Building a Wider
Horizon With Labour
The recent labour reforms will help in job creation, but they will not be decent jobs, instead the wage premium will be a victim, says K.R. Shyam Sundar, a labour economist and professor at XLRI-Xavier School of Management. In an interview, Sundar said while labour reforms will attract investments and aid industrial growth, it should not be seen as a panacea for all problems. He argued that the new reforms have given employers the unilateral power to determine terms and conditions of service, and this will hamper wage growth. Poor income growth hampers poverty alleviation, he said. However, Sundar lauded the expansion of social security and universalization of formal employment contract among regular wage earners. Edited excerpts: The labour codes have made provision for universalization of formal employment contract. What will this change?
