Strikes go up, look at China

According to the Economic Survey, 27 million mondays were lost due to lockouts in 2003, which declined to 19 million mondays in 2004. But strikers cost the economy 4.83 million mondays of work in 2004, nearly two million higher than the 3.21 million mondays lost in 2003.

This, according to the Eco Survey, indicates the 8216;8216;importance of reforming the labour laws to enhance productivity, competitiveness, employment generation and general economic reforms8230;8217;8217;

These 8216;8216;industrial disturbances8217;8217;, as per the Survey, were concentrated in the textile, engineering, chemical and food product industries. As a solution, the government has proposed to raise the wage ceiling from Rs 1,600 per month to Rs 6,500 per month, as part of amendments in the Payment of Wages Act, 2005, which has been notified to also allow the government to further increase this ceiling.

8216;8216;Perhaps there are lessons to be learnt from China in the area of labour reforms. China, with a history of extreme employment security, has drastically reformed its labour relations and create a new labour market in which workers are highly mobile,8217;8217; says the Survey.

It also says that mass layoffs and open unemployment in China, have been supported by high rates of industrial growth, particularly in coastal areas. 8216;8216;In spite of hardships, workers in China seem to have benefited from wage growth, additional job creation and new opportunities for self employment,8217;8217; it says.

The government is also 8216;8216;actively considering8217;8217; amendments to the Factories Act.