Long wait by industries for key labour reforms in the country might not be over as the Union government is going slow on their demands. After coming to power, the National Democratic Alliance ( NDA) government had announced a slew of labour reforms such as labour codes on industrial relations and wages, small factories Bill, factories (amendment) Bill, employees provident fund ( amendment) Bill, employees’ state insurance (amendment) Bill, among others.
However, these are pending at various stages.
One of the factors delaying this reform process is the staunch opposition by the trade unions which have collectively called a nationwide strike on September 2. The industries are desperateforlabourlawreforms. “We are hopeful and positive about the reform process initiated by the government and hope it moves in the right direction. We want the changes as early as possible but there is a consultativeprocesswhichweappreciate the government has to follow and get all the stakeholders on board,” said Babu Khan, senior director at Confederation of Indian Industry ( CII).
Accordingtosources, theproposed industrial relations Bill, which eases retrenchment norms, has been sent back to a sub- committee for re- examination by the Union labour ministry after receiving staunch opposition from the trade unions. The Bill was discussed by a sub- committee of workers and employers for almost four months after trade unions had opposedvariousprovisionsofthe Bill, especially those related to easingretrenchmentforemployers.
Thesub- committeeisscheduled to meet on August 20.
The proposed industrial relations Bill has seen sent back for review despite the committee recommending some of the long- pending demands of the trade unions. These included mandatory recognising trade unions as representative of workers in case of a dispute and creating a re- skilling fund to train retrenched workers where the employer will have to pay 30 days of wage towards the fund. This was in addition to a three times increase in the compensation package in case of retrenchment.
The proposed IR Bill allows factories with up to 300 workers to retrench them or shut shop without government approval. The present norms allow factories with 100 workers to do so.
Along with this, outsiders will not be allowed to become office bearers of trade unions in the organised sector. Also, there are several restrictions on calling a strike.
Business Standard, New Delhi, 19th August 2015
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