Left forces govt to take back labour Bill

A labour reform Bill to cut red tape for small units was withdrawn from the Rajya Sabha hours after being introduced because the United Progressive Alliance (UPA) government and its Left supporters could not agree on its provisions.

As the Left and the government have opposite positions on the Bill, its fate is unclear. On Wednesday, the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) Amendments and Miscellaneous Provision Bill, 2005, was listed for debate and passing.

The Bill seeks to free small units from paperwork. All units employing 20 or more people have to furnish returns, maintain registers and report to the government. The Bill aims at increasing this to 40.

Even earlier, the Left trade unions had announced they would oppose the amendment. But when they saw a copy of the Bill on Wednesday morning, they made it clear they would vote against it. The government didn't press with the Bill on Wednesday and over the next two days, it was not listed in the Order of Business in either House.

The reasons for the Left's displeasure are obvious. In 2005, when the government proposed the amendment for the first time, it wanted to change the non-reporting threshold from 20 to 500 employees.

The amendment also proposed tougher punishment if units out of the threshold did not report to government. It also proposed a set of simplified forms for reporting.

The government has now changed its stand. Sources say the latest amendments seek to increase the threshold from 40 to 20 employees. Although a compromise has been attempted over this part of the Bill, clauses for punitive steps have been dropped.

The Left wants exactly the opposite. CITU National Secretary Tapan Sen said, "We want the reporting threshold limit to remain 20. The government will not be allowed to go beyond this." The Left has, however, asked the government to retain harsher punitive provisions.

There has been a small compromise by the Left as well. They had initially asked the government to bring down the threshold limit to 10 employees. Realising this will be impossible, they are ready to keep the limit at 20, but will not relent beyond this.

Although the BJP has agreed to support the government, UPA managers are not too keen on risking taking its help.

"The amendment will exempt almost 50 per cent manufacturing establishments from furnishing returns. We can't allow that," Sen said.