The Hindu Business Line : PM recognises concerns over `hire and fire' policy

The Prime Minister, Dr Manmohan Singh, flanked by the Union Minister for Labour and Employment, Mr Sis Ram Ola, and the Secretary, Mr K.M. Sahni, presenting a Shram Shri Award for 2002 to a visually handicapped employee of HMT's J&K unit, Mr Abdul Rashid Khan, in the Capital on Monday. — Kamal Narang

New Delhi , Oct. 4

THE Prime Minister, Dr Manmohan Singh, on Monday recognised the workers' concern over the `hire and fire' policy pursued by the industry globally. He said that while one has to recognise the need for flexibility in labour laws, endorsement of the hire and file policy has its downsides.

Addressing a gathering at the annual Shram Ratna Award function here, Dr Singh said, "While recognising the need for increased flexibility in labour markets, one cannot glibly talk of an uncritical endorsement of the hire and fire approach, more so, since the institutions of social security, particularly unemployment insurance are not well developed in our country."

"Even then," he said, "living as we are in a world characterised by considerable uncertainty and fluctuations in demand as well as fast changing technological conditions, there must be an honest objective assessment of the employment impact of our economic policies, including labour laws. Structural reforms in a democracy, to be durable, must involve consultation with all stakeholders, particularly the workers and trade unions."

The Prime Minister said the Government was committed to reforms with a human face. Assuring the working classes, he said, "The working classes of our country have my assurance that we shall never pursue a path, which affects adversely the interests of the workers and the toiling masses of our country."

Dr Singh also coined a new slogan for his Government focussing on the importance attached to employment generation in the Common Minimum Programme of the UPA Government. He said the time has come to add to the `Garibi Hatao' call a new slogan for our times - Rozgar Badhao.

Stressing the need to reverse the jobless growth witnessed during the past few years, Dr Singh said a new Food for Work Programme would be launched in a few weeks in 150 backwards districts of the country as a first step towards National Employment Guarantee to provide 100 days employment to all able-bodied persons in rural areas.

"In the next few years, this Food for Work programme is to be converted into a National Rural Employment Guarantee programme based on a National Employment Guarantee Act. A draft Bill on this subject has already been prepared by the National Advisory Council and is currently under examination," he said.

Dr Singh said employment could be generated for unskilled and semi-skilled labour through massive investment in the infrastructure sector.

"As creation of modern infrastructure is a top priority for our Government, we expect this to translate into substantial job opportunities. My esteemed friend and colleague, Shri Lalu Prasadji has assured me that the Railways will be the front-runner in building of our national infrastructure," he said.