The Hindu Business Line : `Amend Act to make cos allot 20% of shares to employees'

THE INTUC national president, Mr G. Sanjeeva Reddy, has said the Centre must amend the Companies Act so as to give effect to mandatory allotment of shares by companies to their employees and the minimum reservation of shares for the employees should be 20 per cent.

Mr Reddy said though at present the Government had been suggesting around 2 per cent share allotment to employees, his trade union had wanted 20 per cent, which would give the workers the real feeling of sharing the management responsibility.

But the value for the shares allotted to the employees should not be on the basis of the market value, he said, adding that his organisation was, however, willing to negotiate the percentage of the share allotment.

Mr Reddy was here in connection with a two-day national seminar for trade unions on `Textile and clothing industries in India and the phasing out of MFA,' which was held under the aegis of the Indian National Textile Workers Federation and Ambedkar Institute for Labour Studies, Mumbai.

Talking to Business Line, Mr Reddy said the INTUC was in favour of amending the labour laws in the context of the existing economy vis-à-vis the emerging market economy in the post-WTO regime.

"But I want that any such amendment should be balanced and fair enough to accommodate the interests of management/investors and labour," Mr Reddy said, adding that he was ready to negotiate on this with the industries/management bodies such as the CII.

Stating that the trade unionism has to move away from the "outdated agitation mode" into one of sharing the responsibility of enterprise/management in the emerging business scenario, the INTUC chief held the view that the trade unions had to protect the job first if they had to protect the job of workers.

As for the phase-out of the multi-fibre arrangement and the quota-based textile trade under the WTO regime next year, the Indian trade unions had to positively support the integration of textile trade into the WTO regime which will pave way for the quota abolition thereby immensely benefiting the India's textile industry.

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