Prime Minister Manmohan Singh on Monday ruled out a ‘hire-and-fire’ policy in state-owned enterprises and assured workers that economic reforms would not adversely affect their interests.
At a function to present the Shram awards, recognising exemplary contributions by workmen in the public sector, Singh stressed the need to reverse the trend of jobless growth, assuring reforms but not without safeguarding the interests of the workers. Thirty five workmen, employed in state-owned departments and public sector units of the Centre and state, were awarded today.
‘‘The working class has my assurance that we shall never pursue a path which affects adversely the interests of the workers and the toiling masses of our country,’’ he said. ‘‘While recognising the need for increased flexibility in labour markets, one cannot glibly talk of an uncritical endorsement of the hire-and-fire approach.’’
He pointed out that institutions of social security, specially unemployment insurance, were not well developed in India and added that in a globalised world where developing and developed countries were getting interlinked, India faced the twin challenges of competition and widening disparities.
Listing strategies to boost employment, the Prime minister said a draft bill on National Employment Guarantee Act had been prepared by the National Advisory Council, headed by Congress president Sonia Gandhi, and was currently being examined. Underlining his government’s emphasis on employment-led growth, Singh said more attention was needed on agro-processing, rural industries and the informal sectors. He called for substantial investment in skill upgradation and vocational training to create a large pool of skilled workers.
‘‘Of the labour force of 397 million, almost 67 pc are either illiterate or suffer from limited literacy and only five per cent workers in the age group of 20-24 years have vocational skills,’’ he said. Investment, particularly FDI, was based on availability of quality labour, but the skill level was an area of concern, he said and proposed a programme for industrial participation in apprentice training on the lines of Germany and South-East Asia.