Says the country needs to attract more workers to the organized sector, which employs less than 10% of workforce
Faced with rising unemployment, Prime Minister Manmohan Singh on Tuesday called for labour law reforms and more investment in labour-intensive industries.
“We need to consider the possible role of some of our labour laws contributing to rigidities in the labour market, which hurt the growth of employment on a large scale,” he said at the 43rd Indian Labour Conference (ILC) in New Delhi. “Is it possible that our best intentions for labour are not actually met by laws that sound progressive on paper but end up hurting the very workers they are meant to protect?”
India has a 460 million-strong labour force. The government pegged unemployment at 9.4% earlier this month, a 1.2% rise from 2004-05, when the last comprehensive employment survey was carried out.
Singh said the country needs to attract more workers to the organized sector, which currently employs less than 10% of the workforce.
The ILC, the Prime Minister added, should also look at ways to improve the living standards of workers in micro- and small-scale sectors.
“Our regulatory framework in the labour sector should encourage investment in labour-intensive industries,” Singh said.
The cabinet will soon consider a new employment policy focused on promoting labour-intensive industries, Mint reported on 19 October.
The policy proposes to make it mandatory for state-owned companies to measure the benefits of proposed investments in terms of how many jobs they will create directly or indirectly.
“We are soon going to circulate a cabinet note on the new employment policy,” labour secretary Prabhat Chaturvedi said on the sideline of the ILC.
The two-day conference is focusing on three issues: the economic downturn and its impact on jobs; contract labour; and employment generation and skill development.
Labour and employment minister Mallikarjun Kharge said there is need for “bringing labour into the centre stage in economic and social policymaking”.
His ministry, he said, is working on schemes for developing demand-driven short-term training courses to impart skills that will help workers get jobs. It also plans to set up 1,500 Industrial Training Institutes and 5,000 Skill Development Centres with private participation.
E. Balaji, director and president of human resource and employment tracking firm Ma Foi Randstad, said labour laws are not in tune with reality.
“Contract labour law needs to change to help the industry face less trouble from the bureaucracy. In the age of globalization, the government needs to redefine what is (a) core and (a) non-core job to help mobility of workforce,” he said.
Balaji said the government should focus on labour-intensive manufacturing to create jobs.
Reacting to concerns raised by Bharatiya Mazdoor Sangh president Girish Awasthi on rising prices of essential commodities, the Prime Minister said the government is trying to reduce the inflation rate. “We have difficulties but we shall overcome (them),” he said.
India’s food inflation was 10.3% for the week ended 6 November.
source: http://www.livemint.com/2010/11/23222711/Prime-Minister-wants-labour-la.html?atype=tp
Wednesday, December 15, 2010
Friday, December 3, 2010
‘Tamil Nadu pioneers in implementing welfare schemes for labourers'
Tamil Nadu has taken the lead in implementing welfare schemes for labourers in unorganised sector, said T. M. Anbarasan, Minister for Labour Welfare and Employment, here on Tuesday.
He distributed benefits worth Rs. 43.33 lakh to 1,817 labourers belonging to welfare boards from Thanjavur, Tiruvarur and Nagapattinam districts. He also gave away equipment to barbers, washermen and goldsmiths.
The Minister said there were 33 welfare boards for labourers belonging to unorganised sector of which 14 are attached to labour department. Nearly 46 lakh workers have registered with these boards. In the last four and a half years, the government has allotted Rs. 1,000 crore for the welfare of these labourers. In the last one year, benefits worth Rs. 174 crore have been disbursed.
The Minister said labourers in unorganised sector account for 92 per cent in Tamil Nadu while the rest are in organised sector. Data entry has been made in computers for the 46 lakh members of these boards.
There are no registration and renewal fees for them. They would be registered within thirty days of their submission of applications and within sixty days, they would be eligible for monetary benefits. Most of the labourers in the unorganised sector are beneficiaries under the Kalaignar's insurance scheme for life saving treatment, the Minister said.
U. Mathivanan, Dairy Development Minister, said services of barbers, washermen and tailors are necessary for a civilised life. They have been uplifted and the welfare boards were instrumental in their development.
M. Chandraseakaran, Collector, P. Karupusamy, Additional Labour Commissioner, Poondi Kalaivanan, Member of Cotton Advisory Board and R. Shankar, Vice Chairman, Tiruvarur Municipality, spoke.
Agency workers get poorer pay, employment conditions -survey
Workers under agency contractors in Australia receive significantly poorer pay and employment conditions than those under direct-hire arrangements, according to a new study.
A research by Dr Underhill from the Deakin University Business School shows that host employers assume limited responsibility for the conditions of workers they employ through agency employers, including whether their conditions satisfy minimum labour rights or occupational health and safety (OHS) standards.
While the same rights and protection should apply to temporary agency workers and direct-hire employees, Dr Underhill argues that in practice "the triangular nature of agency employment creates barriers to its successful application", with agency workers being employed by one party, the agency, while their pay and conditions are substantially influenced by another, the host employer.
At a time when temporary agency work is expanding, Dr Underhill proposes that there is a need to reconsider the legal responsibilities for agency worker protection so that host employers have the same responsibilities for applying employment standards as they do for their own staff.
