Et news 12


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Et news 12

  1. 1. ET News related to HR (22 Nov’10 to 26 Nov’1o) Neha Sahi MBA 2C
  2. 2. Contract worker status top labour meet agenda •Top agenda of the Indian Labour Conference is to treat country’s 130 million contract workers on par with regular employees. •It is a tripartite annual meeting of employers, employees and the government. •Labour ministry has already submitted the impact analysis , carried out by VV Giri National Labour Institute, of proposal to the committee of secretaries for its approval.
  3. 3. Contd.. •Organizations treating its contract labour less favourably than regular employees is penalized for not getting license of contract labour and not for violating contract labour terms. •Once the contract labour law is changed, violations to act would amount to criminal violations and the penalty will be much greater.
  4. 4. Employers refuse to put contract staff on par with regular workers •Employers have refused to back the government’s proposal to extend same wages, leave and social security benefits to contract workers as provided to regular employees doing same work. •Employers have also opposed the suggestion that all organizations should be covered by the Contract Labour Act, now being on organizations employing than 20 workers.
  5. 5. Contd.. •Implementation of changes would be difficult if the changes are pushed through without consensus of employers. •Employers put forward that regular workers with better and multiple skills deserved to get more than the low-skill contract labour. •Argument of lack of skills was rejected by employee representatives.
  6. 6. Certain rigid labour laws blocking jobs creation:PM •Certain labour laws may be contributing to the rigidities in the labour market and hurting employment growth. •There may be a need to rethink the nature of laws to draw more workers into the organized sector. •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.
  7. 7. Contd.. •A 2004-05 survey showed 26 million employed in organized sector against 433 million in the unorganized sector where wages are low and conditions bad. •The organized sector employment rose to 27.5 million by 2008. •The government is working on the National Employment Policy to accelerate employment growth, particularly in organized sector.
  8. 8. It’s unwise to link minimum wages with NREGA:Experts •Fiscal experts are worried the government could be starting at a financial black hole if it agrees to the demands to provide minimum wages under the employment guarantee law, as states could revise the minimum wages sharply knowing that the centre will be legally bound to pay. •Mahatma Gandhi National Rural Employment Guarantee Act is an open ended scheme or employment is provided on demand.
  9. 9. Contd.. •The spending on scheme is already one of the biggest item of expenditure for the government, budgeted at Rs. 40,100 crore for the current fiscal. •UP has raised its minimum wages twice in the last six months, from Rs. 58 to Rs. 80 and then Rs. 100 immediately after that Rajasthan raised its minimum wages to Rs. 100 from Rs. 73, highlighting the risk inherent in extending minimum wages to MNERGA.
  10. 10. Contd.. •20 states already have a minimum wage rate that is higher than prescribed under the employment guarantee act. •Centre fixes a national floor for minimum wages, which has been enhanced recently from Rs. 80 to Rs. 100 a day. •Law gives State the power to fix task-based wage rate.
  11. 11. Thank You