Labour Min proposes changes in Factories Act, but not on lines of Rajasthan

The reforms have more to do with working conditions, workers' safety, gender parity, than allowing industries to hire and fire

The National Democratic Alliance (NDA) government at the Centre has taken forward work  of the previous United Progressive Alliance (UPA) regime to bring in labour reforms, but these have more to do with working conditions, workers’ safety, gender parity, than allowing industries to hire and fire. However, trade unions are not impressed and consider the government's plan as an alibi to dilute an existing law.

The union labour ministry has invited public comments on proposed 54 amendments in 61 Sections of the Factories Act, 1948 – a central law, enforced by the state governments.

The amendments propose to make it necessary for an occupier of the factory to take permission from the state government before making any expansion of his factory. “It is…possible that such expansion may involve hazards to the safety of workers as well as the people in the vicinity. It is, there proposed…that it would be necessary for an occupier to obtain permission of the state government before making such an expansion,” stated one of the amendments posted on the Labour Ministry's site.

The proposed amendments relate to enhancing state government’s role in setting norms for health standards in factories. At present, the state governments have no power to formulate safety standards or to make rules for regulating the employment of women and young persons in hazardous processes.

A new provision has been mooted to allow the Central government in framing rules related to certain “important aspects of occupational safety and health.”

To ensure safety of workers, the proposed changes put onus on manufacturer to ensure safe machinery within the factory.

To improve working conditions, amendments have been proposed to provide “cool and safe drinking water” during summer season, setting up shelters, restrooms for workers, adequate staircases, fire precautionary measures, lighting, sanitation, etc.

Harsh penalty for health hazards on the factory manager has also been mooted along with stricter punishment for contravention of the provisions of the labour laws.

To promote gender parity at work place, changes have been recommended for allowing women (except pregnant women) to work in examination of machinery at the factory, allowing night shifts, etc.

The trade unions said that this process of amending the Factories Act has been under the pipeline for long and the effectiveness of the amendments still remains unanswered. “This is a long-term process and something which has been going on even before the new government came to power. It will take at least a year as there will be further discussions with various stakeholders, changes will be incorporated, then it will move to Parliament,” said A K Padmanabhan, President, CITU.

Gurudas Dasgupta, national general secretary of All India Trade Union Congress (AITUC), said although he didn’t read the amendment proposals in detail but “we oppose this as this is only meant to dilute the Act.”

Indian Staffing Federation welcomed the move and said that the Factories Act needs amendments to stay relevant. "The present Act is not relevant in the present times and needs to get amended if it has to exist," said Rituparna Chakraborty, Presiednt of ISF. The ISF has also written its recommendations to the labour ministry.

Factories Act has been in news recently after the Rajasthan Cabinet cleared amendment to the law which will exempt factories from the legislation if they hire up to 40 workers  against 20 at present in case these units are using electricity supply. In case of factories, not using electricity supply, an exemption could be made to those  employing 20 workers against 10 at present, according to the state amendments. The amendments mooted by the union law ministry does not contain these changes.   

 
These amendments have been incorporated after taking into account recommendations from various expert committees, judgments of Supreme Court, keeping in view the Environment Protection Act, 1986 and also various International Labour Conventions.

The Committee of Secretaries took the decision in January this year to make the amendments public for 30 days to allow comments on the note.

The Cabinet note for bringing changes to the Factories Act was initially submitted in October 2008 and later referred to the Committee of Secretaries. After modification and taken into account expert committee member’s views, the draft Cabinet Note was prepared and referred to the Ministry of Law and Justice.

Padmanabhan said that as the proposals were posted on the site of the Labour Ministry 6 June this year, the NDA government might not have gone into every aspect of the changes and there could be further amendments into the Act. “It will be crucial to look at the moves of the present government and the views of the employers on this,” he said.