Industry bodies urge for suspension of labour laws

NEW DELHI: Industry bodies have asked for a suspension of labour laws, except those dealing with minimum wages, bonus and statutory dues for two to three years; the treatment of the ongoing lockdown period as an industrial furlough (termed a lay-off according to law); and for the payment of wages i n t hi s peri od t o be expensed under Corporate Social Responsibility activities, as ways in which the state can help Indian industry during the ongoing crisis brought about by Covid-19 and the lockdown enforced to combat its spread. The organisations also asked for allowing 50% of the workforce to join a factory to restart production .

These demands were raised at a webinar between the bodies and the Union labour ministry on Friday. The latest demands come after some states relaxed labour laws to woo fresh investments even as opposition parties and trade unions protested.

Union labour minister Santosh Gangwar read out a list of measures taken to resolve workers’ woes during the lockdown and said his ministry is “sympathetic to the requirements of the industry and would try to provide all possible help”, an official present at the meeting said.

Labour secretary Hiralal Samariya assured employers that the ministry remains “committed to provide all help” ro address problems faced by the industry bodies while protecting the interests of the workers.

CII, FICCI, Assocham, Council of Indian Employers and eight other employer associations attended the meeting, days after the labour ministry interacted with trade unions.

Meeting recurring expenses such as payment of wages have emerged as a key concern in some sectors. While some factories have restarted work in a limited way, others still haven’t for a variety of reasons including being located in a so-called containment zone. Which is why the industry bodies want the lockdown to be equated to what the Industrial Disputes Act, enacted in 1947, terms a lay-off: the inability of a factory to operate normally on account of a raw material or power shortage or a natural calamity. The law stipulates compensation for lay-off at “50% of the total of the basic wages and dearness allowance that would have been payable to him had he not been so laid-off”. The law also says that if the lay-off period extends beyond 45 days, no additional compensation will be paid.

With the government slowly opening up more industries, the employers wanted at least 50% of the workforce must be allowed to work to increase of goods and services to optimum level.

The Centre had announced that under the PMGKY, it will pay 24% of the companies’ contribution to provident fund of eligible workers who earner less than Rs 15,000 a month and are employed in a factory that has up to 100 workers. The industry bodies want the threshold on this eased so that more workers can be covered under the scheme.

Apart from seeking suspension of labour except those dealing with minimum wages, bonus and statutory dues, the bodies also want an increase in working hours to 12 hours per day.

With millions of migrant workers already returned home or keen to go back, they also asked for a programme for “return of these migrant labour to work by providing counselling to alleviate their fears on Covid-19, providing financial help for their transportation, providing free groceries for about six months,” according to a second official familiar with the happenings at the meeting.

They suggested that instead of red, orange and green zones the government should notify containment and non-containment zones to “facilitate easy movement of workers and goods”.

Achirangshu Acharya, economist with Vishwa Bharati University said, “Suspension of basic rights of the workers can lead to exploitation and the government needs to be careful about such demands. As India had a high unemployment rate even before the pandemic crippled the economy, the focus should on providing jobs to maximum people, not extending working hours for a set of workers.”

THE ORGANISATIONS ALSO ASKED FOR ALLOWING 50% OF THE WORKFORCE TO JOIN A FACTORY TO RESTART PRODUCTION