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The Labour and Employment Minister, Shri K. Chandrasekhar Rao has said that there is a need for fewer regulatory labour laws and have policies and schemes for promoting greater production and labour welfare. He was addressing the leaders and representatives of the Central Trade Unions here today as part of the consultation process on labour reforms. This is the second in the series of such meetings, the first one having been held with Major Employers and Presidents of Chambers of Commerce on March 29.
Giving brief resume of what he told the employers, Shri Rao said that labour reforms include modifications in labour policies and programmes for labour welfare and enforcement of labour laws including their fine tuning. He said "We need to address all these issues, when we talk about labour reforms and not concern ourselves with discussing only what is known as a ‘hire and fire’ or an exit policy".
Shri Rao told Trade Union leaders that with efficiency, cost cutting and consumer satisfaction becoming bywords of present day business, there is need for a more skilled labour force, working during night shifts and more women joining the work force.
Describing creation of job opportunities as a major economic and social concern, Shri Rao said that with not much scope in public sector these have to be created in the private sector. He said private entrepreneurs concerns about productivity and returns to capital are becoming dominant factors of consideration. Shri Rao said that issue of labour reforms would be discussed with State Labour Ministers on April 22, 2005 after which certain draft proposals would emerge for consideration of the Union Government.
The Labour Secretary, Shri K. M. Sahni said that the Labour Ministry needs to concentrate on raising the eligibility limit from 100 to 300 employees under the Chapter 5B of Industrial Disputes Act, 1947 and substantially increasing retrenchment benefits for employees.
While by and large favouring the labour reforms, the Trade Union leaders opposed automatic ‘hire and fire’ of workers. They demanded assured job security to workers in view of globalisation. The Trade Union leaders advocated for fulfilling the commitments made in the National Common Minimum Programme for welfare and well being of workers. They demanded speedy enactment of comprehensive legislation for unorganised sector workers guaranteeing them minimum wages and job protection. They also wanted a separate legislation for welfare of agricultural workers. They opposed amendment to Chapter V B of Industrial Disputes Act, saying that it would affect the interests of workers adversely. They asked the Government to ensure proper implementation of labour laws without which, they said there could be no labour reforms. The Trade Union leaders demanded amendments to Minimum Wages Act, Bonus Act and Payment of Gratuity Act . Some of them wanted the Government to come out clearly on the recommendations of the Second National Labour Commission on Labour Reforms. Some Trade Union leaders criticized the Rajiv Gandhi Shramik Kalyan Yojana launched by the ESIC, claiming that it diverts the money contributed by employers and employees for the health insurance of the workers. The Trade Union Leaders who participated are Shri Hasubhai Dave, President, BMS; Shri G. Sanjeeva Reddy, President, INTUC; Dr. M.K. Pandhe, President, CITU; Shri Umraomal Purohit, General Secretary, BMS, Shri Mahadevan, Dy. General Secretary, AITUC; Shri Krishna Chakraborty, Vice President, UTUC, Shri Naren Sen, President, NFITU and Shri Jaya shanker, Member, National Commission on Enterprises in the Unorganised/Informal Sector .
MLD/LK (L-170) 31.3
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