According to her, ss the ILO and EU found, compromises and tradeoffs are required in the conflicted area of minimum standards for agency workers because the standards are hotly contested in a context where "the agency business model rests upon the supply of labour at a cost lower than that which the host can achieve."
Dr Underhill said, under the Fair Work Act 2009 the responsibilities imposed on the common law employer - the agency - have only limited practical application to the host.
Agency employees face job loss for raising a grievance, are required to accept any job placement to maintain an income, are geographically dispersed with transitory job locations, and have little power to enforce their few employment entitlements.
The study is based on Australian data from relevant industrial tribunals, court cases, a survey of 147 agency workers and five focus groups of agency workers and representative union officials.
It also relies on a sample of workers' compensation claim files of injured agency and comparable direct-hire workers (198 of each) that have been investigated by insurance claim agents.
Unorganised sector a major challenge: Kharge
Union Minister for Labour and Employment Mallikarjun Kharge said the major challenge facing India today was that of the unorganised sector.
He was speaking at the second World Social Security Summit organised by the International Social Security Association in Capetown, South Africa, on Friday. Mr. Kharge is heading a six-member high-level delegation from India, which held discussions with several Labour Ministers of the nearly 120 countries participating in the meet.
Mr. Kharge said India was committed to social security programmes and had introduced several forward-looking legislation such as the Mahatma Gandhi National Rural Employment Guarantee Act, housing programmes for those below the poverty line, old age pension, the RSBY (Rashtriya Swasthaya Bima Yojna), the Right to Education, the mid-day meal scheme, etc. He emphasised that the social security schemes in India had the full support of Prime Minister Manmohan Singh and the Ministry of Finance.
CRUCIAL TO GROWTH
Mr. Kharge said: “Our major challenge remains the unorganised sector where around 430 million workers are employed in a total workforce of around 450 million. By their sheer numbers, this segment is crucial to India's continuing growth in the post crisis recovering period. While it is a fact that India's economy was less impacted upon by the financial crisis, we have not remained insulated to its consequences. We have started a slew of programmes to address the social security issues in the unorganised sector.”
The employees in the unorganised sector, despite comprising a majority of the working class in the country, mostly remain in low-paid insecure jobs, have little access to institutionalised social security and are the most vulnerable to the negative impact of economic slowdowns in terms of job loss and wage cuts. The government has since introduced health insurance, general insurance and a pension scheme for those serving in the unorganised sector.
INCLUSIVE GROWTH
“The process of economic liberalisation undertaken in India since 1991 has resulted in rapid economic growth but we are still addressing the challenge of making this growth story an inclusive one. Only when that is achieved, we will allow ourselves the luxury of calling it a complete success story,” Mr. Kharge said.
During the interaction with the audience, which included delegations from 120 countries, he highlighted India's commitment to the social security programmes and the positive impact of the RSBY and the MGNREGA schemes. “India's social security programmes enjoy a strong political will and the total support of the government machinery.”
BUDGETARY SUPPORT
He noted that all governments must support social security measures by providing necessary budgetary support. In the light of suggestions by some panellists for contributory mechanisms to make the schemes viable and self-sustaining, he said the government's primary support was necessary to ensure that the social security benefits reached the poorest of the poor.
On the sidelines of the world meet, Mr. Kharge met his counterparts from South Africa, Zambia, Yemen, Swaziland, Samoa and Guernsey and exchanged views on issues pertaining to social security policies and their medium and long-term impact on the financial health of the countries.
Tuesday, November 23, 2010
Labour laws hurting employment growth, need to be revisited: PM
Acknowledging that some labour laws had not yielded the desired results, Prime Minister Manmohan Singh today said there was a need to revisit some of them which had hurt the growth of employment.
“We have enacted several progressive labour laws since independence and some even before that. But it appears that not all these laws have had the intended good effects that we would like to see on the ground,” he said inaugurating the 43rd session of the Indian Labour Conference.
Singh said there was a need to consider the possible role of some of the labour laws in “contributing to rigidities in the labour market which hurt the growth of employment”.
“Is it possible that our best intentions for labour are not actually met by laws that sound progressive on paper but end up hurting the very workers they are meant to protect,” he said in his address to the delegates who included representatives from trade union, employees and employers.
The prime minister also said the government was making serious efforts to moderate the inflation rate. “We have difficulties but we shall overcome,” he said referring to the prices of essential commodities.
Noting that the government was keen on not only making growth faster but also more inclusive, he said: “There have been many successes in our initiatives for social and economic inclusion. But we need to do much more”.
Asserting that the government was committed to economic reforms with a “human face”, Singh said its ability to devote more resources for social welfare activities depended crucially on the ability to accelerate the pace of economic growth to 9 to 10 per cent a year.
Emphasising the need for the industry and labour to work together to remove the barriers for faster economic growth and employment, he said the regulatory framework in the labour sector should encourage investment in labour-intensive industries and also ensure welfare of workers.
“We should constantly introspect whether our policies are serving our goals. We should reflect upon possible flaws in our policies as well as ways to strengthen policy to withstand adverse circumstances,” he said.
Singh also advocated strengthening the micro and small enterprises sector, which had the second-largest share of employment after agriculture. He said it encompassed a wide range of economic activities and also helped check rural to urban migration by gainfully employing people in villages.
