Ministry pushes labour reforms

Subhashis Mittra in New Delhi

Review of labour laws as recommended by the Second National Labour Commission in an attempt to build consensus on labour reforms, housing benefits for subscribers of Employees Provident Fund and retaining the rate of interest on EPF at 9.5 per cent despite pressure from the finance ministry marked the performance of the labour ministry during 2002.

The Second Labour Commission headed by Ravindra Verma submitted its report to the prime minister in June suggesting a comprehensive review of labour laws to end multiplicity of legislations.

However, some of its recommendations, particularly hire and fire in units employing up to 300 workers against 100 at present without government's permission, curtailment of holidays and encouraging contract labour, triggered sharp criticism from the central trade unions, so much so that the government had to face embarrassing moments with Sangh Parivar affiliated Bharat Mazdoor Sangh expressing strong reservations.

The voluminous recommendations are at present under consideration and according to Labour Minister Sahib Singh Verma the report would be discussed at the levels of employees, employers and the government before taking a final view.

“No step will be taken which will be detrimental to the workers' interest," Verma has assured the trade unions.

The ministry held several rounds of consultations with social partners to evolve a consensus for enacting new laws or for bringing about changes in the existing laws necessitated by the changing economic scenario.

That the labour ministry is serious about protecting the cause of the workers is borne out of the fact that despite repeated pressure from the finance ministry to slash the EPF rate in keeping with the soft interest regime, labour ministry refused to lower the rate from 9.5 per cent at present.

The Central Board of Trustees of the EPF has explained it to the government that even if it continued to pay the interest at the present rate it would still be left with a surplus fund.

Another important worker-friendly measure was the decision to provide houses or plots of land to EPF members across the country.

The decision comes close on the heels of enhancing the wage ceiling for EPF from Rs 5,000 to Rs 6,000 per month to bring in more workers within the ambit of EPF.

Besides enrolling 13 lakh (1.3 million) new EPF members, about 20,000 new establishments have been brought within the ambit of EPF, which has mooted a proposal to introduce a multi-benefit Employees Insurance Scheme for its beneficiaries who lose their jobs due to ongoing economic restructuring.

Regarding beneficiaries under the Employees' State Insurance Corporation, exemption has been granted to workers earning less than Rs 40 a day from payment of contribution to the ESIC Fund, benefitting about 610,000 low-paid workers.

As a major policy decision, the ministry decided to pay greater attention to problems of workers in the unorganised sector, which constitutes 93 per cent of over 400 million strong workforce in the country.

The ministry took several measures to improve the welfare schemes formulated for over four million beedi labourers, non-coal mine and cine workers. The main thrust of the schemes was in the health sector as the target groups were involved in hazardous occupations.

For education of children of mine workers, scholarship amount has been doubled - ranging from Rs 500 to Rs 6,000 per year.

The ministry took the initiative to net in all cine workers within the ambit of Cine Workers Welfare Fund Act to raise the income eligibility ceiling from Rs 1,600 per month, which enables only half of the 63,000 cine workers to avail of the benefits under the welfare fund.

Another salient feature was pegging the floor level minimum wage at Rs 45 per day at the national level. All states have been asked to ensure that the minimum wages do not fall below the level in scheduled employment.

A move was also initiated to set up Central Manpower Export Promotion Council to promote employment opportunities for emigrants.

Elimination of child labour was another focus of attention of the ministry with the Prime Minister promising to remove the problem at least from hazardous occupations by 2005.

The government was also working on a comprehensive law for the welfare of home-based workers.

-- PTI

2002: The Year That Was