Labour panel reort released, recommends lay-off powers to employers

NEW DELHI: The government on Saturday released the long-awaited report of the Second Labour Commission which recommended, among other things, steps to check multiplicity of trade unions, reduction in the number of holidays and empowering employers to lay-off and retrench without prior permission.
The Commission, headed by Ravindra Verma, also sought a comprehensive legislation relating to working conditions at work places and another for the unorganised sector, besides asking the Centre to notify a National Floor Level Minimum Wage, giving the state governments powers to fix the minimum wage which should not be below the national level.
Releasing the voluminous two-part report here, Labour Minister Saheb Singh Verma said he would hold discussions with trade unions, employers organisations, political parties and others to evolve a consensus on the recommendations.
A comprehensive legislation on labour reforms is likely to be tabled in Parliament in the Winter Session to consolidate the 50-odd laws relating to labour welfare and rights, Verma said.
A two-day meeting of Indian Labour Conference, to be attended by State Labour Ministers, employees and employers organisations, would be held here on September 28-29 to discuss the full recommendations of the Labour Panel.
The Commission, which was set up in October 1999, submitted the 1751-page report to the Government in June this year.
Verma, who was accompanied by Minister of State for Labour Ashok Pradhan and Labour Secretary P D Shenoy, said while there were 50 central laws relating to labour matters, there were about 150 more in the state level.
"There is an urgent need to rationalise this multiplicity of laws. We will try to evolve a consensus after holding discussions with all concerned sections," he said.
Replying to questions, he said there was an urgent need for reforming the labour courts and the panel had proposed the setting up of a National Labour Commission for the purpose.
"We should be ready to sacrifice for the sake of national interests ... Unions can function only when there is productive activity.
"But now we face a problem of closures and lack of employment opportunities due to automation. All these problems which stem from globalisation have to be taken into account when we have a comprehensive labour law," the Minister said.
Taking note of the globalisation process and increased competition, the labour panel said it was imperative "to evolve a new work culture" where the workers'' attitude to work "has to include pride in maximising his own productivity".
The Commission recommended that "there is no need for any wage board, statutory or otherwise, for fixing wage rates for workers in any industry".
On the number of holidays, it quoted a study to say that an average government servant worked for three days and recommended that besides three national holidays, there could be two more holidays and ten restricted ones in a year.
It said over-time should be paid to those putting work beyond nine hours a day and 48 hours a week.
Regarding lay-offs, it said "prior permission is not necessary in respect of lay-off and retrenchment in an establishment of any employment size.
"However, in cases of establishments employing 300 or more workers, if the lay-off is continued for more than 30 days, post-facto permission of appropriate government shall be required".
Contract labour, it said, "shall not be engaged for core production/services/activities. However, for sporadic seasonal demand, the employer may engage temporary labour for core production/service activity".