Singh also asked the private sector to participate actively for the success of skill development programmes initiated by the government.
The prime minister added the government had upgraded the ITIs into centres of excellence to provide multi-skill courses.
Monday, October 18, 2010
Govt seeks to amend contract labour law
NEW DELHI: It is a new idea to achieve the UPA’s elusive goal of inclusive growth while giving industry the hiring flexibility it needs. But the government’s own narrow interests are holding it up.
With a vast part of the workforce now employed on contract basis without any job security, the Centre wants to amend the Contract Labour Act of 1971 to ensure a fair deal for such workers.
The proposed amendment mandates that contract workers get the same wages, facilities and benefits as regular employees. So even if contract workers have no security of tenure, they would get better salaries with health cover and social security benefits under the Employees’ State Insurance Corporation and Employees’ Provident Fund, respectively.
The labour ministry believes this would be a very effective instrument to transfer wealth and achieve the UPA’s inclusive growth agenda.
“By one amendment, wages would increase,” labour secretary Prabhat Chaturvedi told ET. “The trade unions’ resistance to hiring contract workers will reduce and industry would get the flexibility it keeps asking for in hiring practices,” he said.
Though there is no official fix on how many of India’s 450 million-odd workers are employed on contract, such workers’ exploitation is being seen as one of the reasons for rising industrial unrest in recent times.
“Most contract workers are paid just 40% of regular wages with no social protection. To earn profit by exploiting labour isn’t desirable in a democratic country and welfare state,” Mr Chaturvedi said.
The worst manifestation of such unrest was seen when Graziano Transmission CEO LK Chaudury was murdered by a mob of workers two years ago, after he laid off a few contract labourers. A Cabinet note moved by the labour ministry to amend the 1971 law has called for urgent action to prevent such instances from spiralling into a national labour crisis.
Maruti Suzuki managing executive officer SY Siddiqui agrees that industry must provide social security benefits to contract workers as it will also entail some flexibility in hiring.
“More flexibility in hiring would certainly help industries where there are demand surges and labour needs to vary through a year,” he told ET.
But equity in compensation, Mr Siddiqui stressed, must depend on workers’ skills. “If two sets of workers are doing the same job, there must be fairness in pay. But someone who unloads goods into my factory can’t be paid the same as a shop-floor worker who ensures the quality of the final product,” he explained. Mr Siddiqui is a member of the industrial relations council at the Confederation of Indian Industry (CII).
“The law provides for paying at least the minimum wages to contract workers,” said another CII official. “Industry strives to pay a little more, where possible, but to pay the same wages as regular workers would be difficult,” he said.
While industry is sceptical about how these changes will be implemented, the government is in a tizzsy over the implications. Several ministries have called for a rethink as they rely heavily on contract workers. In many public sector firms, contract workers make up for over 70% of their staff. The government is one of the biggest users of contract labour, they have pointed out.
Noting such concerns, cabinet secretary KM Chandrashekhar has asked the labour ministry to evaluate the financial impact of the proposed changes on the Centre’s finances as well as the economy at large.
The VV Giri National Labour Institute is now grappling with the question and is expected to submit its report this month. Mr Chaturvedi categorically dismisses the prospect of exceptions being made for PSUs or government departments under the new law. But the final shape of the law could alter on the basis of the impact assessment underway.
Ironically, rules to give contract workers fair wages and benefits already exist under the 1971 law, but they aren’t implemented in letter or spirit.
It has been proposed that these norms be explicitly stated up front in the Act, instead of the rules. Principal employers and contractors would have to furnish challans to show every month’s wage bill and social security benefit payments for contract workers.
While industry appreciates the intent of protecting contract labour from the prevalent exploitation, it has operational concerns.
“In many industries, permanent employees are no longer hired for some roles, such as security guards,” said Deepak Gupta, executive director (tax and regulatory services) at PricewaterhouseCoopers. “So how do you determine the fair wages for them?” he asked.
Operational details could be ironed out. But as and when the proposed changes become law, it would constitute a significant reform in India’s archaic labour legislations that are out of sync with post-liberalisation industrial realities.
Firstly, it would take cognisance of the fact that contract labour is here to stay—something that trade unions have been refusing to accept for two decades. More importantly, the changes could set the stage for Indian industry to hire workers with more freedom and give Indian youth a chance to realise the country’s much-vaunted demographic dividend.
Source: http://economictimes.indiatimes.com/news/economy/policy/Govt-seeks-to-amend-contract-labour-law/articleshow/6640126.cms
With a vast part of the workforce now employed on contract basis without any job security, the Centre wants to amend the Contract Labour Act of 1971 to ensure a fair deal for such workers.
The proposed amendment mandates that contract workers get the same wages, facilities and benefits as regular employees. So even if contract workers have no security of tenure, they would get better salaries with health cover and social security benefits under the Employees’ State Insurance Corporation and Employees’ Provident Fund, respectively.
The labour ministry believes this would be a very effective instrument to transfer wealth and achieve the UPA’s inclusive growth agenda.
“By one amendment, wages would increase,” labour secretary Prabhat Chaturvedi told ET. “The trade unions’ resistance to hiring contract workers will reduce and industry would get the flexibility it keeps asking for in hiring practices,” he said.
