Releasing the ASSOCHAM Study on Labour Reforms without Tears by General Secretary CPI, Mr. A B Bardhan alongwith President ASSOCHAM Mr. Venugopal N. Dhoot and its Secretary General, Mr. D S Rawat, Mr. Bardhan said that since industry had failed to provide crčche and other security safeguards to working women, it should avoid mooting a suggestion that these be allowed to work during night shifts.

Mr. Bardhan, however, agreed that multiplicity of inspectors should be curtailed as their frequent visits to industrial locations adversely affect their productivity and increase bureaucracy and corruption. “A country that has been promising 33% reservation to women for many years has failed to implement its promise, how can women be allowed to work during night shifts with changes in the Factory Act 1948”, asked Mr. Bardhan?

The ASSOCHAM Study has suggested to make it mandatory for employees of hazardous, export oriented units (EoUs) and continuous process industries to give 14 days advance notice to their employers before they decide to go on strike so that exports and manufacturing do not suffer. Currently,  only public utility services as per provisions of Industrial Disputes Act are required to serve 14 days notice to their employer which should be expanded in aforesaid identified industries also.

Its point out that Section 40(1) of ID Act empowers the government to add industries in the 1st schedule, by a simple notification in the official Gazette. Many State Governments (Haryana, Himachal Pradesh) through this process, have amended the 1st schedule, from time to time. The Chamber has suggested that the government should add continuous process, hazardous and EOU industry and services in hospitals, security, house-keeping back-office,  to the 1st Schedule, said ASSOCHAM President, Mr. Dhoot.

Mr. Dhoot said that in order to meet global competitiveness and spur  export growth along with meeting challenges in our fast growing economy,  the government should encourage SEZs but exempt them from provisions of existing labour laws in not only SEZs but SSIs units also.

The study has recommended that the state governments should use its powers under section 65(2) of the Factories Act and grant exemption to Textile/ Garment Units & all EOUs) from all provisions of Section 51, 52, 54 and 56 of the Act so that the labour laws are not made applicable to them. In addition, the Chamber has demanded that the daily working hours should be increased from 48 to 60 per week for increased productivity.

On prohibition of employment of contract labour, the ASSOCHAM holds that   current provisions of the Contract Labor Act do not recognize the role of contractors.  There is over-regulation and under supervision with less than 1% of the temporary workforce (80 million) in the organised sector.

As per the present statutory provisions,   Section 10 of the Act empowers the government to prohibit contract labour in any process, operation or other work in any establishment. There is no specific provision about the absorption of such contract labour. However, the Supreme Court in the care of Air India v/s United Labour Union (1997 LLR 288) has held that on abolition of contract labour system, the principal employer is bound to absorb the contract labour, in their regular service.

It is suggested that  Section 10 providing for abolition of contract labour should be omitted from the Act renaming it as the Contract Labour Regulation Act 1970. Regulatory provisions may also be reviewed and the responsibility of the contractors should be enlarged & defined. The worldwide trend is on outsourcing, hiring contract labour and vendorisation with a view to create a hassle free, cost-effective and flexible atmosphere for the industry. Of course regulatory provisions should be strengthened to enlarge the responsibility of the contractor and to ensure that contract workers are paid minimum wages and enjoy the statutory cover of social security measures provided under the ESI and EPF.

The Chamber has also suggested that definition of “Workman” under Section 2(a) needs to be amended.  Excessive protection given to the employees in the higher salary brackets in the organised sector, like Airlines, Bank, Insurance,  etc.  has not helped to make these employees accountable to the establishment in particular and to the society at large;  rather it has tended to erode overall discipline.  There are instance when the society and the consumer is taken for ransom to concede unreasonable demands.  Employees receiving salary beyond Rs. 10,000/-  irrespective of the nature of function / job including higher paid technical persons and supervisors  should be taken away from the ambit of the definition of workman,  to maintain discipline at workplace.