronline.org\/donate\/\" target=\"_blank\" aria-label=\"donate banner\"><img src=\"https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1.jpg\" alt=\"donate banner\"  srcset=\"https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1.jpg 1250w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-300x60.jpg 300w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-1024x205.jpg 1024w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-150x30.jpg 150w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-768x154.jpg 768w\" sizes=\"(max-width: 1250px) 100vw, 1250px\" width=\"1250\" height=\"250\"   \/><\/a><\/div><p class=\"p1\"><span class=\"s1\">In light of COVID-19, some states have <a href=\"https:\/\/indianexpress.com\/article\/explained\/what-labour-law-changes-mean-coronavirus-6403611\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">increased<\/span><\/a> both the daily and weekly work hours with the purported aim of reviving the economy, boosting productivity, and ensuring more workers get jobs.<\/span><\/p><ul class=\"ul1\">\n<li class=\"li1\"><span class=\"s1\">Assam, Goa, Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Odisha, Punjab, Rajasthan, and Uttar Pradesh governments issued <a href=\"https:\/\/www.prsindia.org\/theprsblog\/relaxation-labour-laws-across-states\" target=\"_blank\" rel=\"noopener noreferrer\">notifications to increase<\/a> the maximum daily work hours for workers in their states to 12 hours. Karnataka and Uttarakhand increased maximum daily work hours to 10 and 11 hours, respectively. <\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Karnataka, Rajasthan, and Uttar Pradesh subsequently withdrew their notifications for <a href=\"https:\/\/www.business-standard.com\/article\/economy-policy\/rajasthan-govt-withdraws-order-increasing-daily-working-limit-to-12-hours-120052500446_1.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">various reasons<\/span><\/a>, including change in the economic conditions from earlier this year and legal challenges via public interest litigation.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">More recently, the Karnataka government passed an <a href=\"https:\/\/www.deccanherald.com\/state\/karnataka-districts\/karnataka-government-tweaks-three-laws-approves-labour-ordinance-864859.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">ordinance<\/span><\/a> which increases overtime hours in a quarter from 75 to 125. <\/span><\/li>\n<\/ul><p class=\"p1\"><span class=\"s1\">These amendments violate the <a href=\"https:\/\/www.ilo.org\/dyn\/normlex\/en\/f?p=NORMLEXPUB:12100:0::NO::P12100_ILO_CODE:C001\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">Hours of Work (Industry) Convention, 1919<\/span><\/a> adopted by the <a href=\"https:\/\/www.ilo.org\/global\/lang--en\/index.htm\" target=\"_blank\" rel=\"noopener noreferrer\">International Labour Organisation<\/a>&mdash;to which India is a signatory. Further, they also put at risk the fine balance between productivity and labour rights. But is increasing working hours the only way to increase productivity?<\/span><\/p><p><a class=\"sidebar-related-article\" href=\"https:\/\/idronline.org\/denying-workers-their-rights-labour-law-reform-bill-codes\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Related article: Denying workers their rights<\/strong><\/a><\/p><h3 class=\"p1\"><span class=\"s1\"><b>An alternative to boost productivity<\/b><\/span><\/h3><p class=\"p1\"><span class=\"s1\">In 1914, Henry Ford took the <a href=\"https:\/\/learning.blogs.nytimes.com\/2012\/01\/05\/jan-5-1914-henry-ford-implements-5-a-day-wage\/\" target=\"_blank\" rel=\"noopener noreferrer\">&lsquo;radical&rsquo; decision<\/a> to cut daily work hours from nine to eight and double pay for workers to USD 5 a day. Though this move was initially unpopular among most rivals, many followed suit, seeing the <a href=\"https:\/\/onlinemasters.ohio.edu\/blog\/benefits-of-a-shorter-work-week\/#:~:text=It%2520has%2520been%2520proven%2520that,for%2520the%2520entire%2520six%2520hours.\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">overall profitability<\/span><\/a> of Ford&rsquo;s operations.<\/span><\/p><blockquote><p><span class=\"s1\">Over the last few years, many of us working in urban, &lsquo;white-collar&rsquo; jobs have a seen a <span class=\"s2\">clarion call<\/span> for shorter workweeks as well.