Investor-friendly laws on cards for sunrise industries

CHENNAI: The Union government is planning to frame separate, investor-friendly labour laws for sunrise industries, especially in the services sector, to attract investments. This is part of the government’s serious effort to rationalise the labour laws.
Sahib Singh Verma, union minister for labour, when asked whether the government would come up with separate laws for the fast growing service sector, said, “We are thinking on these lines.�
Mr Verma, who was in Chennai on Thursday, said the NDA government is committed to pilot a comprehensive bill in the next budget session, to rationalise the present 50 odd labour laws into 5 or 6 ones. It will incorporate recommendations of the second National Commission on Labour, and judgements pronounced by courts relating to different cases.
The minister also informed that the government would come out with a separate law to extend a range of benefits to the workers in the unorganised sector, which represented 95% of the work force. He said he was trying to build consensus among various organisations and political parties. He said, “I have three challenges before me. The biggest task is to sustain the present workforce in the organised sector and create jobs for crores in the unorganised sector. The other task is to meet the target set by Mr Vajpayee to provide 10m jobs every year.�
At a session organised by The Employees Federation of Southern India, Madras Chamber of Commerce & Industry, and National Institute of Personnel Management, Mr Verma said, “We are looking at the possibility of framing investor friendly laws for sectors that are developing now (referring to sunrise industries), as this would not involve the existing organised labour force.�
It will be easier to introduce contract labour and temporary staff in new areas.�
Further, he said, the ministry was looking at re-working the definition of basic minimum wages and the payment of bonus. One of the proposals is to fix minimum wages that would take care of basic needs and then link incentives to performance and productivity.
Mr Verma said the government is also re-engineering organisations like ESIC and PF Commission. It has earmarked Rs 130 crore to create one-model hospitals in each state. These hospitals, presently run by the states, would be taken over by the centre and renovated with additional machinery and facilities. Mr R Viswanathan, president, EFSI, asked the government to hasten the process of amending labour laws, as there is no alternative before it in the face of globalisation, liberalisation and with employment opportunities coming down.