LABOUR MINISTRY FOCUSES ON WORKERS IN THE UNORGANISED SECTOR

INITIATES DIALOGUE WITH SOCIAL PARTNERS TO BUILD CONSENSUS ON LABOUR REFORMS; PROMOTES TRIPARTISM

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ON THE OCCASION OF THREE YEARS OF NDA GOVERNMENT

The Labour Ministry took a number of legislative and executive initiatives and policy decisions during the last three years to protect, promote and safeguard the interests of over 400 million workers in general and those who constitute the poor, deprived and disadvantaged sections of the society in particular.

REVIVAL OF TRIPARTISM

The Labour Ministry is one of the oldest Ministries of the Government of India and has been striving to have harmonious industrial relations in the country. The present Government, which is committed to the ethos and culture of tripartism, took measures to revitalise it. The biggest initiative in this direction came from the Prime Minister Shri Atal Bihari Vajpayee. He is the first Prime Minister to attend three successive annual sessions of the national level apex tripartite conference of social partners, the Indian Labour Conference, highlighting the government’s commitment at the highest level to tripartite consultation process on labour issues.

REVIEW OF LABOUR LAWS

The Labour Minister has initiated dialogue with social partners on the recommendations of the Second National Commission on Labour to build a consensus on labour reforms. This is in consonance with the Prime Minister’s assurance that the Government would implement maximum possible recommendations of the Commission as soon as possible. The Commission, set up in October 1999 under the Chairmanship of Shri Ravindra Varma to make a comprehensive review of labour laws to ensure their consistency with general changes taking place in economic policy and also to provide for greater welfare of the workers, submitted its comprehensive Report to the Prime Minister Shri Atal Bihari Vajpayee in June 2002.

LABOUR LEGISLATION

Meanwhile, the Ministry continued to have consultations with the social partners to obtain a consensus for enacting new laws or bringing about changes in the existing laws necessitated by the changing economic scenario. The Trade Union ( Amendment ) Bill, 2000, was passed by Parliament during monsoon session of 2001. It aims at reducing the multiplicity of trade unions and making them more democratic and effective.

WELFARE MEASURES FOR WORKERS IN THE ORGANISED SECTOR

Increase In Compensation Amount To Workers

The Workmen’s Compensation Act has been amended to substantially increase compensation amount to workers in case of death and disability. Depending upon the age and wages of the worker, s/he or her/his dependents can get the maximum compensation upto Rs. 5.48 lakhs for disability and Rs. 4.56 lakhs for death. The minimum compensation to the workers in case of death has been increased from Rs. 50,000 to Rs.80,000 /- and in case of permanent disability from Rs. 60,000 to Rs. 90,000 /- . The other salient feature of the amendment is that all workers have been brought within the ambit of the Act irrespective of their nature of employment.

Measures for ESI Beneficiaries

The ESIC has granted exemption to workers earning less than Rs. 40/- a day from payment of contribution to Employees State Insurance Fund. This has benefited about 6.10 lakh low paid workers.The ESIC scheme has been extended to cover a total of 28 new geographical areas benefitting additional 90 thousand workers.

Eight new ESI hospitals i.e. one each at Trichy, Okhla, Rohini, Nagda, Durgapur, Shahbad, Rourkela and Belgaum were started under the ESI Scheme. The Labour Ministry decided to set up one model ESI hospital in each state to provide specialised medical care to workers. The Corporation has already taken over two ESI hospitals at Hyderabad and Jaipur for this purpose.

Four more diseases have been added to the list of 29 Chronic Diseases for entitlement to Extended Sickness Benefit by the Corporation. The Corporation has also undertaken a World Bank funded project for early detection and prevention of HIV / AIDS among industrial workers all over the country.

Measures for EPF Beneficiaries

The wage ceiling limit for Employees Provident Fund has been enhanced from Rs.5000 to Rs.6500 per month from June, 2001. This has been done to bring in more workers within the ambit of the Employees Provident Fund.

Over four lakh Pensioners of the Employees Provident Fund have been granted two years pension relief twice at the rate of 5 percent. In the case of death during service of the employees covered under the EPF & MP Act, the ceiling on maximum amount of deposit linked insurance benefit has been enhanced to Rs.60,000 from Rs.35,000.

Pension Through Post Offices Also

About ten lakh EPF pensioners from July 2001 have got the option of receiving pension through 26,000 Post Offices across the country. This has been done to help a large number of workers who after retirement go back to their homes located in rural and far-flung areas where banking facilities are not available.

Manisana Wage Board

The Manisana Wage Board Award for journalists and non-journalists employed in the newspaper industry has significantly improved the wage structure and allowances of journalists and non-journalists employed in the newspaper industry.

FOCUS ON WORKERS IN THE UNORGANISED SECTOR

As a major policy decision, the Ministry of Labour decided to pay greater attention to the problems of workers in the unorganised sector who constitute 93% of over 400 million strong workforce in the country. Majority of them, earning very low wages and living below poverty line, is not covered by any of the social security schemes. Several initiatives were taken to improve their lot.

