In the course of new economic policies, the share of wages in the total cost of production has declined to nearly half. From being 11% of the cost of production in 1991-'92, the share of wages declined to a mere 5.56% in 2000-2001.

According to a FICCI study, the decline in the share of wages is sharp in the second half of the implementation of economic reforms i.e. between 1996 and 2001. While the in first five years of these policies the percentage of wages in the total cost of production hovered around 10% it then declined to the present level.

The whole emphasis of second generation reforms with its focus on abrogating the rights given under labour laws, has been to depress the wages of workers by increasing the job insecurity. The thrust of ruling classes and their imperialist masters can be easily understood.