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Year End Review 2004
Fixing of interest rate on PF deposits of about four crore members of Employees Provident Fund, extension of social security benefits to a vast majority of workers in the unorganised sector and implementation of the National Common Minimum Programme were the main pre-occupations of the Ministry of Labour and Employment during 2004.
Extensive consultations were held with social partners through tripartite mechanism to protect the interest of workers. EPF interest rate remained one of the dominant issue. Although an interim interest rate of 8.5% was fixed for 2004-05 in order to safeguard the interests of outgoing EPF subscribers, the government assured workers’ representatives that it would favourably consider their demand for increase in the interest rate.
The recovery of EPF arrears from defaulting units witnessed more than 640% increase as a result of special recovery drive. In an unprecedented move Members of the Parliamentary Consultative Committee interacted with Regional Provident Fund Commissioners from all over the country on functioning of the EPFO at grassroots level and suggested improvements.
The Employees State Insurance Corporation (ESIC) also took measures to improve its coverage. Eligibility wage ceiling was increased from Rs.6500/- to Rs.7500/- per month netting in about 1.10 lakh more workers. The ESI Scheme was extended to 75 new geographical areas bringing in 1.20 lakh additional employees within its coverage. The ESIC brought within its net additional 7000 factories and establishments following intensive surveys in implemented areas. In an effort to improve medical service delivery, ESIC enhanced the per capita annual expenditure on medical care from Rs.600 to Rs.750/-. The construction work on first ESI Hospital in Jammu & Kashmir (Bari Brahamna) was completed and will be commissioned shortly.
The ESIC deployed medical relief teams comprising of doctors and para-medical staff to coastal areas of the country affected by Tsunami fury. The medical teams provided emergency medical services including free supply of drugs and dressings to the affected people.
The Employees Provident Fund Organisation also made special arrangements for expeditious disposal of claims from the entitled claimants in the affected areas. It set up special cells in the affected areas to facilitate payment of provident fund and pension to the families of the members of the Fund who have been killed in Tsunami fury.
The welfare of a vast majority of workers in the unorganised sector remained at the core of the activities of the Ministry. To fulfil the commitment made in the National Common Minimum Programme (NCMP), the Ministry set up a high-level Core Group under Labour Secretary to monitor implementation.
The Ministry launched Unorganized Sector Workers’ Social Security Scheme, 2004 on a pilot basis in 50 districts. The Scheme is, however, being re-worked. The Ministry has drafted Unorganized Sector Workers’ Bill, 2004 and is consulting social partners and others on it. The Bill is to provide, among other things, social security measures with statutory backing for unorganised workers.
The Payment of Wages (Amendment) Bill, 2004 was passed by Rajya Sabha. The Bill provides for increasing in the wage ceiling from existing level of Rs.1600/- to Rs.6500/- per month and its further enhancement on the basis of quinquennial Consumer Expenditure Survey of NSSO through notification.
Meanwhile, the financial assistance to Beedi Workers for construction of houses has been doubled to Rs.40,000/- per unit. The eligibility ceiling has also been increased from Rs.3500/- per month to Rs.6500/-.
In order to improve employability of workers in globalised competitive economy, skill upgradation of workers remained major concern of the Labour Ministry. It has embarked upon a Rs.800 crore project to upgrade 500 existing Industrial Training Institutes (ITI), during the 10th Plan. One hundred of them are being upgraded during the current financial year into Centres of Excellence to impart skills of international standard.
The emigration of workers to seek employment abroad has been made easier. The benchmark for obtaining "Emigration Check not Required" endorsement on passports has been lowered from graduation to 10+2 class pass.
The year witnessed a renewed focus on elimination of Child Labour. The National Child Labour Projects (NCLPs) have been increased from 100 to 250 during the 10th Plan to rehabilitate children withdrawn from work. Implementation of 150 additional NCLPs has started with increased inputs for nutrition, health, vocational training etc.
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