Trade unions, industry and the Government must talk on labour related issues in a ‘de-politicised' environment to address the unrest in major industrial centres, according to Mr J.N. Amrolia, Director, Ashok Leyland John Deere.
Addressing the inaugural of the 90-year celebrations of the Employers' Federation of Southern India, he said labour unrest is adversely impacting inflow of foreign investments as potential investors were having second thoughts, he said. The violence of the kind that broke out in Coimbatore and Haryana is ‘not excusable.' It is a law and order issue and not one of industrial relations. Irrespective of government perspective on the issue, it is something that cannot be tolerated. However, the unrest in the Sriperumbudur industrial belt near Chennai is a clear breakdown of internal communications, he said. Absence of effective and credible personnel managers to mediate between union and the management, ineffective government labour machinery and a young, ambitious workforce have together resulted in a dangerous mix that has exacerbated issues, he said.
New industries coming from all over the globe have their own vision of labour management but that is at variance with local expectations. Money alone is not the solution. But the pity is the complication has resulted in inflow of new investments being affected, he added.
Unions are a way of life and old industries have managed better. The industry is not against unions, he said. When industries ask for flexibility on labour-related issues they are not talking about ‘hire and fire.'
The manufacturing sector needs to adapt to market changes to be competitive.
What is needed is a comprehensive review of the Trade Union Act and not just a simple law making union recognition compulsory. The Government must consult the industry and the unions before tinkering with the law as they need to look at related issues of multiple unions and the ‘pernicious' practice of annual elections of union office-bearers, which affects continuity in effective dialogue, he said.
Also, archaic laws such as the Factories Act and the ineffective ESI laws need to be revamped, he said.
The manufacturing sector is facing a huge shortage of skilled workforce and the manpower cost advantage is non-existent or disappearing. Indian industry is not competitive as compared with South East Asia or China. Labour arbitrage alone cannot support survival but governance, ease of doing business, government regulations and infrastructure availability are key issues, Mr Amrolia said.
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