Firms join hands with MP govt on labour scheme

To avoid labour unrest and create jobs, firms in MP have opted for a government-sponsored scheme to outsource workers.

Recruitment of skilled workers is a tough task for companies in Madhya Pradesh.

Mandideep-based Anant Spinning Mills, Maral Overseas Ltd, and Insulator and Electric Ltd, a Pithampur-based diamond cutting unit, have joined hands with the state on the district poverty initiatives project (DPIP).

Anant Spinning Mills, which is on an expansion drive in Satlapur (near Mandideep) and Budni, has plans to recruit 3,000 workers for its two new units which will take shape within two years with an investment of Rs 1,100 crore approximately. The Mandideep unit of the firm, according to an executive, suffered a labour unrest and lockout during year 2000.

Under the scheme, workers of many companies have been asked to recommend their relatives, friends or close acquaintances from their villages for recruitment.

"We are recruiting them as trainees for a period of three months, later they will be treated as senior trainees for another three months. And after that period they will be recruited as machine operators at a minimum wage (an insurance cover) prescribed the state government. We will recruit 4,000 workers for both the coming units," Rajesh Tiwari, chief manager (personnel and industrial relation), Anant Spinning Mills told Business Standard. "The first batch of 75 workers has started training and of them 45 are from DPIP project," he added.

The company executives, a business chamber and officials of DPIP discussed the matter a few days ago and came out with a solution to the workers' recruitment problem. The scheme is expected to help many families living below poverty line.

Not only Anant Spinning Mills but another Mandideep based firm Insulators and Electricals Company will also train and recruit 200 workers, Maral Overseas Ltd will train and recruit 400 workers, a Pithampur based diamond cutting firm will train and recruit 200 workers.

Similarly Rewa-based Rajvilas Hotel has also initiated a residential training programme for waiters and cooks. Another Rewa-based firm Industrial Security and Fire Services have entered into a contract with DPIP for security guards training and recruitment.

More firms have evinced interest in the project for outsourcing workers.

"Anant Spinning firm executives visited Tikamgarh, Chhatrapur and Panna districts of Madhya Pradesh. They identified members from different 125 families living below poverty line," Ravindra Pastore, project head, said.

The company is offering a stipend of Rs 55 per day and accommodation at factory premises, which will go up to Rs 70 after three months. Recently, the BJP government in the state abrogated the Madhya Pradesh Industrial Relations Act to provide some relief to industries but the Jabalpur High Court had quashed the orders of the government on the plea of a labour union.

The MPIR Act permits all workers to move directly to the court in case of a dispute. They need not go to labour officers. While in other states, the worker-employee issues fall under the Industrial Dispute Act.