30th April, 2003
Ministry of Labour & Empowerment  


DR. SAHIB SINGH UNVEILS THE FUTURE COURSE OF ACTION IN IMPLEMENTING LABOUR REFORMS

CONSULTATIVE COMMITTEE TO DELIBERATE IN FULL LENGTH IN THE NEXT MEETING TO CONSIDER SUGGESTIONS OF ALL THE MEMBERS


Dr. Sahib Singh said that the future course of labour reforms strategy would be mainly guided by the recommendation of the National Commission on Labour. In order to systematically adopt the recommendations of the commission and immediate action on labour reforms, the following action has been taken or are being taken:

  1. Social Security Legislation: The Government proposes to establish social security system by providing for old age pension, medical insurance, workers' injury scheme, maternity benefits and unemployment insurance. Action has already been initiated to obtain the views of various social partners on the subject.
  2. Labour Management Relations Bill: The amendment in the Industrial Disputes Act in the light of Finance Minister's Budget announcements as well as the recommendations of the NCL is also under consideration of the government in consultation with the social partners.
  3. Umbrella Legislation for Workers in unorganized sector: This is an enabling legislation that will lead to growth of economy, improve the quality of employment and provide a decent life to the workers. The modalities with regard to operation and mobilization are being worked out and is expected that a Bill on the subject would be introduced in the Parliament in this Budget Session.
  4. Unified Law on Wages: The commission has recommended framing of a new law on wages to include the provisions of wage related Acts viz Minimum Wages Act, 1948, Payment of Wages Act, 1936; Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. This recommendation is under examination of the Ministry.
  5. Law for Workers in small scale units: The draft law suggested by the Commission contains provisions for social security, health, safety, welfare, arts of work and annual leave for small scale units employing upto 19 workers. The law is basically to be implemented by the State Governments and hence the draft law has been circulated to State Governments for their comments.

  6. Simplification of forms, returns under various labour laws: A working group has been constituted to examine the contents of the existing forms of returns and registers under various labour laws and to suggest measures to adopt the simplified forms. The working group has been directed to submit its report within three months.
  7. Participation of workers in Management Bill: In the age of globalization where there is continuous demand for introduction of new technology, improving work processes and making the enterprises capable of standing upto global competition, the participation of workers in the management can not be under estimated. With this end in mind, Ministry of Labour is proposing to bring a legislation on participation of workers in management.
  8. Amendment of Contract Labour (Regulation and Abolition) Act, 1970: With a view to facilitate out sourcing of certain activities of an establishment and at the same time to protect the interest of contract labour in terms of wages, social security, welfare, health and safety, consequent to the Court judgement and feedback received from social partners, a proposal has been prepared by the Ministry of Labour for enacting a new law on contract labour.
  9. Amendment in Emmigration Act, 1983: In order to promote employment opportunities for emmigrants and project manpower services in labour markets abroad and to provide welfare activities to the Indian overseas workers, Government has proposed to set up a Central manpower promotion concept and Indian overseas workers welfare fund by amending the Emmigration Act. The amendment Bill has been introduced in the Lok Sabha on 21.11.2002 and the same has been referred to the Parliamentary Standing Committee for their consideration.
  10. Amendment of other Acts: Some of the other Acts under amendment process are: the Factories Act, 1948; the Employees' State Insurance Act, 1948; The Employees' Provident Fund and Miscellaneous Provisions Act, 1952; The Payment of Bonus Act, 1965; The Mines Act, 1952; and The Payment of Wages Act, 1936.
  11. Establishment of skill development fund: In order to provide for training of workers rendered surplus/obsolete by lay-offs, retrenchment and voluntary retirement scheme/early separation schemes, it is proposed to create a Skill Development Fund to meet the expenses for this purpose. The modalities to constitute the funds are being worked out.

Labour Minister Dr. Sahib Singh opened the consultative committee with the remarks that during the past five decades or so, several important steps have been initiated for improvement in the working conditions of the welfare of the working class. However, still much remains to be done particularly for the workers working in the unorganized sector. He informed the consultative committee that he is trying very hard to bring in legislation for the unorganized sector's workers in the current session of the Parliament. He further said that the second National Commission on Labour (NCL) was given a two points terms of reference: (i) to suggest rationalization of existing laws relating to labour in the organized sector; and (ii) to suggest umbrella legislation for ensuring the minimum level of protection to the workers in the unorganized sector. In developing the framework for its recommendations, the commission was required to take into account the emerging economic environment involving rapid technological changes, globalization of economy, liberalization of trade & industry and emphasis on international competitiveness and the need to bring the existing laws in tune with the future labour market needs and demands. The commission constituted six specialized study groups for indepth and focus study on the subjects, namely, review of laws, umbrella legislation for workers in unorganized sector, social security, globalization and its impact, women & child labour, skill development & training and workers' education. Thus commission has comprehensively covered various aspects of labour and issues relating to labour reforms.

Some of the members wanted to have full scale discussion on the implementation strategy of the various legislations with a view to bring in labour reforms. The Labour Minister assured them that he is already in touch with trade union organizations for solicit their cooperation and views to make the legislation more pragmatic. He however said that he would still like to hear from all the members the specific views on the recommendations of the Commission. He said that a long session of the Consultative Committee will be convened after this Budget Session to hear the views of all the members. Shri Prabodh Panda,MP; Shri Jibon Roy, MP; Shri Malaisamy, MP; MOS, Ministry of Labour Shri Vijay Goel and Secretary, Ministry of Labour were present in the Consultative Committee Meeting today.