Social Security Scheme For Agricultural Workers

A unique social security scheme for agricultural workers named "Krishi Shramik Samajik Suraksha Yojana -2001" became operational from July, 2001. Initially to cover 50 blocks, the scheme would be introduced in stages to cover over 13 crore agriculture workers to provide them comprehensive life insurance protection, periodical lump sum survival benefit and pension.

 

Labour Welfare Funds

The Ministry took several measures to further improve the Welfare schemes formulated for beedi, non-coal mine and cine workers. The main thrust of the Welfare schemes is in the Health sector as target groups are involved in health hazardous occupations

Beedi & Mine workers

About 3.7 million of the 4.4 million beedi workers have been issued identity cards. There are approximately 1.15 lakh workers engaged in iron-ore, Manganese Ore, Chrome Ore, Limestone and Dolomite mines distributed basically in six states. Projects, for construction of three new 30-beded hospitals have been taken up for beedi workers at Nalanda (Bihar Sharif), Sagar (Madhya Pradesh) and Mukkudar (Tamil Nadu). Review of Group Insurance for beedi workers have been undertaken to make it more effective.

Initiative has been taken to study creation of new Welfare Funds for Tendu Patta pluckers, salt workers, brass industry workers etc. Schemes, for educational benefits and housing subsidies are being modified to make them more meaningful and accessible. The rate of cess on iron/manganese ores has been enhanced to enhance welfare benefits for workers.

Cine Workers

The Ministry took another initiative to net in all cine workers within the ambit of the Cine Workers Welfare Fund Act, 1981 by introducing an amendment bill in the Lok Sabha to raise the income eligibility ceiling. The proposed amendment would empower the Ministry to notify the income eligibility ceiling through executive decision from time to time so that almost all cine workers can benefit from the Welfare Fund. At present the income eligibility ceiling is Rs.1600/- per month which enables only half of the 63 thousand cine workers to avail benefits under the Welfare Fund.

The Cine Workers Welfare Fund operated by the Labour Ministry provides health care, financial assistance for treatment of some major ailments to cine workers and their families, children’s education and Group Insurance Scheme for which the Labour Ministry pays Rs.30/- per worker as insurance premium.

Building & Construction Workers

According to latest survey (1999-2000) of National Sample Survey Organisation, there are about 17.62 million building and other construction workers in India. To promote their welfare, the Labour Ministry has been pressing the state governments to constitute State Welfare Boards/ Welfare Funds, and State Advisory Committees and frame rules to implement the Building and other Construction Workers Act and Welfare Cess Act. As a result, the government of Andhra Pradesh, Maharashtra, Uttar Pradesh, Madhya Pradesh, Manipur, Punjab, Goa and West Bengal are in the process of completing the necessary action to implement the Act. Kerala, & Tamil Nadu have constituted Welfare Boards while Pondicherry and Delhi have framed rules under the Act.

NATIONAL MINIMUM WAGE INCREASED

A floor level minimum wage of Rs.45 per day has been fixed at the national level. All states have been asked to ensure that the minimum wages do not fall below the level in scheduled employment. The minimum wage for agricultural workers in the Central Sector has also been revised.

WELFARE FUND FOR OVERSEAS INDIAN WORKERS

The Labour Ministry also initiated a move to set up Central Manpower Export Promotion Council. The proposed Council would play a role of promoting employment opportunities for emigrants, projection of manpower services from India in major labour markets abroad, liaison with other export promotion agencies and administration of the Indian Overseas Workers’ Welfare Fund. The Welfare Fund would be set up by collecting a fee from each worker leaving the country for overseas employment. It would be utilized for repatriating the workers stranded in foreign countries, providing financial assistance to the kin of workers who die during foreign employment, etc.

ELIMINATION OF CHILD LABOUR

Elimination of child labour continues to be an area of great concern. The policy of the government is to ban employment of children below 14 years in factories, mines and hazardous vocations. As a part of this policy, the Labour Ministry in May 2001 banned employment of children in six more hazardous processes raising their number to 57. The number of occupations where child labour is prohibited continues to be 13. The National Child Labour Projects, NCLPs, to rehabilitate children withdrawn from employment has been increased to one hundred. Over 3000 special schools/ learning centres have been set up in 100 districts in 13 child labour endemic states under the NCLPs to rehabilitate about 2.11 lakh child labourers. Over 70 projects by voluntary organisations are also under implementation under the grants-in-aid scheme. The Labour Ministry meets 75 percent cost of these projects by way of grants. The Prime Minister has said that the government would make efforts to eliminate child labour at least from hazardous occupations by 2005.

PRIORITY TO CREATION OF SKILLED LABOUR FORCE

The Labour Ministry has accorded a very high priority to the creation of a skilled labour force in the country by upgrading the skills of labour force to help them take advantage of globalisation process. A draft paper proposing new policy initiatives for vocational training has been prepared and reviewed by an Expert National Committee comprising all stake holders. The draft policy is being put up for consideration by the Committee of Secretaries.

Craftsmen Training Scheme has been strengthened by opening 266 new ITIs. The Labour Ministry has decided to set up 1000 more ITIs and also introduced need-based courses.