Skip to main content

Labour law changes unlikely this session Bandaru Dattatreya

The government appears resigned to the fact that it will not be able to push through labour reforms critical to generating millions of jobs in the remaining five days of the Parliament session.
“I am hopeful of tabling the child labour bill only,” labour minister Bandaru Dattatreya said. “I don’t think anything else is possible.”
Several opposition parties led by the Congress stayed away from the Lok Sabha for the third day on Thursday after their demands that a central minister and two chief ministers resign ended in the suspension of 25 Congress members on 3 August.
The logjam in Parliament has set back one of the top priorities of the government: reforming India’s archaic labour laws to create a better business environment that encourages hiring and improves employment prospects for about 12 million youngsters entering the job market every year.
“Employment generation is a priority and our government believes in boosting job creation for country’s youth,” Dattatreya said, adding though the labour reform process has slowed a bit during this session, his ministry will not backtrack. “For job creation, you have to ease the process and help industry grow while keeping in mind labour welfare,” he said.
International agencies are also keeping a keen eye on the developments. In its India outlook report titled Waiting for Reforms to Fuel Growth, Moody’s Analytics said India’s political infighting is denting business confidence and could punish growth if the government continues to over-promise and not deliver.
“Without a majority in the upper house, the ruling Bharatiya Janata Party’s (BJP’s) power has been nullified, and the opposition has blocked proposed reforms. Key reform such as the land acquisition bill, flexible labour laws, and the GST have failed to pass Parliament. And given the political seesaw, these are unlikely to be delivered until later this year or even 2016,” the report said.
Other than Child Labour (Prohibition and Regulation) Amendment Bill, the labour ministry was planning to pass the Employees’ Provident Funds and Miscellaneous Provisions (Amendment) Bill, Payment of Bonus (Amendment) Bill and Small Factories Bill.
Amid the protests, the government’s other plans to make ambitious legislative changes to foster a national common market and ease land acquisitions too have stalled. The Parliament that began the monsoon session on 21 July has been able to transact little business so far.
“Reforms will not stop, but this session has certainly slowed down the process and our plan,” said a labour ministry official, requesting not to be named.
Approving the small factories bill is key to create jobs, as it will reduce compliance hassles for small and medium factories and allow them to comply with just one law instead of 14 labour laws, according to G. Raj Narayan, managing director of Radel Group, a Karnataka-based small manufacturing company. “The MSME (micro, small and medium enterprises) sector needs government hand-holding if it wants to boost job growth,” said Narayan, whose company is a defence and aerospace ancillary firm.
Opposition political parties will object to changing labour laws when they come to the house, said D.L. Sachdeva, national secretary of the All India Trade Union Congress, a workers’ body affiliated to the Communist Party of India. He said the government has not done enough for workers’ welfare while speaking loudly for the welfare of the industry.
Although the labour ministry believes it may still be able to table the less-controversial child labour bill, ActionAid India, a non-government organization working in this area, said the bill has its own loopholes.
The proposed child labour law seeks to impose stricter punishment on those employing children below 14 but allows minors to work in non-hazardous family enterprises, a move that has been criticized by child rights activists.
“At one level, we are diluting labour laws by exempting (largely) factories with less than 40 employees from the purview of monitoring and regulation,” ActionAid said in an email. “In this context, it is important to realize that in the guise of family enterprise, a lot of children will be engaged in enterprises and all of them would remain out of the purview of regulation.”
HT Mint, New Delhi, 7th August 2015

Comments

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...

Luxury carmakers urge clarity on GST rates to boost festive season sales

  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...

Sebi proposes tighter norms for green bond third-party reviewers

  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...