Though there is no official fix on how many of India’s 450 million-odd workers are employed on contract, such workers’ exploitation is being seen as one of the reasons for rising industrial unrest in recent times.
“Most contract workers are paid just 40% of regular wages with no social protection. To earn profit by exploiting labour isn’t desirable in a democratic country and welfare state,” Mr Chaturvedi said.
The worst manifestation of such unrest was seen when Graziano Transmission CEO LK Chaudury was murdered by a mob of workers two years ago, after he laid off a few contract labourers. A Cabinet note moved by the labour ministry to amend the 1971 law has called for urgent action to prevent such instances from spiralling into a national labour crisis.
Maruti Suzuki managing executive officer SY Siddiqui agrees that industry must provide social security benefits to contract workers as it will also entail some flexibility in hiring.
“More flexibility in hiring would certainly help industries where there are demand surges and labour needs to vary through a year,” he told ET.
But equity in compensation, Mr Siddiqui stressed, must depend on workers’ skills. “If two sets of workers are doing the same job, there must be fairness in pay. But someone who unloads goods into my factory can’t be paid the same as a shop-floor worker who ensures the quality of the final product,” he explained. Mr Siddiqui is a member of the industrial relations council at the Confederation of Indian Industry (CII).
“The law provides for paying at least the minimum wages to contract workers,” said another CII official. “Industry strives to pay a little more, where possible, but to pay the same wages as regular workers would be difficult,” he said.
While industry is sceptical about how these changes will be implemented, the government is in a tizzsy over the implications. Several ministries have called for a rethink as they rely heavily on contract workers. In many public sector firms, contract workers make up for over 70% of their staff. The government is one of the biggest users of contract labour, they have pointed out.
Noting such concerns, cabinet secretary KM Chandrashekhar has asked the labour ministry to evaluate the financial impact of the proposed changes on the Centre’s finances as well as the economy at large.
The VV Giri National Labour Institute is now grappling with the question and is expected to submit its report this month. Mr Chaturvedi categorically dismisses the prospect of exceptions being made for PSUs or government departments under the new law. But the final shape of the law could alter on the basis of the impact assessment underway.
Ironically, rules to give contract workers fair wages and benefits already exist under the 1971 law, but they aren’t implemented in letter or spirit.
It has been proposed that these norms be explicitly stated up front in the Act, instead of the rules. Principal employers and contractors would have to furnish challans to show every month’s wage bill and social security benefit payments for contract workers.
While industry appreciates the intent of protecting contract labour from the prevalent exploitation, it has operational concerns.
“In many industries, permanent employees are no longer hired for some roles, such as security guards,” said Deepak Gupta, executive director (tax and regulatory services) at PricewaterhouseCoopers. “So how do you determine the fair wages for them?” he asked.
Operational details could be ironed out. But as and when the proposed changes become law, it would constitute a significant reform in India’s archaic labour legislations that are out of sync with post-liberalisation industrial realities.
Firstly, it would take cognisance of the fact that contract labour is here to stay—something that trade unions have been refusing to accept for two decades. More importantly, the changes could set the stage for Indian industry to hire workers with more freedom and give Indian youth a chance to realise the country’s much-vaunted demographic dividend.
Source: http://economictimes.indiatimes.com/news/economy/policy/Govt-seeks-to-amend-contract-labour-law/articleshow/6640126.cms
Tuesday, September 28, 2010
Govt seeks to amend contract labour law
NEW DELHI: It is a new idea to achieve the UPA’s elusive goal of inclusive growth while giving industry the hiring flexibility it needs. But the government’s own narrow interests are holding it up.
With a vast part of the workforce now employed on contract basis without any job security, the Centre wants to amend the Contract Labour Act of 1971 to ensure a fair deal for such workers.
The proposed amendment mandates that contract workers get the same wages, facilities and benefits as regular employees. So even if contract workers have no security of tenure, they would get better salaries with health cover and social security benefits under the Employees’ State Insurance Corporation and Employees’ Provident Fund, respectively.
The labour ministry believes this would be a very effective instrument to transfer wealth and achieve the UPA’s inclusive growth agenda.
“By one amendment, wages would increase,” labour secretary Prabhat Chaturvedi told ET. “The trade unions’ resistance to hiring contract workers will reduce and industry would get the flexibility it keeps asking for in hiring practices,” he said.
Though there is no official fix on how many of India’s 450 million-odd workers are employed on contract, such workers’ exploitation is being seen as one of the reasons for rising industrial unrest in recent times.
“Most contract workers are paid just 40% of regular wages with no social protection. To earn profit by exploiting labour isn’t desirable in a democratic country and welfare state,” Mr Chaturvedi said.
The worst manifestation of such unrest was seen when Graziano Transmission CEO LK Chaudury was murdered by a mob of workers two years ago, after he laid off a few contract labourers. A Cabinet note moved by the labour ministry to amend the 1971 law has called for urgent action to prevent such instances from spiralling into a national labour crisis.
Maruti Suzuki managing executive officer SY Siddiqui agrees that industry must provide social security benefits to contract workers as it will also entail some flexibility in hiring.
