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LATEST NEWS UPDATES | Tone changes on labour

Tone changes on labour

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published Published on Jul 21, 2015   modified Modified on Jul 21, 2015
-The Telegraph

New Delhi: Prime Minister Narendra Modi began work with unions and employers today to build support for the biggest shake-up of labour laws in decades, in an attempt to revive a reform agenda that has suffered setbacks ahead of the Parliament session.

It is a change of tack for Modi, who is smarting from widespread opposition to land purchase rules he has so far failed, to push through Parliament following an ordinance.

"I am confident that we will be able to address the challenges ahead and proceed with reforms with everyone's consensus," Modi said at the start of a two-day labour meet.

Draft changes to archaic labour codes include pro-business measures giving factories more leeway to lay off workers and will simplify thickets of rules, but also include measures to expand the social security net to the huge unorganised sector.

The overhaul will probably not reach Parliament until later in the year, despite an earlier goal of tabling the amendments in the upcoming monsoon session.

The government hopes the more consensual approach will pay dividends in the form of union support, and will help stave of a threatened national strike on September 2.

Over tea at the weekend, Modi reportedly told union leaders that they would be included in discussions along with companies in the build up to the labour law shake-up.

"The government is talking in a positive manner," said Baij Nath Rai, president of the Bharatiya Mazdoor Sangh, (BMS) India's largest union and affiliated to the RSS. "They are trying to understand us."

Finance minister Arun Jaitley, who heads a ministerial panel discussing labour reforms with trade unions, warned of a threat to job creation if investment was blocked and appealed to the unions not to persist with ideas that harm the economy.

The tone for the conference was set by Rai, the BMS leader, who criticised the government over a "few wrong policies" and asserted the union would not allow reforms at the cost of labour.

The BMS demanded that the industry-friendly Factories Act enacted by the BJP government in Rajasthan and the Centre's new labour laws be withdrawn.

After the Prime Minister's speech, Aituc leader Gurudas Dasgupta said "conditions have to be created for working together but they are not there. Labour laws are being changed without talking to the trade unions".

He said there was no change in the stand of the unions to go on a nationwide strike on September 2 in support of their 12-point charter of demands.

Modi said there was a thin line dividing the interest of industry and industrialists and labour and labour organisations.

"There is a need to recognise this thin line and adopt a balanced approach," he said.

The Telegraph, 21 July, 2015, http://www.telegraphindia.com/1150721/jsp/nation/story_32807.jsp#.Va4Kk_k1t_k


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