Radical labour laws on the cards

NEW DELHI, APRIL 21: A few days ago, when Prime Minister Atal Behari Vajpayee told trade unions that labour laws needed to be changed, he ...

NEW DELHI, APRIL 21: A few days ago, when Prime Minister Atal Behari Vajpayee told trade unions that labour laws needed to be changed, he wasn8217;t talking in the air. For the Labour Ministry is currently working on a new Bill the Industrial Relations Bill to radically amend labour laws which, if accepted, will make employers industrialists breathe much easier. And will certainly prompt trade unions to breathe fire.

The most startling amendment proposed is to remove employees earning a gross monthly salary of over Rs 10,000 from the definition of what is called a 8220;workman.8221; In effect, what this means is that these employees can no longer approach the labour courts for grievances, such as those relating to their being retrenched, transferred, or their job content being changed.

At present, the law stipulates that if an employee is retrenched, transferred, or any other provision of the service contracts are changed, he can take the employer to the labour court, and that is the bane of most emplyers. Now, under the proposed new law, the contracts of workers earning more than Rs 10,000 per month will be treated as any other contract. So, if an employee feels he/she has been aggrieved, he/she will have to go to a normal civil court for justice.

Similarly, another part of the labour reforms relates to repealing the Abolition of Contract Labour, 1970. This law stipulates that the Government, from time to time, will explore areas from which contract labour should be abolished. For instance, if a power company hires 20 or more persons to run its canteen services on a contract basis, tomorrow the Government can, under this law, issue directions that contract labour in this sector be abolished.

The company concerned will then have to give a permanent status to all these canteen employees.

This particular clause has made several companies wary of hiring people in their peripheral areas. For instance, Haryana State Electricity Board HSEB was last year forced to take several employees on its permanent rolls 8212; these sweepers and cleaners in its colonies were earlier hired on a contractual basis 8212; since the advisory board on abolition of contractual labour ordered it.

Air India also had to regularise contract workers in a similar fashion in the 8217;80s.

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Once the present law is abolished, companies can freely outsource employees for their peripheral activities while concentrating on their core activities.

However, for these amendments the Government will have to go to the Parliament. How far it meets success there and what is the stance of its several allies is to be seen. However, once thing is certain, the Bill is bound to face severe Opposition from the Left parties and trade unions.