Acknowledging that labour reforms tops the long wishlist from the textiles sector, the ministry is now trying to work around stiff labour laws to impart some flexibility on hiring and firing. And if that sounds like music to CEOs in this labour-intensive sector, it must be stressed that the planned reforms — to be announced soon — do not include a much-needed exit policy.According to sources, the textile ministry recently made a presentation to the Prime Ministers’ Office (PMO) on the imperatives of giving the sector some leeway on the hiring front. With the decades-old quota regime now consigned to history, textiles is being seen as the Next Big Thing for India on the global stage.Based on the presentation, the PMO has directed the ministry to give final touches to the proposals, which include a move to exempt the garment and the textile sector from the ambit of the Contract (Regulation) and Prohibition Act, Factories Act and Industrial Disputes Act.However, since the issue of an exit policy continues to be ‘politically sensitive’, the government would steer clear of the issue. As things stand, many textile mills are making heavy losses, but continue to employ huge labour force as they cannot do away with them in the absence of an exit policy.Making the sector exempt from these stringent labour laws is an easier way out instead of seeking amendments to the rules, sources said, while pointing out that amendments to the rules will in turn involve taking up these issues in Parliament.However, if the textile and garment sector is made exempt from these proposed stringent labour laws, it will give the industry the leeway to go for seasonal hiring without much difficulty and further also allow them to increase the timings of the women labour force.According to experts in the textile sector, a significant proportion of the labour force in the textile sector consists of women. The laws at present do not permit the companies to employ their women labour force for more than eight hours daily. ‘‘However, most women want to work for 12 hours so that they can earn extra wages,’’ says an industry expert. This will be permitted once the sector is made exempt from the stringent labour rules.The move by the government is aimed at making the textile sector more competitive to face the post quota regime. The sector has been asking for flexibility on the labour front along with improvement in the roads and ports and other infrastructure facilities.