“More flexibility in hiring would certainly help industries where there are demand surges and labour needs to vary through a year,” he told ET.
But equity in compensation, Mr Siddiqui stressed, must depend on workers’ skills. “If two sets of workers are doing the same job, there must be fairness in pay. But someone who unloads goods into my factory can’t be paid the same as a shop-floor worker who ensures the quality of the final product,” he explained. Mr Siddiqui is a member of the industrial relations council at the Confederation of Indian Industry (CII).
“The law provides for paying at least the minimum wages to contract workers,” said another CII official. “Industry strives to pay a little more, where possible, but to pay the same wages as regular workers would be difficult,” he said.
While industry is sceptical about how these changes will be implemented, the government is in a tizzsy over the implications. Several ministries have called for a rethink as they rely heavily on contract workers. In many public sector firms, contract workers make up for over 70% of their staff. The government is one of the biggest users of contract labour, they have pointed out.
Noting such concerns, cabinet secretary KM Chandrashekhar has asked the labour ministry to evaluate the financial impact of the proposed changes on the Centre’s finances as well as the economy at large.
The VV Giri National Labour Institute is now grappling with the question and is expected to submit its report this month. Mr Chaturvedi categorically dismisses the prospect of exceptions being made for PSUs or government departments under the new law. But the final shape of the law could alter on the basis of the impact assessment underway.
Ironically, rules to give contract workers fair wages and benefits already exist under the 1971 law, but they aren’t implemented in letter or spirit.
It has been proposed that these norms be explicitly stated up front in the Act, instead of the rules. Principal employers and contractors would have to furnish challans to show every month’s wage bill and social security benefit payments for contract workers.
While industry appreciates the intent of protecting contract labour from the prevalent exploitation, it has operational concerns.
“In many industries, permanent employees are no longer hired for some roles, such as security guards,” said Deepak Gupta, executive director (tax and regulatory services) at PricewaterhouseCoopers. “So how do you determine the fair wages for them?” he asked.
Operational details could be ironed out. But as and when the proposed changes become law, it would constitute a significant reform in India’s archaic labour legislations that are out of sync with post-liberalisation industrial realities.
Firstly, it would take cognisance of the fact that contract labour is here to stay—something that trade unions have been refusing to accept for two decades. More importantly, the changes could set the stage for Indian industry to hire workers with more freedom and give Indian youth a chance to realise the country’s much-vaunted demographic dividend.
Source: http://economictimes.indiatimes.com/news/economy/policy/Govt-seeks-to-amend-contract-labour-law/articleshow/6640126.cms
With a vast part of the workforce now employed on contract basis without any job security, the Centre wants to amend the Contract Labour Act of 1971 to ensure a fair deal for such workers.
The proposed amendment mandates that contract workers get the same wages, facilities and benefits as regular employees. So even if contract workers have no security of tenure, they would get better salaries with health cover and social security benefits under the Employees’ State Insurance Corporation and Employees’ Provident Fund, respectively.
The labour ministry believes this would be a very effective instrument to transfer wealth and achieve the UPA’s inclusive growth agenda.
“By one amendment, wages would increase,” labour secretary Prabhat Chaturvedi told ET. “The trade unions’ resistance to hiring contract workers will reduce and industry would get the flexibility it keeps asking for in hiring practices,” he said.
Though there is no official fix on how many of India’s 450 million-odd workers are employed on contract, such workers’ exploitation is being seen as one of the reasons for rising industrial unrest in recent times.
“Most contract workers are paid just 40% of regular wages with no social protection. To earn profit by exploiting labour isn’t desirable in a democratic country and welfare state,” Mr Chaturvedi said.
The worst manifestation of such unrest was seen when Graziano Transmission CEO LK Chaudury was murdered by a mob of workers two years ago, after he laid off a few contract labourers. A Cabinet note moved by the labour ministry to amend the 1971 law has called for urgent action to prevent such instances from spiralling into a national labour crisis.
Maruti Suzuki managing executive officer SY Siddiqui agrees that industry must provide social security benefits to contract workers as it will also entail some flexibility in hiring.
“More flexibility in hiring would certainly help industries where there are demand surges and labour needs to vary through a year,” he told ET.
But equity in compensation, Mr Siddiqui stressed, must depend on workers’ skills. “If two sets of workers are doing the same job, there must be fairness in pay. But someone who unloads goods into my factory can’t be paid the same as a shop-floor worker who ensures the quality of the final product,” he explained. Mr Siddiqui is a member of the industrial relations council at the Confederation of Indian Industry (CII).
“The law provides for paying at least the minimum wages to contract workers,” said another CII official. “Industry strives to pay a little more, where possible, but to pay the same wages as regular workers would be difficult,” he said.
While industry is sceptical about how these changes will be implemented, the government is in a tizzsy over the implications. Several ministries have called for a rethink as they rely heavily on contract workers. In many public sector firms, contract workers make up for over 70% of their staff. The government is one of the biggest users of contract labour, they have pointed out.
Noting such concerns, cabinet secretary KM Chandrashekhar has asked the labour ministry to evaluate the financial impact of the proposed changes on the Centre’s finances as well as the economy at large.
