PM renews labour reforms push as jobs regain focus

CENTRE ABANDONED THE PLAN THAT WOULD HAVE ALLOWED FIRMS WITH 300 WORKERS TO LAY OFF STAFF WITHOUT SEEKING GOVT’S NOD

NEWDELHI: Prime Minister Narendra Modi has dropped one of the most contentious elements of his proposed labor reforms, paving the way for his long-awaited industrial relations legislation to be introduced to India’s parliament by April 6.

Labour minister Santosh Gangwar said in an interview on Tuesday the administration had abandoned the plan that would have allowed companies with as many as 300 workers to lay off staff without seeking the government’s permission, and would keep the current limit of 100.

The changes are part of a process to streamline 44 different labour laws into four codes as the government pushes forward with its efforts to formalise the $2.3 trillion economy.

Modi has been battling opposition’s attempt to paint him as a government that favours the business elite over the poor by moving to make it easier to hire and fire factory workers and buy farmers’ land. He has also faced hostility from unions and his party allies since he first sought to reform labour laws after coming to power in 2014. While smaller changes have passed, the most crucial reforms have until now remained out of reach.

The Centre will introduce an industrial relations bill in the parliament session that ends on April 6, according to a person with knowledge of the matter who asked not to be identified. The bill, which seeks to ensure better packages for fired staff and longer notice periods by unions before announcing strikes, will be pushed as soon as it is cleared by the cabinet, the official said.