How far the Foreign Direct Investment can be stimulated by liberalisation of Industrial Relations Law?
Jeet Singh Mann Jeet
CTAG, NLU Delhi INDIA - NLUD - National Law University Delhi INDIA
Abstract
Research Abstract for Theme No 3- Foreign Investment and Policy matters How far the Foreign Direct Investment can be stimulated by liberalisation of Industrial Relations Law? Prof (Dr.) Jeet Singh Mann, Professor of Law, NLU Delhi Foreign Direct Investment (FDI) is need of the hour especially for developing countries. It is important for the development of infrastructural services, education, scientific advancement, and other vital services across the globe. Developing nations often lack adequate resources to take care of such developments at municipal level, therefore, FDI has become a necessity in the era of globalisation, privatization and liberalisation. However, FDI is subject to availability of congenital conditions for the advancement of trade and business between investment and the returns. It has been observed that Most of the Multinational Companies (MNCs) have been pressuring the regulators for the relaxation of various rigid labour industrial relations law specifically on the formation of workers association, declaration of strike, Lockout, Retrenchment, Lay Off, and Closer, Employers employing specific number workers are required to take prior permission before declaring retrenchment, lay off and closure, Similarly in case of regulated and unregulated strike and Lockout have also been considered important impediments in the smooth operations of trade and Business. Therefore the moot question is, how far labour industrial relations law in the specific paradigms (Industrial Relations) can be relaxed to accommodate or stimulate trade and business. Another moot question that also bothers all the stakeholders of labour laws and empowerment of workers, is that whether the FDI should be promote by relaxing fundamental rights of workers or at the cost exploitation of workers. This Reserch paper will examine the interface between FDI and liberalisation of labor laws on the basis of the following research indicators (In selective developing and developed nations including India, China, the USA and the UK). 1. Whether liberalizing industrial relations law on Retrenchment, Lay off, and Closure, in Public Utility Services (PUS) facilitates ease of doing business in the form of Foreign Direct Investment (FDI)? 2. Whether relaxing law regulating Industrial Relations on Retrenchment, Lay off, and Closure, in Non-Public Utility Services (NPUS) facilitates ease of doing business in the form of FDI? 3. Whether relaxing enforcement norms and Penalty arising out of unlawful Retrenchment, Lay off, Closure, Strike, and Lockout in NPUS expedite FDI? 4. Whether relaxing law regulating Industrial Relations on Strike and Lockout in PUS facilitates ease of doing business in the form of Foreign Direct Investment (FDI)? 5. Whether relaxing law regulating Industrial Relations Strike and Lockout in NPUS facilitates ease of doing business in the form of FDI? 6. Whether the liberalisation of labour Industrial relations law for the advancement of FDI is rational? 7. Whether FDI can be promoted at the cost of compromising workers’ protection under Labour Industrial Relations Law?
Keywords
"Foreign Direct Investment", "Liberalization of Industrial Relations Law,"
