Chapter 8: Law and Social Justice
Laws and the Market
Markets everywhere tend to be exploitative of people – whether as workers, consumers or producers. To protect people from such exploitation, the government makes certain laws. The government has to ensure that these laws are implemented, which means that the law must be enforced. Enforcement becomes even more important when the law seeks to protect the weak from the strong.
Bhopal Gas Tragedy - A Case Study
The world's worst industrial tragedy took place in Bhopal on 2 December 1984. Union Carbide (UC), an American company, had a factory in the city which produced pesticides. At midnight, methyl-isocyanate (MIC) – a highly poisonous gas – started leaking. The tragedy killed thousands and left hundreds of thousands with permanent health issues.
This tragedy highlighted several issues:
- Foreign companies taking advantage of lower safety standards and cheaper labour in India.
- The weakness of government agencies in enforcing safety laws.
- The difficulty for victims in getting timely and adequate justice.
What is a Worker’s Worth?
The Bhopal tragedy shows that when companies look to cut costs, they often ignore safety measures and workers' rights. The government has a crucial role in making and enforcing laws to protect workers. Laws against child labour, laws on minimum wages, and laws ensuring workplace safety are essential for social justice. The government's duty is to ensure that the Right to Life guaranteed under Article 21 of the Constitution is not violated.
New Laws to Protect the Environment
In 1984, there were very few laws protecting the environment in India. The Bhopal disaster brought the issue of the environment to the forefront. In the years since, the Indian government has introduced new laws on the environment, and the courts have given a number of judgments upholding the right to a healthy environment as intrinsic to the Fundamental Right to Life. The government is responsible for setting up laws and procedures that can check pollution, clean rivers and introduce heavy fines for those who pollute.
Exercise Questions and Answers
1. Talk to two workers to find out if they are receiving the minimum wages laid down by law.
After speaking with a construction worker and a domestic helper, I found that neither was receiving the legal minimum wage for their respective sectors in my state. The construction worker was paid on a daily basis, and his income was inconsistent and below the official rate for unskilled labour. The domestic helper was also paid a monthly amount that, when calculated on an hourly basis, was significantly less than the minimum wage. Both were unaware of the concept of a minimum wage law, highlighting the lack of enforcement.
2. What are the advantages to foreign companies in setting up production in India?
Foreign companies find several advantages in setting up production in India:
• Cheap Labour: Wages in India are significantly lower than in developed countries, which drastically reduces production costs and increases profits.
• Large Domestic Market: India's large and growing population provides a vast market for their products.
• Less Stringent Laws: Historically, labour and environmental laws were weaker and not as strictly enforced as in their home countries, further reducing operational costs. Though this is changing, it has been a major factor.
3. Do you think the victims of the Bhopal gas tragedy got justice? Discuss.
No, the victims of the Bhopal gas tragedy did not get adequate justice. While the company paid compensation, the amount was very small in relation to the massive loss of life and long-term health consequences. The people responsible for the disaster were never properly punished. Decades later, survivors and their families continue to suffer from chronic illnesses, and the site has not been fully cleaned, leading to ongoing water contamination. The fight for proper medical care, higher compensation, and legal punishment for the company officials continues, which shows that justice has been denied.
4. What do we mean when we speak of law enforcement?
Law enforcement refers to the process of ensuring that the laws made by the government are followed by everyone – individuals, private companies, and even government bodies. It is the responsibility of the government, through its various agencies like the police, judiciary, and pollution control boards, to implement and enforce these laws. Without proper enforcement, even the best laws are ineffective.
5. How can laws ensure that markets work in a manner that is fair? Give two examples to support your answer.
Laws can ensure fair markets by protecting the rights of all stakeholders - workers, consumers, and producers.
Example 1: Minimum Wages Act. This law protects workers from exploitation by ensuring they are paid a fair, legally mandated wage, preventing employers from taking advantage of a surplus labour market to drive down wages.
Example 2: Consumer Protection Act. This law protects consumers from unfair trade practices like selling substandard goods or providing deficient services. It gives consumers a platform to seek redressal and compensation, forcing producers to maintain quality and be accountable.
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