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Monday stressed the need to change the labour laws which they felt is outdated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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