The labour ministry says the proposed amendment to the Industrial Disputes Act, allowing employers to fire up to 1,000 people without prior permission from the government, will affect nearly 75 per cent of the Indian workforce employed in factories.
Currently, according to figures compiled from the Annual Survey of Industries (1995-96) and provisional results for the factory sector, Central Statistical Organisation, 86.06 per cent factories in India employ 29.44 per cent of the workforce in units with up to 99 people. 13.04 per cent of Indian factories employ the highest percentage of people (44.27) and significantly, these employ between 100 and 999 persons. Only 0.9 per cent of Indian factories employ 1,000 and above people -- and the percentage of workers employed by this set of factories is 26.29 per cent.
According to sources in the labour ministry, the figures speak for themselves. Amendments in the Industrial Disputes Act will make it easier to dislodge workers in units which provide the maximum employment.
Because of this, labour ministry sources say, labour reforms have to be done cautiously and after due consultation.