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This is an archive article published on May 8, 2015

Tripartite panel to review industrial relations code

Code seeks to merge 3 Central labour laws, allow easier closing down norms.

industrial relations, Central labour laws, labour ministry, Industrial Disputes Act, Trade unions, labour ministry  tripartite committee,  industrial relations code, Business news Labour minister Bandaru Dattatreya

The labour ministry has set up a tripartite committee to review the draft code on industrial relations that seeks to merge three Central labour laws and to allow easier retrenchment and closing down norms for firms with more than 300 workers.

“A tripartite committee has been set up with representatives from employer and trade unions and state government officials to look into all concerns. It will submit its report in 15 days,” said Shankar Agarwal, secretary, labour and employment.

The decision follows a tripartite meeting by labour minister Bandaru Dattatreya on Wednesday to discuss the proposed Code that would amalgamate the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947.

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Trade unions are understood to have expressed concerns over amendments to the Trade Unions Act, 1926, one of which has proposed that at least 10 per cent of workers employed by a company or a minimum of 100 workers would be required to set up a trade union.

They had also opposed amendments to the Industrial Disputes Act that would allow firms employing up to 300 workers to lay them off or shut down the unit without prior government approval, as against the current threshold of 100 workers. In turn, workers would be given compensation for an average 45 days worked in a year as against the current practice of 15 days in case a factory is closing down.

However, pointing out that the proposals are in line with current day requirements, Agarwal said that the ministry is planning to introduce the Industrial Disputes Code Bill in the Monsoon session of Parliament.

“Based on the recommendations of the tripartite committee, we will finalise the Code and take it to the Union Cabinet for approval over the next few months. We will try to introduce it in the next session of Parliament,” he told The Indian Express.

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Trade unions too had sought setting up a committee to look into the various provisions of the Code in Wednesday’s meeting with the Union minister.

“Everyone has concerns over the Code and one of the ways to look into it is by setting up a committee,” said a senior trade union leader.

 

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