<\/span><\/p><\/blockquote><p class=\"p1\"><span class=\"s1\">Over the last few years, many of us working in urban, &lsquo;white-collar&rsquo; jobs have a seen a <a href=\"https:\/\/business.linkedin.com\/talent-solutions\/blog\/company-culture\/2018\/shorter-work-week-trending\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">clarion call<\/span><\/a> for shorter workweeks as well. In 1930, the British economist, John Maynard Keynes, <a href=\"http:\/\/www.econ.yale.edu\/smith\/econ116a\/keynes1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">famously predicted<\/span><\/a> that by 2030, workers will be able to enjoy more leisure due to technological advancements. More recently, Microsoft&rsquo;s Japan office <a href=\"https:\/\/www.theguardian.com\/technology\/2019\/nov\/04\/microsoft-japan-four-day-work-week-productivity\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">witnessed<\/span><\/a> a 40 percent increase in productivity as a result of putting in place a four-day workweek. One <\/span><span class=\"s2\">study<\/span><span class=\"s1\"> suggests that productivity may be a decreasing function of time. Even<a href=\"https:\/\/www.talent-quarterly.com\/why-the-4-day-workweek-is-a-terrible-idea\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\"> critics of shorter workweeks<\/span><\/a>, at best, call for work hours to remain the same. <\/span><\/p><p class=\"p1\"><span class=\"s1\">In contrast, factory workers in India are at risk of going back to more rigid, less flexible work conditions if changes continue in the direction of the latest labour law amendments with respect to working hours. <\/span><\/p><p class=\"p1\"><span class=\"s1\">To present a balanced view, it is worth asking if factories simultaneously increased any other benefits to &lsquo;offset&rsquo; the increase in work hours? This too presents a bleak picture. Madhya Pradesh <a href=\"https:\/\/prsindia.org\/bills\/states\/the-madhya-pradesh-labour-laws-amendment-ordinance-2020\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">introduced changes<\/span><\/a> for factories to be exempt from provisions of the <a href=\"https:\/\/labour.gov.in\/sites\/default\/files\/TheFactoriesAct1948.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Factories Act, 1948<\/a>, such as those related to dangerous operations, along with those providing for cr&egrave;ches, washrooms, and disposal of waste, for three months. According to <a href=\"http:\/\/information.up.nic.in\/attachments\/CabinetDecisionfile\/7c223b50d3fdc5a2c4a53863012ed0b0.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s2\">a draft of the Uttar Pradesh ordinance<\/span><\/a>, all factories and establishments engaged in manufacturing processes will be exempt from all labour laws for three years, subject to the fulfilment of certain conditions.<\/span><\/p><p><a class=\"sidebar-related-article\" href=\"https:\/\/idronline.org\/a-pandemic-cannot-justify-child-labour\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Related article: A pandemic cannot justify child labour<\/strong><\/a><\/p><h3 class=\"p1\"><span class=\"s1\"><b>Who bears the burden of these changes?<\/b><\/span><\/h3><p class=\"p1\"><span class=\"s1\">It is true that in the wake of this pandemic, businesses were hurt worldwide and were forced to reconsider their business strategies and costs. For labour-intensive industries, concentrated in this part of the world, cost adjustment, of which labour adjustment is a part, <a href=\"https:\/\/in.reuters.com\/article\/health-coronavirus-bangladesh-workers\/bangladesh-threatens-legal-action-as-thousands-of-garment-workers-go-unpaid-idINL8N2C92KT\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s3\">assumed importance<\/span><\/a>. But what proportion of this COVID-19 burden should labour bear, and what proportion should businesses? Especially when there is an inherent power dynamic between the two parties involved?<\/span><\/p><blockquote><p><span class=\"s1\">We live in a world where alternative methods to increase productivity exist.<\/span><\/p><\/blockquote><p class=\"p1\"><span class=\"s1\">We live in a world where alternative methods to increase productivity exist&mdash;methods that don&rsquo;t achieve &lsquo;the needs of the industry&rsquo; at the cost of the working classes, and that take into account labour well-being by reducing, and not increasing work hours. <\/span><\/p><p class=\"p1\"><span class=\"s1\">These recent changes in India&rsquo;s labour laws show their disguised priority towards businesses over workers. On one hand, one could be hopeful that such support in strengthening business&rsquo; capacity to be resilient would ultimately trickle down to workers in terms of employment and growth opportunities. However, in the absence of proper checks and balances, this can snowball into unfair working conditions for a certain class of workers.