Govt's labour law reform in trouble
The government's bid for labour law reform has run into rough weather with Left trade unions vehemently protesting a latest Labour Ministry suggestion.
By PTI |
NEW DELHI: The government's bid for labour law reform has run into rough weather with Left trade unions vehemently protesting a Labour Ministry suggestion that establishments employing up to 300 workers be allowed to retrench without permission and contract system be introduced in almost all kinds of occupations.
The Ministry note, which has been circulated among members of the Parliamentary Standing Committee on Labour ahead of its meeting next month, suggests far reaching changes in labour laws by amending the Industrial Disputes Act and the Contract Labour (Regulation and Abolition) Act.
Under the caption 'Making Labour Markets Flexible', the note suggests the current number filter of 100 employees under Chapter V-B of the Industrial Disputes Act, 1947, may be raised to 300, the original figure prescribed when the chapter was introduced in the Act in 1976 but reduced to 100 in 1982.
Chapter V-B applies to an industrial establishment in which not less than 100 workmen were employed on an average per working day for the preceding 12 months. Under this chapter, establishments like factories, plantations and mines employing not less than 100 workmen have to seek prior permission from the government to effect layoff, retrenchment or closure.
The note says the proposed increase to 300 will be in line with the recommendations of the Second National Labour Commission, 2002.
However, CPI(M)'s trade union CITU and CPI MP and AITUC leader Gurudas Dasgupta have denounced the "surreptitious move" to change labour laws to empower employers with arbitrary rights to 'hire and fire'.
Left parties are jittery over the proposal to extend an enabling power to exempt only Departmental Undertakings of the Government from all or any of the provisions of the I-D Act to all industrial undertakings by an appropriate government.
The note, however, says the retrenchment compensation to workers may be enhanced to 45 days of average pay for every completed year of service or part thereof in excess of six months. Currently, it is 15 days of average wages per year of service.
It also says the retrenchment compensation should not be less than 90 days of average wages.
For amending the Contract Labour Act, suggestions have been made to include a number of occupations like sweeping, cleaning, dusting and gardening; collection and disposal of garbage and waste; security, watch and ward; maintenance and repair of plant, machinery and equipments; housekeeping, laundry, canteen and courier and loading and unloading.
Some other occupations are information technology; and support services in respect of an establishment relating to ports/dockyards, airports, railway stations, inter-state bus terminals, hospitals, educational and training institutions, guest house, club and transport.
Besides, export-oriented units established in special economic zones and units exporting 75 per cent or more of their production and construction and maintenance of buildings, roads and bridges could be included, it said.
Dubbing the move as "complete violation" of the promise made in UPA's National Common Minimum Programme, CITU has called upon the working class to defeat the "nefarious designs" of the Central Government.
On the issue of streamlining inspection regime, the note suggested replacement of the system of multiple inspections under different laws by a system of self-certification that may be treated as prima-facie compliance.
It says self-certification should not be mandatory but optional. However, random sample inspection on the basis of self-certification may be made.
It also says routine inspections may by discouraged except where key issues of safety and health of the workers, and issues pertaining to payment of minimum wages, child and bonded labour are involved.
A suggestion has been made to consider labour audit on the lines of conventional audit.
The note favours replacement of the present requirement of maintaining multiple registers and records by one register for each broad area such as muster roll, accidents and wages.
Similarly, the process of filing many returns may be reduced drastically by switching over to a system of filing a single comprehensive return electronically, it says.
It has also mooted that improvements be made within a definite and reasonable timeframe.
Besides, it has suggested extensive use of information and communication technologies in filing, processing and analysis of reports and returns. This will reduce delays, cut paper work and make the system transparent, it adds.
CITU has claimed the Labour Ministry document was prepared by the PMO in tune with Prime Minister Manmohan Singh's urge for labour market flexibility as expressed by him in an interview to the US journal Mckinsey Quarterly.
The Ministry note, which has been circulated among members of the Parliamentary Standing Committee on Labour ahead of its meeting next month, suggests far reaching changes in labour laws by amending the Industrial Disputes Act and the Contract Labour (Regulation and Abolition) Act.
Under the caption 'Making Labour Markets Flexible', the note suggests the current number filter of 100 employees under Chapter V-B of the Industrial Disputes Act, 1947, may be raised to 300, the original figure prescribed when the chapter was introduced in the Act in 1976 but reduced to 100 in 1982.
Chapter V-B applies to an industrial establishment in which not less than 100 workmen were employed on an average per working day for the preceding 12 months. Under this chapter, establishments like factories, plantations and mines employing not less than 100 workmen have to seek prior permission from the government to effect layoff, retrenchment or closure.
The note says the proposed increase to 300 will be in line with the recommendations of the Second National Labour Commission, 2002.
However, CPI(M)'s trade union CITU and CPI MP and AITUC leader Gurudas Dasgupta have denounced the "surreptitious move" to change labour laws to empower employers with arbitrary rights to 'hire and fire'.
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Left parties are jittery over the proposal to extend an enabling power to exempt only Departmental Undertakings of the Government from all or any of the provisions of the I-D Act to all industrial undertakings by an appropriate government.
The note, however, says the retrenchment compensation to workers may be enhanced to 45 days of average pay for every completed year of service or part thereof in excess of six months. Currently, it is 15 days of average wages per year of service.
It also says the retrenchment compensation should not be less than 90 days of average wages.
For amending the Contract Labour Act, suggestions have been made to include a number of occupations like sweeping, cleaning, dusting and gardening; collection and disposal of garbage and waste; security, watch and ward; maintenance and repair of plant, machinery and equipments; housekeeping, laundry, canteen and courier and loading and unloading.
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Some other occupations are information technology; and support services in respect of an establishment relating to ports/dockyards, airports, railway stations, inter-state bus terminals, hospitals, educational and training institutions, guest house, club and transport.
Besides, export-oriented units established in special economic zones and units exporting 75 per cent or more of their production and construction and maintenance of buildings, roads and bridges could be included, it said.
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Dubbing the move as "complete violation" of the promise made in UPA's National Common Minimum Programme, CITU has called upon the working class to defeat the "nefarious designs" of the Central Government.
On the issue of streamlining inspection regime, the note suggested replacement of the system of multiple inspections under different laws by a system of self-certification that may be treated as prima-facie compliance.
It says self-certification should not be mandatory but optional. However, random sample inspection on the basis of self-certification may be made.
It also says routine inspections may by discouraged except where key issues of safety and health of the workers, and issues pertaining to payment of minimum wages, child and bonded labour are involved.
A suggestion has been made to consider labour audit on the lines of conventional audit.
The note favours replacement of the present requirement of maintaining multiple registers and records by one register for each broad area such as muster roll, accidents and wages.
Similarly, the process of filing many returns may be reduced drastically by switching over to a system of filing a single comprehensive return electronically, it says.
It has also mooted that improvements be made within a definite and reasonable timeframe.
Besides, it has suggested extensive use of information and communication technologies in filing, processing and analysis of reports and returns. This will reduce delays, cut paper work and make the system transparent, it adds.
CITU has claimed the Labour Ministry document was prepared by the PMO in tune with Prime Minister Manmohan Singh's urge for labour market flexibility as expressed by him in an interview to the US journal Mckinsey Quarterly.
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