‘Maruti incident could hit job creation’https://indianexpress.com/article/news-archive/web/maruti-incident-could-hit-job-creation/

‘Maruti incident could hit job creation’

Maruti incident has brought to the fore the debate over contract labour: ISF.

The recent violence at the Maruti Suzuki factory in Manesar can have a long-term and unprecedented impact on job creation and employment in the country,says Indian Staffing Federation (ISF),an apex body of the temporary staffing industry in India.

Maruti Suzuki has declared a lockout following violence on July 18,at its Manesar plant,in which a senior executive was burnt alive and 100 others were injured.

The incident should serve as an eye opener for the country as it indicates “an extreme situation of non-existent social dialogue that leads to situations of extreme mistrust which is behind such ghastly incidents”,ISF which represents firms having over 3.5 lakh temporary staff on its rolls said.

“The incident has also brought to the fore the debate over contract labour. The time is now ripe to re-visit the Contract Labour (Regulation & Abolition) Act,1970 and seek a paradigm shift in our approach to and definition of contract labour in India,” ISF said.


ISF further said the current challenging economic scenario has led more businesses to look towards temporary staff both in India and overseas.

Pointing out the benefits of temporary staffing,ISF said interests of contract workers managed by professional staffing companies in the organised sector,are secured and in line with stipulated statutory regulations.

Professional staffing service providers ensure that each employee is covered under minimum wages and in most cases are paid wages at par with the prevalent market range for the specific job.

Moreover,they see to it that each employee is paid PF and has Employees State Insurance (ESIC) coverage,ISF said.