Labouring over reforms

NEW DELHI: Those advocating labour law reforms have found a saviour in Montek Singh Ahluwalia, deputy chairman of the Planning Commission.

The reformists are demanding that the government implement recommendations of “the Task Force on Employment Opportunities�, chaired by Mr Singh.

The task force has suggested short-term employment contracts, re-introduction of ‘strike-ballot’ and permit outsourcing of peripheral activities.

It also suggested “to abolish the requirement of prior permission of government for retrenchment, lay-offs or closure.�

The task force — constituted by the Planning Commission in 1999 with an objective to generate 10 crore employment in the next 10 years — submitted its recommendations in June 2001.

The industry plans to use the report as the last resort in persuading the government for relaxing labour norms. The UPA government does not want to touch the subject fearing opposition from the Left allies. But the industry is up in arms.

“We will take it up with the government,� ICMF secretary general DK Nair said. So far, both industry and government were silent about the report.

The task force favoured a system of short term employment contracts. “In order to avoid legal challenge to this arrangement on the grounds of equal treatment with permanent labour doing the same job, provisions can be made for paying such labour a premium over the normal wage,� it said.

Suggesting an amendment to the Industrial Disputes Act to make a reasonable notice mandatory in all cases, the task force said: “It would also be desirable to introduce the system of `strike ballot’ whereby a strike can be called only if it is supported by a qualifying majority of the workers.�

It also suggested a time limit of three years within which a dispute could be referred for adjudication. “At present there is no time limit for filing disputes under the Industrial Disputes Act. This encourages piling up of old disputes leading to delays in courts,� it said.

Stressing on the need to relax labour norms, the task force said: “India’s labour laws have evolved in a manner which has greatly reduced the flexibility available to employers to adjust the labour force in the light of changing economic circumstances. In a globalised world, persisting with labour laws that are much more rigid than those prevailing in other countries only makes us uncompetitive not only in export markets but also in domestic markets.