The VV Giri National Labour Institute is now grappling with the question and is expected to submit its report this month. Mr Chaturvedi categorically dismisses the prospect of exceptions being made for PSUs or government departments under the new law. But the final shape of the law could alter on the basis of the impact assessment underway.
Ironically, rules to give contract workers fair wages and benefits already exist under the 1971 law, but they aren’t implemented in letter or spirit.
It has been proposed that these norms be explicitly stated up front in the Act, instead of the rules. Principal employers and contractors would have to furnish challans to show every month’s wage bill and social security benefit payments for contract workers.
While industry appreciates the intent of protecting contract labour from the prevalent exploitation, it has operational concerns.
“In many industries, permanent employees are no longer hired for some roles, such as security guards,” said Deepak Gupta, executive director (tax and regulatory services) at PricewaterhouseCoopers. “So how do you determine the fair wages for them?” he asked.
Operational details could be ironed out. But as and when the proposed changes become law, it would constitute a significant reform in India’s archaic labour legislations that are out of sync with post-liberalisation industrial realities.
Firstly, it would take cognisance of the fact that contract labour is here to stay—something that trade unions have been refusing to accept for two decades. More importantly, the changes could set the stage for Indian industry to hire workers with more freedom and give Indian youth a chance to realise the country’s much-vaunted demographic dividend.
Source: http://economictimes.indiatimes.com/news/economy/policy/Govt-seeks-to-amend-contract-labour-law/articleshow/6640126.cms
Thursday, July 29, 2010
C'wealth Games: Finally, workers get some legal cover
NEW DELHI: Labourers working at Commonwealth Games project sites finally have some reason to smile.
A week since a drive was started by the Delhi Legal Services Authority (DLSA), along with with the labour department and Delhi government, to ensure the rights of workers under labour laws, around 2,000 workers have successfully been registered and verified.
DLSA, which appointed a three-lawyer panel to look into the condition of Games project labourers, is holding camps every day till August 5 at various sites. So far, the panel has visited Akhsardham complex, Jawaharlal Nehru stadium, Shastri park and Indira Gandhi International Airport site, Tughklak Road metro station and R K Khanna stadium.
DLSA project officer Gautam Manan, who is spearheading the drive, said all workers at different sites are being registered as per labour laws. The workers are also being insured against any kind of damage. "The camps sensitize the workers about their rights and insurance in case of any mishap. Most of these workers are daily wage earners and little do they realise that these things make a difference in their lives,'' he said.
The DLSA drive comes a week after the Delhi high court directed the government to verify the registration of all workers at Games sites across the capital. Despite the claims of the government that around 3,000 workers had been registered in the last two months, HC in its order on a PIL filed by Peoples' Union For Democratic Rights on the plight of the Games workers took a stern view of the situation. "It is worth noting that the figures that are stated in the affidavit do not refer to workers employed for the purpose of CWG...the learned counsel for the state could not clarify whether all the workers who are registered are employed in CWG or elsewhere,'' the court noted on the affidavit filed by the Delhi government saying "around 4,000 applications were being processed and over 31,000 workers had been registered till date''.
It directed the Delhi government to verify the "registrations that had been made'' and sought the "exact number of workers registered with the CWG". The HC also set up a three-member panel a third body apart from a workers' welfare board and a monitoring committee to sensitise them on their entitlements.
The HC was earlier told that around 48 workers had died at various Games site and due to the absence of any registration, the families of the deceased could not get any compensation.
Source: http://timesofindia.indiatimes.com/city/delhi/Cwealth-Games-Finally-workers-get-some-legal-cover/articleshow/6230035.cms
A week since a drive was started by the Delhi Legal Services Authority (DLSA), along with with the labour department and Delhi government, to ensure the rights of workers under labour laws, around 2,000 workers have successfully been registered and verified.
DLSA, which appointed a three-lawyer panel to look into the condition of Games project labourers, is holding camps every day till August 5 at various sites. So far, the panel has visited Akhsardham complex, Jawaharlal Nehru stadium, Shastri park and Indira Gandhi International Airport site, Tughklak Road metro station and R K Khanna stadium.
DLSA project officer Gautam Manan, who is spearheading the drive, said all workers at different sites are being registered as per labour laws. The workers are also being insured against any kind of damage. "The camps sensitize the workers about their rights and insurance in case of any mishap. Most of these workers are daily wage earners and little do they realise that these things make a difference in their lives,'' he said.
The DLSA drive comes a week after the Delhi high court directed the government to verify the registration of all workers at Games sites across the capital. Despite the claims of the government that around 3,000 workers had been registered in the last two months, HC in its order on a PIL filed by Peoples' Union For Democratic Rights on the plight of the Games workers took a stern view of the situation. "It is worth noting that the figures that are stated in the affidavit do not refer to workers employed for the purpose of CWG...the learned counsel for the state could not clarify whether all the workers who are registered are employed in CWG or elsewhere,'' the court noted on the affidavit filed by the Delhi government saying "around 4,000 applications were being processed and over 31,000 workers had been registered till date''.
It directed the Delhi government to verify the "registrations that had been made'' and sought the "exact number of workers registered with the CWG". The HC also set up a three-member panel a third body apart from a workers' welfare board and a monitoring committee to sensitise them on their entitlements.
