At present, the law applies only to organisations employing more than
A proposal by the employees organisation at the conference, which was
backed by state governments, suggests there should be parity in terms
of wage rates, holidays, hours of work, social security benefits and
other conditions of service.
If contract labour law implemented, they will be a big change in the
working conditions of the 130 million contract workers, many of them
underpaid and over-worked.
The current rules say that a contract worker must be paid at least the
minimum wage prescribed for the government for a particular work,
but they do not prescribe same pay for same work across an
Under the proposed law employers would have to lift the wages and
EMPLOYERS have refused to back the government’s proposal to
extend same wages, leave and social security benefits
The government could go ahead with changes in the contract labour
law such as give facilities of five days week, forty days leave or LTC to
contract workers and one also has to look at their education and skill
For better implementation, the employers’ organisations sought to
emphasise the difference in the two categories of workers.
They argued that regular workers with better and multiple skills
deserved to get more than the low-skill contract labour.
If the contract workers are not well educated and have low skills, do
not employ them at all and lower the quality of industrial production
PRIME minister said that certain labour laws may be contributing
to the rigidities in the labour market and hurting employment
growth which indicating that the government was aware of the
need for a reform in rules that dictate labour markets.
There may be a need to rethink the nature of laws to draw more
workers into the organised sector
The conference, a tripartite meet of the government, employer
and employee organisations held to resolve workforce related
PM said “Is it possible that our best intentions for labour are not
actually met by laws that sound progressive on paper but end up
hurting the very workers they are meant to protect.”
A 2004-05 survey showed 26 million employed in organised
sector against 433 million in the unorganised sector where
wages are low and work conditions bad. The organised sector
employment rose to 27.5 million by 2008.
Rigid labour laws are largely the reason companies opt for capital
intensive manufacturing as opposed to labour intensive ones and hire
contract labour instead of permanent workers.
The number of contract workers, according to government estimates,
has increased from about one million in 2006-07 to 1.39 million in
The labour ministry has already floated a proposal to change the law
making it mandatory for all employers to treat contract labour on a par
with permanent employees ,
At the last meet, employees and employers groups were unable to bury
their differences over the changes to be made in the contract labour act.
The government has total sympathy towards corporates and behaves as
if trade unions do not have any role to play in the discussion.
The government is working on a National Employment Policy to
accelerate employment growth, particularly in the organized sector.
Responding to the issue of rising prices, the PM assured that the
government was making serious efforts to moderate the inflation rates.
PROCTER & Gamble, makers of Maggi noodles and Ariel detergent,
is planning to build a manufacturing plant in Chennai, which will be
the world’s largest consumer product company’s hub for south India.
A company official said the plant will come up either at Cheyyar or
Mahindra World City.
They will manufacture liquid detergent and will become an export hub
to neighboring markets.
This will make P&G the first company to manufacture liquid detergent
in the country where the 12,000-crore detergent market is equally split
between washing powder and detergent bars.
P& has only 15% share compared to Hindustan Unilever’s 37% in the
detergent market, is desperately trying to catch up. The company that
entered the mass segment with Tide Naturals last year is set to become
the first player in the niche liquid detergent.
During his visit to India two years ago, the global CEO of P&G,
said the company is looking at setting up 19 manufacturing facilities
globally including India
P&G is looking to tap bottom and mid segment of the market for
The company recently said that it is looking at tripling its revenues
in India within the next three to four years.
P&G in India has a combined . 4,500-crore turnover between its
three subsidiaries — Procter & Gamble Health & Hygiene, Procter
& Gamble Home Products and Gillette India.
It has seen 30% year on year growth in India.
Its focus categories include household care, healthcare and beauty &
Mahindra & Mahindra (M&M) will pay 2,105 crore ($463 million) for
a controlling stake in ailing South Korean SUV maker Ssangyong
Motor to help widen its product range and boost sales in the overseas
It would acquire 70% in Ssangyong and expects to complete the
acquisition by March 2011. Out of the total acquisition cost of $463
million, Mahindra will subscribe to new equity shares worth $378
million ( 1,723 cr) while the rest will comprise corporate bonds. M&M
was chosen as the preferred bidder in August this year.
M&M intends to introduce three new Ssangyong models in India over
the next three-four years to help revive sales of the Korean SUV maker.
The deal also gives M&M access to advanced engines and markets
such as Russia, Middle East and Europe.
The M&M scrip declined 0.87% to close at 759.7 and
Ssangyong also dropped 4.5% to 9,550 won.
M&M has already deposited 10% of the final purchasing price
as per the definitive agreement, with the balance to be
deposited three days prior to SYMC’s stakeholder meeting.
Out of total 2,105 crore, M&M will subscribe to new equity
shares worth 1,723 crore while rest will comprise corporate
Ssangyong will continue to function as an independent entity,
with current management holding the fort
Labour union of SYMC, M&M & SYMC have also signed a