January 10, 2002

'15'

   The Union Finance Minister, Shri Yashwant Sinha and Minister of State Shri Balasaheb Vikhe Patil met the major Trade Union Leaders here today, as part of the pre-budget consultation exercise. The Finance Minister welcomed the Trade Union Leaders and called for their suggestions for the budget preparation exercise. Outlining the current economic scenario, the Finance Minister mentioned that the economy was going through a difficult phase for the past ten months or so. He stressed the need for adopting measures to achieve to a higher growth rate of over 7 per cent to tackle the problems of poverty and unemployment. Since the last budget, a number of steps have been taken to give a fillip to the economy. He briefly outline the social security and employment generating initiatives taken recently such as Ashraya Bima Yojana, Krishi Shramik Samajik Suraksha Yojana, personal accident insurance for Kisan Credit Card holders, Sampoorna Grameen Rozgar Yojana, Shiksha Sahyog Yojana etc. The National Highway Development Project, the Rural Roads Scheme, the Self Help Groups Programme are going on in various parts of the country. Employment being a major area of concern, he reaffirmed the government’s resolve to pursue vigorously policies that would create opportunities for new jobs whether in the organized or unorganized sectors.

    In the wide-ranging discussions that followed the major suggestions made by the Trade Union Leaders included the following:

• Relaxation of the Income tax exemption limit by upward revision. Exemption of all allowances for the purpose of payment of tax.
• Wage enhancement upto Rs.1,000/- per month for Anganwadi workers.
• Increasing the honorarium of multiple Rural Health Workers to Rs. 500 per month.
• Restoration of LTC which would also promote tourism industry.
• A Tripartite Disinvestment Commission be set up wherein labour is given equal representation.
• The rate of interest on Provident Fund be restored from 9.5 to 12 per cent. Decision on rate of interest to be fixed be decided by the Central Board of Trustees.
• The taxation of perquisites that has been introduced in the last budget is adversely affecting some members of the working class also.
• Ceiling on bonus limit be removed to enable the benefit to be availed by all wage earners.
• Since the National Labour Commission is already looking into the issue of labour law amendments and the report is expected in February, 2002, no separate amendments in labour laws be taken up. Moreover, the Nodal administrative ministry should initiate proposals for labour reforms. All issues related to labour laws be dealt with by a Tripartite body.
• A comprehensive legislation be enacted for workers in the unorganized sector particularly for agricultural workers.
• Stringent measures be taken by government to realize the Non Performing Assets of the banking sector and all the tax-outstandings.
• The government should reconsider the disinvestment policy and downsizing efforts, since this leads to an increase in unemployment situation.
• The BIFR should not be closed down as proposed. Many sick units can be revived and do not need to be closed down.
• A mechanism be found to revive "potentially viable" sick units in the Public and Private Sector.
• Creation of Welfare Fund for the unorganized sector on the pattern of the Welfare Board in Kerala.
• Tax recovery has gone down and steps to plug the loopholes be taken.
• The government should formulate a comprehensive employment policy.
• The National Highway Development Project be implemented expeditiously.

    The representatives of Trade Unions requested the Finance Minister for convening of a separate meeting after completion of Budget exercise to discuss important issues regarding labour and economic policies.

    The meeting was attended by representatives of Bharatiya Mazdoor Sangh, Indian National Trade Union Congress, Centre of Indian Trade Unions, Hind Mazdoor Sabha, All India Trade Union Congress, United Trade Union Centre and National Front of Indian Trade Unions (NFITU).