That Labour Codes will create a divide between workers and businesses was a given. The former have opposed them since 2019 when the Code on Wages was passed by parliament followed by the other three in 2020 – the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code. Businesses have been pressing for their implementation since then because they know they will benefit from them. The government presents these Codes as beneficial to labour since they are supposed to simplify a very complex and outdated system. Simplification?No doubt simplification is desirable but it is not an abstract issue. Rather a concrete one depending on how and what is done? Combining many laws into a few is also good in the abstract but again it depends on the content. For example, even GST was also supposed to be these but has turned out to be highly complex and led to lots of litigation. And, caused untold harm to the unorganised sector and therefore to the economy.And, why did the labour laws become complex? Because businesses have been indulging in short cuts and malpractices to make extra profits. So, laws are largely implemented in the breach through corrupting the system. This is a problem that the new Codes will also face even if the government’s point is accepted that they will help labour.In brief, there are two aspects that need to be discussed. First are these Codes helpful to workers and second whether the parts that seem to be favourable to labour will get implemented.Labour’s weaknessesNon-implementation of laws is due to labour’s weaker position in society. The ruling class consists of the policy makers, executives and the businesses. They have a joint interest in keeping labour weak. They make policies in favour of businesses. This has been so since the launch of New Economic Policies in 1991. Under it the leading sector of the economy has been the private sector and it demands and gets concessions from policy makers. One of the major concessions it has sought is the dilution of labour rights. This has been ongoing and has accelerated since 2014. Even during the crisis caused by the pandemic in 2020, the government announced the Atmanirbhar package was largely pro-business while giving little to the distressed workers.Capitalism drives it for profits. The more the wages can be depressed, the higher the profits. In India, the unorganised sector is unregulated and there the condition of labour is abysmal. As per the prime minister’s statement in parliament last year, on the e-Shram portal, 300 million unorganised workers were registered. And, initial data showed that 90% of them said they earned less than Rs 10,000 per month. That is a near poverty line earning. Even in the organised sector the gap between wages and profits is rising and so is the gap in wages between workers and managers.Also read: Explainer | What do the Labour Codes Mean for the Indian Worker?Under the new laws, workers will be forced to work for longer hours. And, organised sector workers’ right to unions and union formation are being curtailed. That will erode their right to defend themselves from exploitation and they will become akin to the unorganised sector workers. Greater exploitation by businesses would worsen their social and economic situation.There are two factors that weaken labour.First, the existence of the huge unorganised sector (94% of the workers) acts like the Reserve Army of labour. Organised sector workers fear losing jobs and having to work in the unorganised sector at low wages. This weakens their bargaining position and has been visible since 1991. Even the courts do not grant them relief and they have to resort to action. Consequently, the share of wages in the organised sector has been declining. Second, technology is changing rapidly and displacing workers. It is so in all sectors – agriculture, services and manufacturing. The resulting unemployment weakens workers.So, the workers need to retain the few rights that existed under the old ‘flawed’ system. So, any change need not be better – it has to be shown to be better in practice. To say something is outdated and not fit for today is not good enough to introduce adverse changes. The problem with the laws was not that they were outdated but lack of implementation. And, if the workers weaken with the new Codes then the implementation will weaken further.Restrictive laws?Businesses called the earlier laws ‘restrictive’. But those laws were only trying to help make an unequal situation just and desirable from a human and social point of view. Those laws were not the cause of inadequacy of private investment. That was due to inadequate demand but due to decline in share of wages leading to low mass demand. RBI data on capacity utilisation in the organised sector shows this. After all, in the period of high investment in 2003-2009, the same laws existed and the growth rate had accelerated to the highest level. In contrast, in spite of a massive cut in Corporation tax in 2019, investment has not picked up.So, there are two factors keeping private investment low – wrong policies (like demonetisation and faulty GST) and inadequacy of demand. The new Codes will worsen them. They are adding one more wrong policy which will aggravate inadequacy of demand.It is being said that women and gig-workers will benefit. But, it is also said that now globally full time work is not prevalent. So, unions opposing the Codes should not be ideological but realistic. But aren’t businesses and governments being ideological? In India, work is already part time for a vast number. There is massive unemployment and under employment and there are large numbers of workers who are even counted in the labour force. Realism and reform?Is rising exploitation, unemployment and persisting poverty realism? The issue boils down to society’s view of itself and humans. Are people automatons and/or supplicants? In the recent elections, rulers cynically offered freebies and money, thereby undermining long term development and leading to growing alienation in society. Now in the name of benefitting workers their rights to defend against the much stronger business interests are being diluted.The Codes are being presented as reform. But any change is not reform. Especially, if implementation is an issue. That can make a bad situation worse than earlier even if the content is great. Businesses are welcoming the Codes because they know that its progressive aspects will not get implemented and they will be able to curb labour rights. What was being achieved by businesses surreptitiously will be achieved directly.Social security for gig workers and women is good but if their exploitation increases the two will cancel each other. Further, longer hours of work cannot be good from a social point of view. Even from the macroeconomic point of view, with high unemployment, underemployment, disguised employment it would not be good. Fewer people will get work if some work for longer hours.Businesses are being short sighted and forgetting what Henry Ford said, if my workers cannot buy my car, why mass produce them? This was an argument for a living wage for all. It is needed in India to boost the economy, not the Labour Codes. Arun Kumar retired as professor of economics from JNU and is author of Indian Economy’s Greatest Crisis: Impact of the Coronavirus and the Road Ahead, 2020.