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Should the Industrial Relations Act be amended?

2 février 2004, 20:00

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Labour legislation, labour relations and wage policies in Mauritius are profoundly affected by political, economic and social changes. Globalization and liberalization that started about three decades ago have brought about new forms of work arrangement, that either redefine or transform the nature and the quality of work, and make the traditional labour system become obsolete.

Globalization has caused radical change in Mauritius, mainly in its economic structure, in its environment, and in its technology. One cannot stay aloof and adopt a protectionist stance in such a global environment.

There is a saying coming from the Department of Trade and Industry in the U.K that ?those who fail to get on board the train (of Globalization and Liberalization) will find themselves left behind and marginalized by the world community and in the world economy.?

We would only delude ourselves if we refuse to recognize that our world is changing. The world is continuously changing and no matter how unpleasant the problems and disruptions, there is no going back. The challenge is how to cope with this change and how to guarantee fair treatment and protection for those who are most vulnerable.

To meet the challenges of a competitive economy there is a need today, to rationalize labour, upgrade technology and skills, increase productivity and reduce costs of production. These would require changes in the existing labour legislation.

Labour reforms are sensitive issues that worry many governments across the world. Any attempt at labour reform is bound to create problems in a country. The replacement of a system of absolute control, by a system marked by its absence, would give rise to severe political and social problems. It may even lead to political suicide for the government trying to change the laws.

Attempt at labour reforms had led to some of the worst forms of worker agitations in some countries. The fear of wounding the working class, who constitute the bulk of the electorate, had compelled some countries to hold back the proposed reforms while some countries like the United Kingdom were able to introduce the reforms in spite of the opposition and make progress. Any reform must, however, be in the interest of the public rather than in the interests of a narrow section of the community.

The role of trade unions needs to be redefined in this changed situation. Trade unions have to come to terms with the effect of globalization and internal competition. They must be good and responsible partners facing up national and global issues with the view of development not only for their members, but also of the country as a whole with the view of building a world full of social and economic justice.

The challenge facing social partners today in all countries of the world - both developed and undeveloped is to change to a wage system which fosters greater productivity and skill development which will enhance economic performance while rewarding employees in an equitable manner. There is also the need for the employer to balance the workers? desire for employment security with the constant pressure from the market to adapt quickly and efficiently to changes in technology and trade.

In introducing the changes the state should ensure that the latter are in conformity with the ILO Geneva 1999 standard as ?no policy or practice in the field of labour relations can be successful if it denies the workers their fundamental rights?.

Greater priority is given to develop a bilateral mechanism which could be used to establish ?a frame work for managers, workers and trade unions to pursue improved productivity and flexibility on a participatory basis, while providing appropriate protection and share on the benefits to the workers?.

This social dialogue can involve all relations between workers and employers at work places, negotiations, collective bargaining, conciliation processes, and tripartite co-operation among workers, employers, governments at national, regional and international levels.

We have in our statute books nearly 35 laws relating to labour. Some of them had been there for over a century and are obsolete and irrelevant in the new changed economic situation. Most of them were enacted when we had a closed economy or when we were under British rule.

Some of the following laws enacted by the State at various times to provide relief to workers have no relevance today and may be repealed:

? Interim Devaluation Allowance of Employees Act

?The Budgetary Relief Allowance of Workers Act

? The Fuel Conservation five days Week Act.

The Fuel Conservation Five Day Week Act is not only discriminatory but it is also not in keeping with the needs of the new millennium. It discriminates between the establishments carrying on similar business and is not observed by many organizations including the State Bank.

The Employees Council Act, which provided for the establishment of Employees Councils in State enterprises ?to promote worker participation? had failed in its objectives and today there is hardly any Employees Councils functioning in any of the State Corporations. With the shrinking of the public sector, the Act has no useful purpose and may be repealed.

The Trade Union Ordinance was proposed by our Colonial rulers and thrust on workers under protest from the trade unions of that period. It provides for any seven members to register a trade union. This has led to extreme fragmentation of the labour movement and the emergence of a large number of weak and small trade unions. Collective bargaining requires a strong and an independent trade union movement.

Unfortunately, due to politicization and the multiplicity of trade unions, our trade union movement is too weak to force any collective bargaining and it is in the interests of the trade union movement that the Ordinance be amended to prevent multiplicity and to strengthen the movement. The law should be amended to keep out outside influence on the decisions of trade unions and to make trade unions accountable for their actions. Attempts in the past at reform have met with strong resistance and have ended in failure. It should also make it obligatory for trade unions to act democratically and without intimidation, in taking decisions (like calling strike action).

by Ahmad macky*

(to be continued)

*Member of the International Federation of Journalists

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