Financial Daily from THE HINDU group of publications
Wednesday, Jun 15, 2005
Financial Daily from THE HINDU group of publications Wednesday, Jun 15, 2005 |
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Industry & Economy
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Labour Reforms Labour law `provides windows of opportunity' Our Bureau
Coimbatore , June 14 WHILE labour law amendments are needed to impart greater flexibility in employment, companies should also learn to live with the labour statutes. This is the underlining message handed out to scores of participants at a seminar on employment laws and contract labour held in the city on Tuesday. The seminar was organised by the Coimbatore Management Association (CMA) in association with the All India Management Association (AIMA). "Labour law is not going to change that soon but within the law, there are windows of opportunity available for the industry to take advantage of in areas of employment or engaging contract labour," said Mr Michael Dias, Secretary, Employers Association, Delhi and a management consultant on industrial relations. Another Delhi-based management consultant Mr M.R. Gera, who chaired the session on managing contract labour along with Mr Dias, felt that existing labour laws were essentially designed to protect employment and they did not encourage more employment or employability. Industries faced with challenges of market demands do need flexibility in jobs to meet incremental production activities based on order books and need to engage contract labour. The existing labour laws do have provisions to have contract labour which could be employed under fixed term. But the law prohibits `sham' contractors where one merely engages only the contractor for `name lending' while the labour supplied are brought under the industry's own supervision. The previous government at the Centre, according to Mr Gera, had legitimised the fixed term employment through a modification in the Central legislation under standing orders but this was recently withdrawn possibly under pressure from the Left parties. But still, the fixed term employment is still possible under the Industrial Disputes Act, though this could be only in respect of temporary jobs.
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