Government’s push for labour reforms faces trade unions’ resistance

NEW DELHI: The government's push for labour reforms is set to face resistance from labour unions which are vehemently opposed to contentious proposals like allowing firms with up to 300 workers to retrench employees without government's prior permission, making it tougher to form trade unions and keeping factories employing less than 40 workers out of the ambit of major labour laws.

The central trade unions, including BJP-backed Bharatiya Mazdoor Sangh (BMS), are planning to protest strongly against the proposals at the meeting called by the labour ministry on Wednesday.

According to existing laws, companies employing up to 100 workers are required to seek government's permission for retrenchment under the Industrial Disputes Act.

The unions are more agitated with the proposal according to which at least 10% of the work force or 100 employees will be needed for registering a trade union. At present, seven members can form a trade union irrespective of size of the establishment.

The BJP-affiliated BMS has decided to oppose many proposals, terming them as against the interest of workers.

"We are going to suggest and protest. We will protest against the provision relating to lay-offs and lock out," BMS president Baij Nath Rai told TOI. "The change would make it practically difficult to form a union. It will be almost impossible to go with 100 workers to get a union registered. The employers would not allow it," he said.

DL Sachdev of All India Trade Union Congress ( AITUC) said, "The changes would make difficult to form trade unions. We will strongly oppose it as also the other proposal to exempt firms with up to 300 employees from seeking the government's prior permission to retrench."

"We will also oppose the proposal under which no major labour laws will apply to firms employing less than 40 employees," he said, adding that the government should set up a tripartite committee with employees' and employers' representatives along with experts for a 'clause by clause' scrutiny.

The proposals are part of the draft Labour Code on Industrial Relations Bill, 2015, prepared by the labour ministry to combine Industrial Disputes Act, 1947, Trade Unions Act, 1926, and Industrial Employment (Standing Orders) Act, 1946.

The government has defended the move to overhaul labour laws, saying it would help improve business environment.