Centre tests waters on IT labour laws

Labour secy writes to state chief secretaries.

Under pressure from Left-supported trade unions, the Centre has initiated measures to bring changes in labour laws for their implementation in information technology and IT-enabled services.

KM Sahni, secretary, ministry of labour and employment, has written to chief secretaries of states, asking them to do a reality check on whether these companies are abiding by labour laws.

He has also asked for their comments on the issue of bringing these organisations in the ambit of labour laws which are not currently applicable to these institutions.

This was mentioned in Sahni's letter to MK Pandhe, president of Centre of Indian Trade Unions (Citu), on November 3. According to this letter, the government has asked states to "get the implementation of labour laws reviewed expeditiously" and to "convey their views" on suggestions made by Citu regarding provisions of labour laws that protect the interests of in IT and ITES workers.

The government's move to bring the IT and ITES sector under a scanner has predictably pleased trade union leaders who have been at loggerheads with West Bengal Chief Minister Buddhadeb Bhattacharjee since he publicly disapproved of their attempts to force a strike in this sector last September.

Citu Secretary WR Varadarajan termed it as "a positive step". "At least, the labour ministry does not take the position that industrial legislation does not apply to IT and ITES. The letter makes the government's stance clear: the IT sector has to abide by labour laws," he said.

"The idea is to sensitise states on the issue and take appropriate action," said a labour ministry official explaining the rationale behind the Centre's letter to the chief secretaries.

Since the controversy over labour laws in the IT sector broke out last month, the government had been holding talks with trade unions, which alleged violation of labour laws in this sector.

The Citu made a representation to the government last month alleging exploitation of employees in this sector in terms of working overtime, contravention of the ILO convention on frequency of night shifts for which there is no compensatory allowance and the absence of grievance redressal machinery.

All laws relating to labour and industrial relations were enacted prior to the coming of age of the IT-ITES sector. The labour unions, therefore, do not regard them as being capable of dealing with the problems relating to this sector.

The industry, on the other hand, does not want to be restricted by any fresh intervention since it feels that it is already abiding by these laws. The IT and ITES units are currently covered under the Shops and Establishment Act.