Handicrafts workers may come under contract labour laws

As a step towards reforming the long-standing labour laws, the government may introduce contract labour for handicraft workers.

A proposal, sent by the textiles ministry to the labour ministry, seeks to exclude handicraft workers from the ambit of the Industrial Disputes Act and allow contract labour in the sector. If passed, the proposal will allow firms to hire workers and discharge them depending on the work cycle.

The move will help provide more employment to the 47.2 lakh handicraft artisans and boost handicraft exports, which, during April-January 2005-06, are estimated at Rs 13,412.92 crore.

Under the proposal, handicraft workers will be employed by companies on a temporary basis and will be paid according to the number of days worked.

Sources say the government is thinking of accepting the proposal. "The proposal may soon be passed," they added. But in order to introduce contractual labour in the sector, the Industrial Disputes Act needs to be amended.

In its present form, the Act prohibits contract labour in work, processes or operations where work conditions allow permanent jobs. Since 2001-02 there has been talks of introducing contract labour by amending the Act to allow for outsourcing of activities and increasing employment.

The labour ministry is, however, considering introducing a clause to allow at least 50 days' pay to workers to ensure certainty of wages.

"The idea is to provide employment and also ensure a certain regularity of payment. The ministry feels that some kind of a pay should be made mandatory, say, for 50 days," said an official.

While the proposal was initially sent to allow contract labour in the entire textile sector, the government is dealing with the issue by starting only with handicraft workers.