Punjab labour dept’s free cycle distribution violates Centre’s directive

SANGRUR: The state labour department has decided to purchase 50,000 cycles for labourers from the welfare funds of the building and other construction workers’ (BOCW) welfare board, while the central government has clearly stopped usage of welfare funds to give benefits in form of in-kind.

The Centre has allowed states to give benefits or assistance to workers only through direct benefit transfer. HT has a copy of the direction issued by Rajender Singh Kaushik, under secretary of the central ministry of labour and employment on March 22 last year. There is no scheme of the building and other construction workers’ (BOCW) welfare board pertaining to distribution of cycles. Officials said earlier there was a scheme for distribution of cycles but it was scrapped in 2019, when model welfare schemes were implemented

However, the department in the recent meeting of BOCW welfare board has decided to purchase 50,000 cycles, which will be distributed by chief minister Bhagwant Mann on the occasion of Republic Day next year.

HT also has minutes of this meeting. Besides, the department has also asked the Controller of storage to float a short-term tender for rate contract.

The Union ministry of labour and employment on March 22, last year directed all states to use only DBT mode for utilisation of cess funds for the welfare of unprivileged workers. It asked states to utilise cess funds only on workers’ life and disability cover, health and maternity cover, education, housing, skill development, awareness programs and pensions. “..it has come to the notice of the ministry that some state welfare boards are incurring expenditure on distribution of lantern, blankets, umbrellas, tool-kits, utensils and similar other articles in-kind, leading to the apprehension of misuse of cess fund,” the direction reads.

Vijay Walia, organisation director of Centre for Social Change and Equity, an organisation fighting for workers’ rights, said that it is direct violation of central government’s order and misuse of welfare funds of BOCW board.

“The department is misusing the welfare funds. Besides, they are also ignoring the governor of Punjab in boards. The department is required to take permission from the governor, but it is not happening.” The board for labourers earns its revenue from the ‘welfare cess’, which is 1% of the total cost of construction on projects worth ₹10 lakh or more.

Labour commissioner TP Phoolka said, “We are not violating anything for purchasing and distribution of cycles. We are doing this with the approval of the board.”

Manvesh Singh Sidhu, principal secretary of the labour department, said, “Why would we take permission from court for distribution of cycles. We do not need permission from any court. We need BOCW welfare board’s nod and we already have that.”

It is violation of central govt’s order and misuse of welfare funds of the board. VIJAY WALIA, organisation director of an NGO

There’s no violation in distributing cycles, it is being done with approval of the board. TP PHOOLKA , Labour commissioner