Labour Minister Mallikarjun Kharge tells Akshat Kaushal it is in the interest of employers in manufacturing zones to maintain labour standards and protect labour rights, so as to increase production and productivity.
What are the key policy changes that the labour ministry is working on?
We have a number of Bills, which will be amended during the next year. Of these, the National Employment Policy and the Mines Safety Bill are pending with the standing committee. Besides, we are amending the Shops and Establishment Act, Minimum Wages Act, Forest Rights Act, etc. On many of these Bills, we are in consultation with other stakeholders such as representatives of the employees and the employers. A final decision will emerge only after a consensus is reached. Many Bills require consultation with other ministries as well, resulting in the delay.
One of your key initiatives — fixing a minimum wage across the country — is being objected by the finance ministry, which has its reservations about the policy. Are these differences being resolved?
The finance ministry has expressed certain concerns, which we are looking at. At present, the matter is with a committee of secretaries and a solution will be found soon.
A constant complaint from the industry is that the country has many labour laws, which is discouraging industrial growth. Do you share the concern?
I don’t think there are many labour laws in the country, so as to affect growth. After all, despite the laws, the country has seen the growth of companies such as Maruti Suzuki, Tata, Reliance, etc. The laws exist for these as much for any other company. If there is any particular concern, it can be looked at. But, it doesn’t mean we do away with these laws altogether. In all international labour conferences that I visit, the view is that laws should be further strengthened for the worker.
Sometime ago, the government cleared the National Manufacturing Policy. We have ensured that during its implementation, all the labour laws are respected. It is nobody’s case that the labour laws shouldn’t exist because the investment coming in the country is not enough.
But, on most occasions, you find violations in the way these laws are implemented.
According to the Constitution, labour is a state subject. The government of the state has to prioritise to ensure these laws are implemented efficiently. However, if a state government feels it is not able to ensure proper implementation of laws, we are ready to help.
Recently, there was a stand-off between the management and the workers at Maruti Suzuki’s Manesar plant. Are you worried with these frequent instances of protests?
These frequent protests have been vitiating the harmonious industrial relations in the area, which may prove to be detrimental to the production and productivity as well as the economy of the country at large. Such agitations may discourage multinational companies to invest in the area, which has been so far crucial to the development of the state. The probable cause of the stand-off may be involvement of the outside leadership in the union, lack of a work culture, non-existence of effective industrial relations machinery, undue pressure on the workmen and the industry due to competition, indifference of the employer to the grievances of the workmen, etc.
Did the labour ministry intervene at any point?
No, we didn’t. Under the provision of the industrial disputes Act, 1947, the Manesar union of Maruti Suzuki falls within the jurisdiction of the Haryana government. Therefore, it was the responsibility of the state government to settle the dispute at the company.
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A former secretary of labour ministry has recommended that a decision on foreign direct investment (FDI) in retail should be taken after a study of its impact on labour is undertaken. What is your view?
There are two views on this issue. One says the government should not allow FDI, whereas the other wants it. Since finance minister Pranab Mukherjee announced that the government has put the policy on hold, I don’t want to make any comment.
Agricultural minister Sharad Pawar has recommended to the government that NREGA should be suspended during the sowing and harvesting season, as there is a shortage of labour. Do you support his view?
If someone thinks a policy that provides a minimum wage to workers for their basic sustenance is not a good policy, he/she is completely wrong. And, I don’t agree with the view. Moreover, it depends on the state government on how it wants to implement the policy. If the state government wants, it can put the schedule in a way which doesn’t affect the sowing and harvesting season. MGNREGA, mid-day meal and the Right to Information Act are the main achievements of this government.
cThere is a long-bending demand that the money of the Employees’ Provident Fund Organisation (EPFO) should be invested in the stock markets. Has any decision been taken yet? The board has also recommended reducing the interest rate this year.
EPFO may have recommended a decrease in interest rates, but a final decision would be taken after EPFO’s Central Board of Trustees (CBT) gives its approval. CBT consists of representatives of all stakeholders. Also, how the money of EPFO is utilised would be taken after consulting the organisation itself. However, other than this, the government is taking major steps to reform EPFO. At present, we are computerising the whole EPFO, after which any member would be able to see the details of his/her account anytime. Soon, we will also begin the task of computerising the employment exchange.
How do you suggest the industrial growth should take place without compromising on labour rights in the manufacturing zones?
Without a contented labour force, growth of any industry is not possible. It is, therefore, imperative that labour rights and labour standards available under different enactments are zealously protected. It has been proved time and again that the labour standards give inducement to higher production, productivity and overall industrial growth. Therefore, it is in the interest of the employers in manufacturing zones to maintain labour standards and protect labour rights. For growth of the industry without compromising on the rights of the workers, it is desirable that employers as well as unions conduct in a responsible manner, believing in the spirit of give and take.