The HC was earlier told that around 48 workers had died at various Games site and due to the absence of any registration, the families of the deceased could not get any compensation.
Source: http://timesofindia.indiatimes.com/city/delhi/Cwealth-Games-Finally-workers-get-some-legal-cover/articleshow/6230035.cms
Thursday, July 22, 2010
Slave labour in svelte Delhi
Behind Delhi's radical makeover for the Commonwealth Games are 150,000 migrants labourers toiling hard to meet the October deadline. TOI Crest gives this silent workforce a name and a face.
Thirty-five-year old Vijay is from Sagar village in Madhya Pradesh. His thekedar, who makes regular trips to the villages to round up skilled and unskilled labourers, had told him he'd be working on the beautification of Delhi University roads under the Commonwealth Games Project.
The day Vijay arrived at the Old Delhi Railway station, it poured. For a scheduled caste ahirwar, inured to the varied uses and abuses of society at large, the train journey itself was only an extension of his uncomfortable, untouchable life. Consider the facts.
No one paid for Vijay's train fare, though under the labour laws he was entitled to it. The heat was overpowering, but at least that couldn't be blamed on the Games organisers. The fans didn't work. There was filth all over the compartment. There was no drinking water. No, no, that's not true, "There was no water." At all? "At all. The children cried all the time."
But, alas, in Delhi, Vijay's lot worsened even by his own ever-falling standards. The weather got wetter and weepier as the night deepened. Vijay and his family suddenly were the forcible recipients of free and plentiful supply of water, the commodity they could never normally get enough of. And they were stuck in the middle of the road in a new city that by and large believes kindness is a kind of affliction contracted by the weak of heart. Vijay worried for his four children, ranging from 6 months to 9 years. "Bechare bachchon ko dikkat hoti hai, hum ko koi phark nahin..."
Well, late that first night, Vijay and his family reached the Delhi University area. Somebody, a thekedar doppelganger, directed them to the footpath across the Khalsa College, the place he was born to beautify. "Where will we sleep?" Vijay asked. Bathing and crapping were also on his mind. But one thing at a time, he thought. Vijay was directed to his place of work. He'd be sleeping in his new office. The dug-up footpath where he was to lay the lovely pink stones would function as work place during day time, bedroom at night.
Earlier, when the thekedar in the flesh had met Vijay at his village, they had had a friendly cup of tea. The thekedar had paid for the tea from his own pocket. "The thekedar told me there'd be quarters or something," Vijay said without conviction. He was not accusing the thekedar of anything. He was merely observing without rancour that he had been arsed, again.
This is despite the fact that labour legislation - for instance, the Interstate Migrant Workmen's Act, 1979 - says migrant workers should be taken care of in terms of quarters and medical facilities. But, then, the labour laws also stipulate that unskilled workers like Vijay should be paid Rs 203 for eight hours' work, and that one day in a week should be given off.
What Vijay gets though is Rs 150. If that approximate difference of Rs 50 is multiplied by the conservative estimate of 150,000 labourers (there were at one time over 400,000 in Delhi), it will give you a rough idea of the money some of the civilised people in Delhi are making a day, down the chain of principal employer, contractor , sub contractor and thekedar. This is money from labourers alone. Kickbacks, commissions, and consultation fees go separately in suit and tie.
In a civil society this ought to be a scandal. Organisations like PUDR ( People's Union of Democratic Rights) and others have fought to focus attention on the labour issue. But, it is not even a scam, simply because we are devotees of marble tiles and pink stones, not justice. Only, it seems a little extravagant that the motto of the Commonwealth Games is Humanity, Equality, Destiny.
Neither does Vijay know that if he is required to do four hours over time, he should be paid Rs 406. What is the bet his contractor is claiming the extra allowance in Vijay's name? Because there really is no paper showing Vijay is working at all in Delhi. He is not registered with the labour welfare commission.
MP is one of the states in India which practises casteism with export quality cynicism. Ask Vijay. But in terms of exploitation, clearly the Sultanate of Delhi is not too far behind. Nearly half a millennium ago, Shah Jahan was building what is now Old Delhi. Was the lot of the slave labourer then any different from Vijay mixing cement for the new New Delhi? Not very, it appears.
The Games on a conservative estimate, cost about Rs 7,000 crore. The related infrastructure developments are tagged at over Rs 20,000 crore. Some of it was meant for Vijay. In May, Justice A P Shah, former Chief Justice of Delhi High Court, released a report by the Housing and Land Rights Network (HLRN), which found out that Rs 264.95 crore meant exclusively for the benefit of scheduled caste communities had been diverted for infrastructure development for the Commonwealth Games.
So in a very central way, Vijay and people like him from MP, UP, Bihar and Chhattisgarh - who form the bulk of the labour population in the city - are underwriting the capital's beauty drive. But, no matter how much money the government spends on cosmetic drives, a city will look clean and good, only if poverty is removed. Which is why the Games are a cruel sport in splurging.
Does all this make Vijay angry?
"Nahi, pareshaan hain, saab."
"In Deewar, the hero Amitabh Bachchan has your name."
"Didn't see Deewar."
"Who's your favourite hero? Salman Khan?"
