28th September, 2002
Ministry of Labour & Empowerment  


PRIME MINISTER APPEALS FOR SUPPORT TO LABOUR REFORMS WITH HUMAN FACE


The Prime Minister Shri Atal Bihari Vajpayee today made a strong appeal for support to the government’s agenda of labour reforms both within and outside Parliament. Inaugurating the 38th session of the Indian Labour Conference, ILC, here this morning, Shri Vajpayee said that there should not be opposition for the sake of opposition. He said there should be a Laxman Rekha that should not be crossed while expressing dissent. Urging the need for national consensus on reforms, Shri Vajpayee said that reform is no longer an option but only the right choice to be made. Citing the example of some of the neighbouring countries who have established dominant positions in global markets, he said that labour reforms have played an important part in their growth strategy. Shri Vajpayee said that we too need to reform our laws, institutions and systems so that investments can successfully chase opportunities. He said that the rate of growth has to be at least 8% in order to remove poverty and for generating employment. Referring to the enormous untapped potential for employment generation in the small scale sector, Shri Vajpayee said that competitiveness of this sector needs to be strengthened, its commercial viability enhanced, technological base improved, quality and productivity stepped up, marketing developed and fresh investments made in it.

The Prime Minister emphasised that the interest of the workers would not be ignored. He made it clear that the government’s commitment to broadening of the social security net would never be diluted while accelerating reforms which should have a human face. He said that this is a moral and constitutional obligation on both the government and the employers. Shri Vajpayee said that social security should include food security.

Commenting upon the industrial relations the Prime Minister said it is wrong to say that labour is unimportant and dispensable in today’s age of technological revolution and economic liberalisation. Shri Vajpayee said that technology and capital are the creation of labour and there is no conflict between labour and capital in Indian Philosophy. He said that the Indian Labour Conference is the product of this enlightened philosophy. Describing the ILC as the Labour Parliament of India, the Prime Minister said that it needs to be strengthened further. He expressed the hope that the Report of the Second National Labour Commission would be discussed by the social partners with an open mind.

Referring to the demand for raising a ceiling limit of bonus and for introducing suitable change in identifying truly representative negotiating agencies, the Prime Minister said that the government will give serious consideration to these demands.

Earlier in his welcome address the Labour Minister Dr. Sahib Singh said that the Government is paying more attention to sectors having employment potential so that one crore jobs are generated each year. Reiterating government’s commitment to tripartism, Dr. Sahib Singh said that appropriate decisions on issues effecting the interest of workers are possible only through social dialogue and tripartite consultations. Referring to the impact of globalisation and liberalisation, the Labour Minister said that it has to be looked along with its effect on labour force. Dr. Sahib Singh said that there is need for strengthening the social safety nets both in the organised and unorganised sectors. He said that the government is considering to extend pension cover to workers in the unorganised sector. It is also making efforts to extend existing social security schemes to all sections of workers. Dr. Sahib Singh said that the rate of interest on Employees Provident Fund would continue to be 9.5% as it is based upon the earnings of the EPF Deposits and not on the administered rate.

The Haryana Chief Minister Shri Om Prakash Chautala, the Governor of Punjab Lt General M. M. Jacob, the Minister of State for Labour Shri Ashok Pradhan and the Leader of Opposition in the Rajya Sabha Shri Manmohan Singh were present. Representatives of Employees, Employers and Central and various State Governments would deliberate on the effects of globalisation and employment, disinvestment, social security, problems of small scale industries and the Report of the National Labour Commission during the two-day conference.