The Hindu Business Line : Govt mulls flexible labour norms for textiles sector

While the existing labour laws would be applicable in case of the "core group" of workforce, firms would have the flexibility to recruit and retrench the "non-core" workers provided the unit undertakes that each of these workers is employed for at least 100 days a year.

New Delhi , Oct. 30

IF a new policy initiative being considered by the Government goes through, textile firms could soon get a degree of flexibility in taking on "non-core" workers, who would be kept outside the ambit of the existing set of labour norms.

To pass muster with its Left Party allies, the Government plans to invoke the Common Minimum Programme (CMP) provision of ensuring employment of at least 100 days in a year for these workers.

As per the proposal, textile firms could have the option of bifurcating their employees into "core" and "non-core" workers.

The move comes in the wake of persistent demands from the textile industry for some flexibility in the labour norms.

Currently, most Indian exporters have been unable to pick up high-volume seasonal orders since executing the orders meant employing additional workers on a temporary basis, which is not permissible under the existing labour regulations. While discussions have taken place among the various Government departments, the issue is likely to be taken up soon with the Left Parties, which recently returned to the UPA-Left Co-ordination Committee meetings.

"At present, most units are having to turn away seasonal orders, resulting in losses for both the entrepreneur and the workers, who lose out completely on the possible employment opportunity. If some degree of flexibility were provided in the employment terms for a set of workers, it would be a win-win situation for both the units and these workers. The industry has even conveyed to the Government that it is ready to guarantee the temporary workforce at least 100 days of employment, if not more," a Confederation of Indian Textile Industry representative said.

The regular and recurring orders constitute the bulk of the orders (upwards of 90 per cent of total order book for an average unit) being executed by domestic textile firms currently.

Indian exporters are losing out on the seasonal and ad-hoc orders, which generally come in as high-volume business during certain parts of the year - such as Christmas and New Year season - to their Chinese counterparts and to exporters from other Asian countries.

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