The Central Trade Unions Friday slammed the government move to amend the Industrial Disputes Act, 1947, saying it would increase unemployment further and threatened to launch a nationwide agitation against it.
"Effect of this amendment would be that 90 per cent of the industrial workers would come out on roads... And unfortunately this has been done under pressure from foreign agencies like the World Trade Organisation, the International Monetary Fund and the World Bank," Hasu Bhai Dave, all India general secretary of Bharat Mazdoor Sangh said.
Industry today hailed the government's decision to amend the Industrial Disputes (ID) Act by saying it marked the beginning of second generation reforms. "This measure will be a shot in the arm for the sagging industrial sector," Confederation of Indian Industry (CII) president Sanjiv Goenka said. He added it would provide a much-needed flexibility to the corporates, especially in a downturn. He hoped the other critical amendment of the Contract Labour Act would also be carried out soon.
Federation of Indian Chambers of Commerce and Industry (Ficci) president RS Lodha said, "The second generation reforms have started with a bang. The approval, coming just before the Union budget, sends a strong signal to investors, small, medium and large, on the government's determination to resuscitate investments locked in sick enterprises."
Lodha said around Rs 20,000 crore was locked in sick industrial units and the amendment would help a large number of industries.
Associated Chambers of Commerce and Industry (Assocham) president KK Nohria termed the move as a step in the right direction but said it was not adequate as an amendment in the Contract Labour (regulation and abolition) Act was also needed. PHDCCI president Arun Kapur said the labour reforms had been a long-standing demand of the industry and the move was essential to allow industry to restructure itself and come out of sickness.
