As the Union budget is scheduled in the fist week of July, the Planning Commission is looking at the need for labour reform which could help unshackle the growth for the industry. There will be revision of Industrial Disputes Act, 1947, Contract Labour Act, 1970 and Trade Union Act, 1926 as a part of change. However, the proposed changes to be made to these laws in consultation with industry as well as trade unions.
The changed labour laws will meet the industry''s long standing demand to hire and fire workers in sync with business cycles. Then the permanent employees can be hired as contract labour while the weekly working hours will be increased to 60 from 48.
Industry leaders say that since services now account for nearly 55 per cent of India''s economy, therefore it is essential for a change in laws. The Chief Economic Advisor Arvind Virmani had submitted a report to the government three years ago, recommending the changes required in the labour laws.
The first steps of changes in labour laws are being taken. Andhra Pradesh government has already amended the contract labour law and moreover has relaxed the employment of contract workers. The labour reforms are also part of the wishlist of industry association FICCI. Besides this, CII, India''s largest industry association Confrederation of Indian Industry, has also demanded relaxation in labour laws.
The changed labour laws will meet the industry''s long standing demand to hire and fire workers in sync with business cycles. Then the permanent employees can be hired as contract labour while the weekly working hours will be increased to 60 from 48.
Industry leaders say that since services now account for nearly 55 per cent of India''s economy, therefore it is essential for a change in laws. The Chief Economic Advisor Arvind Virmani had submitted a report to the government three years ago, recommending the changes required in the labour laws.
The first steps of changes in labour laws are being taken. Andhra Pradesh government has already amended the contract labour law and moreover has relaxed the employment of contract workers. The labour reforms are also part of the wishlist of industry association FICCI. Besides this, CII, India''s largest industry association Confrederation of Indian Industry, has also demanded relaxation in labour laws.
No comments:
Post a Comment