Context: Recent violence at the Wistron facility in Karnataka is an example of how exploitative labour practices could accompany businesses moving to India.
Challenges to labour protection in India:
Scant attention given to labour issues: for example- two incidents in subcontracting firms assembling smartphones for Chinese brands in the Delhi National Capital Region in 2017 and 2018.
Evasion of corporate responsibility: by big brands, often by shifting the onus to the subcontracting firms or keeping things in silent mode.
Multiple subcontractors or third-party work supply firms further reduce the accountability of the primary firm due to ambiguity and lack of effective grievance redressal mechanisms.
Weak legal-regulatory labour architecture and capacities:
Combined with exploitative labour practices and violations of safeguards by foreign companies can result in debilitating consequences for Indian labourer.
Combined with the fear of ‘flight of capital’, could make state administrations reluctant to step in unless things escalate.
Increased trauma for the workers: the burden of making devices at increasing speeds, force workers under harsh conditions, doing overtime, and under constant disciplinary monitoring by supervisors.
The regimented work practices on the assembly line are matched by low pay and little or no social security, leading to strain and traumatic experiences, both physical and mental.
E.g. In 2010, Foxconn was faced with a spate of suicides by workers across its facilities in China, thus pressurizing Apple to diversify its range of suppliers — wire netting to prevent workers from jumping off terraces.
Lack of social security:g. in China, unpaid and forced student internships were encouraged to fill shortages in labour supply and offset costs and with no obligations to offer social protections.
Way forward:
Defining a code of conduct: to monitor and audit compliance of labour standards and safeguards. E.g., Apple has provided a code of conduct for all of its supplier.
Providing an effective grievance redressal mechanism.
Adequate collective bargaining mechanisms: as well as social dialogue should be ensured for labourers in order to avoid violent confrontations in high-end manufacturing facilities.