Shiv Sena scuttles Fadnavis’ labour reform plans

The proposal, tabled as part of the government’s new retail trade policy, advocated exempting about 27 lakh retail traders in the state from the provisions of the law.

The proposal argued that those on the payrolls of such establishments would remain protected as permanent labourers.

Another proposal was to exempt firms employing fewer than 50 employees from provisions of the Contract Labour (Regulation and Abolition) Act, 1970. Currently, this law is applicable for all those employing more than 20 employees.

The Shiv Sena ministers, arguing that a majority of retail establishments employed contractual labour, objected strongly to both moves. Fadnavis failed to resolve the deadlock and was eventually forced to defer a decision on the proposal.

Last year, the BJP managed to push through some amendments to the Factories Act, including redefining which businesses should be bound by it,
effectively excluding 14,300 small units from its purview. The government has also opened the doors for women labourers to work on night shifts.

But on Tuesday, the Shiv Sena’s Ramdas Kadam argued in the cabinet meeting that the state government actually had no powers to amend labour laws. While mantaining that the proposal worked against the interest of contract labourers, Kadam reportedly also questioned the legality of the state’s plans to amend various labour laws. Maharashtra’s Transport Minister and Kadam’s party colleague Diwakar Raote echoed Kadam’s views, forcing BJP ministers to cede ground.

Ironically, the labour department, led by the BJP’s Prakash Mehta, has also opined against the move to amend the Mathadi Hamaal Act. In an official communication, the department has said that the move could deprive lakhs of contract workers the right to provident fund, gratuity and bonus, benefits they are currently entitled to.
Incidentally, Mehta himself remained absent at Tuesday’s cabinet meeting. Since amendments to labour laws require the consent of the entire council of ministers, Fadnavis had also invited ministers-of-state to remain present for the meeting.

Sources said throughout the discussion, Kadam remained defiant even as Fadnavis offered to appoint him on a previously appointed panel to review about 20 laws and rules pertaining to labour and industry. Kadam even questioned the legal validity of the panel that is headed by Finance Minister Sudhir Mungantiwar of the BJP.