Ease of closure for big Maha firms too?
All 37,000 Factories In State May Get Option To Shut Down Without Govt Nod
pensation for each year of continuous service. Those with 300 or more will have to pay 30 days’ compensation if the state’s permission is sought before closure.
Unions say this move would seriously undermine workers rights. “Large companies will now be able to easily exercise the closure option. Currently, after seeking government permission, there are negotiations with workers to ensure that the compensation is paid,” said Vivek Monteiro of Centre for Indian Trade Unions.
Factories with fewer than 100 workers, which currently do not need state permission to close, account for 31.6% of Maharashtra’s workforce. Factories with between 100 and 300 workers, which the state wants to add to the exemption list too, account for 23% of factory workers.
At this point, the proposed amendments have been endorsed by a state cabinet sub-committee. They will have to be cleared by the state cabinet and then by the state legislature. Since the Industrial Disputes Act, 1947, is a central law,, reform will also need the approval of the President.
Shiv Sena, a member of the BJP-led government, has said it will oppose the reforms in the state cabinet. However, Sena member and industries minister Subhash Desai was part of the sub-committee.
The state’s proposals say it has the option of re-introducing, if needed, the requirement for government clearance in individual cases. “This is an enabling provision which could be exercised if there is a situation of dispute or exploitation,” said a labour department official.
The proposals also suggest a three-year ceiling on workers raising industrial disputes. Currently, there is no time bar.