Plea for pay parity Bogged down by NPAs
With reference to the editorial, “Signals from Maruti” (March 22), apart from the need to reform labour laws in the wake of violence at the Maruti Suzuki factory and the resulting life sentence for 13 workers, there are other aspects of industrial relations practices, which the employer should take note of.
Setting up a puppet union to calm workers’ protests is a short-term strategy. Trying to win over the strong union by inducement is unwise; it may replace constructive protest with violence. Maruti tried to ignore and suppress the union led by Sonu Gujjar, with support from the official trade union, and then got rid of him by offering voluntary retirement at a reported price of ~40 lakh. This betrayal ultimately led to violence by workers.
Second, the employers’ plea that they are constrained to engage contract labour as protection against the provisions of the Industrial Disputes (ID) Act (which curtails freedom to retrench labour) is a lame excuse. The Contract Labour (Regulation and Abolition) Act permits engagement of contract labour for jobs of a seasonal nature. However, the companies employ them for regular work also and yet pay them peanuts. Law enforcing authorities do not act against the companies. In the Maruti case, one is not aware whether the management has been hauled up for increasing its contract labour persistently.
As long as this relationship between the management and the government continues, the demand for labour law reforms is like crying “wolf, wolf”. So, when the employers’ demand for amending the ID Act is conceded, the remuneration of contract labour on a par with permanent workers should be part of it.
Y G Chouksey Pune future.” The statement is true in the Indian context in the present time.
Demonetisation could not be predicted nor the effect it would have on the economy. The Uttar Pradesh election results could not be predicted, nor could the name of the new chief minister.
Recent predictions in India have been farcical and inconclusive. Thus, it would be too early to say which way new Chief Minister Yogi Adityanath (pictured) will take UP. One thing is for sure, though: It would be an extreme way, not a middle path, under the leadership of a person who knows not of appeasement.
Isn’t UP backward only because of appeasement? Many might believe that certain sections of society are aghast and disillusioned but this is not reflected in the mandate given by the UP electorate. Perhaps, people they want action, not appeasement. They would judge actions, not individuals. Let us hope for economic and social growth.
Raj Kamal Coimbatore The issue of non-performing assets (NPA) should not be viewed in isolation for one public sector bank at a time when growth is hard to come by.
A sharp rise in NPA of banks is due to internal and external factors. Big banks such as the IDBI Bank, by virtue of a relatively large asset base and institutional orientation towards development finance, have more exposure and hence more NPA.
Banks took a plunge when the financial climate was perceived to be favourable and credit proposals received were found to be commercially viable. Risk perceptions are based on key available indicators, which keep changing with time. Predictions turn out wrong almost always. The uncertainty level is so high that it is difficult to figure out what the situation would be like a few days later.
With credit growth of banks becoming near stagnant, even with a cut in the lending rate, there are no signs of revival.
Banks should be allowed to carry out their normal functions such as lending instead of being bogged down by the NPA burden.
Srinivasan Umashankar Nagpur