Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Labour reform slips out of list as India Inc has greater worries by Devika Banerji

Labour reform slips out of list as India Inc has greater worries by Devika Banerji

Share this article Share this article
published Published on May 8, 2011   modified Modified on May 8, 2011
Archaic labour laws are not affecting India's manufacturing sector as much as problems related to land, water, licences and clearances, a government panel's study shows.

With the findings of the Planning Commission study, changing rigid labour laws, so far suspected to be the main hurdle before the manufacturing sector, is likely to drop on the government's list of priorities. The sector contributes 15% to India's GDP.

"Against popular perception, we have found that archaic and rigid labour laws are not among the top three problems faced by the manufacturing sector," a Planning Commission official said.

The report is a conclusion of surveys conducted by the commission ahead of the formulation the 12th Five-year Plan to identify issues hampering growth of the manufacturing sector.

The 12th Plan begins in 2012. The commission has formed 10 working groups to help in effective policy-making for the plan period. The working groups, which will look into various issues including labour reforms, are expected to submit their reports by November.

The report says that high transaction costs because of multifarious clearance and licence norms, availability of land and water, and environment clearances are bleeding the manufacturing sector more than old labour laws. To address the concerns of companies, one working group will explore the possibility of having single-window clearances for building manufacturing plants. At present, an average of 20 clearances are required.

On labour management and laws, the report says that most companies are recruiting labour on contract, besides providing conducive work environment and better benefits. Another reason cited for the smaller role of labour laws is the increasing contribution of technology in manufacturing.

"Labour constitutes only 10 % of a manufacturing plant, 90% are other components. Therefore, industries have such a perspective.

There is increased mechanisation, and that is necessarily not in the interest of the country," said Ravi Wig , president of the Employers Federation of India . Labour reforms would continue to be important, Wig added. For the industry too, labour reforms continue to be as important as the setting up of a single-window clearance system.

"Both are required, one for setting a plant and the other for running it smoothly," said BP Pant, head of labour, employment and skills development department in the Federation of Indian Chambers of Commerce and Industry.

Pant said labour laws are tilted towards workers and do not facilitate job creation, or cater to the evolving needs of the consumer-centric manufacturing and services sectors.

However, the Planning Commission official said a greater responsibility lay with the companies. "There are things beyond laws."

The Planning Commission's approach paper to the 12th Plan has stated the need to create 100 million jobs by 2020-25, which will help raise the manufacturing sector's contribution to the GDP to 25 %.

Another working group of the commission will identify ways to make manufacturing competitive and quality conscious.

"All this is intended to create jobs, and therefore, new labour laws are essential for a smooth sail. What our study shows is that companies and states have found an alternative way through effective industrial relations management," the official added.

Labour law reforms are part of the draft manufacturing policy prepared by the industry ministry and the national strategy for manufacturing prepared by the National Manufacturing Competitiveness Council .

The Economic Times, 7 May, 2011, http://economictimes.indiatimes.com/news/economy/policy/labour-reform-slips-out-of-list-as-india-inc-has-greater-worries/articleshow/8183209.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close