Union Minister Bandaru Dattatreya
The proposed changes in the labour laws by the Centre will make them contemporary and promote ease of running enterprises while enhancing retrenchment benefits to workers in case of a lockout, Union Minister Bandaru Dattatreya said today.
"Many Acts were made 50 or 60 years ago. Trade Union Act was made in 1925. They need to be changed. Change means they have to be simplified. Enforcement (of laws) is important. We are trying to bring in changes to remove duplication and cumbersome processes," the MoS for Labour (Independent charge) told PTI in an interview.
The minister said the changes will help a worker get wages for 45 days up from present 15 days in case of a lockout.
"If any factory is to be closed down, it is important to take care of the security of workers. I cannot save the industry then, but what I can do is, see that the worker gets wages for 45 days. It was 15 days earlier. We are creating this window in the interest of workers when such a situation arises," he said.
When asked if proposed changes will make it easier for companies to carry out retrenchment of workers, Mr Dattatreya said the government is trying to see that workers get a better deal in the event of a lockout being announced.
"A factory announces lockout with no option having been left. Law is also like that. No law is (meant) for closing down an industry. That's why employability is important. Wages are likely to rise commensurate with the employability.
Whatever law we bring, it is in workers' interest; to see that employability grows," he said.
Changes in laws are important to create jobs, facilitate investments and to make NDA government's flagship programmes 'Make in India' and 'Skill India' a success, he said.
"Youth force is growing in this country. If jobs are to be created for them, then laws should also be easy for industries. Then they can make investments. 'Make in India', 'Skill India' are going to assume significance. Accordingly, some changes are necessary in laws. Laws should be in tune with the times. Otherwise, it would be difficult for implementation. We are making laws accordingly," he said.
The Union Minister pointed out that whatever laws are made by the Centre, the responsibility of their actual implementation lies with the state governments.
"...Telangana government has to decide about retrenchment. They (states) make laws as per the prevailing working conditions and circumstances," he said.
"Labour is in concurrent list in Constitution. So, they can make laws as per their requirements. This is federal structure. India is a federal country. We will try to safeguard the federal structure also," Mr Dattatreya said.
Minimum wages and other important issues would be discussed at the Indian Labour Conference to be held in Delhi on July 20, he said.
The Labour Ministry would like to bring in Child Labour (prohibition and regulation) Act and amendment bills on small factories, EPF and ESI in the upcoming session of Parliament, he said.
"We are amending the Child Labour (Prohibition and Regulation) Act. Cabinet has cleared it. The amendments and bill on the Child Labour Act will come in this session of Parliament. I am confident that it will be passed," he said.
"Second, small factories (amendment) bill. Discussion has been held on this. It will come to a final shape. It has to be taken to Cabinet. Once Cabinet clears, we would like to bring it to parliament in this session.
"Some amendments need to be done with regard to EPF, ESI in tune with the present times. EPF Act and ESI Act Amendment Bill are also likely to come in Parliament session," Mr Dattatreya said.
The government is undertaking "simplification and rationalisation" of 44 Acts and incorporate them into four codes - wages code, industrial relations code, social security code and code on working conditions and safety, he said.
"Simplification and rationalisation of the 44 Acts is important. For that, we want to bring in concerned labour codes in the form of laws. They are wage code. Wages are talked about differently in different Acts. Wages are mentioned in four Acts. We would like to simplify and rationalise the four Acts and make it into one Act so that it is easy for industry and also to protect the rights of workers. That is wage code," he said.
"Second is industrial relation code. That is also mentioned in three Acts, including Trade Union Act and Remuneration Act. The three Acts would be made into one as Industrial Relations (IR) code.
"Tripartite meetings have been held on these two and talks are on with trade unions," he said.
The other two are social security code and working conditions and safety code, he said.
"The 44 Acts will be covered in these four codes," he said.
The government would modernise and convert the employment exchanges in the country as National Career Service (NCS) centres which would act as a bridge between the industry and job seekers, the Union Minister said.
"Of the 983 employment exchanges in the country, 100 will be made model centres in the first phase. We are spending Rs 400 crore on this," he said.
Prime Minister Narendra Modi would inaugurate the Indian Labour Conference on July 20. The NCS portal and logo would be unveiled on the occasion by him, he added.