Frame policy to bring unsung workers of outsourcing sector under safety net: Industry

Chennai:

Industry has urged Tamil Nadu government to frame a policy for Rs 27,000 crore outsourcing sector in a bid to provide safety net to the millions of workers whose contribution to the national economy goes unnoticed.

Addressing a press conference after releasing a report on ‘Manpower Outsourcing in Southern States’, Confederation of Indian Industry Southern region chairman T T Ashok  and CII chairman of southern region subcommittee on skills and employability B Santhanam stressed on the need for states like Tamil Nadu and Karnataka to work on such a framework as amendment to labour laws in the Centre takes ages.

“States like Tamil Nadu and Karnataka where 75 per cent of employees are outsourced should take a lead in this regard so that outsourced employees can be treated on par with permanent employees,” said Santhanam.

Interestingly, outsourcing companies can neither register in employment exchanges nor can take in apprentices. Santhanam also said the framework should also focus on housing needs of the employees.

Santhanam said the sector needs to be provided an independent industry status. “This would bring in parity in terms of legislations, bridge the divide between organized and unorganized sectorand provide a security net for a larger section of labour force,” he added.

There were also recommendations to make Labour Act more inclusive based on current market requirements. “There is a need for uniformity in legislations across sectors, parity and rationalization of labour laws across states and sectors to enable a mobile, flexible and employable workforce, Standardised benefits across ‘permanent employees and outsourced employees could help stem attrition,” the report on manpower outsourcing said.

Currently, the attrition rate in outsourcing sector is 30 to 35 per cent per year and Santhanam said there is a difficulty in getting people for many outsourcing companies.

The report also recommended the gopvernment to look at the outsourced manpower development sector in conjunction with skills development sector. It also said that lack of monitoring by government agencies and low entry barriers make it easy for fly-by-night operators resulting in various malpractices in the industry, the report added.