Labour Min to ease troubles on payments to unorganised sector

Union Labour Minister Bandaru Dattatreya today said he will hold a review meeting with senior officials of his ministry in day or two to study the impact of banning Rs 500 and Rs 1,000 notes from circulation, and also on payments to people working in the unorganised sector.

There are about 390 million people working in the unorganised sector and that includes agricultural as well as construction labour, he said.

"We need to create certain systems to take the policy (banning the notes) for better implementation at grassroots. We need to have a comprehensive understanding on the subject," he said.
 

"We will have meeting within our ministry in a day or two. People will eventually get used to the system. Even an agricultural labourer will also be able to transact through banking system with the help of Jandhan Yojana bank account," Dattatreya told reporters on the sidelines of 7th CII Global Summit of Skill Development here.

About 21 crore bank accounts have been opened under PM Jan Dhan Yojana so far, he said.

Shekhar Reddy, former president of CREDAI, apex body of Private Real Estate Developers Associations, while welcoming the government move, said there may be some initial glitches with regard to the payments to construction labourers.

He said the move will have a positive impact on the industry.

"Most of the contractors pay weekly wages to workers in cash. Now since there is restriction on withdrawing limits there may be some problems for some days. But as the Prime Minister mentioned that the restrictions will eventually be lifted, there should not be any problem," Reddy told PTI.

According to Labour Ministry figures there are about 47 million construction workers in the country.

Meanwhile, Ravindra Modi, President, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry said the Government's move to curtail the black money is probably the boldest move in the history of independent India.

The surprise element to ban with immediate effect will bring out the desired effect. The PM's promise that honest people shall not be harassed has to be ensured effectively as small and medium traders exchange is through cash currency only, he said.