29th September, 2002
Ministry of Labour & Empowerment  


INDIAN LABOUR CONFERENCE CALLS FOR REVIEW OF GLOBALISATION

ACCORDS PRIORITY TO EMPLOYMENT GENERATON

URGES GOVERNMENT TO INCREASE SPENDING ON SOCIAL SECURITY


The Indian Labour Conference has called for an in-depth review of Globalization. The 38th Session of the ILC, which concluded here this evening after two days of deliberations, said that social partners should through dialogue evolve strategies to meet the challenges of globalisation. According priority to employment generation, the ILC urged the Government to accelerate growth in Small Scale Industries, agri-businesses and rural sectors which it said have a lot of employment potential. The ILC said that sectors like education, health care and tourism and travel having knowledge based employment potential should be rapidly developed. It said that job creation should be an important criterion of the investment policy. It also called for setting up of a Skill Development Fund and for convergence of training and employment scheme of all Central Ministries.

There was divergence of views among social partners on the Disinvestment Policy of the Government during the discussions. While the Workers' Group wanted an overall review of the policy saying that it did not serve the national interest, the employers supported it saying that it has enhanced efficiency and competitiveness among enterprises. The Workers’ Group also wanted the government not to disinvest in profit making PSUs. The Government was of the view that some of the positive suggestions made during the ILC would further facilitate fine-tuning of the process of disinvestment. As it had been conveyed by the trade unions that preference should be given to the company formed by employees of the concerned company in the bidding process, the Labour Minister will discuss this further with the Ministry of Disinvestment.

The ILC also had an in-depth review of social security schemes. It urged the Government to increase spending on social security by 1% to 2%. of GDP each year till a satisfactory social security net gets in place. The ILC urged the Government to have a National Social Security Policy covering all workers and set up a National Social Security Authority headed by the Prime Minister. It said all labour laws concerning social security should be consolidated into a comprehensive legislation. While calling for making existing social insurance scheme more effective, the ILC specifically referred to workers who lose their jobs. It said that they should be provided minimum financial assistance for a reasonable duration of unemployment.

The ILC unanimously urged the Government to simplify and rationalise labour laws applicable to Small Scale Industries particularly for those employing less than 100 workers. It recommended the concept of self-certification in lieu of periodic returns and inspection for small scale units.

The Report of the Second National Commission on Labour attracted divergence of views on various recommendations of the Commission with many of the trade unions generally opposing the Report and employers broadly supporting it. The State Labour Ministers favoured a detailed discussion on the Report by a tripartite Committee to arrive at a consensus before which the Centre should come out with its own views on specific recommendations. The Union Labour Minister urged the State Governments to send their views on the Report in writing to enable the Government to come out with a definite view. The social partners, however, held by and large unanimity of views on certain recommendations. These included umbrella legislation for workers in unorganized sector, creation of a skill development fund for training and retraining of workers, encouragement of small scale industry, agri-businesses and rural sector for higher employment generation and consolidation of social security legislations.

Earlier the ILC constituted four committees to facilitate focused and in-depth discussions on agenda items. The Committee on the Impact of Globalization on Indian Economy particularly on Employment was headed by Shri Ram S. Taneja, Vice Chairman (Employers' Group) of the Conference. The Committee on Social Safety Net met under the Chairmanship of Minister of State for Labour, Shri Ashok Pradhan while the Committee on Disinvestment Policy of the Government was headed by the Labour Minister of Gujarat, Shri Kanjibhai Patel and the Committee on Problems and Challenges Being Faced By Small Scale Industry and Their Remedies was chaired by Shri Hasu Bhai Dave, Vice Chairman(Workers' Group) of the Conference. The meetings of the four groups was followed by open house discussion on the Report of the Second National Commission on Labour.

The Conference was inaugurated by the Prime Minister Shri Atal Bihari Vajpayee on Saturday and was presided over by the Labour Minster Dr. Sahib Singh. The Minister of State for Labour Shri Ashok Pradhan welcomed the Chief Guest and participants at the beginning of the Conference.