Tuesday, October 29, 2013

Outdated labour laws affect productivity of the nation: experts


Chennai:
Business chambers, trade unions as well as experts on Monday stressed the need to change the labour laws which they felt is outdated and does not satisfy any of the stakeholders.
At a discussion after the release of a study on labour laws, experts felt that rigidities in labour laws affect the quantity and also the quality of employment and investment in the state.
Labour and employment secretary of the state Mohan Pyare said that that the labour laws are archaic and needs to be changed. “It is the right time a initiative has come to change it. Neither the employee, nor the employer or the government is satisfied with the existing laws,” he said.
He said labour laws should deal with all wages, health and safety, social security and disputes and settlements.
He also stressed on the need for a uniform social identification so that the worker, wherever he migrates carries the number with him and the contributions are made to the account.
V Murali, deputy chief labour commissioner of the Union government highlighted the rise in employment in informal sector and a decline in formal sector. He said even the state as well as Union government are now outsourcing their jobs.
Subodh Kumar, executive programmes, Friedrich Naumann Stiftung fur die Freiheit, said that 93 per cent of lowly paid jobs in India do not have any security cover. He said India needs to get rid of obscure laws to compete globally. He also said that 92 per cent of India’s labour forces are economically active in the informal sector.
The study, which was done by Prof J Reeves Wesley, also put forth a series of recommendations including devising a mechanism for availability of apprentice for atleast six months only for SMEs employing less than 50.
It also recommended for amendments in the Contract Labour Regulation and Abolition Act 1970 increasing the number of workers in the definition of applicability to 50 and for companies employing contract workers for 365 days. It also stated that Employee State Insurance Act should be applied for SMEs employing more than 50.

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