IDA amendments to hasten automation in industry

Labour minister Satish Chaturvedi told Business Standard: "Our intention through the amended bill is to widen the scope of workers while also unfettering the industry to go in for computerisation as long as it is not detrimental to the workers' interests. With the advent of the World Trade Organisation (WTO) regime leading to trade liberalisation, we do not want our local industry to lag behind on the technological front. Antiquated labour laws place restrictions on technological upgradation."

He added that several manufacturing units felt constrained in introducing computerisation as well as new technologies as they ran foul of labour laws.

"We have introduced the amended legislation to IDA so that firms may computerise without affecting the existing workers' wages," he said.

While the IDA is a central government legislation, the Union government had approved these amendments in January this year opening the avenue for respective state governments to bring in amendments as well.

A labour department official told Business Standard : "On the mechanisation front also, the amendment seeks to do away with the provision in the IDA that required firms to give a 21-day prior notice for introducing computerisation and automation in their units. Most often such notices invited legal suits filed by trade unions against the proposal and resulted in inordinate delays. This will no longer happen now."