Most states say yes to labour reforms

Centre to convene TUs' meeting

Most states have given the "thumbs up" to labour reforms proposed by the government. The government has recently invited comments from all stakeholders, including state governments, central ministries, employers' organisations and trade unions.

The West Bengal government is apparently not convinced by the anti-reforms stance of Left-affiliated trade unions, and dithers over its response to the central note inviting suggestions on "making labour markets flexible".

According to labour ministry officials, the West Bengal government is still examining the proposal. The state government was in favour of labour reforms but its hands were tied because of the trade unions, said official sources.

The central note sought comments on amendments to Sections 10 and 31 of the Contract Labour (prohibition and regulation) Act, 1970, amendments to increase the number filter from 100 to 300 under Chapter VB of the Industrial Disputes Act, 1947, streamlining of the inspection system and the use of information and communications technology.

Most of the states extended support to the government's proposals. Some like Andhra Pradesh and Maharashtra, along with employers' organisations and industry bodies like the Council of Indian Employers, the All-India Manufacturers' Organisation and the Federation of Indian Chambers of Commerce and Industry have suggested that the number filter be increased to 1,000.

But Jammu and Kashmir rejected the amendments to the Contract Labour Act and proposed that the number filter under Chapter VB of the ID Act be reduced to 20 people. It, however, supported self-certification for small-scale industrial units.

Madhya Pradesh also has not supported amendments to Section 10 of the Contract Labour Act arguing that it is not hindering the progress in industrial development.

The state has also opposed the streamlining of inspections as it has "already been taken care of in the organised sector". Madhya Pradesh, however, has supported the proposed increase in the number filter.

With most of the stakeholders supporting labour reforms, the government is now learnt to be preparing to hold yet another round of consultations with trade unions to convince them about the necessity and inevitability of reforms and bring them on board.

Labour ministry officials are confident that the unions will see reason and come around to accept the government's views.

"We want the youth to be assets, not a liability. We do not want the unemployed to spill over to the streets. To create jobs for them, reforms is a must and I am sure all stakeholders including trade unions understand it," said Labour Secretary KM Sahni.