29th, June, 2002
Ministry of Labour & Empowerment  


NATIONAL COMMISSION ON LABOUR SUBMITS ITS REPORT; GOVERNMENT TO IMPLEMENT MAXIMUM RECOMMENDATIONS AS SOON AS POSSIBLE, SAYS PRIME MINSTER


The Prime Minister Shri Atal Bihari Vajpayee has said that the Government would like to implement maximum number of recommendations made by the Second National Commission on Labour as quickly as possible. He was speaking after receiving the Report from the Chairman of the Commission Shri Ravindra Varma here today. Shri Vajpayee said, " Unfortunately the general impression is that reforms mean overlooking workers’ interests which is not a fact. The government policy is to work for workers’ welfare. But in the changed scenario it has become necessary to study all aspects and then take suitable steps," the Prime Minister added. He complimented the Commission for making recommendations for the unorganised sector which the Prime Minister said is all the more important. Referring to the organised sector the Prime Minister said that all social partners have to play their role and expressed the hope that those who have dissented would be satisfied with the government’s action on the Report.

Presenting the Report Shri Ravindra Verma said that concerns of all social partners were taken into consideration while reviewing the labour laws. He said that the Commission among other things considered the impact of globalisation on employment. Shri Verma said that international competitiveness of the industry requires a new mind set. He said that the Commission has presented a holistic picture of the organised sector. Shri Varma said that the Commission has recommended setting up of Workers’ Boards upto grassroots level for the unorganised sector to ensure minimum wages, legal protection and social security to the workers. He said that on the Impact of Globalisation the Commission restricted itself to the areas of employment, skill and training necessary for acquiring and retaining employability and employment, healthy industrial relations and laws that can promote harmonious industrial relations.

The recommendations include reduction and rationalization of plethora of labour laws and linking of elimination of child labour with education.

The Labour minister Shri Sharad Yadav complimented the Commission on successfully handling the ‘difficult and delicate ‘task’.

The Commission which was set up on October 15, 1999 was asked to suggest rationalisation of existing labour laws in the organised sector and take into account opening up of the Indian economy, international competitiveness and the needs and demands of the future labour markets. It was also asked to suggest an umbrella legislation for welfare of workers in the unogranised sector. The 10-member Commission had representation of both the industry and the labour. One of the Members Shri C.K. Saji Narayanan of Bhartiya Mazdoor Sangh has dissented on several provisions of the Report.

The Commission set up six Study Groups to have an in depth and focussed study on Review of Laws, Umbrella Legislation for Unorganised Sector Workers, Globalisation and its Impact, Social Security, Women and Child Labour and Skill Development, Training and Workers’ Education. Among important recommendations of some of the Study Groups are :

  • Make employment the centre of all policies in view of impact of globalisation on Indian economy.
  • A Scheme of Unemployment Relief be introduced at national level.
  • Accelerate the rate of growth of GDP, with particular emphasis on sectors likely to ensure the spread of income to the low-income segments of the labour force.
  • Pursue appropriate sectoral policies in individual sectors which are particularly important for employment generation.
  • Labour laws be changed to make them more positive for workers in the unorganised sector.
  • Social Security be made a fundamental right and a National Policy on Social Security should be formulated.
  • Income and social security of women workers should be enhanced and they should be given voice and representation under the Trade Union Act.
  • Setting up of Rs. 2000 crore fund for care of children and enactment of Child Labour (Prevention & Education) Act.
  • The minimum wage should constitute a basic rate of wage, cost of living allowance and cash value of concessions.