<i> <\/i><\/span><\/p><p class=\"p1\"><span class=\"s1\"><i>Disclaimer: This article does not represent the views of Good Business Lab and has been written by the authors in their personal capacity. We&rsquo;d like to thank Ankita Nanda, Partnerships and Design Associate, Good Business Lab for her internal policy brief on the labour law changes. <\/i><\/span><\/p><p class=\"p1\"><span class=\"s1\">&mdash;<\/span><\/p><h3 class=\"p1\"><span class=\"s1\"><b>Know more<\/b><\/span><\/h3><ul class=\"ul1\">\n<li class=\"li1\"><span class=\"s1\">Explore <a href=\"https:\/\/hbr.org\/2018\/12\/the-case-for-the-6-hour-workday\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s3\">the case<\/span><\/a> for a six-hour workday.<\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Read about how the <a href=\"https:\/\/scroll.in\/article\/973877\/why-the-new-labour-codes-leave-workers-even-more-precariously-poised-than-before\" target=\"_blank\" rel=\"noopener noreferrer\">new labour codes<\/a> leave India&rsquo;s workers even more precariously poised than before. <\/span><\/li>\n<li class=\"li1\"><span class=\"s1\">Learn more about <a href=\"https:\/\/idronline.org\/life-after-the-garment-factory\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span class=\"s3\">what happens<\/span><\/a> to young, women garment factory workers once they leave the sweatshop.<\/span><\/li>\n<\/ul>\n<div class=\"idron-troublemakers-placement\" style=\"margin-bottom: 20px;\" id=\"idron-3307020986\"><a href=\"https:\/\/idronline.org\/donate\/\" target=\"_blank\" aria-label=\"donate banner\"><img src=\"https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1.jpg\" alt=\"donate banner\"  srcset=\"https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1.jpg 1250w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-300x60.jpg 300w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-1024x205.jpg 1024w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-150x30.jpg 150w, https:\/\/idronline.org\/wp-content\/uploads\/2023\/08\/Donate-banner-1-768x154.jpg 768w\" sizes=\"(max-width: 1250px) 100vw, 1250px\" width=\"1250\" height=\"250\"   \/><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Back in May 2019, we were visiting a large garment factory in Arsikere, Karnataka, when we asked some of the workers, &ldquo;What would you do if you got Saturdays off?&rdquo;&#8230;<\/p>\n","protected":false},"author":8,"featured_media":2091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[22,582,2652],"tags":[3605,474,3659,3693],"series":[],"meta-filter":[],"schema-filter":[743],"no-display":[],"class_list":["post-2090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inequality","category-instagram","category-rights","tag-coronavirus","tag-labour","tag-laws-in-india","tag-public-policy","contributor-lavanya-garg","contributor-mansi-kabra","states-india","states-karnataka","schema-filter-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Labour rights and the economic impact of COVID-19 | IDR<\/title>\n<meta name=\"description\" content=\"The working class 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cost?","og_description":"The working class bears a disproportionate burden of the economic fallout of COVID-19.","og_url":"https:\/\/idronline.org\/labour-rights-productivity-at-what-cost\/","og_site_name":"India Development Review","article_published_time":"2020-11-10T11:31:35+00:00","article_modified_time":"2025-11-11T03:33:44+00:00","og_image":[{"width":1344,"height":896,"url":"https:\/\/idronline.org\/wp-content\/uploads\/2020\/12\/line-of-women-workers-in-a-garment-factory_5_Nayantara-Parikh-edit.jpg","type":"image\/jpeg"}],"author":"Devanshi Vaid","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/idronline.org\/labour-rights-productivity-at-what-cost\/#article","isPartOf":{"@id":"https:\/\/idronline.org\/labour-rights-productivity-at-what-cost\/"},"author":{"name":"Devanshi Vaid","@id":"https:\/\/idronline.org\/#\/schema\/person\/5440619b9bec1184c5774c076c0ca71c"},"headline":"Productivity at what 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