"She," Vijay points at his wife, Suman, who is also an unskilled worker. You look at the frail Suman. She has two kids on her hips and one hugging her legs. No hero has to fight so many odds.
Source : http://timesofindia.indiatimes.com/India/Slave-labour-in-svelte-Delhi/articleshow/6182947.cms
Thirty-five-year old Vijay is from Sagar village in Madhya Pradesh. His thekedar, who makes regular trips to the villages to round up skilled and unskilled labourers, had told him he'd be working on the beautification of Delhi University roads under the Commonwealth Games Project.
The day Vijay arrived at the Old Delhi Railway station, it poured. For a scheduled caste ahirwar, inured to the varied uses and abuses of society at large, the train journey itself was only an extension of his uncomfortable, untouchable life. Consider the facts.
No one paid for Vijay's train fare, though under the labour laws he was entitled to it. The heat was overpowering, but at least that couldn't be blamed on the Games organisers. The fans didn't work. There was filth all over the compartment. There was no drinking water. No, no, that's not true, "There was no water." At all? "At all. The children cried all the time."
But, alas, in Delhi, Vijay's lot worsened even by his own ever-falling standards. The weather got wetter and weepier as the night deepened. Vijay and his family suddenly were the forcible recipients of free and plentiful supply of water, the commodity they could never normally get enough of. And they were stuck in the middle of the road in a new city that by and large believes kindness is a kind of affliction contracted by the weak of heart. Vijay worried for his four children, ranging from 6 months to 9 years. "Bechare bachchon ko dikkat hoti hai, hum ko koi phark nahin..."
Well, late that first night, Vijay and his family reached the Delhi University area. Somebody, a thekedar doppelganger, directed them to the footpath across the Khalsa College, the place he was born to beautify. "Where will we sleep?" Vijay asked. Bathing and crapping were also on his mind. But one thing at a time, he thought. Vijay was directed to his place of work. He'd be sleeping in his new office. The dug-up footpath where he was to lay the lovely pink stones would function as work place during day time, bedroom at night.
Earlier, when the thekedar in the flesh had met Vijay at his village, they had had a friendly cup of tea. The thekedar had paid for the tea from his own pocket. "The thekedar told me there'd be quarters or something," Vijay said without conviction. He was not accusing the thekedar of anything. He was merely observing without rancour that he had been arsed, again.
This is despite the fact that labour legislation - for instance, the Interstate Migrant Workmen's Act, 1979 - says migrant workers should be taken care of in terms of quarters and medical facilities. But, then, the labour laws also stipulate that unskilled workers like Vijay should be paid Rs 203 for eight hours' work, and that one day in a week should be given off.
What Vijay gets though is Rs 150. If that approximate difference of Rs 50 is multiplied by the conservative estimate of 150,000 labourers (there were at one time over 400,000 in Delhi), it will give you a rough idea of the money some of the civilised people in Delhi are making a day, down the chain of principal employer, contractor , sub contractor and thekedar. This is money from labourers alone. Kickbacks, commissions, and consultation fees go separately in suit and tie.
In a civil society this ought to be a scandal. Organisations like PUDR ( People's Union of Democratic Rights) and others have fought to focus attention on the labour issue. But, it is not even a scam, simply because we are devotees of marble tiles and pink stones, not justice. Only, it seems a little extravagant that the motto of the Commonwealth Games is Humanity, Equality, Destiny.
Neither does Vijay know that if he is required to do four hours over time, he should be paid Rs 406. What is the bet his contractor is claiming the extra allowance in Vijay's name? Because there really is no paper showing Vijay is working at all in Delhi. He is not registered with the labour welfare commission.
MP is one of the states in India which practises casteism with export quality cynicism. Ask Vijay. But in terms of exploitation, clearly the Sultanate of Delhi is not too far behind. Nearly half a millennium ago, Shah Jahan was building what is now Old Delhi. Was the lot of the slave labourer then any different from Vijay mixing cement for the new New Delhi? Not very, it appears.
The Games on a conservative estimate, cost about Rs 7,000 crore. The related infrastructure developments are tagged at over Rs 20,000 crore. Some of it was meant for Vijay. In May, Justice A P Shah, former Chief Justice of Delhi High Court, released a report by the Housing and Land Rights Network (HLRN), which found out that Rs 264.95 crore meant exclusively for the benefit of scheduled caste communities had been diverted for infrastructure development for the Commonwealth Games.
So in a very central way, Vijay and people like him from MP, UP, Bihar and Chhattisgarh - who form the bulk of the labour population in the city - are underwriting the capital's beauty drive. But, no matter how much money the government spends on cosmetic drives, a city will look clean and good, only if poverty is removed. Which is why the Games are a cruel sport in splurging.
Does all this make Vijay angry?
"Nahi, pareshaan hain, saab."
"In Deewar, the hero Amitabh Bachchan has your name."
"Didn't see Deewar."
"Who's your favourite hero? Salman Khan?"
"She," Vijay points at his wife, Suman, who is also an unskilled worker. You look at the frail Suman. She has two kids on her hips and one hugging her legs. No hero has to fight so many odds.
Source : http://timesofindia.indiatimes.com/India/Slave-labour-in-svelte-Delhi/articleshow/6182947.cms
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