Myth and reality of labour flexibility in India

An analysis of recent employment trends shows a systematic and massive increase in labour flexibility in India’s organised sector. Firms have achieved increased flexibility not only by employing more of temporary and contract labour but also by making the regular workforce more flexible and reducing...

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Bibliographic Details
Published inIndian journal of labour economics Vol. 59; no. 1; pp. 1 - 38
Main Author Srivastava, Ravi S.
Format Journal Article
LanguageEnglish
Published New Delhi Springer India 01.03.2016
Subjects
Development Economics
Economics
Economics and Finance
Industrial Organization
Labor Economics
Contract labour
Labour policy
Employment structure
Labour flexibility
Labour reform
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Summary:An analysis of recent employment trends shows a systematic and massive increase in labour flexibility in India’s organised sector. Firms have achieved increased flexibility not only by employing more of temporary and contract labour but also by making the regular workforce more flexible and reducing the role of labour unions and collective bargaining– thereby achieving “in-fact” informality/flexibility – and by outsourcing, and subcontracting down the value chain. Employer strategies have adapted existing informal social institutions and the legal framework to achieve their goals. How can the quest for a reasonable degree of flexibility be subordinated to labour rights and core labour standards? We argue that the answer lies not in the supposed legal constraints on flexibility in the organised sector but also in addressing infirmities in the Indian labour market as a whole.
ISSN:0971-7927
0019-5308
DOI:10.1007/s41027-016-0048-x